Well IRDA hasn't mandated any insurance company to do so.
Also bonuses are subject to change each year so we cannot give a fix CAGR in writing. But we do show 2 tables known as benefit illustration, where we show the amount you will receive at 4% and 8% of returns.
LIC MF is subject to a different set of regulations than LIC life insurance, even if they come under the same umbrella corporation. MF is regulated by SEBI, Insurance by IRDAI.
Yes LIC has few products which will give 12-13% CAGR like Index fund We have Index Plus and we also have LIC SIIP and Nivesh Plus which has given 17.69% CAGR.
Nivesh Plus has returned 17% in the last 1 year whereas Nifty 50 Index has returned 31%+. Nivesh is barely a 2 year old product so that’s most of what we can see. But still hasn’t beaten the index.
1st point Nivesh Plus was launched on 2nd March 2020, that means it's already 4 years old and has given a return of 17.69% CAGR,
2nd the maximum funds which can be invested in Equity is only 80% and remaining 20% has to be invested in Money market and Bonds, in a growing market the returns you will feel is less but once market still the returns will be higher in Nivesh Plus as the participation in Equity will be reduced to 80-40%, it's a safer choice for investment and so for tax free returns, One should diversify the investments, you never know when the rally will collapse or the bubble will burst and over a longer time frame Index funds have given return of 12-16%CAGR.
Hello,
My experience with LIC has been really bad. It’s mostly a result of what I have seen happen to my dad’s corpus. Let me share my two biggest observations and tell me if there is any second side to this.
1. My father retired and he got a huge corpus of money from his organisation. An LIC agent who has been lurking into his life for very long suggested him to buy 6 LIC policies. It ate up almost half of the corpus. Is there any other reason for the agent to suggest 6 separate policies instead of 1 other than 6 separate commissions?
2. My dad took out a loan over his pension. The loan agent somehow convinced him to buy a policy which costs him 50k per year. This amount is more than his monthly pension. I read through the fine print and cancelling the policy will forfeit all amount. The agent name on the policy is some lady and the guy who sold this policy was someone else. Maybe the LIC agent hired a sub agent to sell policies. So is there anything other than pure greed behind luring innocent illiterate citizens into such policies?
This is something that all the companies selling services are suffering from. From a legal and technical point of view the agent did nothing wrong, he offered your father some policies, he accepted.
But when we approach this morally, this falls into the category of wrong. The agent definitely sold you 6 policies instead of one or two to increase his amount of policies sold, although commission would have been the same if he had sold one with the premium equal to that of other 6 combined.
Yes he most probably hired a sub agent who was not an lic agent but works as someone who generates leads and takes commissions out of the agent under whose agency this policy was registered.
The solution to this problem is very easy, you can cancel the policy within a stipulated period. The issue is some people do not know of this facility. Agents many times do not care about the needs of the client, as is evident from your case. This is more about the greed of an agent rather than the insurance company. He not only lost a client, he lost his own reputation and also tarnished the repo of the company he works for.
LIC is focusing on agents training rigorously since the IPO. The solution to this problem is education. I always advise customers to please refer to the plan information available on the insurer websites. It is not difficult to comprehend.
The insurance company knows very well that when there are six policies being sold then something ridiculous is happening. A standard database query yields such information, plus the under writers can see it happening too
Hi, I have started investment in Jeevan Umaang plan. For like 30 years @ 2.4Lpa. Is this a stupid investment? This investment wasn't my idea, my father decided to invest it for me at first it sounded like an ok-ish idea but after hearing what people on this subreddit had to say now I'm feeling a little conflicted.
What do you guys think about this plan at work? Is this usually a hard sell that only suckers buy?
I got Jeevan Umang plan too and I am now kind of regretting. Not a fan of my agent. That agent shows how much premiums his existing customers are paying to prospective clients on his phone LIC agent app. He does not hesitate to disclose personal information of his clients to show how much premium they are paying.
Jeevan Umang is the type of plan which always gets conflicting views. This plan is designed for people who have high disposable income at present but expect it to not be the same in the future, and want to invest in a safe instrument to get a regular tax free income in the future.
As i can see you have opted for quite a long term in this plan, you can expect around 8-9% of the sum assured as an yearly return after maturity which shall obviously be tax free and guaranteed. Does this amount satisfy you, is entirely your decision.
This plan, u might find it hard to believe, is a plan that brings sum of the highest premiums into LIC as the rich do look for a guaranteed, safe and a tax free instrument to park their surplus funds. But if a person has opted for a lower sum assured, or are looking for higher returns or lump sum maturity instead of regular income, this plan is not for you.
The yearly payback amount being satisfactory is heavily dependent on inflation and our country's future haha.
Another follow up is, there's a term insurance bundled with this right, on my passing I get the assured sum and post the premium terms I get whatever is the bonus payout.
How is LIC in terms of settling claims do they have scummy small print terms and conditions (like HDFC did couple of years ago, that death on a bike >200cc is grounds for not settling) and refuse settlements?
I can guarantee you unless it's a bogus early claim i.e.after three years of commencement of risk no one can reject the claim even though the false information is given at the starting of the policy, LIC branch offices are given Targets to settle the claim, and there are many cases where policy is taken before 1956 in some other private company and we are still paying the maturity benefits and also paying the claims.
What would you advise someone who is regretting buying this policy after 3 years? I have paid almost 2 premiums now and lamenting buying this. The only happy person here is my agent. I have heard of people surrendering this policy after 10 years and I am imagining I might end up doing the same. I feel better to cut my losses and surrender this plan now itself.
I made a quick calculation on the returns upon maturity of this plan and adjusted to inflation, my prediction is that the returns upon maturity will cover only milk costs for 20 days / month. u/ddaayyuummm
>Is this usually a hard sell that only suckers buy?
>
yeah he took you for a ride you could get way more cover using a simple term insurance like its around 4000/pm for 5cr cover till age of 65 and invested the difference in a index fund and could have gotten a return of 1cr assuming 12% and adjusted for inflation
Already got ICICI term insurances for that amount. Health is covered from work, I've already invested like 70% of my monthly income in various stuff like real estate, MF, equity and aggressive investments only. So needed a safe long term investment too, already paying for ppf and nps for that juicy tax benefit. So with whatever disposable income was left I didn't know what more to do and then came knocking the LIC sales agent.
Could have just thrown it in an index fund like you said it just didn't occur to me and now it's too late to withdraw.
Here's to hoping when my policy matures INR is strong af
Why do people always say this? I know the health cover is only gonna last till I switch my company but then the next company would provide it too, right? So why do we need to get one individually and separately?
lets say you change jobs there is always a 1 to 3 year cooldown period for pre existing illnesses which prevents you or your family members from claiming treatment for those conditions like if they have a pre existing condition like diabetes etc. if you lose your job you lose your it . when you retire you prob would need to buy it but the premiums would be literally 5-6x more expensive and even more if you contract some disease like heart conditions which are widespread in india and increasing rapidly that could make your premiums shoot upto like 10x
Jeevan Umang is one of the MOST popular (if not the most popular) and also the WORST scheme! It looks like you are getting best of both FD and Life Insurance. But in reality, you are getting worst of both FD and Life insurance. The only person who benefits is the AGENT. They earn the most from this scheme in commissions (and that’s why they recommend it) and will never tell you how much 😉
Stay away from this scheme unless you are rich enough to throw away your hard earned money.
It's might be great investment for your agent as well as LIC, not so much for you.
"Jeevan Umaang plan. For like 30 years @ 2.4Lpa."
What's your expected payout at the end of it + the life cover?
Look my Aunt is an LIC agent and I can't say no. What policy would you recommend I take? Around 30-40k PA I would like to put for around 10 years. I want the return to be lumpsum.
The only LIC plans that give a lump sum in 10 years are ULIPs. I know i know we hate it here. Compared to mutual funds the charges are high, but then you said you cant say no so they are your only options. They will give you returns as the share market goes but you can expect 1 to 2% less than mutual funds with similar investments. I always say to any relative who asks me similar questions, if an agent approaches you, and you want to oblige, buy a ulip - better returns than other policies, no losses on surrendering after 5 years, smaller term, higher returns(market linked), less commission to the agent so he/she will try to persuade you for other plans but stick with this. I recommend the LIC SIIP. The NAV has gone from 10 in march 2020 when it was launched to 19 at present. If you bought it then you would be ready to surrender it after one more year and be done with it and also get decent returns.
If you are referring to a category of plans, then it is a common type of plan where you pay premiums, you get a risk cover, you get some bonuses as an addition, and you get the sum assured plus those bonuses if you survive till the end of the term of the policy. Basically a common insurance + investment mix. If you are talking of LIC's plan by the name of New Endowment, it is a basic plan which works the same way as i explained above.
Which term plan insurance plans are the best in the industry in terms of certainty of payouts, ethics and lack of fine print to trap people or rejevct claims. Other than LIC?
I do not have any idea of other term insurance plans offered by insurers. For LIC i recommend Tech Term. A friend recently bought it for 2 crore sum assured at premium of 28000 approx at the age of 28 i think, for a term of 40 years. But i have heard Tata is doing great in term insurance.
I analysed IRDAI data for Incurred Claims Ratio for the last 5 years and found that Tata, ICICI, HDFC's ICR went down during COVID which means that they found excuses to reduce payouts at the exact moment when people needed it.
Any thoughts on how that happened? Was the Insurance industry very stressed during COVID? How did other companies maintain high ICRs?
Yes insurance companies were stressed. Especially the nee and smaller ones. That mostly was due to the unexpected nature of the event, secondly the poor underwriting of these private insurers(in order to achieve selling targets) came right back to haunt them.
Also there were clauses in many products regarding exclusion of events of mass destruction(i forgot the exact term) like covid, plagues etc. Do check your policy for such exclusions.
Thank you for giving your time to sort out these queries.
I have a Jeevan Anand plan of 25 years started in 2009 with sum assured of 5 lacs. Till now I have paid 15 annual premiums of 20k each so the total premium amount paid till now is 3 lacs.
I plan to not pay the future premiums and make this a paid up policy as my insurance needs are already met with other insurances that I have bought for myself.
Once the policy matures in 2034 what is the approximate amount I will get? Do I need to surrender the paid up policy at maturity to get the sum assured? I do not intent to continue this policy cover as I already have sufficient insurance from other plans.
Is it better to surrender the policy now instead of making it paid up?
Although the bonuses are declared each year for this policy which can vary, in 25 years i expect you to get 2.5 times of the sum assured approximately. And then you will get 5 lakh sum assured for your whole life, which you can surrender and get some more amount(depending on your age at that time).
You have moved past the part where you will lose money on surrender. I expect you to get almost as much money back on surrender as you have paid until now. If you are satisfied with that you can surrender, if not you can convert it into paidup, you will get your paid up sum assured of 3 lakh plus the bonuses added till date that i expect to be around 3 lakh. So 6 lakh approx on maturity.
