Which to opt: LIC Policy or Term Insurance

POSTED BY Mohan ON October 31, 2012 10:09 pm COMMENTS (6)

Hi Manish,

I took an LIC Policy in Aug, 2012 called Jeevan Anand for Rs.5 lacs sum assured with a premium paying term of 16 years. Till now, i have payed only one half yearly installment of Rs.17,971. The following benefits are included in the policy which i will get according to the following cases:

On Maturity if alive: 5 lacs+ Bonus (which turns out to be Rs. 43 per thousand per annum) i.e., Rs 3.44 lacs= Rs 8.44 lacs

Accident Benefit: 5 lacs + Bonus accumulated till that time

Death Benefit: If the person dies before 70 years (5 lacs+ Bonus accumulated(3.44 lacs)+Final additional bonus)

Is this it better to discontinue or continue the policy?

Can i get a term insurance for a higher amount with the same premium covering all major riders?


6 replies on this article “Which to opt: LIC Policy or Term Insurance”

  1. Dear Mohan, what’s the update from you on the matter?



    1. Mohan says:

      As such I have stopped paying the premium for the LIC policy which I took.

      For to take a term insurance, I am confused with some of the details like online or offline,amount and what are the riders to be included.

      1. Dear Mohan, please do not purchase any other Rider like ADBR or CI rider. The only rider one should add is Prem. Waiver.

        Please opt the online term cover from the insurer where you are comfortable. Please purchase it right now. You are risking your family’s financial future too much. Think over it.

        In general you should purchase around 15 times of your yly income + Loan if any as your sum assured in your term cover.



  2. Dominic Prakash says:

    1. Definitely stop Jeevan Anand (I did actually)
    2. Get a Term policy from Aviva/Kotak/Aegon/ICICI.

    I am not aware of your age.If 18K is your half yearly premium then for your yearly premium (36K) you could get roughly 2.5 to 3.0 crores.

  3. BanyanFA says:

    for term policies, you can look outside LIC. LIC tends to be on the expensive side of insurance. Try out SBI Life – they provide competitive (non online product) for term insurance. I think their product name is called Smart Shield.

    Banyan Financial Advisors (BanyanFA)

  4. Harsh Puri says:

    Hi Mohan,

    I think you should discontinue this policy and go for LIC Anmol Jeevan, which is their term policy for sum assured less than 25 lakhs. If I am not wrong the policy should come with accident benefit equal to the sum assured.

    The premium for the term policy will be a lot less than what you would pay now. Invest the surplus with guidance from your financial planner towards your financial goals, or put your details here so forum members can help you out with the same.


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.