9 common Insurance Questions & their Answers




Insurance is one of the greatest inventions in the field of personal financial products. But it becomes fatal to financial life and costly once you end purchasing a wrong insurance solution. I have selected most common questions that keep coming on TFL. You can also ask your queries in comment section.

Insurance QuestionsInsurance Questions :

  • Are all traditional polices useless?
  • What are expenses in ULIPs after 3rd Year?
  • Should I go for Term Plan or Endowment/ULIP policy?
  • Can I get Term Plan of 1 Crore?
  • Should I buy LIC’s Magic Plan?
  • Suggest some term & medical insurance for NRIs.
  • Do some ULIPs charge 100% allocation charges in 1st year?
  • Should I go for pension plans from Life insurance Companies?
  • Should I buy Medical Insurance or build my own Medical Corpus?

Useless Endowment & Money Back Policies

Do you believe that all endowment / money back policies are not useful? Also I have one Money back endowment policy with 45000 Annual Premium and already paid for three yrs…so again the same question whether to continue or not. I have one money plus from LIC with 5000 Annual Premium and have already paid for three yrs.. So shall I continue? or withdraw?

You have asked something like all are politicians bad – now should I say no or yes. There may be few good politicians but as a class they are not – similarly my answer is endowment/money back policies are not useful.  Few of them can be good – few polices that were launched by LIC in 2003-4 or before that period have some good features & higher guaranteed bonuses. But even in those policies return will not be higher than 6.5% or 7% taxfree – so if people feel that it’s sufficient for them they can continue otherwise they should plan to withdraw. My preima facia suggestion for you is discontinuing both policies.

Expenses in ULIP Policies

I and my wife taken the one ULIP policy from Max New York Life name of policy is Life Maker Premium unit linked investment plan, both 20000/- per annum. 3 yrs has been completed in October-2010……what we should do whether it should be continued both the policies……. because all major charges have been removed now. We have taken these policy only to pay the home loan after completion of 7 yrs of policies….as agent told us after 7 yrs we will get around 2.50 lac each..

It’s a good thing that you are aware about charges – but there is a misconception that charges gets over after 3 years. Check the table & compare 4th year charges with mutual funds.

Charges 1st year 2nd year 3rd year 4th Year Onwards Mutual Funds
Allocation 25% 10% 5% 2% 0%
Administration Charges 12% 12% 12% 5% 0%
Fund Management 1.25% 1.25% 1.25% 1.25% 2.25%
Total Charges 38.25% 23.25% 18.25% 8.25% 2.25%

So my suggestion is if you have paid the premium for more than 3 years – whether you should withdraw or hold that investment is based on Alternative Opportunity you have at that point in time. If you find that you will be better off investing in Mutual Fund directly instead of remaining Invested in ULIP, then it’s better to withdraw the same and make Mutual fund investment. Now this statement applies to all your investment. Check surrender charges before you make this decision. (Read: How to exit mis-sold insurance policy)

Term Plan Vs Jeevan Anand

Last week I was reading TFL where Stress was given to Term Insurance rather than Endowment Policy/ULIP (Expensive Product)….Why so….Sir, I have taken Jeevan Anand Policy from LIC thru agent which will cover the life’s risk even after maturity of policy….till 100yrs… so I will get money on maturity and on death after that? Isn’t my family protected? Please guide…..

I think answer is there in your question only. These are very expensive products & should be avoided if your purpose is insurance. You have purchase Jeevan Anand – I am assuming that you are 35 & premium paying term is 25 Years. In this case your premium for 2 lakh sum assured will be close to Rs 9000. Now go & ask your agent that how much sum assured you will get in this premium if you buy term plan. You will be shocked that it will be more than Rs 25 lakh in case of LIC & if you go for some private insurance it can be as high as 30-40 Lakh. Now coming to your second question where you are saying that Jeevan Anand will cover you till 100 years –here the problem is Indians don’t realize that why Insurance is bought. Insurance is bought because if you die before fulfilling your financial goals it can be taken care through insurance & once you retire means that you have already build sufficient corpus for your financial goals.

1 Crore Term Plan

Can you please let me know about much talked about term plan insurance policies that offer Rs 1 crore. Is it really possible or have some conditions attached?

You are the first one who ever told me that term plan is much talked about. Most of the people who interact with us hear TERM PLAN for the first time. In term plan even 1 crore is not a limit you can even go for higher sum assured if required. There are as such no conditions attached but your income should justify that you can take this sum assured + you should be asked to go through some medical tests.

LIC Magic Plan

I have been propositioned this MAGIC PLAN – by LIC for my wife (age 31) and me (age -35). It is 20 Jeevan ANAND policy of 1 lakh each with sequential years of maturity to get 1 policy matured from age 55 onwards; they call it all in one – magic plan to cover insurance, accident, retirement etc. I’d appreciate your time and help in dissecting this proposal.

When I say even 1 Jeevan Anand policy is bad – how 20 will become good. This is nothing but a pure mis-selling started by few new era insurance agents. They propose this plan as this will help you to achieve your financial goals but actually it helps them to achieve their goals you are lucky that you know that Jeevan Anand is given to you but most people I have interacted think that is some special policy by LIC. My suggestion is to avoid not only this policy but also the agent who is pushing this.