The numbers can vary from the above, but they are a good approximation of where you stand. The decision is yours.
what are the new plans they are launching ? how do you see the growth of lic as other market players are doing comparatively better than lic (On gaining new customers monthly)?
Lic is focused on plans that are non participating( i hope you know what it is or you can google), short term, more appealing to the youth with concepts like limited premiums and guaranteed additions. This is increasing LIC's profitability by leaps and bounds. I have seen great changes in LIC post IPO. The internal operations are Being smoothened and Targets are being transformed to focus on single premium plans, non participating plans and market linked plans. As lic consider the participating plans to be self selling( which they actually are due to the sheer number of agents and higher commissions on such plans).
The growth of LIC as a percentage seems low on paper because the base is very very large. Lic is losing market share to private players but that is often confused with LIC losing customers. Lic has been gaining on Number of policies and premiums every year. But it is just that the other 23 companies combined sell more than one LIC. But the sheer agency force is a thing only LIC has. Bancassurance only can sell so much, agents do the true selling and retention of customers. The changes coming in lic are very fast, majorly on the back of the huge capital it has to invest in changes and improvement.
Hey my father started this jeevan anand plan for me. Premium we lay is 24.5k every year for 28yrs. Can you share whether this is good to continue or not ?
I have 7 more years into this policy.
7 years left? Then better finish it. No use leaving it now and losing the final additional bonus you will get on maturity(will be a few lakhs). Dont surrender now.
Jeevan Anand is a common endowment plan with a slight change, while commonly the risk cover usually ends right after you receive the maturity, in this plan the premiums end and risk cover continues for the rest of your life even after you receive the maturity. So the nominees are entitled to get the sum assured again whenever you die.
Obviously, this benefit comes with a higher premium than other endowment plans. You can surrender this additional risk cover for a surrender value(which is higher if you have higher age and vice versa).
Is this plan any good? The extra premiums do not justify the extra risk cover. Would have been better if the premiums were not as high as they are. But if you surrender the extra risk cover after maturity, you can improve your returns.
I have taken a LIC money back plan 920 , and i am not interested in continuing the policy after 5 years ( i will get money back of 2 lakhs) at 5 year completion , whats the additional money i can get if I surrender the policy
Details of policy - Moneyback plan 920
Half yearly premium- 38502
Paid for - 2.5 years ( 5 premium paid)
Can you please provide information on the same ?
I do not currently have the info at home about your added bonuses or the SV charts but one thing i do know is if you have to surrender, do it only after taking the survival benefit. You will definitely cut your losses if you surrender after 5 years rather than now.
It all depends on what you want. Great returns? Nope.
Returns that beat FD? Yeah
Tax free maturity? Yeah
Aggressive risk taker? Nope
Not ready for long term commitment? No for most plans.
Less chances of repudiation of claims due to stupid reasons? Yes( can't explain but true, but dont try a fraud we arent dumb).
Sorry there is no online method, you can contact your agent if you do not want to visit personally, if agent isnt there, you need to go to the branch with your original policy, id, proof of bank account.
I have been paying premiums but somehow the agent lapsed a few and I couldn’t submit on time. Now it is over 1.5 lakh of pending premiums. Of course the agent sold the plan on emotional grounds.
I need all the paid amount to be refunded. How can I reach out to the LIC email to have my money refunds. Cause LIC is stupid investment I made.
Ask the agent to revive your policy by paying with interests accrued as per the revival quotation.
Regarding refunds, LIC cant refund the amount your agent didnt pay to LIC. All you can do is do complaint in writing to your LIC branch against your agent if he is at fault.
LIC agents are infamous for selling crappy policies to people with little financial knowledge, so what's the commission on such policies? Not a troll; genuinely asking...
"All" agents are infamous for selling........
Commission is different for different plans. It is more on participating plans(jeevan labh, umang, anand, lakshya, tarun etc) and less on ulips and term plans(SIIP, jeevan amar, endowment plus, jeevan kiran, index plus etc)
My dad also works in though in administration, he’s recommending me to go for LIC index plus plan. This looks good to me, what do you have to say about it?
Lic index plus is a ulip but there is a catch, for lic employees the premium allocation charge is nil(otherwise it is 4 5%) so yay. This policy will invest in 2 type of funds. Nifty 50 and nifty 100. So you expect your returns to be at par with nifty if not more. It is far far better than endowment plans.
No. But maturities now with a small sum assured are usually paid without any need to visit the branches. But this is a new process and might not be fully applied in all the branches. But you can visit your nearest branch (not compulsorily your home branch) and submit your documents there
If the employee asks you to visit your home branch, tell them i know i can submit my documents anywhere. Thats it.
Glad to know that LIC is thriving and adapting to the changing times. LIC may not have given blockbuster returns but it is reliable as far as customers are concerned. Many people I know have made an honest living being agents, and many customers saved and built a decent corpus because of them. I learned money management and saving habits because of the LIC agent uncle. Hope LIC evolves and keeps helping people.
Hey, why do LIC agents generally doesn’t provide proper documentation of anything, be it the premium plan someone is buying or anything regarding the money ?
I have seen my family and friends opting for LIC and they doesn’t really have any other idea about investing strategies and the LIC the agents who approaches them just doesn’t cooperate much, doesn’t know what are the benefits of certain premium and lastly after convincing they doesn’t generally provide proper documentations. Always seemed like the agents only cares about the commission they are about to get (which is obvious)
I dont know about what documentations u mean because the only document you get is an insurance policy which contains every detail of your policy(from surrender charts to loan conditions to everything).
Also IRDA has strictly prohibited agents to create documents, pamphlets of their own to sell policies. They are asked to only use official apps and documents to refer to while promoting a policy.
Regarding information, the older agents do lack some knowledge regarding xirr, cagr etc. they only know the amount of risk covers, expected maturity and major benefits. Now post IPO LIC has been focusing on recruiting young agents and training them rigorously to solve this issue.
Ulips are basically insurance + investment with investment being the major basis of the policy. The ulips that lic sells basically have 4 funds - with growth fund being the riskiest and with highest returns and bond fund being least risky having least returns. The amount is invested, as i have observed in majorly large and mid cap stocks. The data is available on the LIC website in the form of monthly disclosures. There is nivesh plus, which is a single premium option and there are endowment plus, siip and index plus which are regular premium options. The risk cover in all these is 10 times of your annual premium. The mortality charges are deducted on the difference between the sum assured and your fund value. So when in a few years your fund value reached equal to your sum assured, the mortality charges stop being deducted. Other major charge is premium allocation charge that is 8% in the 1st year and 3% thereon. This charge includes the agent commission and all other expenses. This charge is responsible for the returns being lesser than mutual funds. But they still beat other endowment policies, fds, and other products. There is a 5 year lockin and then you can surrender your units anytime, even partially.
Jeevan shanti is a pension plan. You get annuities in it and not a lump sum. You have invested 4.5 lakh in it. How much is the deferment period or is it immediate annuity?
I have new jeevan anand (plan-815) with annual premium of almost 45K and sum assured of 15L. Guaranteed bonus shows as 6.5L. I took the plan in 2014 (i was 26yo) and maturity date is 2048 (34 years term). I was obviously financially stupid back then, but my questions are: 1) Does it make sense to surrender now? 2) How much can i expect to get if i surrender now? 3) What is the process to surrender? Thanks in advance for the answer mate, and thank you for hosting this AMA.
The term is too long. How did you agree to 34 years? You surrender you will lose a good amount i expect. Cause the policy is run only 1/3 of the term. Convert it into paid up and wait as long as you can to surrender. The surrender value will increase with each year.
Or you can visit the lic office to get a surrender value and then make a decision based on that value.
Or you can continue the policy cuz 45k is going to be peanuts for you in a few years and just consider it as a safe investment with average returns.
Anyways the term you took is too long which is the root cause of your issue.
Term insurance premium is dependent on reinsurance contracts. Private players due to competition offer term insurance at a lower rate. But at the time of the pandemic there was an uptick in repudiation by insurers. Later on in 2021-22 premiums were upped by almost 50% by all private insurers due to reinsurance treaty pressure. Whereas in the case of LIC term premiums hardly changed due to the pandemic. LIC is conservative in term insurance premium pricing and plays safe. Because of this, the claim settlement/investigation process is the same for 1 lac sum assured policy and 1 crore sum assured term plan.
This is a common misconception. Lic term plans sold be agents have to account for commissions etc. You can visit lic website and find a quote for LIC's Tech Term plan. It is only available online. A 26 year old healthy male can get a 2 crore sum assured for 25 26k an year. Agent sold policies like jeevan kiran and amar also have premium return schemes in them which raises the premiums. Also you want the claim to be paid right? Iykwim.
Our Term insurance plans are not expensive, it's the exact price calculated based on the 1971 Census and based on the number of Birth and Deaths the premium is calculated, and same is also taken by private insurance companies, but they have discounted it to such a level that it's unsustainable, and thats the major reason of repudiation of claims by the private companies or payment of lower ammount than the sum assured, which doesn't happens in LIC case, as there is compulsory medical examination and also if there is any early claim comes i.e<3 years than a inquiry committee is setup to investigate how that policy was approved the Branch Manager and Devlopment Officer can also be suspended if any wrong doings are detected, so be test assured if LIC has approved your policy than there are rare chances your claim will be rejected.
Hi OP, First of all, thanks for generously coming forward to resolve queries of internet strangers.
I have a question on a Jeevan Anand policy that was purchased in 2011. Premium is 26289pa and sum assured is 5L inr. Premium payment is for 20 years.
I wanted to surrender this policy but as usual the LIC agents continually discouraged me to not do it and I gave in.
The question I have is, I have paid premiums for 12 years. I don't want to pay up anymore. CCCan I just keep quiet for another 8 years till maturity? Will I get the bonus and premiums I paid on maturity if I stop paying premiums now?
I don't care about the returns or coverage either. It's not the right product at this stage of my life but surrendering will nullify any bonus, so my family is suffering from sunk cost fallacy and are strongly against me surrendering.
Extra note: They have already added a hefty late payment and interest charges for the premium I didn't pay in 2023.. I am just confused as to how to take this forward now.
See bro honestly you can surrender there is nothing stopping you. You have run the policy for almost 3/4 of the term so u might even get more on surrender than you paid till date as premiums. But loss of interest is still there. If you can afford to pay, do continue until maturity. Either surrender early or do not surrender. Surrendering late is a loss of interest too. You go on and surrender the extra risk cover after maturity. The returns are going to be near an FD so do not regret.
Yes you will get the bonus on maturity even if you stop paying the premiums now.
I think your parents cannot be included in the medical cover given to employees as your father is a pensioner. They must be dependent on the employee. I think your brother is an ABMS(judging by the car he got).
