Review of LIC
Jeevan Shagun Policy
On 1st Sept, 2014 LIC has launced LIC
Jeevan Shagun Policy for 90 days. Many of my friends and investors has inquired
about this whether should they buy it or not. Today we will discuss about its
features in detail for review. It is non linked, single premium, money back
insurance plan with profit.
Features of LIC Jeevan Shagun Money
Back Plan:
·
The minimum entry age is 18 and the
maximum entry age is 45 for this plan
· It is single premium policy. It means
you have to pay premium only in starting. The policy tenure is 12 year.
· It offer sum assured 10 times of
single premium which you pay in start. It will be paid only in the case
of death. The minimum sum assured is Rs 60,000 in this plan and for maximum
there is no limit.
·
Loan facility also available in this
plan. Loan amount is linked to surrender value. From 2nd to 3rd
year of policy the eligible loan amount would be 50% of surrender value. From 4th
to 6th year the loan amount would be 60% of surrender value. For 7th
to 9th year it would be 70% of surrender value and from 10th
to 12th year it would be 90% of the surrender value
Death Benefit:
In case death happen within 5 year from
the beginning of policy your nominee will get paid basic sum assured means 10
time of your single premium and if it happen after 5 year then nominee will get
basic sum assured with loyality addition.
Survival Benefit:
On survival of life insured, the insured
will get 15% of the maturity sum assured at the end of 10th year, 20% of
maturity sum assured at the end of 11th policy year and 65% of
maturity sum assured will get at the end of 12th year of policy.
Surrender Value:
If you not satisfied with your policy,
you have option to surrender it. If you surrender within 1 year from date of
policy then you will get 75% of single premium and if you surrender policy
after 1 year from the date of policy then you will get 90% of the single
premium.
An example for understanding:
If a 40 year age person take Rs 1 lakh
maturity sum assured, he/she need to pay Rs 59,500 ((1,00,000 / 1,000)*595) as
single premium for 12 year policy cover. In case of death he/she will get 10
times of single premium, It means in this case 5.95 lakh.
In case of survival the payout he/she
will get at the end of 10th year is Rs15,000 (15% of maturity sum
assured). At the end of 11th year you will get Rs 20,000 (20% of
maturity sum assured) and at the end of 12th year Rs 65,000 (65% of
maturity sum assured) and loyalty addition or bonus if any.
Should you go for this plan?
I have many times mentioned in my blog.
Generally LIC policies provide returns between 5% to 7%. Low risk appetite
investors who want to stay away from high risk and high return products stocks,
mutual funds, etc. can opt for such policies. One should consider term
insurance plans for risk coverage purpose and balance, invest in bank FD
schemes or mutual funds and stocks according to their risk appetite which can
provide better returns.
If you want more information
regarding investment or you need investment services, feel free to ask us. We
also conduct the seminar on investment and financial planning. If you are
interested for seminar in your city just drop the mail.
Warm regards,
Arvind Trivedi
Certified Financial Planner