Insurance policy for NRIs

I got convinced of the need of a medical insurance and term insurance (though an NRI of 38 yrs) and am finding out the best for me. Appreciate to know your view on ICICI lombard vs Appolo munich fpr the medical insurance and Kotak e preffered vs Aegon Religare life insurance.

It’s good that you got convinced that there is importance of insurance in once life. As you mentioned you are an NRI my suggestion will be that you should buy it in country where you are residing. But for other readers I have found that Apollo Munich policy features are better & also serving better in comparison to ICICI Lombard. No coming to your life insurance question – yes you should buy a term plan from India. If we compare the cost of Kotak e-preferred to Aegon Religare – it’s almost same but if we talk about claim settlement Kotak wins the bout.

100% allocation charges

Last year in July 09 I purchased a LifeStage Assure policy of ICICI Prudential from one of my friend who was in this company that time. I purchased this policy without knowing anything about it. I have paid two premiums against it till today, worth rs 10,000/- each. The Sum Assured is 1,00,000/- rs and time period is 3 years.  So now kindly let me know, what kind of policy it is? What shall I get after completion of 3 years?  I would be thankful to you sir.

This is a Unit linked pension plan which gives some guaranteed addition & manages your portfolio allocation according to your age. Let’s talk about worst part of this product & that will be shocking for you & other readers – not a single rupee from your premium was not allocated for investment in first year. This amount will be added as guaranteed addition after 10th year. So from this you can see that you are stuck – if you withdraw it after 3 years you will approximately get 60-70% of your premiums. Even I am shocked that you are saying that agent was your friend – no real friend can sell such long term product by saying this is 3 year product. (Check illustration with 100% charges: Insurance Schemes or Insurance Scams)

Pension Plan or Tension Plan

I am 28 years old. I AM ALREADY INVESTING RS 7000/MTH IN DIFFERENT SIP FUNDS. MY AGE IS 28. I WANT TO INVEST IN SIP FOR 20 YEARS. AS I AM WORKING IN PRIVATE SECTOR I AM THINKING ABOUT SOME PENSION PLANS. HOW CAN I GET REGULAR GOOD PENSION?

Good to hear that you are investing through SIPs. Let’s understand this right now you young – this means you have to accumulate as much as you can through good products. No need to worry that what kind of products will give me pension when I will retire – In next 20 years we will see lots of new products emerging that will help us to get some regular income. Right now you should worry about accumulation of amount. Let’s take one example – you have to reach a destination that is 1000 km from your home. There are 2 ways to reach there:

1. A slow train that directly reach there but take 2 days.

2. You can take a fast train which will take you to mid-way & then there are lots of other options to reach your final destination. It will also save your 1 day.

Which one will you choose – expenses are almost equal. 1st one is your so called pension plans. Second one is right now you accumulate till retirement & then choose best option that is available at that time. Hope it clarifies your question – other than SIP you can also start some small contribution in PPF.

Medical Insurance or Medical Corpus

My purpose is to set aside 2000 Rs. per month for medical expenses(surgery,hospitals etc)that might occur in future. I am thinking of investing this amount in monthly income plan(growth option) type of mutual funds rather than recurring deposits and then making FDs. This investing will be long term i.e. till I retire. This fund might be used(in case of surgery/hospitalization etc) OR may not be used in long term. Is this a correct decision? Is MIP the best suited type of MF for this purpose.(priority1:capital protection/priority2:appreciation) What is the difference between MIP and debt oriented conservative funds? Thanks in advance for response. Note: This is apart from medical insurance. Once enough funds are available with above strategy, I will stop mediclaim.

It’s a good idea to build some medical corpus for retirement years but that should be over & above medical insurance. Any amount of corpus can’t replace benefits of medical insurance. Medical Corpus can be exhausted in a single medical emergency but insurance will give you benefit year on year. My suggestion is do some reverse calculation – what kind of corpus you need for medical emergency at the time of your retirement. Then calculate how much you should contribute every month to achieve it. To simplify the things you can just add this amount to retirement corpus needed & start accumulating. Regarding selection of fund my suggestion is go for balanced or diversified equity fund in place of MIP as it is your long term goal.

In case if you have any question related to insurance – feel free to add it in comment section.

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{ 396 comments… add one }
  • Sanj May 31, 2011, 10:20 AM

    I have recently purchased LIC Jeevan Saral. Is it a good policy?
    I pay premium of Rs.6000/- per annum.
    Please comments on this policy

    • Hemant Beniwal June 1, 2011, 10:27 PM

      Hi Sanj,

      I think I have mentioned regarding this policy in above questions.

      • navdha December 9, 2014, 5:18 PM

        I have some question regarding the investment. I need at least 10 lacs after 10 years which is the best plan to invest and what is the premium amount. I do not have any market knowledge.

  • Dhawal Sharma May 31, 2011, 7:16 PM

    Excellent post, and genuine selection/compilation of queries..Got a very good insight as to how to handle the queries of the prospects in my field..Great job Hemant..

  • chandan kumar June 1, 2011, 1:42 PM

    I love this post. Great help Hemant Ji. Last year I have taken LIC Market Plus-1 (Table No.191) I am giving Monthly Rs.2000/- Please suggest me is it good or should I withdraw it and invest in ELSS. Thnx.

  • Rakesh June 1, 2011, 10:55 PM

    Hemant,

    Nice compilation. Can you provide your feedback on Aviva I-life term plan.
    The premium is about 15% – 20% lower than I-protect and Ageon Religare when we opt for Sum Insured of 50 lakhs and above.