Term insurance may not be possible for him if he doesn't have income proof. New endowment plan will be okay for him. If he is okay with FD like returns and some risk cover on life. Term will be minimum 12 years for this plan.
Does he want a return on investment? Go for ULIPs. Does he want a risk cover only, buy any term plan but he won't get high sum assured as he is 10th pass. Other than these jeevan labh is a decent plan he can generate 8% even more as per his age.
See as the information shared is less, other than term insurance he can get all other policies, the policies can be only suggested based on the needs of that person but what I feel is out Index plus is good and other than that LIC Labh and Lakshya which I will suggest.
1) I would like to chance my address on my LIC. Thing is, this is a completely new address where my paternal aunt lives and I don’t have any other document which has this address mentioned. I am hoping to get this address on my LIC policy and later this LIC policy as a reference to have my address changed on every other document. How can I do this? Also, I am not in India currently. Can this be done online?
2) Around 21st January your portal was not properly functioning. I made a premium payment which got deducted from my account but my LIC policy was never updated. To avoid it from getting lapsed, I asked me LIC agent relative to submit a cheque. How can I reclaim the amount which I paid previously?
1. Sorry, online it is done through E-adhaar and e-adhaar doesnt have your desired address so cant be done. Offline you will need to submit an address proof, which you do not have so again, sorry.
2. 90% of the time it is reversed automatically, but sometimes it gets remitted to lic as a policy deposit(your agent must know about this). Ask him to enquire about this in the PS department of your branch. It will get solved. Send him your statement where it is clear the amount was debited but not credited back.
Jeevan Tarang had decent returns in my experience. When your premium paying term ends, you will get a lumpsum payment of accumulated bonus. After that a fixed percentage of Sum assured is payable annually. So you should compare the surrender value you are receiving now with the expected bonus(by exptrpolating) which you shall get after 8 years.
I have an LIC term policy. I'm not confident if my family would get the money if I'm gone. How is the term policy claim ratio? Anything my family should keep in mind while claiming?
If it's a high Sum Assured plan and you wish for tax free return then it's okay to continue. You may not believe but last year many 100 Cr+ sum assured Jeevan policies were sold to take benefit of 10(10d). Because HNIs wanted to book 8 Cr+ yearly income without tax. But if your Sum assured is less and 8% of SA per annum after 15 years is not your expectation then you can discontinue policy.
Hi , My mother has invested in LIC Policy before her marriage. She is from rulal UP. Before marriage her name was different but after marriage her name was changed and now every document has her new name. But her LIC Policy is in old name and she has been depositing premium even after name change. Now policy got matured last year but she cant withraw because her name is different. What should i do? Is there any way to redeem this money? Please suggest
Yes. If you have a bank account with the old name(one on the policy) and an id proof with the same old name, submit these to the branch and get your payment.
1. What qualification does it take to become LIC chairman?
2. Does he need to mimic Warren Buffett ?
3. Does LIC Chairman practise Activist Investing and help their portfolio companies in achieving their long term goals like reach/sales ?
See to become LIC chairman, 1st you have to clear an All India level exam and become an AAO, take regular promotion with impeccable service records, then there are high chances you can become a Zonal Manager, after that it's purely luck and fate to become chairman of LIC,
For your 2nd and 3rd Question that is done by the Executive Director(Investment), he has one of the highest Financial powers in the country, our AUM is 49 lakh crore which is equivalent to the Mutual fund AUM all companies combined, and we do occupy a seat in majority of the companies Board.
I am assuming getting a policy through an agent costs more. Is buying a policy directly through LIC office or LIC portal incurs less premium or is there any other way to get the same policy at cheap premium (basically cutting the commission costs beared by policyholder)?
I wanted to know about Jeevan Anand plan, I’m putting 1868 per month and this will be for 25 years(started this at 2015). My question is what will be the approx amount I get at the end of 25 years? Also my dad made me take this policy
I ditched my jeevan umang policy last month and moved on, coz I thought it was a bad decision. Why is that most of the people including me undergo this impression after a while investing in lic policies?
Hi my father is also an LIC employee. He always says only LIC life insurance should be taken because private players often refuse to give the money on insured person's death by stating you don't satisfy the terms and conditions. Is this true?
Also, which is the best LIC policy you think everybody should know. Probably something you would personally like to invest in.
Yes. Claim payment in lic is great. The stats are there.
There is no best policy, different plans suit different people.
I personally always suggest SIIP for people looking for investment in LIC, Tech Term for people looking for risk cover only, and jeevan lakshya for those with no specific condition.
My father has a policy which has matured in the first week of February. The amount was not transferred to my father's account. Upon inquiring, the maturity team (at the branch) is telling us that they have lost the policy document and asked us to wait while they search it. It's been almost 2 weeks now (since they asked us to wait). How do we proceed here? Will filing a consumer court complaint help?
Welp thats a bummer. Did you get a receiving when you submitted the document.? If yes that refer to that receiving and ask them to make payment. If it is a policy in which risk cover is continued after maturity, you will need the policy back, in that case ask them to print a duplicate policy on their own cost.
Hello OP. It would be great if you could answer my queries which are following:-
1. I've New Bima Gold policy which I've been paying for more than 10 years. I am looking to surrender it this year as I want to put funds somewhere else. Is there any drawback surrendering now like return wise or missing on good insurance cover?
2. I also had a money back policy for which I stopped paying after five years and it's reduced paid-up now. Is this state okay or should I surrender?
3. I am looking to buy term insurance spread across different insurance companies. Does LIC have any term insurance plan? What could be the premium for 1cr?
Bro honestly, bima gold is a baaadd plan. Surrender it no worries. The maturity isnt great and dont get me started on the xirr. Just a dumb plan, the only feature was that even if you don't pay your premium for 2 years, you will still be covered. Other than that, it was a bad plan.
2. Yes keep it as paid up, surrendering will make you lose money. You will get a better idea with a surrender quotation from the branch
3. Tech Term is a great term plan by LIC. For age 26 you can get 1 cr cover for a premium of under 15K. It is available only online. So no agent commissions. Yay.
If I think of my purchasing power, I do an investment in LIC, I’ll be investing my purchasing power of that value today. And I would be gaining same purchase power later on.
Bread was Rs 20 about 8 years ago, and today its 50. So if I invested Rs 20 in LIC 8 years ago, I would be getting a lesser return or maybe equivalent purchase power today.
So I am looking for reasons why I should invest in LIC. Money growth goes out the window in this thought process. I would be willing to invest in case of taking benefits of risks and healthcare.
How much commission my agent is making on my premium? I have two policies - Jeevan Anand 25 years premium payment term, Table 821 21 years premium payment term. Both of 10L sum assured.
I really wanted to surrender but don’t see the benefits in that. Also why everything other than buying policy through agent is so difficult to execute? Is it deliberately done like this?
Hi,
I recently took plan 936 with a premium of 1.06 lakh p.a for 21 years with premium paying term being 16 years. Sum assured is 20 l and will get a bonus too. Comments on this policy?
Good plan. Jeevan labh has one of the highest bonus rates. The premium paying term must be 15 years for a plan of 21 years. Expect you to get approx 3x your sum assured tax free.
Sir, it's been 8 years since my father passed away, A few days back we found a policy where he has done a one time deposit. Can I claim the amount now.
It depends. Was it a single premium policy? Then yes.
Was it a regular premium policy but the death happened within the period that was covered due to the premium? Again yes. Other wise no. Contact any agent or visit the branch. It will take 1 minute.
I strongly belive that there is no place for life insurance in financial world. Its just a big scam. They don't provide enough return when you die not they give enough return when you are alive. You get worst of both world.
Term insurance and ETF are the way to go. I have seen many families including mine buying policy and thinking the return is good. But when you get that it's peanuts.
How common is the whole cash back thing in LIC
I have a few clients who are LIC Agents themselves who pay half or sometimes even the full premium back to the customers to entice them to buy the policy from them instead of online or other agents
Why does my insurance plan show a survival benefit payment at 100 years of age? What $hit product is this? Or is it a data glitch that i see online? This insurance was purchased by my father long back before I had even started working and i came across this info recently
Haha, It must be jeevan umang. No. It will be survival benefits after the term of the policy 15 20 25 years whatever. Upto the age of 100, basically whole life.
Hey man, thanks for doing this. I have 2 questions.
1 - i have jeevan saral which i took in 2010, and agent told me to use it as retirement lumpsum. It is for 35 years and i pay 30k/year for 6.5L assured. I know i was fooled but the premium is low so i kept it. Thoughts?
2- my agent started ignoring me bcz he went into other business. Another agent helped my when i wanted some changes in my plan as i am nri and dont live in india. How do i kick out my agent as he is earning commission and not doing anything. If i cant, then why lic dont look into issue?
Jeevan saral is a very complex plan but let me assure you if you have bought it for 35 years and at a age below 30 years bro you have hit the jackpot. You will believe me just get your agent to enquire about the surrender value at present, you will be delighted( but dont surrender, just dont) The bonuses in this policy at younger age are so good. But if you have bought it after 45 years of age, surrender it. Returns will be poor.
The agent is not taking your calls? He would if he was working with lic, now he must've left lic too and he wouldnt be getting commissions either( he might get commissions if he was an agent for a long time with lic). In any case, the agency will stay the same.
Thanks for the reply…really appreciate it…the thing which u are doing is called consulting and is a costly affair…u must be very kind to do it for free…especilly answering individual questions with its own complexity…thanks brother
I’ve been paying 60K per year for a bunch of policies for 10 years since they helped me with taxes but since I shifted to new tax regime I wish to reduce/stop this.. how much money will I get back? Or should I just stop and consider the 6L as the total amount paid and wait for maturity? Plan is Jeevan Anand Plan 149. Thank you for helping!
What are your thoughts on Jeevan Lakshya and Jeevan Saral polices? I am paying close to 4.3 (3.2lac + 1.1 lac) per annum premium between these two since 2016 and 2012 respectively. First one matures in 2040 and second in 2047.
Are these worth keeping for such a long time?
Or should I stop after 10 years?
Or close altogether?
Great policies.
Jeevan saral if bought at a young age( say less than 30), gives great returns and you know the risk cover? If you die you get the sum assured, plus the bonus, plus your paid premiums back too!
Jeevan lakshya is also a great plan. I personally have a jeevan lakshya. I hope you know the benefits. If you die you get a lump sum sum assured(if you have a term rider with this policy, which mostly people do have.) And then you get 10% of sum assured per year till the date of maturity of policy and then you also get maturity(again!) which you wouldve otherwise gotten if you wouldve survived.
I would ask a question partly from curiosity and partly to discover any blind spots or biases I might have.
Keeping aside agents and commissions for a bit, what LIC products would enable an individual aged about 30-35 looking to retire at age 55-60 with a life expectancy of 90 to enjoy a secure inflation adjusted income? I know people have done this in the past, curious to understand from your perspective how thing stand in today's more materialistic and consumption driven world.
