I am 25 years old and I can save up to 14,000 /- p.a. for a period of 20 to 25 years, which policy should I buy? I was recommend LIC Jeevan Saral Plan. I would be getting Rs. 2.5 lakh natural death coverage and in case of an accident it is going to be double. My questions are:
1. Should I buy LIC Jeevan Saral?
2. If I buy online will it help in reducing my premium or not
—Rohan Dalmia, Santacruz East
LIC Jeevan Saral is an endowment policy that provides guaranteed returns. This is a non unit-linked insurance plan with Double Death Benefit of Sum Assured + Return of Premium. The returns in LIC Jeevan Saral Plan would be Maturity Sum Assured+ Loyalty Additions. The Loyalty Additions are provided from the 10th year onwards. Thus, your maturity benefit largely depends on how much Loyalty Additions the company provides year to year and cannot be ascertained now. In this plan, the policyholder can choose his own premium amount and Sum Assured gets determined thereafter. The policyholder is allowed to choose a flexible term for premium payment. It is a good plan and can be opted for as it provides very high returns. LIC Jeevan Saral is not an online plan and it has to be purchased via an agent.
I have a LIC Jeevan Anand policy with Sum Insured of 10 lakhs and an Annual Premium of Rs. 25,152. How much can I expect to get after maturity by seeing present bonus scenario? Is it advisable to continue with the policy?
—Sneha Dwevdi, Girgaum
LIC Jeevan Anand is an endowment cum whole life policy. It means that you would get a Maturity Claim Benefit along with Bonus on the date of Maturity. But still your cover continues till death. Your nominee would get the money when you die. You can however encash your life cover as well after the policy matures. It is a good policy and you must continue it to the end to reap maximum benefits. In case you would like to surrender or cancel the plan, you would not get good returns at all. Jeevan Anand is one of the most popular plans of LIC. The Maturity Benefit is Sum Assured plus Bonus after 35 years. Hence you would be paying Rs. 25152/- for 35 years, i.e. Rs. 8,80,320/- in all. However, your maturity amount is Rs. 10,00,000 plus bonus.
According to the present rate of bonus, you would get Rs. 700 per thousand SA and Rs. 45 per thousand SA, i.e. Rs. 745 per 1000 + Rs. 10,00,000, i.e. Rs 7,45,000. Hence your Maturity Amount is Rs. 1745000 and your Sum Assured of Rs. 10,00,000 continues for the rest of your life. However, the returns would definitely for be comparable to any pure investment tool since this plan guarantees a WHOLE LIFE coverage of Rs. 10,00,000 for the protection of your family.
However, after 35 years the Bonus Rate may change and you would get the rate of bonus at the time of Maturity. Hence it cannot be ascertained accurately now.
I am 40 years male and non smoker. I need to buy a Term Plan for myself. I read that Religare Aegon term plan for less than Rs. 25 Lakhs does not require medical tests. Is it true? Which are the other term plans I should compare or consider?
—Atharva Doshi, Goregaon East
It is quite possible that for an Aegon Religare Term Plan up to Rs. 25 lacs cover, there is no requirement of medical tests. But that should not be the deciding factor for opting for this plan. Because, you might still be asked for a medical test even if you fall in the non-medical limit according to their medical grid, if the underwriting team feels so. It is always better to go for a medical test and allow the insurer to do some basic checks on your medical background. If there is any issue with your health or medical history, then it will get flagged off at the time of application. Other Plans would be
Bharti AXA Life eProtect Plan,
HDFC Life Click 2 Protect Term Insurance Plan,
IndiaFirst Anytime Plan
(The author is Vice President at www.MyInsuranceClub.com, insurance comparison website in India. You may write to him at [email protected])
is VP at MyInsurance Club.com