    Rakesh

  • chandan June 7, 2011, 12:36 PM

    I want to know that which of plan of LIC is better than for investment and insurance. I am not believing in ULIP plan. Jeevan saral is good plan and I want to know more about it. Please comment on it

    • Hemant Beniwal June 9, 2011, 2:18 PM

      Hi Chandan,

      Endowment plans are even worse than ULIPs – I think you have not read the first question.

  • prakash praharaj June 7, 2011, 4:18 PM

    Hi Hemant,
    Hearty congratulations for sectional questions and answers and continuous innovation to create value.
    In insurance,you may like to address the following questions and answers:
    1) How to buy online term plans?
    2) Keep in mind the claim rejection ratio also while buying insurance policies!
    My best wishes are with you !!!

    • Hemant Beniwal June 9, 2011, 2:19 PM

      Thanks Prakash.

      For your questions we have a separate article that how one can choose the term plan.

  • paritosh June 10, 2011, 9:53 AM

    HI Hemant
    will you please give a print option on your all articles on the website in pdf format so that we can print and read & also can give others at home to read.

    • Hemant Beniwal June 12, 2011, 5:43 PM

      Hi Paritosh,

      I tried 2-3 things recently but failed 🙁 I am a tech handicap.

      Let me ask my web-developer.

      • Sarvesh June 13, 2011, 8:19 PM

        there is something which is preventing it from printing. Even if there is no “Print” link on the page for article, it must allow to print using browser print option.

  • Pappu June 12, 2011, 2:10 PM

    HI Hemant
    LIC’s Jeevan Arogya is good policy for mediclam?

  • Manoj June 16, 2011, 11:48 AM

    Hello Hemant,

    I have started investing Rs. 25000 since last year in Future generali Freedom plus Gold plan..The first year charges are 6 %. My policy term is to pay for 3 years n locking period is 3 yrs and for 2nd and 3rd year charges are 2 %. I have an advantage of reducing my amount to 18800 in 2nd n 3rd year and I have sum assured of 2 lack 50 thousand. Please let me know what should I do as I dont want to lose 25000 that i payed in the first year.

    • Hemant Beniwal June 18, 2011, 11:59 AM

      Hi Manoj,
      It looks that after reading our articles & replies to readers you have realized that investing in insurance policy is a bad idea. As you don’t want to lose your initial investment of Rs 25000 you have no choice but to continue this policy for 3 years. As there is option for reducing your premium you avail this & pay next 2 premiums. If you have not taken any tax benefit on it you can surrender it at that time. But if you shown it for tax benefits under section 80 C you can hold it till completion of 5 years.

      • Manoj June 18, 2011, 12:16 PM

        Thanks Hemant.. Actaully when I took this policy, the locking period was only for 3 yrs. So I can withdraw my entire amount after 2 yrs itself after paying the next 2 premiums.. n yes I get tax benefit..for that purpose only i took it..

  • Chirag June 21, 2011, 1:48 PM

    Dear Sir,

    Please give me answer of following:
    1) Why you suggest Term Plan? Because of it is cheaper? If i will not pay premium of Term Plan say after 15 years from the date of purchase of Term Plan, because of i have some financial problem say discontinue of job for a temporary period say for 6 to 7 months and my premium fall in this period and if i will die in this period, is Term Plan give me Sum Insured? Please do not advise for SIP or Mutual Fund because Only Some SIP and Some Mutual Fund Perform well and id i will purchase this time what are the NAV? Is it grow in future at the same rate?
    2) Paying a premium of Term Plan means Donation to Insurance Company do not expected for return of premium.
    3) To continue to Question no. 1, if i have taken regular life insurance policy and if die during above mentioned period life insurance company will give Sum Insured to my nominee after deducting unpaid premium, it is not possbile in Term Insurance my sir………
    4) Due to law premium of Term Insurance from my view there is no Compulsion to pay premium in adverse financial history of person.
    5) Further if you check the IRDA Web site and Web Side of All Life Insurance Company highest Lapsation Ratio of Term Insurance Policy because of law premium and highest risk coverage and non return of premium or return of what ever the premium paid?

    So after considering above mentioned point from my view the right financial planning is
    a lay man should have sufficient risk cover having following
    1) Medium Risk Cover Policy say Jeevan Anand / Endowment Policy of any Life Insurance Company.
    2) Sufficient Health cover through mediclaim
    3) Gold
    4) Real Estate etc.

    This is my request to reader of this website please share your views and advise me for proper planning

    • Dhawal Sharma June 21, 2011, 7:52 PM

      Dear CHIRAG JI,

      Great to see people like you who are willing to SHARE and LEARN new things about FINANCIAL PLANNING..I myself is an INSURANCE AGENT, so was keenly going through your comment and could not resist myself from answering you before HEMANT..Sorry HEMANT for jumping the queue 🙂

      First thing, the most important component of FINANCIAL PLANNING is to make provision to provide for FINANCIAL RESOURCES, even in your absence..And for that, WITHOUT ANY SHADOW OF DOUBT, there is no better alternative then TERM PLAN..You can read a lot many articles by HEMANT on the blog about the IMPORTANCE of TERM PLAN..But you have to look at this concept of TERM PLAN with open mind to understand why it is CRITICAL to each one of us..