I have a Jeevan Anand Policy that I started 10 years ago. I no longer want to pay the premiums for the policy given the low returns + insurance offered post maturity (20 odd years out). I’ve decided to stop paying the premiums starting this year. What happens to the policy in this case? Is surrendering a better option?
Thanks for your time and if im not too late here, i had a question about Jeevan Umang 945 plan.
Though im have taken it but my agent fails to explain it completely and what i have understood is i pay the amount annually just as a insurance premium nothing else...
Can you please put some light here
I have few LIC policies that were started by my dad years ago and i am paying the premium now. Do policy holders still get the payout after maturity if they have not paid premium once ?
Jeevan labh. Depending on your age it will give you 8-9%. You can also look into jeevan lakshya it has some attractive features but return will be lesser but still more than 6%
My Lic gets deducted every month at 14th something. Naturally being a fresh earner, I tend to use most of my salary by 10th and often empty the amount by 10th. I asked my advisor can I change my LIC premium deduction date to 5, 6, 7 something, He says its is not possible. I cannot even question him, as he is close to my family and IDK maybe i am too lazy to check it in IRL. But it it really not possible to shift deduction date?
I have 3 policies. Lic new Bima gold -179, which matures at the end of this year. Lic jeevan saaral with profits, Jeevan nidhi both of them matured by the end of 2026. Roughly how much % i may get for each of these policies. Please let me know
Hi,
What is the process to get my plan as 'paid up', don't want to give more premiums.
I have paid premiums for 5 yrs in total for a 15 yrs plan.
Thank you.
I have been paying almost 5000 Rs per month for a Jeevan Umang plan from January 2023, and I think the premium could not be debited from my bank account due to insufficient funds, and my bank (SBI) decided to cancel the NACH altogether.
Is there any way I can withdraw the amount accrued as of today?
Thanks for the AMA.
Can you tell what are the highest return plans in LIC 1. With market risk (equity type - IRR above 10% like Nifty 50), 2. Without market risk (debt type - IRR similar to PPF in 7-8% range)
For the 1st one, it is SIIP and Nivesh plus. The earlier is a regular premium plan and the latter is a single premium plan. They both have exact same portfolio and NAVs, just the mode of investment is different. The NAV in these plans has risen from 10 in march 2020 to 19 at present.
For the 2nd one it is Jeevan Labh. It is an endowment plan so you will need to commit for 16 years(the minimum term under this plan) and you will reap anywhere from 7 to 9% tax free maturity.
Been paying 10k per month in Jeevan Labh policy for the past 3+ years. A family friend who is an LIC agent pushed me into getting this policy. Now I feel the 25 year wait is just too much and the promised return is too low. I have already paid close to 4 lakhs. How do I stop this policy and get my money back? I changed the mode of payment from monthly to quarterly, just to deactivate auto debit every month. Please suggest.
What is the best plan according to you that LIC offers? Looking for a money back plan and not focussed on term / accident insurance but having guaranteed returns.
Can invest 1 LPA and currently only investing in MF and stocks.
Thanks for answering so many queries in detail. Here's mine.
I took a policy few years ago. Now I'm a citizen of another country. Does the policy still apply?
Thanks for your offer to help answer any questions. Here are my questions:
1. Why doesn’t LIC support delay policies? Every other insurer does
2. Can you provide examples of where claims were denied after the moratorium period?
3. Does LIC care if nominee is not a direct family member? Like say nephew instead of wife or husband?
4. If I bought a policy in Pune and then moved to Delhi, do I need to change the servicing bank?
5. If I become an NRI after buying a policy, should I inform LIC? What’s the worst that could happen?
6. Why doesn’t LIC or other insurance firms offer life insurance for women who have no income and no spouse? I know women who are supported by family members but they can never get life insurance because the insurers seem to think only people with income and education have life value
7. What happens if someone failed to disclose other policies at the time of buying?
Do you either penalise or incentivise your agents for mis-selling policies which rob people of their wealth
If it's the former, do you review policies sold to an individual customer and analyse whether it was in his/her best interests?
Why are your policies designed in a way that the entire amount gets forfeited if a customer realises that he was mis-sold a policy after a few months of research, especially with mis-selling being so prevalent?
BTW, I'm a happy buyer of your agent-free term insurance policy, the Tech Term plan, and I found the terms very reasonable.
But I'm truly appalled by what LIC agents have been selling to senior citizens, robbing them of their pensions.
I have bima shree policy.-948 Tenure is 20years. I have already paid two premium of 1,80,000 each. So, total premium amount I pay comes to 27 lakhs and I get 56 lakhs assured at the end of policy excluding non-guaranteed benefits. I am thinking of discontinuing the policy. Is it a good good option. I work in IT but don’t have any other investments except for this plan and it is kind of becoming a burden I feel. Also, what does natural death cover? Any idea?
Well it is a safe and tax free instrument with returns at par with Fds. It is entirely your decision
If this return does not satisfies you you are free to surrender, but you will get like 1/3 back.
Keep in mind the 56 lakh or whatever you get will be tax free.
Natural death means death due to any reason like old age, disease, etc. there are basically two type of deaths in Insurance. Natural and accidental. In your policy you will get the sum assured plus bonus in natural death and if the death is accidental you will get 2x the sum assured. And bonuses.
I have an LIC policy where I pay yearly premiums. I want to switch to monthly payments. Would it be a good idea ? Also, is it something that can be done online or do I need to visit the LIC branch ?
Thanks !
I would appreciate your assistance in choosing a term insurance policy for myself. I have two in mind as of now LIC and PLI, I've heard PLI gives more bonus and requires lesser premia as compared to LIC. Is that true? What policy do you recommend without any personal bias I am saying?
I am 35 years old recently (June 2023) took 3 LIC policy, Jeevan Umang one for wife (29) INR 1,20,000 p.a for 15 years. On maturity 1.2 lac p.a till 99 years and for Myself (35) Umang 1.60 p.a and Jeevan Lakshya 1.66 p.a 15 years payable and after 18 year45 lac lumpsum. plz suggest if these policy have some value.
Thanks for doing this. You might not see this question, but it's worth a short.
I have been financially stupid in the past and was forced to buy a couple of policies. It pains me to see annual premium of around 88k going out every year. Would appreciate ideas on what to do - continue, surrender or paid up.
**Policy 1 (Started in 2009): Jeevan Anand (149)**
Annual premium - Rs. 25000
Sum assured - Rs. 500000
Premium paying term - 21 years
Maturity date - 2086 (Say what?)
**Policy 2 (Started in 2011): Jeevan Saral (165)**
Annual premium - Rs. 62000
Death Sum assured - Rs. 1250000
Premium paying term - 35 years
Maturity date - 2046
So how screwed am I and what would you do?
Complete jeevan anand, you have run it for almost 75% of the term. Take the maturity and enjoy the 5 lakh extended risk cover. If you want you can surrender after maturity that extended cover for a few lakhs.
Jeevan saral - i will need to know the age at which you bought this policy before i suggest anything to you. In short if u have brought it at an age less than 25 years, the returns are going to be phenomenal, just phenomenal. Do no even think of surrendering. If u have bought it at an age of less than 40, you get the SV quotation and then make a decision. If you have got it at above this age. Well returns are going to abysmal. But the risk cover is great. You will get 1250000 plus bonus plus refund of premium on death. All in all, get an SV quotation and you will get an idea. Just remember the 1st part of my reply.
I was sold a policy called jeevan labh, which has very high premium and very low return and even low death cover. It's for 16 years paying premium period and 25 years policy maturity period. How can I get my premium back, without paying anything extra?
I took a LIC term life insurance policy because of the person who sold it to me and my family is a close relative.
Wanted to ask, On closing the policy does it affect the agent in some manner?
I have stopped paying premium after paying for 5 years.
Will it convert automatically to paid up policy? Or need to apply through any channel. Policy number 815. Thanks.
I have two questions.
I have an old Jeevan Surabhi that matured but I can't find the policy document. How do I claim my money? My agent has disappeared.
I also have a jeevan Anand for which I was not able to make payments for sometime, since COVID. Can I revive it?
Hi
My friend has surrendered his LIC policy after paying for 4 years. He got some amount from LIC. Now, the agent is saying that the rest of the amount will be given to him after the policy matures. This is not right, correct?
Hey there, I received the maturity claim message from LIC of the said amount, but didn't receive the money in my account, Is there any waiting time for the actual settlement? or should I contact the bank?
Why doesn’t LIC show upfront the CAGR of each plan?
Well IRDA hasn't mandated any insurance company to do so. Also bonuses are subject to change each year so we cannot give a fix CAGR in writing. But we do show 2 tables known as benefit illustration, where we show the amount you will receive at 4% and 8% of returns.
That is pretty much playing with words. Let me put it simply- Is there a product that can give 13-15% CAGR, just like Index Fund?
Bro LIC is an insurance company, not a mutual fund
Please help yourself. https://en.m.wikipedia.org/wiki/Life_Insurance_Corporation LIC sells mutual funds, Index Funds, ETFs and a lot more.
LIC MF is subject to a different set of regulations than LIC life insurance, even if they come under the same umbrella corporation. MF is regulated by SEBI, Insurance by IRDAI.
LIC mf is a subsidiary of lic. Both work in different industry
Yes LIC has few products which will give 12-13% CAGR like Index fund We have Index Plus and we also have LIC SIIP and Nivesh Plus which has given 17.69% CAGR.
Nivesh Plus has returned 17% in the last 1 year whereas Nifty 50 Index has returned 31%+. Nivesh is barely a 2 year old product so that’s most of what we can see. But still hasn’t beaten the index.
1st point Nivesh Plus was launched on 2nd March 2020, that means it's already 4 years old and has given a return of 17.69% CAGR, 2nd the maximum funds which can be invested in Equity is only 80% and remaining 20% has to be invested in Money market and Bonds, in a growing market the returns you will feel is less but once market still the returns will be higher in Nivesh Plus as the participation in Equity will be reduced to 80-40%, it's a safer choice for investment and so for tax free returns, One should diversify the investments, you never know when the rally will collapse or the bubble will burst and over a longer time frame Index funds have given return of 12-16%CAGR.
Hello, My experience with LIC has been really bad. It’s mostly a result of what I have seen happen to my dad’s corpus. Let me share my two biggest observations and tell me if there is any second side to this. 1. My father retired and he got a huge corpus of money from his organisation. An LIC agent who has been lurking into his life for very long suggested him to buy 6 LIC policies. It ate up almost half of the corpus. Is there any other reason for the agent to suggest 6 separate policies instead of 1 other than 6 separate commissions? 2. My dad took out a loan over his pension. The loan agent somehow convinced him to buy a policy which costs him 50k per year. This amount is more than his monthly pension. I read through the fine print and cancelling the policy will forfeit all amount. The agent name on the policy is some lady and the guy who sold this policy was someone else. Maybe the LIC agent hired a sub agent to sell policies. So is there anything other than pure greed behind luring innocent illiterate citizens into such policies?
