Which LIC Policy should I buy as per my age ?

POSTED BY Anand Shah ON August 29, 2012 4:21 pm COMMENTS (16)

My Age is 29.

My Dependents – 1 kid 2years old & my wife….

I want to buy LIC Policy which have Low Premium , High Coverage , Money Back at the end of term (10/15/20 Year)….

i.e. Value for money Insurance which cover my life and also give more benefits …..Bonus + Loyalty Addition etc.

I am looking for policy non linked …….not Unit bases …..nor child plans …..

Kindly Suggest me the Best Policy for me.

Anand Shah

16 replies on this article “Which LIC Policy should I buy as per my age ?”

  1. Anand Shah says:

    What about jeevan anand and jeevan tarang ??

    1. Karthik says:


      Have you read all the replies above by Ramesh, Shweta kumari and Krishna Kishore Appala?

      Jeevan anand and Jeevan tarang are not term insurances. LIC website clearly mentions the plan by categories.

      If you think of jeevan anand and jeevan tarang as investment, Please use the premium calculator in LIC website and try to find yourself what is the CAGR for these plans.
      If it is a decent one compared to a Term Insurance + Pure investment vehicle (PPF / FD / Debt fund/ Hybrid fund / Equity fund), just go ahead.

    2. Dear Anand, do you own a 2 or 4 wheeler? If yes, please do tell me the return generated to youi by this vehicle insurance policy?



      1. Anand Shah says:

        Yes I have 2 2 whelers owned and also have insurance.

        1. Dear Anand, How much return you are getting from these 2 Wheeler insurance policies?



  2. shweta kumari says:

    “The life insurance company was previously selling their product on the name of tax-saving, presently selling on the name of investment. God knows when they will sell true insurance products.”
    (ex-SEBI chief)

    The only true insurance product with a LIC-company is “Term-Insurance”. It Should be taken as a crisis management product as your” vehicle insurance”


  3. Dear Anand, what’s your current yly income? Your other assets & investments? Any Loan liabilities? As per your own understanding how much insurance cover to you is good for your family?



  4. Krishna Kishore Appala says:

    Dear Anand

    If you are so particular on LIC only, then have a look at

    1. Anmol Jeevan-I (Max Tenure: 25 years, Max Sum assured : 25L)
    2. Amulya Jeevan – I (Max Tenure: 35 years, Max Sum assured : No Upper Limit)

    Max Tenure & Sum assured are the important points which we need to look before taking an insurance along with premium.
    If you are ready to pay high premiums (as LIC provide only Offline). You can select one from above.

    Or else of you want to go online & private players,
    we have SBI, Kotak Insurance, Max life etc which are leading players in insurance market, where premiums are also low.

    There may be a chance chance of LIC entering in online.
    But i strongly suggest don’t wait till that. You take a insurance now.
    If at all it comes next year or so, take that policy first & then cancel the offline policy.


  5. Krishna Kishore Appala says:

    Dear Anand

    Insurance is an “Expense” not an “Investment”. Both are completely different in there product structure & purpose. Always view them as separate entities. If you mix them both, You will get a max return of 5% after 15 years (inflation NOT adjusted, if adjusted its -ve return) and a cover of 10-15 L which is worth minimal for your family.

    So as suggested by Swetha, take a Pure Term Plan & invest the difference amount in Mutual Funds like HDFC Top 200 , Franklin India Blue chip, DSPBR Top 100 etc , all growth options for a time frame of say 15 years. You will surely earn nearly 10-12 % (This time inflation adjusted, if not adjusted it can be around 18-20%).

    Happy Investing 🙂

  6. shweta kumari says:

    Hello Mr.Shah, may i know why u want to buy a LIC policy?? you can take a online term plan and rest of the money you can invest in Mutual Fund through SIP route for long term(10-15years). In my point of view it will give you more return with insured life.

    Endowment policies according to me are not a good product (ULIPS are not far behind).Always remember that Insurance and Investment are best bet only if they are not served as Cocktail.

    1. shweta kumari says:

      Hello Mr.Shah,

      (1) No endowment plan give more than 5-6% at the time of maturity.

      (2) When you mix insurance + investment,it takes huge cost + less liquidity + less clarity.

      (3)LIC co.s are having policies with option of premium back and premium with some profit.But in comparison with pure term plan these policies are having very high premium wh
      which makes them costly affair.


      (4) In your case you can increase SIP amount in your existing UTI fund(as it is good) or take any large cap fund with growth option(like ICICI focused bluechip ; Franklin India bluechip ; DSPBR top 100 etc. )and contact to local life insurace companies offices and ask them for pure term plan and opt what is fit for yor need on basis of low premium and claim settelment ratio. Amulya Jeevan is good but its premium is very HIGH.

      You can consider post office RD or NSC if you are more conservative investor. And please remember Always consider insurance as expense and never as investment. Your insurances(Health, Term, Vehicle , etc) are yearly expenses.

  7. Ramesh says:

    Can you give one-line explanations (more is ok too) for all the features your have asked.

    I have asked this because:

    1. low premium with high coverage is ok. but with money back at the end of term cannot set into this combination.

    2. bonus + loyalty does not fit with low premium.

    3. value for money does not fit with bonus+loyalty.

    So, you can understand that we are a bit confused about all of these requirements at the same time. 😉

    1. Anand Shah says:

      Dear ………
      I have SIP of UTI Divident Yield ………….
      and for Online buying ………. i dont prefer online buying ……….

      Any way Thanks for Advice …..

    2. Anand Shah says:

      Thanks Krishna
      I agree with U.

      Kindly suggest me the Term Plan ……. Of LIC only..

    3. Anand Shah says:

      Thanks Ramesh ………
      As per your thoughts kindly advice me LIC Policy …..

      1. Ramesh says:

        I think you can check out Amulya Jeevan. But get only term insurance of whatever amount you need.

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