      As you put it, premium of TERM PLAN is like DONATION TO INSURANCE COMPANY..We can look it in the other way too..For eg: I am assuming that you are 30 year old guy..If you take TERM INSURANCE from KOTAK LIFE INSURANCE for a SUM ASSURED of Rs 50 lakh, the PREMIUM would be Rs 8,135 for 30 years term..Now if you were to die after 10 years of taking the policy, you would have PAID only Rs 81,350 to the COMPANY and company will be paying Rs 50,00,000 to your FAMILY..Is this the case of company doing CHARITY/DONATION to your family?? No Dear, its plain business..

      Second hypothetical situation which you have forwarded is that if premium falls due during THOSE 6-7 months of FINANCIAL INSTABILITY when someone is OUT OF JOB or his BUSINESS not doing good, what about the policy then..Dear, lets carry the above case of premium of Rs 8,135 forward..I dont think this amount is of SUCH HIGH PROPORTIONS that i wont be able to pay this out of my SAVINGS in those 6-7 months of uncertainty..

      One more thing i want to bring to your notice is that there are a number of INSURANCE PRODUCTS in the market where you can get benefit of TERM PLAN + RETURN OF PREMIUM at maturity, if policyholder survies..You can take a look at AVIVA LIFE SHIELD ADVANTAGE..But the shocker is that instead of you paying PREMIUM of Rs 10,000 you will be required to pay Rs 18,000..If you are comfortable with this, then go ahead and take TERM PLAN with RETURN OF PREMIUM..

      I could not understand you point of NO COMPULSION TO PAY PREMIUM IN CASE OF FINANCIAL ADVERSITY..What to you mean by that??

      Would love to see the WEB SIDE [Actually its WEB SITE 😉 ] of IRDA or INSURANCE COMPANIES where they are showing LAPSATION RATIO of their TERM PLANs because of LOW PREMIUM?? You mean to say more people are discontinuing their policies becaue premium is LOW?? 🙂 Does not make sense..I believe you are trying to say something about CLAIM SETTLEMENT RATIO..But now, most of the INSURANCE COMPANIES have the claim settlement ratio in mid-90s (90%)..So no issue with that too..

      Regarding your point of only a few SIPs and MFs are performing, i agree with you totally..But even that is a boon for US ORDINARY INVESTORs..We know that out of 800 odd MF schemes, only 15-20 are performing..So lets pick them up only and avoid the JUNGLE..Select top performing funds like HDFC TOP 200, FIDELITY EQUITY, DSPBR TOP 100 fund and you have virtually NO CHANCE OF GOING WRONG..

      Your financial planning steps are ABSOLUTEY in order. Number 1 is ADEQUATE INSURANCE COVER, Number 2 is MEDICLAIM, and NUMBER 3 is WEALTH CREATION which can be through ULIP, MF, GOLD, STOCKS & SHARES, REAL ESTATE etc..You just need to fine tune your portfolio with ADEQUATE INSURANCE COVER which can be done only by taking TERM PLAN and not JEEVAN ANANDs or JEEVAN SARALs..

      Hope i can be of some help.
      Thanks

  • Chirag June 22, 2011, 9:45 PM

    Dear Dhaval ji

    Thanks for your quick & prompt replay.
    You ask for not understanding of following

    I could not understand you point of NO COMPULSION TO PAY PREMIUM IN CASE OF FINANCIAL ADVERSITY..What to you mean by that??

    As you know that if person take insurance policy he has to pay premium for continue the coverage of risk other than term plan. You know that if we will not pay premium, policy in lapes condition and hence for continue of policy we have revive the policy if we return back the money paid alongwith interest, so this is compulsion imposed for continue savings for us and for family incase of unforeseen event. This may not apply incase of term plan becase of law premium and noting to be return after the term of policy is over. Please replay.

  • Chichu July 11, 2011, 6:29 PM

    Hello sir ,

    I’am 27 years old and i have my father and mother as my dependents.I already have LIC Amulya Jeevan Term Insurance plan for 50 lakhs (for 35 years) . Now my marriage is fixed and so i would like to take one more term plan for 50 Lakhs . As i already have a Term Insurance policy from LIC my choice is between ICICI and Kotak term policies.I know you don’t believe in the best & top in policies,funds etc.I was about to take ICICI plan but in some early queries i have seen that you have suggested to split the insurance and to take LIC + Kotak plans . That creates confusion , So can you suggest me which one should i go for, ICICI or Kotak ?

    I really value your suggestion and it will be highly appreciated,Thanks.

    • Manoj July 20, 2011, 3:28 PM

      Hello Chichu,

      If you n Hemant dont mind, then i would like to give my point of view.

      First of all buy online term plan as they are much cheaper as compared to when you go through the agent. ICICI I protect is a very good plan n so is kotak. ICICI I protect is even more cheaper than kotak term plan and also provides accidental benefit. Go to websites like policybazaar or myinsuranceclub..you will get more details. Death claim ratio is very good for Kotak n also good for ICICI. So both r good term plans but I think ICICI I protect with accidental benefit will be even more cheaper than kotak.

      • Chichu July 20, 2011, 4:44 PM

        Thanks Manoj,

        Yes, I was already convinced with ICICI iprotect with Accidental Benefit.Many of friends says that you must take an extra care while filling the insurance forms for not giving them a chance to reject it.So is it safe to buy it through online or is it better to go their office directly ?