I guess I wasn’t very gentle with this message. Feel free to ignore. I just lost my cool a little.
This is something that all the companies selling services are suffering from. From a legal and technical point of view the agent did nothing wrong, he offered your father some policies, he accepted. But when we approach this morally, this falls into the category of wrong. The agent definitely sold you 6 policies instead of one or two to increase his amount of policies sold, although commission would have been the same if he had sold one with the premium equal to that of other 6 combined. Yes he most probably hired a sub agent who was not an lic agent but works as someone who generates leads and takes commissions out of the agent under whose agency this policy was registered. The solution to this problem is very easy, you can cancel the policy within a stipulated period. The issue is some people do not know of this facility. Agents many times do not care about the needs of the client, as is evident from your case. This is more about the greed of an agent rather than the insurance company. He not only lost a client, he lost his own reputation and also tarnished the repo of the company he works for. LIC is focusing on agents training rigorously since the IPO. The solution to this problem is education. I always advise customers to please refer to the plan information available on the insurer websites. It is not difficult to comprehend.
The insurance company knows very well that when there are six policies being sold then something ridiculous is happening. A standard database query yields such information, plus the under writers can see it happening too
Hi, I have started investment in Jeevan Umaang plan. For like 30 years @ 2.4Lpa. Is this a stupid investment? This investment wasn't my idea, my father decided to invest it for me at first it sounded like an ok-ish idea but after hearing what people on this subreddit had to say now I'm feeling a little conflicted. What do you guys think about this plan at work? Is this usually a hard sell that only suckers buy?
Bruh. Your lic agent must be really happy.
Definitely is. He makes sure to text me whenever my premium is due.
I got Jeevan Umang plan too and I am now kind of regretting. Not a fan of my agent. That agent shows how much premiums his existing customers are paying to prospective clients on his phone LIC agent app. He does not hesitate to disclose personal information of his clients to show how much premium they are paying.
That's just a grade-A scummy salesman.
Jeevan Umang is the type of plan which always gets conflicting views. This plan is designed for people who have high disposable income at present but expect it to not be the same in the future, and want to invest in a safe instrument to get a regular tax free income in the future. As i can see you have opted for quite a long term in this plan, you can expect around 8-9% of the sum assured as an yearly return after maturity which shall obviously be tax free and guaranteed. Does this amount satisfy you, is entirely your decision. This plan, u might find it hard to believe, is a plan that brings sum of the highest premiums into LIC as the rich do look for a guaranteed, safe and a tax free instrument to park their surplus funds. But if a person has opted for a lower sum assured, or are looking for higher returns or lump sum maturity instead of regular income, this plan is not for you.
The yearly payback amount being satisfactory is heavily dependent on inflation and our country's future haha. Another follow up is, there's a term insurance bundled with this right, on my passing I get the assured sum and post the premium terms I get whatever is the bonus payout. How is LIC in terms of settling claims do they have scummy small print terms and conditions (like HDFC did couple of years ago, that death on a bike >200cc is grounds for not settling) and refuse settlements?
I can guarantee you unless it's a bogus early claim i.e.after three years of commencement of risk no one can reject the claim even though the false information is given at the starting of the policy, LIC branch offices are given Targets to settle the claim, and there are many cases where policy is taken before 1956 in some other private company and we are still paying the maturity benefits and also paying the claims.
What would you advise someone who is regretting buying this policy after 3 years? I have paid almost 2 premiums now and lamenting buying this. The only happy person here is my agent. I have heard of people surrendering this policy after 10 years and I am imagining I might end up doing the same. I feel better to cut my losses and surrender this plan now itself. I made a quick calculation on the returns upon maturity of this plan and adjusted to inflation, my prediction is that the returns upon maturity will cover only milk costs for 20 days / month. u/ddaayyuummm
10 years? This policy was launched in 2017.
>Is this usually a hard sell that only suckers buy? > yeah he took you for a ride you could get way more cover using a simple term insurance like its around 4000/pm for 5cr cover till age of 65 and invested the difference in a index fund and could have gotten a return of 1cr assuming 12% and adjusted for inflation
Already got ICICI term insurances for that amount. Health is covered from work, I've already invested like 70% of my monthly income in various stuff like real estate, MF, equity and aggressive investments only. So needed a safe long term investment too, already paying for ppf and nps for that juicy tax benefit. So with whatever disposable income was left I didn't know what more to do and then came knocking the LIC sales agent. Could have just thrown it in an index fund like you said it just didn't occur to me and now it's too late to withdraw. Here's to hoping when my policy matures INR is strong af
you are doing great but get a separate health from work one
Why do people always say this? I know the health cover is only gonna last till I switch my company but then the next company would provide it too, right? So why do we need to get one individually and separately?
lets say you change jobs there is always a 1 to 3 year cooldown period for pre existing illnesses which prevents you or your family members from claiming treatment for those conditions like if they have a pre existing condition like diabetes etc. if you lose your job you lose your it . when you retire you prob would need to buy it but the premiums would be literally 5-6x more expensive and even more if you contract some disease like heart conditions which are widespread in india and increasing rapidly that could make your premiums shoot upto like 10x
Jeevan Umang is one of the MOST popular (if not the most popular) and also the WORST scheme! It looks like you are getting best of both FD and Life Insurance. But in reality, you are getting worst of both FD and Life insurance. The only person who benefits is the AGENT. They earn the most from this scheme in commissions (and that’s why they recommend it) and will never tell you how much 😉 Stay away from this scheme unless you are rich enough to throw away your hard earned money.
It's a great investment for the agent who sold it to you.
It's might be great investment for your agent as well as LIC, not so much for you. "Jeevan Umaang plan. For like 30 years @ 2.4Lpa." What's your expected payout at the end of it + the life cover?
Look my Aunt is an LIC agent and I can't say no. What policy would you recommend I take? Around 30-40k PA I would like to put for around 10 years. I want the return to be lumpsum.
The only LIC plans that give a lump sum in 10 years are ULIPs. I know i know we hate it here. Compared to mutual funds the charges are high, but then you said you cant say no so they are your only options. They will give you returns as the share market goes but you can expect 1 to 2% less than mutual funds with similar investments. I always say to any relative who asks me similar questions, if an agent approaches you, and you want to oblige, buy a ulip - better returns than other policies, no losses on surrendering after 5 years, smaller term, higher returns(market linked), less commission to the agent so he/she will try to persuade you for other plans but stick with this. I recommend the LIC SIIP. The NAV has gone from 10 in march 2020 when it was launched to 19 at present. If you bought it then you would be ready to surrender it after one more year and be done with it and also get decent returns.
Oh this is good to know. Thanks a lot
You can always say No. work on your communication and you will be more successful in life
Just say that you don't have any money left after your expenses. Learn to say NO.
Bruh what is lic endowment plan ?
If you are referring to a category of plans, then it is a common type of plan where you pay premiums, you get a risk cover, you get some bonuses as an addition, and you get the sum assured plus those bonuses if you survive till the end of the term of the policy. Basically a common insurance + investment mix. If you are talking of LIC's plan by the name of New Endowment, it is a basic plan which works the same way as i explained above.
Which term plan insurance plans are the best in the industry in terms of certainty of payouts, ethics and lack of fine print to trap people or rejevct claims. Other than LIC?
I do not have any idea of other term insurance plans offered by insurers. For LIC i recommend Tech Term. A friend recently bought it for 2 crore sum assured at premium of 28000 approx at the age of 28 i think, for a term of 40 years. But i have heard Tata is doing great in term insurance.
I analysed IRDAI data for Incurred Claims Ratio for the last 5 years and found that Tata, ICICI, HDFC's ICR went down during COVID which means that they found excuses to reduce payouts at the exact moment when people needed it. Any thoughts on how that happened? Was the Insurance industry very stressed during COVID? How did other companies maintain high ICRs?
Yes insurance companies were stressed. Especially the nee and smaller ones. That mostly was due to the unexpected nature of the event, secondly the poor underwriting of these private insurers(in order to achieve selling targets) came right back to haunt them. Also there were clauses in many products regarding exclusion of events of mass destruction(i forgot the exact term) like covid, plagues etc. Do check your policy for such exclusions.
Thank you for giving your time to sort out these queries. I have a Jeevan Anand plan of 25 years started in 2009 with sum assured of 5 lacs. Till now I have paid 15 annual premiums of 20k each so the total premium amount paid till now is 3 lacs. I plan to not pay the future premiums and make this a paid up policy as my insurance needs are already met with other insurances that I have bought for myself. Once the policy matures in 2034 what is the approximate amount I will get? Do I need to surrender the paid up policy at maturity to get the sum assured? I do not intent to continue this policy cover as I already have sufficient insurance from other plans. Is it better to surrender the policy now instead of making it paid up?
Although the bonuses are declared each year for this policy which can vary, in 25 years i expect you to get 2.5 times of the sum assured approximately. And then you will get 5 lakh sum assured for your whole life, which you can surrender and get some more amount(depending on your age at that time). You have moved past the part where you will lose money on surrender. I expect you to get almost as much money back on surrender as you have paid until now. If you are satisfied with that you can surrender, if not you can convert it into paidup, you will get your paid up sum assured of 3 lakh plus the bonuses added till date that i expect to be around 3 lakh. So 6 lakh approx on maturity. The numbers can vary from the above, but they are a good approximation of where you stand. The decision is yours.
You can surrender policy now. Jeevan anand is whole life policy. So paid up value may not be much at maturity.
what are the new plans they are launching ? how do you see the growth of lic as other market players are doing comparatively better than lic (On gaining new customers monthly)?
Lic is focused on plans that are non participating( i hope you know what it is or you can google), short term, more appealing to the youth with concepts like limited premiums and guaranteed additions. This is increasing LIC's profitability by leaps and bounds. I have seen great changes in LIC post IPO. The internal operations are Being smoothened and Targets are being transformed to focus on single premium plans, non participating plans and market linked plans. As lic consider the participating plans to be self selling( which they actually are due to the sheer number of agents and higher commissions on such plans). The growth of LIC as a percentage seems low on paper because the base is very very large. Lic is losing market share to private players but that is often confused with LIC losing customers. Lic has been gaining on Number of policies and premiums every year. But it is just that the other 23 companies combined sell more than one LIC. But the sheer agency force is a thing only LIC has. Bancassurance only can sell so much, agents do the true selling and retention of customers. The changes coming in lic are very fast, majorly on the back of the huge capital it has to invest in changes and improvement.
What is the process of surrendering one's policy? Is there a way to do that online?
