What will be the best for me ? LIC jeevan Saral Vs Term plan Vs PPF or other ?

POSTED BY shalabh srivastava ON July 23, 2014 7:06 pm COMMENTS (4)

Hi All,

I had taken a Jeevan Saral plan with half yearly premium of 24260 (48520 yearly) for 25 years (MSA 1000000) on Nov 11, 2013 and my DOB is 15/08/1987.When i had opted for this plan at that time i was looking for a plan that gives me insurance + saving.

The chart of Jeevan Saral looks goods its show 54 lakhs in 25 years. So i had talked to the agent, after the discussion with him he told i would get 32 lakhs (appox) in worst case. I was surprised to hear why so much difference he said he had computed with 6% + loyalty because lic rate of return is not fixed.

So i was convinced giving i.e -> 25 * 48000=1200000 Lakhs and getting 32 lakhs. (whether i will get this much?)
I have paid 1 year’s premium till date.

Now there so many questions coming in mind are as follows:
1) If I deposits 4000 p/m in RD or PPF account return will get more return but no insurance.
2) If i surrender the policy in one year then i will lost the whole money.
3) If a buy a term plan of 50 lakh (its max premium will be 10000)
3) What if maid this policy paid-up?
4) Getting 32 lakhs after 25 year will meet the inflation at that time.

So my question is whether I should continue the policy and if i made is paid-up then how much i would get ? Or is there any valuable suggestion then please share with me.

Looking forward for your valuable suggestion.


4 replies on this article “What will be the best for me ? LIC jeevan Saral Vs Term plan Vs PPF or other ?”

  1. Subrahmanyam says:

    Hello Hemanth,

    I have chart of LIC which says for 18lac premium that I pay over period of 15 yrs, assured return is 44lac. so I am confused? Could you please clarify.

    1. Check what is the % IRR !

  2. shalabh srivastava says:

    Hi Hemanth,

    Thanks for reply it was very reply helpful and off-course sorry for late reply.
    I had gone through many articles provide by you in your blog after reading
    all this i am conclude all my questions(goals)in this post please reply them
    as it would give me much clear picture.

    These are the rules for Surrendering for LIC Jeevan Saral please go through:

    Surrender Value-Their are three types of surrender values under this plan.
    To avail these option policy need to complete atleast 3 years.
    a) Guaranteed Surrender Value-In this you will receive 30% of total premiums paid
    excluding 1st year premium, all extra premiums and accident benefit/term rider premiums.
    b) Special Surrender Value-It will be of 1+2 options given below.
    1) 80% of MSA will be paid if less than 4 years premium paid, 90% of MSA if between 4 to less than 5 years of premium paid and 100% of MSA if premiums are paid for 5 years or more.
    2) Loyalty Addition till that period.
    c) Can be made anytime after completion of 3 years or more from the start of the policy provided full premiums are paid.

    So surrender will be bit easier once policy completes 5 yrs or more which is not the case with other LIC plans
    1) So my question if i surrender after 5 year whether my 1st year premium will get deducted ? And for these year whether i will get some interest money for these years?

    2) My opinion to carry these policy for 5 years to get min loss. So after 5 years I can go for Tax Saver FD will give me better return after and would cover the loss i have maid in next 15 to 20 years.

    3) Currently i have investing 50000 yearly in PPF,so after paying next 4 years of lic premiums i could merge the amount in PPF for next 20 years it would give 51.5 lakhs (computed @ 8%).

    4) About Retirement Planning:
    Currently I don’t have EPF account & My annual salary is 3.75 LPA and i am looking for job change so next job will be in between 4.8 LPA to 5.4 LPA range.
    a) So if I open my EPF account + investing in MF by SIP ?
    b) Or should i go for some Pension plan ?
    c) What MF is good to start with ?

    5) About Online Term Plan:
    So many product are there is market. My preference is LIC as its best claim settlement in market then SBI,HDFC,ICICI.
    a) Is there is any link which provide all policy details of LIC example inclusion and exclusion.
    b) I have started my job at Aug 2011, but i don’t have form 16 of that year
    (2011-2-12).Does this will stop me buying policy?
    c) In am leaving in Noida but native home town is Allahabad. Is there is any problem in buying policy and medical test?
    d) In your opinion which will good term policy to buy?

    I know my post is very long & i will be very great full to you for reply.
    Looking forward for your response.


  3. Hemanth Chandra says:

    If you get 32 L also at the time of maturity. the Return on your investment is just around 6.8%….. is it good enough ?? This is not even beating the inflation (which is around 9% now)

    This policy is of no use…..

    Try to paid-up or surrender your policy…. call customer care and ask the details of the same…. in which way u will get more benefit….. opt for it…..

    For long term goals (children marriage), invest in PPF+Mutual Funds…. For short term goals (car) invest in RD.

    Take term insurance which is 10-15 times of your yearly income….

    As you might have understood by now…. don’t mix investment and insurance….

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