        Kindly advice…

        Thanks

        • Manoj July 20, 2011, 5:00 PM

          Hello Chichu,

          Many of the experts say that online policies are very safe. Only concern with online or offline is that we need to fill all the details properly.If we fill up the form without hiding any details then there will be no problems. According to me the reason why private insurance policies claim ratio is lesser than LIC is because most of them are new n hence it will take some time for the ratio to increase. So we should not think too much on the death claim ratio. If we fill all the details properly and correctly any insurance policy will accept our claim.

          • Chichu July 20, 2011, 5:09 PM

            ok Manoj, i will take care of that…..i will take it through online..regarding LIC’s high claim settlement ratio,one of our TFL reader comments that ” most of the LIC policies are Endowment and money back policies,that’s why they have highest claim settlement ratio ” may be true…

  • Shrikant July 20, 2011, 11:41 AM

    Hi Hemant

    Could you pl help me to choose correct Policy ?
    current i have Jeeven Anand – 1.5 lakhs SA, 10 yrs , Yr premium – INR 8000
    how is Jeevan Saral from LIC , as per LIC agent – if i pay yr premium – INR 24,000, i will get cover of INR 5 Lakhs for 25 yr and it provides all type of benfits – Dead, Natual , Accidental, disabilities etc. is that correct ?
    or shall i go for only Term plan

    Kindly advice

    thanks
    shrikant

    • Shamshad.M.M July 20, 2011, 1:59 PM

      Hi Srikant ,

      Sorry Hemant bhai,let me try to answer this question (make it correct if i say anything wrong , OK)

      You should go for pure term plan.

      first of all about your Jeevan Anand policy (table no 149). For your policy paying term of 10 years, the annual base premium is Rs. 8000/-. After 10 yrs you are actually paying Rs. 8,000 x 10 = Rs. 80,000/-.What do you get after 10 yrs (i.e your premium paying term), Rs.1,50,000/- + Bonus + Additional Bonus if any. What do you think, how much will you get as bonus? Read your policy certificate if it says any thing about bonus. Your policy certificate is the only legal document that you can produce before court. The policy will cover you even after your premium paying term (after you got your Sum Assured + Bonus+ Addl. Bonus) till you attend 74 yrs age (your policy term). If the risk happens during this period then Rs.1,50,000/- is paid to your nominee otherwise nothing will be paid again.Do you think that amount is sufficient at that time.Considering the inflation ratio as 6 % ,that amount will be only capable for 2-3 months living expense !!!!!!!!

      Please don’t believe your agent.With Jeevan Anand, your agent has got a commission of 25% of the first yrs premium you paid. He will get 7.5% of the premium for the 2nd and 3rd yr and 5% for the remaining premium term.

      If he advices for any Term Insurance policies like Anmol Jeevan and Amulya Jeevan of LIC , he will only get 2% each yr of the premium you pay. Here is the difference.That’s the reason he is not highlighting the pure term insurance plans.You must go for Term Insurance plans.If you want a Policy from LIC,Policy name is Amulya Jeevan of LIC (table no 190). You don’t get a single rupee if the risk doesn’t happens during policy term. Minimum sum assured is Rs. 25,00,000/-. Maximum policy term is 35 yrs.

      You don’t mention your age,let me take example of a person of age of 27 yrs, for sum assured of Rs. 25,00,000/- and for a policy term of 35 yrs. you have to pay annual base premium of Rs. 8,150/-let’s Round off to Rs. 9,000/- per year. How much you save? (24,ooo of Jeevan Saral + 8,000 of Jeevan Anand) 32,000 – 9000 = Rs. 23,000/-. Now deposit this Rs. 23,000/- to PPF a/c every year.So, what will be the your P.P.F balance after 17 yrs, Rs.8,32,839/-, after 20 yrs, Rs.11,36,086/-(A PPF a/c is of 15 yr maturity. After that you have to extend the validity in a block of 5 yrs is very much easy, just like withdrawing money from ATM).Or if you wanna take risk you can invest this 23,ooo in Mutual Funds(if so invest 2000 monthly through SIP)

      So, at the end what you get ?

      A cover of Rs. 25,00,000/- from LIC + secured investment avenue giving higher returns than LIC + tax benefit + partial withdrawal facility etc.

      ICICI and Kotak are also providing good term insurance policies cheaper than LIC.Their claim settlement ratio is also good.By paying some extra amount ,You can add Accident Death Benifit also….

      So what’s your choice , decision is yours ………….

  • Shrikant July 20, 2011, 2:55 PM

    Hi Shamshadji

    thanks for very good advice !
    Defintely my goal is – A cover of Rs. 25,00,000/- + secured investment avenue giving higher returns + tax benefit + partial withdrawal facility etc.

    yes. you’r correct. 1.5 lakhs amount is not very sufficient after 10-15 yrs to live.
    i have PPF accounts for all family members , where i am doing regular saving.

    but still i confused about LIC’s Term and other’s plan
    example:
    Anmol Jeevan and Amulya Jeevan – its having following features
    Death Benefit :Sum Assured
    Maturity Benefit :No
    Surrender Benefit :No
    Risk Cover for – Accidental Death Benefit

    and if you consider – Jeevan Saral
    Death Benefit :Sum Assured
    Maturity Benefit :Yes
    Surrender Benefit :Yes
    Risk Cover for – Accidental Death Benefit, Accidental Total And Permanent Disability Benefit

    Is that correct ? if risk cover in Jeevan Saral is more , then why not we go this plan? Kindly advice.

    thank
    shrikant

    • Shamshad.M.M July 20, 2011, 6:05 PM

      Srikant,

      This is the secret behind LIC’s success.They utilizes these type of doubts,please kindly understand the correct meaning of insurance.