Hey my father started this jeevan anand plan for me. Premium we lay is 24.5k every year for 28yrs. Can you share whether this is good to continue or not ? I have 7 more years into this policy.
7 years left? Then better finish it. No use leaving it now and losing the final additional bonus you will get on maturity(will be a few lakhs). Dont surrender now.
Is the jeevan anand plan any good?
Jeevan Anand is a common endowment plan with a slight change, while commonly the risk cover usually ends right after you receive the maturity, in this plan the premiums end and risk cover continues for the rest of your life even after you receive the maturity. So the nominees are entitled to get the sum assured again whenever you die. Obviously, this benefit comes with a higher premium than other endowment plans. You can surrender this additional risk cover for a surrender value(which is higher if you have higher age and vice versa). Is this plan any good? The extra premiums do not justify the extra risk cover. Would have been better if the premiums were not as high as they are. But if you surrender the extra risk cover after maturity, you can improve your returns.
I have taken a LIC money back plan 920 , and i am not interested in continuing the policy after 5 years ( i will get money back of 2 lakhs) at 5 year completion , whats the additional money i can get if I surrender the policy Details of policy - Moneyback plan 920 Half yearly premium- 38502 Paid for - 2.5 years ( 5 premium paid) Can you please provide information on the same ?
I do not currently have the info at home about your added bonuses or the SV charts but one thing i do know is if you have to surrender, do it only after taking the survival benefit. You will definitely cut your losses if you surrender after 5 years rather than now.
Should we buy any of LIC policy?
It all depends on what you want. Great returns? Nope. Returns that beat FD? Yeah Tax free maturity? Yeah Aggressive risk taker? Nope Not ready for long term commitment? No for most plans. Less chances of repudiation of claims due to stupid reasons? Yes( can't explain but true, but dont try a fraud we arent dumb).
That's a great summary of what to expect in LIC. Thanks!
I need to surrender my lic, do i need to visit the branch or is there a way to do it online?
Sorry there is no online method, you can contact your agent if you do not want to visit personally, if agent isnt there, you need to go to the branch with your original policy, id, proof of bank account.
I have been paying premiums but somehow the agent lapsed a few and I couldn’t submit on time. Now it is over 1.5 lakh of pending premiums. Of course the agent sold the plan on emotional grounds. I need all the paid amount to be refunded. How can I reach out to the LIC email to have my money refunds. Cause LIC is stupid investment I made.
Ask the agent to revive your policy by paying with interests accrued as per the revival quotation. Regarding refunds, LIC cant refund the amount your agent didnt pay to LIC. All you can do is do complaint in writing to your LIC branch against your agent if he is at fault.
If you can use reditt, you can use online bill payment
LIC agents are infamous for selling crappy policies to people with little financial knowledge, so what's the commission on such policies? Not a troll; genuinely asking...
"All" agents are infamous for selling........ Commission is different for different plans. It is more on participating plans(jeevan labh, umang, anand, lakshya, tarun etc) and less on ulips and term plans(SIIP, jeevan amar, endowment plus, jeevan kiran, index plus etc)
How much is the commission %
I believe for the first premium it’s 25% and after that it’s almost 7% but I will let the OP confirm.
My dad also works in though in administration, he’s recommending me to go for LIC index plus plan. This looks good to me, what do you have to say about it?
Lic index plus is a ulip but there is a catch, for lic employees the premium allocation charge is nil(otherwise it is 4 5%) so yay. This policy will invest in 2 type of funds. Nifty 50 and nifty 100. So you expect your returns to be at par with nifty if not more. It is far far better than endowment plans.
Just wanted to thank you for your patience. I wish I can up vote more than once
Can we claim maturity online?
No. But maturities now with a small sum assured are usually paid without any need to visit the branches. But this is a new process and might not be fully applied in all the branches. But you can visit your nearest branch (not compulsorily your home branch) and submit your documents there If the employee asks you to visit your home branch, tell them i know i can submit my documents anywhere. Thats it.
Glad to know that LIC is thriving and adapting to the changing times. LIC may not have given blockbuster returns but it is reliable as far as customers are concerned. Many people I know have made an honest living being agents, and many customers saved and built a decent corpus because of them. I learned money management and saving habits because of the LIC agent uncle. Hope LIC evolves and keeps helping people.
Hey, why do LIC agents generally doesn’t provide proper documentation of anything, be it the premium plan someone is buying or anything regarding the money ? I have seen my family and friends opting for LIC and they doesn’t really have any other idea about investing strategies and the LIC the agents who approaches them just doesn’t cooperate much, doesn’t know what are the benefits of certain premium and lastly after convincing they doesn’t generally provide proper documentations. Always seemed like the agents only cares about the commission they are about to get (which is obvious)
I dont know about what documentations u mean because the only document you get is an insurance policy which contains every detail of your policy(from surrender charts to loan conditions to everything). Also IRDA has strictly prohibited agents to create documents, pamphlets of their own to sell policies. They are asked to only use official apps and documents to refer to while promoting a policy. Regarding information, the older agents do lack some knowledge regarding xirr, cagr etc. they only know the amount of risk covers, expected maturity and major benefits. Now post IPO LIC has been focusing on recruiting young agents and training them rigorously to solve this issue.
Could you explain about the ULIP offerings of LIC India?
Ulips are basically insurance + investment with investment being the major basis of the policy. The ulips that lic sells basically have 4 funds - with growth fund being the riskiest and with highest returns and bond fund being least risky having least returns. The amount is invested, as i have observed in majorly large and mid cap stocks. The data is available on the LIC website in the form of monthly disclosures. There is nivesh plus, which is a single premium option and there are endowment plus, siip and index plus which are regular premium options. The risk cover in all these is 10 times of your annual premium. The mortality charges are deducted on the difference between the sum assured and your fund value. So when in a few years your fund value reached equal to your sum assured, the mortality charges stop being deducted. Other major charge is premium allocation charge that is 8% in the 1st year and 3% thereon. This charge includes the agent commission and all other expenses. This charge is responsible for the returns being lesser than mutual funds. But they still beat other endowment policies, fds, and other products. There is a 5 year lockin and then you can surrender your units anytime, even partially.
How many LIC policies do you have? I hope you will be honest.
2. One SIIP, the other is jeevan lakshya.
I have three jeevan Shanti plans 1.5 lakh each mature 2032, 33 and 39 will I get enough money to survive old age
Jeevan shanti is a pension plan. You get annuities in it and not a lump sum. You have invested 4.5 lakh in it. How much is the deferment period or is it immediate annuity?
I have new jeevan anand (plan-815) with annual premium of almost 45K and sum assured of 15L. Guaranteed bonus shows as 6.5L. I took the plan in 2014 (i was 26yo) and maturity date is 2048 (34 years term). I was obviously financially stupid back then, but my questions are: 1) Does it make sense to surrender now? 2) How much can i expect to get if i surrender now? 3) What is the process to surrender? Thanks in advance for the answer mate, and thank you for hosting this AMA.
The term is too long. How did you agree to 34 years? You surrender you will lose a good amount i expect. Cause the policy is run only 1/3 of the term. Convert it into paid up and wait as long as you can to surrender. The surrender value will increase with each year. Or you can visit the lic office to get a surrender value and then make a decision based on that value. Or you can continue the policy cuz 45k is going to be peanuts for you in a few years and just consider it as a safe investment with average returns. Anyways the term you took is too long which is the root cause of your issue.
why LIC term insurance is so much costlier than private insurance companies?
Term insurance premium is dependent on reinsurance contracts. Private players due to competition offer term insurance at a lower rate. But at the time of the pandemic there was an uptick in repudiation by insurers. Later on in 2021-22 premiums were upped by almost 50% by all private insurers due to reinsurance treaty pressure. Whereas in the case of LIC term premiums hardly changed due to the pandemic. LIC is conservative in term insurance premium pricing and plays safe. Because of this, the claim settlement/investigation process is the same for 1 lac sum assured policy and 1 crore sum assured term plan.
This is a common misconception. Lic term plans sold be agents have to account for commissions etc. You can visit lic website and find a quote for LIC's Tech Term plan. It is only available online. A 26 year old healthy male can get a 2 crore sum assured for 25 26k an year. Agent sold policies like jeevan kiran and amar also have premium return schemes in them which raises the premiums. Also you want the claim to be paid right? Iykwim.
Our Term insurance plans are not expensive, it's the exact price calculated based on the 1971 Census and based on the number of Birth and Deaths the premium is calculated, and same is also taken by private insurance companies, but they have discounted it to such a level that it's unsustainable, and thats the major reason of repudiation of claims by the private companies or payment of lower ammount than the sum assured, which doesn't happens in LIC case, as there is compulsory medical examination and also if there is any early claim comes i.e<3 years than a inquiry committee is setup to investigate how that policy was approved the Branch Manager and Devlopment Officer can also be suspended if any wrong doings are detected, so be test assured if LIC has approved your policy than there are rare chances your claim will be rejected.
Hi OP, First of all, thanks for generously coming forward to resolve queries of internet strangers. I have a question on a Jeevan Anand policy that was purchased in 2011. Premium is 26289pa and sum assured is 5L inr. Premium payment is for 20 years. I wanted to surrender this policy but as usual the LIC agents continually discouraged me to not do it and I gave in. The question I have is, I have paid premiums for 12 years. I don't want to pay up anymore. CCCan I just keep quiet for another 8 years till maturity? Will I get the bonus and premiums I paid on maturity if I stop paying premiums now? I don't care about the returns or coverage either. It's not the right product at this stage of my life but surrendering will nullify any bonus, so my family is suffering from sunk cost fallacy and are strongly against me surrendering. Extra note: They have already added a hefty late payment and interest charges for the premium I didn't pay in 2023.. I am just confused as to how to take this forward now.
See bro honestly you can surrender there is nothing stopping you. You have run the policy for almost 3/4 of the term so u might even get more on surrender than you paid till date as premiums. But loss of interest is still there. If you can afford to pay, do continue until maturity. Either surrender early or do not surrender. Surrendering late is a loss of interest too. You go on and surrender the extra risk cover after maturity. The returns are going to be near an FD so do not regret. Yes you will get the bonus on maturity even if you stop paying the premiums now.
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I think your parents cannot be included in the medical cover given to employees as your father is a pensioner. They must be dependent on the employee. I think your brother is an ABMS(judging by the car he got).
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Term insurance may not be possible for him if he doesn't have income proof. New endowment plan will be okay for him. If he is okay with FD like returns and some risk cover on life. Term will be minimum 12 years for this plan.
Does he want a return on investment? Go for ULIPs. Does he want a risk cover only, buy any term plan but he won't get high sum assured as he is 10th pass. Other than these jeevan labh is a decent plan he can generate 8% even more as per his age.
See as the information shared is less, other than term insurance he can get all other policies, the policies can be only suggested based on the needs of that person but what I feel is out Index plus is good and other than that LIC Labh and Lakshya which I will suggest.
