Hi,
My friend is visited to LIC office for inquiring about term plan (offline). For 32yrs old, 1cr SA, 35yrs tenure, premium will be Rs 35281/-. LIC officer (or agent ?) suggested him to buy LIC Nomura Saving plus MF as well so that he can pay his term plan premium rs 35281 through this MF. They(LIC or MF company) itself will take care of premium (as per agent). Locking period of MF equal to tenure of the term plan i.e. 35 yrs.
According to agents excel sheet, if we pay Rs 100000/yr for next 6 yrs (total 6L), no need to pay extra money for entire term plan tenure for premium. plus after 35 yrs, he will get Rs 603413/- back. Rate of interest considered for this calculation is 7%. (We have to pay first premium of term plan.)
I am not convinced by this logic. Appreciate, if anyone can comments/guide on it. Refer below calculation for 8 yrs, further saving plus MF amount gets increased and on 35th yrs it comes to 603413/-
| Investment | Savings Plus Fund |
| 100,000 | 107,000 |
| 100,000 | 183,739 |
| 100,000 | 265,850 |
| 100,000 | 353,709 |
| 100,000 | 447,718 |
| 100,000 | 548,308 |
| 0 | 548,939 |
| 0 | 549,614 |
Thanks in advance.
-Sandeep