      Please read Hemantji’s answer for ‘Term Plan Vs Jeevan Anand’, You just compare Jeevan Saral and Term Insurance.
      Now look ,
      – The sum assured is 5 lakhs in Jeevan Saral for a yearly premium of 24000.If you pay just 8000 from that amount for a term insurance plan you will a get an insurance for 40-50 lakhs,that means ten times better that of your Jeevan Saral.
      – If you invest balance 16000 in any Equity Mutual Fund,you can expect a much better return from that comparing to what you get from LIC.Then what’s the need Maturity Benefit ???
      -Getting an Insurance of 50 lakhs for just 8000 rupees annual premium and again expecting a surrender benefit is not good enough
      – Regarding accidental care and permanent disability ..i don’t know.i think you can take a separate one for that.Here i have Accidental Insurance (also known as Income Shield) Policy from ALICO.If anything happens to me in accident,they will give a certain amount (minimum 1 lakh dirhams) and they will give certain amount (minimum 1000 dirhams) monthly for 20 years.you can try for something like that.

      ok srikant…best of luck…

      regards,

      Shamshad.M.M

  • Manoj July 20, 2011, 3:18 PM

    Hello Shrikant,

    The basic rule of financial planning is that one should never mix insurance with investment. If we mix both investment n insurance in one policy then we end up short of our goals by long margin and are not sufficient for our future prospects. For investment we should always go with mutual funds as there are no allocation charges and for insurance we need to go with term plans.

    According to my knowledge, the best policy that LIC came up with in these many years was Jeevan Aastha where this policy provides guaranteed 10 percent returns with tax benefit, 5 year locking period, sum assured and also loan benefit.. Guaranteed 10 % returns is even better than PPF. But since LIC did not find too much profit from this policy they closed it and come up with some new ridiculous policies.

  • Subhasish August 8, 2011, 2:07 PM

    Dear Hemant Sir
    I am 37 years earning 6 lacs p.a. and have my wife and 5 year old son as my only dependents. Only after reading your articles I came to know about Term Insurance and accordingly took LIC Anmol Jeevan for 10 lacs and Kotak Preferred Term Plan for 40 lacs. My company also covers me with 15 lacs in case of my death within working years.
    However,when I was not aware of term plans I took LIC Jeevan Saral in Aug’2009 (annual premium of 12010 for a coverage of 250,000) for 25 years and LIC’s Child Fortune Plus Ulip in Feb’2009 (quarterly premium of 2500 for a coverage of only 50,000) for 23 years.
    Please suggest me after taking the above term plans should I discontinue Jeevan Saral or Ulip plan or both?

  • Neeraj August 16, 2011, 9:53 PM

    Hi,
    I have a query if u can plz advice me on it.
    I am 32 yrs old, serving in Army. I have a son aged 2 yrs. I wish to keep some amount for my son’s education in this world of uncertainities considering my profession. Recently an LIC agent sold me Komal Jeevan policy which was not what I wanted. I returned the policy and complete amount (less stamp duty) was refunded to me as I wrote to the Branch MAnager.
    Now another LIC agent has suggested me LIC’s Marriage/Education Endowment plan (Table 90) Sum Assured 10 lacs. IT fulfills my requirement of getting the complete amount after 15 yrs when my son is aged 17 yrs. I plan to pay annual premiumm of Rs 63000/- through my salary. After 15 yrs, agent claims that I will get around Rs 27 lacs as per the current bonus rates this may go up or down by 2-3 lacs. Policy term = 15yrs. Premium paying term 15 yrs.
    My query :
    1. Is the claim made by the agent correct i.e approx Rs 25 – 27 lacs at end of 15 yrs.
    2. Is there anything better which suits my needs. Condidering my profession and uncertainity involved I am ready to sacrifice returns for safety to some extent.

  • Shruti September 1, 2011, 8:52 PM

    Hi Hemant,
    I have a query reg term insurance. at my age 49yrs and my husband 51yrs is it advisable to take term ins.
    Further we have mostly invested in
    LIC plans Jeevan Suraksha -30000 (total for both of us)
    Market plus 10000
    Samridhi plus 16000
    SBI Life ScholarII 93562 – SA 800000
    Sbi lifelong pension 40000
    ICICI Life stage pension 60000 (purchased in 2009)
    ICICI Life stage wealth 24000 (pur in 2011-mar)
    ICICI Pinnacle II 50000 (pur in MAR 2011)
    UTI MF DIV yield 1000 per month (jun 2011)
    pl guide me as to the choices made by us . after reading your articles I feel we have not made right choices. Further pl suggest a good LIC policy for people at our age as well as for my children aged 20 and 16.Have heard a lot about SBI GOLD FUND can a person of 35 yrs age invest in it thru sip of 1000 for 10yrs. is it a good invt. I want to become a financial planner for me and my family members.pl advise
    thanks in advance
    Shruti

    • Hemant Beniwal September 1, 2011, 9:45 PM

      Hi Shruti,
      I got exact question from Sangeeta. I think you are using some fake name 🙁
      I am not sure what was your thought process behind buying all these policies. Are you planning for your retirement or your agent’s retirement.
      Read this & think
      http://www.tflguide.com/2010/04/what-is-insurance-investment-or-expense.html

      • ashok August 4, 2015, 3:15 PM

        Sir I have taken reliance super money back policy . sum assured is 100000 and monthly premium is Rs.2797 yearly it is 33564 I want to know how much amount will be accounted under 80C for tax relief, wheather full amount(33564) OR some %age.