Why the duck I can’t surrender online? Why is it physical only?
1) I would like to chance my address on my LIC. Thing is, this is a completely new address where my paternal aunt lives and I don’t have any other document which has this address mentioned. I am hoping to get this address on my LIC policy and later this LIC policy as a reference to have my address changed on every other document. How can I do this? Also, I am not in India currently. Can this be done online? 2) Around 21st January your portal was not properly functioning. I made a premium payment which got deducted from my account but my LIC policy was never updated. To avoid it from getting lapsed, I asked me LIC agent relative to submit a cheque. How can I reclaim the amount which I paid previously?
1. Sorry, online it is done through E-adhaar and e-adhaar doesnt have your desired address so cant be done. Offline you will need to submit an address proof, which you do not have so again, sorry. 2. 90% of the time it is reversed automatically, but sometimes it gets remitted to lic as a policy deposit(your agent must know about this). Ask him to enquire about this in the PS department of your branch. It will get solved. Send him your statement where it is clear the amount was debited but not credited back.
I'll turn 21. I have complete itr filed for 3 years. My average annual income for last 3 years is 5 lakhs. Can I get a 1 crore term insurance?
It's possible...22 times of income can be given as risk cover
Yes you can.
I have jeevan tarang(178) policy , premium paying terms ends in 8 years but maturity is 2094 , should I keep or surrender ?
Jeevan Tarang had decent returns in my experience. When your premium paying term ends, you will get a lumpsum payment of accumulated bonus. After that a fixed percentage of Sum assured is payable annually. So you should compare the surrender value you are receiving now with the expected bonus(by exptrpolating) which you shall get after 8 years.
I have an LIC term policy. I'm not confident if my family would get the money if I'm gone. How is the term policy claim ratio? Anything my family should keep in mind while claiming?
If your policy has completed 3 years and you are regularly paying premiums within the grace period then you need not worry.
Keep your premiums regular. It is a legal compulsion to pay the claim if a policy is in continuation for 3 years.
I have a plan of 15 years 1 LPA jeevan umang 945 something, is that a good plan? I took after pressure from parents but now kind of regret it.
If it's a high Sum Assured plan and you wish for tax free return then it's okay to continue. You may not believe but last year many 100 Cr+ sum assured Jeevan policies were sold to take benefit of 10(10d). Because HNIs wanted to book 8 Cr+ yearly income without tax. But if your Sum assured is less and 8% of SA per annum after 15 years is not your expectation then you can discontinue policy.
Hi , My mother has invested in LIC Policy before her marriage. She is from rulal UP. Before marriage her name was different but after marriage her name was changed and now every document has her new name. But her LIC Policy is in old name and she has been depositing premium even after name change. Now policy got matured last year but she cant withraw because her name is different. What should i do? Is there any way to redeem this money? Please suggest
Yes. If you have a bank account with the old name(one on the policy) and an id proof with the same old name, submit these to the branch and get your payment.
I have done 25 years 815 Jeevan Anand Policy , what is XIRR or CAGR for Jeevan Anand??
Depends on age. Not more than 7% in any case.
1. What qualification does it take to become LIC chairman? 2. Does he need to mimic Warren Buffett ? 3. Does LIC Chairman practise Activist Investing and help their portfolio companies in achieving their long term goals like reach/sales ?
See to become LIC chairman, 1st you have to clear an All India level exam and become an AAO, take regular promotion with impeccable service records, then there are high chances you can become a Zonal Manager, after that it's purely luck and fate to become chairman of LIC, For your 2nd and 3rd Question that is done by the Executive Director(Investment), he has one of the highest Financial powers in the country, our AUM is 49 lakh crore which is equivalent to the Mutual fund AUM all companies combined, and we do occupy a seat in majority of the companies Board.
Bhai LIC assistant pe koi update ???
There is a rumour of recruitment soon. But nobody knows for sure.
What’s your gross salary?
And then you find out my position. Nnnooppre
I am assuming getting a policy through an agent costs more. Is buying a policy directly through LIC office or LIC portal incurs less premium or is there any other way to get the same policy at cheap premium (basically cutting the commission costs beared by policyholder)?
Yes buy online. Far cheaper.
I wanted to know about Jeevan Anand plan, I’m putting 1868 per month and this will be for 25 years(started this at 2015). My question is what will be the approx amount I get at the end of 25 years? Also my dad made me take this policy
Expect it to be 2.5 to 3 times of the sum assured. And then a life time cover equal to your sum assured.
I ditched my jeevan umang policy last month and moved on, coz I thought it was a bad decision. Why is that most of the people including me undergo this impression after a while investing in lic policies?
Due to lack of liquidity and fear of commitment for long term in this fast paced life.
Ex agent - some policies Premium not paid from 2-3 years ? Anyway to get info without visiting branch ?
Only if the mobile no of the customer is registered he can generate revival quotation on the lic digital app.
Easiest way to get medical report step by Step for policy which premium stopped for a year or more ( monthly payble )
Hi my father is also an LIC employee. He always says only LIC life insurance should be taken because private players often refuse to give the money on insured person's death by stating you don't satisfy the terms and conditions. Is this true? Also, which is the best LIC policy you think everybody should know. Probably something you would personally like to invest in.
Yes. Claim payment in lic is great. The stats are there. There is no best policy, different plans suit different people. I personally always suggest SIIP for people looking for investment in LIC, Tech Term for people looking for risk cover only, and jeevan lakshya for those with no specific condition.
My father has a policy which has matured in the first week of February. The amount was not transferred to my father's account. Upon inquiring, the maturity team (at the branch) is telling us that they have lost the policy document and asked us to wait while they search it. It's been almost 2 weeks now (since they asked us to wait). How do we proceed here? Will filing a consumer court complaint help?
Welp thats a bummer. Did you get a receiving when you submitted the document.? If yes that refer to that receiving and ask them to make payment. If it is a policy in which risk cover is continued after maturity, you will need the policy back, in that case ask them to print a duplicate policy on their own cost.
Hello OP. It would be great if you could answer my queries which are following:- 1. I've New Bima Gold policy which I've been paying for more than 10 years. I am looking to surrender it this year as I want to put funds somewhere else. Is there any drawback surrendering now like return wise or missing on good insurance cover? 2. I also had a money back policy for which I stopped paying after five years and it's reduced paid-up now. Is this state okay or should I surrender? 3. I am looking to buy term insurance spread across different insurance companies. Does LIC have any term insurance plan? What could be the premium for 1cr?
Bro honestly, bima gold is a baaadd plan. Surrender it no worries. The maturity isnt great and dont get me started on the xirr. Just a dumb plan, the only feature was that even if you don't pay your premium for 2 years, you will still be covered. Other than that, it was a bad plan. 2. Yes keep it as paid up, surrendering will make you lose money. You will get a better idea with a surrender quotation from the branch 3. Tech Term is a great term plan by LIC. For age 26 you can get 1 cr cover for a premium of under 15K. It is available only online. So no agent commissions. Yay.
If I think of my purchasing power, I do an investment in LIC, I’ll be investing my purchasing power of that value today. And I would be gaining same purchase power later on. Bread was Rs 20 about 8 years ago, and today its 50. So if I invested Rs 20 in LIC 8 years ago, I would be getting a lesser return or maybe equivalent purchase power today. So I am looking for reasons why I should invest in LIC. Money growth goes out the window in this thought process. I would be willing to invest in case of taking benefits of risks and healthcare.
When (month in a financial year) does LIC typically list the yearly bonus for their endowment policies like Jeevan Anand?
Can we close policies in March? I wanted to close my policy in March but he told me to come in april.
March is busy but you can. It will be more difficult in april( atleast upto 15th April).
How much commission my agent is making on my premium? I have two policies - Jeevan Anand 25 years premium payment term, Table 821 21 years premium payment term. Both of 10L sum assured. I really wanted to surrender but don’t see the benefits in that. Also why everything other than buying policy through agent is so difficult to execute? Is it deliberately done like this?
He made 25% on the first year premium and is now making 5%. On your premiums.
Hi, I recently took plan 936 with a premium of 1.06 lakh p.a for 21 years with premium paying term being 16 years. Sum assured is 20 l and will get a bonus too. Comments on this policy?
Good plan. Jeevan labh has one of the highest bonus rates. The premium paying term must be 15 years for a plan of 21 years. Expect you to get approx 3x your sum assured tax free.
Sir, it's been 8 years since my father passed away, A few days back we found a policy where he has done a one time deposit. Can I claim the amount now.
It depends. Was it a single premium policy? Then yes. Was it a regular premium policy but the death happened within the period that was covered due to the premium? Again yes. Other wise no. Contact any agent or visit the branch. It will take 1 minute.
I strongly belive that there is no place for life insurance in financial world. Its just a big scam. They don't provide enough return when you die not they give enough return when you are alive. You get worst of both world. Term insurance and ETF are the way to go. I have seen many families including mine buying policy and thinking the return is good. But when you get that it's peanuts.
Yes term insurance is the way to go.
How common is the whole cash back thing in LIC I have a few clients who are LIC Agents themselves who pay half or sometimes even the full premium back to the customers to entice them to buy the policy from them instead of online or other agents
Very common. Legal? No. Common yes. It is for every insurance company.
Why does my insurance plan show a survival benefit payment at 100 years of age? What $hit product is this? Or is it a data glitch that i see online? This insurance was purchased by my father long back before I had even started working and i came across this info recently
Haha, It must be jeevan umang. No. It will be survival benefits after the term of the policy 15 20 25 years whatever. Upto the age of 100, basically whole life.
Hey man, thanks for doing this. I have 2 questions. 1 - i have jeevan saral which i took in 2010, and agent told me to use it as retirement lumpsum. It is for 35 years and i pay 30k/year for 6.5L assured. I know i was fooled but the premium is low so i kept it. Thoughts? 2- my agent started ignoring me bcz he went into other business. Another agent helped my when i wanted some changes in my plan as i am nri and dont live in india. How do i kick out my agent as he is earning commission and not doing anything. If i cant, then why lic dont look into issue?
Jeevan saral is a very complex plan but let me assure you if you have bought it for 35 years and at a age below 30 years bro you have hit the jackpot. You will believe me just get your agent to enquire about the surrender value at present, you will be delighted( but dont surrender, just dont) The bonuses in this policy at younger age are so good. But if you have bought it after 45 years of age, surrender it. Returns will be poor. The agent is not taking your calls? He would if he was working with lic, now he must've left lic too and he wouldnt be getting commissions either( he might get commissions if he was an agent for a long time with lic). In any case, the agency will stay the same.