  • Anand September 4, 2011, 5:26 PM

    hi,
    I want to buy a health insurance plan for my parents. My father’s age is 66 & mother’s age is 61. I could only find following two plans for them.
    1. Max Bupa Heartbeat : It will cost around 35000 for cover of 3 lacs for both of my parents.
    2. Star health Insurance Senior citizen Red Carpet: It costs around 10000 for 14500 for each of my parents. So total around 29000.

    I am new to this insurance thing and would like your advice on which policy should I buy for them.

    • Anand September 4, 2011, 5:28 PM

      **
      Star health Insurance Senior citizen Red Carpet: It costs around 14500 for cover of 3 lacs for each of my parents. So total around 29000.

  • sumit September 10, 2011, 7:18 PM

    hi hemant,
    Thanx for these informative articles, I want some information on GSIP ie guaranteed saving insurance plan thru icici, Is this good one to buy for the purpose of investment , and second one if i pay 18000/ yearly, for 10 yrs how much return i can expect . please give your valuable suggestion. SHOULD I INVEST IN THIS PLAN OR NOT ?

    Regards,

  • sumit September 28, 2011, 11:40 AM

    r u there /

  • satnam singh November 6, 2011, 9:19 AM

    sir
    we are govt. servents and govt reimbursh medical expences to us when we received medical treatment from govt hoshpital. we wants to know that which of plan is better for heath insurance. so that we could reimbursh from heath insurance plan also. I want to know more about it. Please comment on it

  • Goutam Bandyopadhyay November 16, 2011, 9:02 PM

    Sir,
    My 66 yrs old father bought Metlife Multiplier Policy (ULIP) 03 yrs back whose todays’ NAV is 22.3423.My query is
    1.If he discontinue the premium what will be the effect on the policy?
    2.If he redeem the policy how much will he get(Units:5946.31510) ,is there any charges after giving 03 consecutive premium at the time of redemption.
    Pl suggest what he should do with the policy

  • Pallavi Ghosh December 7, 2011, 12:03 PM

    After much research I have zeroed on two health plans,specifically for critical illness cover. MaxBupa and ApolloMunich. Both the Companies are claiming that they dont have any loading charges but I saw in ApolloMunich website where they mentioned that the Company might charge a loading charge.in MaxBupa they pay only 80% of the claim after 65years of age.ApolloMunich has a rider clause which is not there in MaxBupa. In ETWealth they ranked Apollo as no.1 but MaxBupa does provide for annual checkups which is n0t there in Apollo.I am confused as to which one is better since I am planning to buy the insurance purely for critical illness,I already have a basic mediclaim policy from NIA.Please advise.

    • Hemant Beniwal December 7, 2011, 2:34 PM

      Hi Pallavi,
      Hope you got your answer on other post.

      • amita lavania December 8, 2011, 6:50 PM

        hemant ji namashkar .
        i am staying in BHUTAN
        HAMANT JI PL HELP ME
        MY AGE IS 52 YEARS N MY HUSBAND IS 53
        I HAVE TAKEN ONE POLICY OF ICICI LIFE TIME SUPER PENSION PLAN
        I HAVE PAID 4 PRIMUMS OF 100000 EACH AND VELU IS ONLY 34000 NOW PL SUGEST ME I SHOULD GIVE DA PRIMUM OR NOT . SHOULD I COME OUT SHOULD I CONTINU WITH DA POLICE UR ADVICE IS VALUBELE FOR ME , AAP NE BAHUT LOGO KOU ADVICE KIYA HEI PL MUJHE BHI
        AMITA LAVANIA

        • Hemant Beniwal December 10, 2011, 1:21 PM

          Dear Amita Ji,
          I really doubt your statement “I HAVE PAID 4 PRIMUMS OF 100000 EACH AND VELU IS ONLY 34000”
          This means you have paid total premium of Rs 4 Lakh & current value is Rs 34000 – I don’t think this is possible.
          Can you please clarify…

          • amita lavania December 12, 2011, 8:53 PM

            hi HAMANT JI
            I AM SORRY I KNOW THAT U DONT HAVE TIME FOR ANY STUPIDITY . VALUE IS 340000RS PL ADVICE ,
            i ALREDY LOST MY MONEY IN YEMAN WAR AS I WAS THERE AT THAT TIME .
            I AM ALSO PAYING 30000RS PER YEAR IN HDFC SAVING ASSURENCE POLICY SCHDULE ( PAID THREE PREMIUMS )
            HDFC UNIT LINKED ENDOWMENT WINNER POLICY SCHEDULE 40000RS PER YEAR ( PAID THREE PREMIUMS)
            NOW FROM 1.1.2011 I AM INVESTING IN SIP
            HDFC TOP 2000(5000 RS P.M)
            HDFC MID CAP (2000 RS P.M)
            HDFC EQUITY( 2000RS P.M)
            TATA P.E EQUITY (1000RS P.M)
            RELIENCE REGULAR SAVING FUND (1000RS P.M)
            ” ” ” ” ” ” GOLD FUND (30000)
            ” ” ” ” ” GROWTH FUND (3000RS P.M) I STOPED FROM THIS MONTH( I SHOULD REDEEM OR KEEP)
            I CAN CONTINUE FOR TEN YEARS
            HEMANT JI PL SUGGEST ME I SHOULD CONTINUE AS MKT CONDITION NOT GOOD
            STILL WE DONT HAVE ANY INSURENCE POLICY . PL SUGGEST
            NOW IN THIS AGE WE SHOULD GO FOR TERM PLAN OR ANY OTHER WAY .
            I WANT TO DO MORE SIP OF 5000RS PL SUGGEST
            KINDLY ADVICE ME YOUR ADVICE VALUE FOR ME .
            GOD BLESS
            AMITA