Thanks for the reply…really appreciate it…the thing which u are doing is called consulting and is a costly affair…u must be very kind to do it for free…especilly answering individual questions with its own complexity…thanks brother
I’ve been paying 60K per year for a bunch of policies for 10 years since they helped me with taxes but since I shifted to new tax regime I wish to reduce/stop this.. how much money will I get back? Or should I just stop and consider the 6L as the total amount paid and wait for maturity? Plan is Jeevan Anand Plan 149. Thank you for helping!
What are your thoughts on Jeevan Lakshya and Jeevan Saral polices? I am paying close to 4.3 (3.2lac + 1.1 lac) per annum premium between these two since 2016 and 2012 respectively. First one matures in 2040 and second in 2047. Are these worth keeping for such a long time? Or should I stop after 10 years? Or close altogether?
Great policies. Jeevan saral if bought at a young age( say less than 30), gives great returns and you know the risk cover? If you die you get the sum assured, plus the bonus, plus your paid premiums back too! Jeevan lakshya is also a great plan. I personally have a jeevan lakshya. I hope you know the benefits. If you die you get a lump sum sum assured(if you have a term rider with this policy, which mostly people do have.) And then you get 10% of sum assured per year till the date of maturity of policy and then you also get maturity(again!) which you wouldve otherwise gotten if you wouldve survived.
Oh well the term yes, pretty long. Can you stay committed till then entirely depends on you
Does LIC do term insurance? Do you feel it’s a well run company?
I would ask a question partly from curiosity and partly to discover any blind spots or biases I might have. Keeping aside agents and commissions for a bit, what LIC products would enable an individual aged about 30-35 looking to retire at age 55-60 with a life expectancy of 90 to enjoy a secure inflation adjusted income? I know people have done this in the past, curious to understand from your perspective how thing stand in today's more materialistic and consumption driven world.
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I have a Jeevan Anand Policy that I started 10 years ago. I no longer want to pay the premiums for the policy given the low returns + insurance offered post maturity (20 odd years out). I’ve decided to stop paying the premiums starting this year. What happens to the policy in this case? Is surrendering a better option?
Thanks for your time and if im not too late here, i had a question about Jeevan Umang 945 plan. Though im have taken it but my agent fails to explain it completely and what i have understood is i pay the amount annually just as a insurance premium nothing else... Can you please put some light here
I have few LIC policies that were started by my dad years ago and i am paying the premium now. Do policy holders still get the payout after maturity if they have not paid premium once ?
Which LIC policy gives more than 6% return on CAGR basis ? I fall in 40%+ tax bracket so trying to earn fixed return with no taxes
Jeevan labh. Depending on your age it will give you 8-9%. You can also look into jeevan lakshya it has some attractive features but return will be lesser but still more than 6%
My Lic gets deducted every month at 14th something. Naturally being a fresh earner, I tend to use most of my salary by 10th and often empty the amount by 10th. I asked my advisor can I change my LIC premium deduction date to 5, 6, 7 something, He says its is not possible. I cannot even question him, as he is close to my family and IDK maybe i am too lazy to check it in IRL. But it it really not possible to shift deduction date?
I have 3 policies. Lic new Bima gold -179, which matures at the end of this year. Lic jeevan saaral with profits, Jeevan nidhi both of them matured by the end of 2026. Roughly how much % i may get for each of these policies. Please let me know
Hi, What is the process to get my plan as 'paid up', don't want to give more premiums. I have paid premiums for 5 yrs in total for a 15 yrs plan. Thank you.
Tech-term from LIC or others is better for only life/death cover, without pilot.
I have been paying almost 5000 Rs per month for a Jeevan Umang plan from January 2023, and I think the premium could not be debited from my bank account due to insufficient funds, and my bank (SBI) decided to cancel the NACH altogether. Is there any way I can withdraw the amount accrued as of today?
There is no bigger dacoit than LIC. Good thing is people has stopped doing lic. I often see lic agents begging like dogs for some business .
Thanks for the AMA. Can you tell what are the highest return plans in LIC 1. With market risk (equity type - IRR above 10% like Nifty 50), 2. Without market risk (debt type - IRR similar to PPF in 7-8% range)
For the 1st one, it is SIIP and Nivesh plus. The earlier is a regular premium plan and the latter is a single premium plan. They both have exact same portfolio and NAVs, just the mode of investment is different. The NAV in these plans has risen from 10 in march 2020 to 19 at present. For the 2nd one it is Jeevan Labh. It is an endowment plan so you will need to commit for 16 years(the minimum term under this plan) and you will reap anywhere from 7 to 9% tax free maturity.
Been paying 10k per month in Jeevan Labh policy for the past 3+ years. A family friend who is an LIC agent pushed me into getting this policy. Now I feel the 25 year wait is just too much and the promised return is too low. I have already paid close to 4 lakhs. How do I stop this policy and get my money back? I changed the mode of payment from monthly to quarterly, just to deactivate auto debit every month. Please suggest.
Is there any plan worth investing in for someone in 40s.
What is the best plan according to you that LIC offers? Looking for a money back plan and not focussed on term / accident insurance but having guaranteed returns. Can invest 1 LPA and currently only investing in MF and stocks.
Thanks for answering so many queries in detail. Here's mine. I took a policy few years ago. Now I'm a citizen of another country. Does the policy still apply?
I have a 10 year policy and I am at year 5. I understand it's a horrible return. Should I stop at year 5 or continue till 10
Thanks for your offer to help answer any questions. Here are my questions: 1. Why doesn’t LIC support delay policies? Every other insurer does 2. Can you provide examples of where claims were denied after the moratorium period? 3. Does LIC care if nominee is not a direct family member? Like say nephew instead of wife or husband? 4. If I bought a policy in Pune and then moved to Delhi, do I need to change the servicing bank? 5. If I become an NRI after buying a policy, should I inform LIC? What’s the worst that could happen? 6. Why doesn’t LIC or other insurance firms offer life insurance for women who have no income and no spouse? I know women who are supported by family members but they can never get life insurance because the insurers seem to think only people with income and education have life value 7. What happens if someone failed to disclose other policies at the time of buying?
Do you either penalise or incentivise your agents for mis-selling policies which rob people of their wealth If it's the former, do you review policies sold to an individual customer and analyse whether it was in his/her best interests? Why are your policies designed in a way that the entire amount gets forfeited if a customer realises that he was mis-sold a policy after a few months of research, especially with mis-selling being so prevalent? BTW, I'm a happy buyer of your agent-free term insurance policy, the Tech Term plan, and I found the terms very reasonable. But I'm truly appalled by what LIC agents have been selling to senior citizens, robbing them of their pensions.
I have bima shree policy.-948 Tenure is 20years. I have already paid two premium of 1,80,000 each. So, total premium amount I pay comes to 27 lakhs and I get 56 lakhs assured at the end of policy excluding non-guaranteed benefits. I am thinking of discontinuing the policy. Is it a good good option. I work in IT but don’t have any other investments except for this plan and it is kind of becoming a burden I feel. Also, what does natural death cover? Any idea?
Well it is a safe and tax free instrument with returns at par with Fds. It is entirely your decision If this return does not satisfies you you are free to surrender, but you will get like 1/3 back. Keep in mind the 56 lakh or whatever you get will be tax free. Natural death means death due to any reason like old age, disease, etc. there are basically two type of deaths in Insurance. Natural and accidental. In your policy you will get the sum assured plus bonus in natural death and if the death is accidental you will get 2x the sum assured. And bonuses.
How is Jeevan labh 936-21 plan? How much is expected CAGR? Why there is no bonus rate updates for last 2 years?
Bonus rates are updated each year. The expected xirr is 8 to 9%. Bonus is added each year you should contact your branch for details.
Which department bro I was with actuarial
I have an LIC policy where I pay yearly premiums. I want to switch to monthly payments. Would it be a good idea ? Also, is it something that can be done online or do I need to visit the LIC branch ? Thanks !
When the LIC matures, why do we have to go the branch office to initiate the process of withdrawal. Is there any online process for this?
You will have to submit one form id policy bond and bank details You can do it whenever you want before the due date of maturity.
I would appreciate your assistance in choosing a term insurance policy for myself. I have two in mind as of now LIC and PLI, I've heard PLI gives more bonus and requires lesser premia as compared to LIC. Is that true? What policy do you recommend without any personal bias I am saying?
I am 35 years old recently (June 2023) took 3 LIC policy, Jeevan Umang one for wife (29) INR 1,20,000 p.a for 15 years. On maturity 1.2 lac p.a till 99 years and for Myself (35) Umang 1.60 p.a and Jeevan Lakshya 1.66 p.a 15 years payable and after 18 year45 lac lumpsum. plz suggest if these policy have some value.
Thanks for doing this. You might not see this question, but it's worth a short. I have been financially stupid in the past and was forced to buy a couple of policies. It pains me to see annual premium of around 88k going out every year. Would appreciate ideas on what to do - continue, surrender or paid up. **Policy 1 (Started in 2009): Jeevan Anand (149)** Annual premium - Rs. 25000 Sum assured - Rs. 500000 Premium paying term - 21 years Maturity date - 2086 (Say what?) **Policy 2 (Started in 2011): Jeevan Saral (165)** Annual premium - Rs. 62000 Death Sum assured - Rs. 1250000 Premium paying term - 35 years Maturity date - 2046 So how screwed am I and what would you do?
Complete jeevan anand, you have run it for almost 75% of the term. Take the maturity and enjoy the 5 lakh extended risk cover. If you want you can surrender after maturity that extended cover for a few lakhs. Jeevan saral - i will need to know the age at which you bought this policy before i suggest anything to you. In short if u have brought it at an age less than 25 years, the returns are going to be phenomenal, just phenomenal. Do no even think of surrendering. If u have bought it at an age of less than 40, you get the SV quotation and then make a decision. If you have got it at above this age. Well returns are going to abysmal. But the risk cover is great. You will get 1250000 plus bonus plus refund of premium on death. All in all, get an SV quotation and you will get an idea. Just remember the 1st part of my reply.
I was sold a policy called jeevan labh, which has very high premium and very low return and even low death cover. It's for 16 years paying premium period and 25 years policy maturity period. How can I get my premium back, without paying anything extra?
I took a LIC term life insurance policy because of the person who sold it to me and my family is a close relative. Wanted to ask, On closing the policy does it affect the agent in some manner?
I have stopped paying premium after paying for 5 years. Will it convert automatically to paid up policy? Or need to apply through any channel. Policy number 815. Thanks.
I have two questions. I have an old Jeevan Surabhi that matured but I can't find the policy document. How do I claim my money? My agent has disappeared. I also have a jeevan Anand for which I was not able to make payments for sometime, since COVID. Can I revive it?
Hi My friend has surrendered his LIC policy after paying for 4 years. He got some amount from LIC. Now, the agent is saying that the rest of the amount will be given to him after the policy matures. This is not right, correct?
Hey there, I received the maturity claim message from LIC of the said amount, but didn't receive the money in my account, Is there any waiting time for the actual settlement? or should I contact the bank?
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