  • pankaj December 10, 2011, 7:12 PM

    can i buy two or more mediclaim policies from different insurers and if yes then how do iget my claims if the ammount is more than one policy cover eg:two policies of 10lacs each claim 15lacs

    • Hemant Beniwal December 14, 2011, 9:27 PM

      Hi Pankaj,
      Why do you want 2 policies of Rs 10 lakh each 🙁
      Both the insurance companies will par Rs 7.5 lakh each. But if you take 2nd policy as top up – first will pay Rs 10 lakh & second will pay Rs 5 Lakh.

  • Pramod December 28, 2011, 5:04 PM

    Hi Hemanth,

    I am 33 years old and I want to invest around 50000 for child education and a pention plan can you suggest agood plan for me.

    Thanks
    Pramod

  • Rashmi December 28, 2011, 10:33 PM

    Hi, please tell me which term plan is better? Normaly if age is 30 then for how much year term plan has to take ?

  • sharmila January 4, 2012, 9:13 PM

    I have LICs Market plus ULIP policy for which I have paid 4 yearly premiums of 10000/-. should I stay invested or should I exit and invest in mutual fund. Is this expensive? I have another LIC endowment policy for which I pay quarterly 4790/-. And I have completed only 2 years payment term. Is this expensive ? and Should I exit now

  • Anand kumar dev January 8, 2012, 11:28 PM

    My father had taken a policy but last one premium haven’t deposite due to some reason , can i deposite two instolment in one time

  • YOGESH PANKAR January 12, 2012, 6:01 PM

    My father is having Mediclaim policy in NATIONAL insurance , He make a claim of Rs.2.5 lac in current year, file is under process, He want to change insurance company from national to new india assurance.

    What is procedure to transfer policy from one insurance company to other
    Without lossing current benefit.
    And if there is any claim in next policy period whether he will get from new insurance company. i.e. From NEW INDIA ASSRUNCE.

    I will be thank full if you advise me in detail on above matter.

  • Prashant January 21, 2012, 7:41 PM

    Hi…..
    I m Prashant 25 year old & i want LIC policy for income tax saving . I m ready to invest 25000/- p.a. bt i want maximum benefit in 10 to 15 year , good returns & low risk & in this cover full cover up to policy maturity……Plez give suggestion urgently…..i m waiting…..!!!!!

  • sanjeev January 30, 2012, 1:20 AM

    Hello Hemant
    How do you rate ICICI Prudential Life Insurance with no (zero) sum assured as an investment/saving scheme? Currently I am investing Rs 60,000 p.a in it from the year 2010 for a period of 15 years apart from Rs 70,000 in PPF, Rs 33680 in LIC and Rs14571 in Mediclaim policies. Is it worth investing in ICICI Prudential Life or should I pull out?
    Thanx.
    sanjeev

    • Hemant Beniwal January 30, 2012, 7:17 AM

      Hi Sanjeev,
      I am not sure which ICICI policy you are talking about – is it a pension plan? If yes, it is very expensive – check illustration provided at the end of the policy document.

      • sanjeev January 31, 2012, 9:15 AM

        Hi Hemant
        Well I have ICICI Pru LifeStage Pension Advantage UIN 105L100V01.
        Date of commencement is 19/08/2010
        vesting date is 19/08/2020
        premium= Rs60,000/- yearly
        sum assured =Zero and a
        term of 10 years.
        Please suggest what should I do? Should I continue with it or pull out? Also I did not find any illustration given at the end of the policy document. I can discontinue it at the end of 3 years
        Thanx
        sanjeev

  • sanjeev January 30, 2012, 7:42 PM

    Hi Hemant
    Well I have ICICI Pru LifeStage Pension Advantage UIN 105L100V01.
    Date of commencement is 19/08/2010
    vesting date is 19/08/2020
    premium= Rs60,000/- yearly
    sum assured =Zero and a
    term of 10 years.
    Please suggest what should I do? Also I did not find any illustration given at the end of the policy document. I can discontinue it at the end of 3 years
    Thanx
    sanjeev

  • Maverick January 31, 2012, 10:29 PM

    Sir, I have taken LIC Jeevan Anand Plan 149 in 2009 for 25lakhs for 26 years and my yearly premium is 94000. The sum assured is 25lakhs. I want to know how much will I get at the end of 26 years. I am serving in Indian Army, so will the policy hold good if I die in a battle.

  • Vikram February 11, 2012, 12:49 AM

    Hi,

    I am Vikram, i am in need of some serious help from you.

    I have invested a huge amount in Money back Policies which comes around 11 Lakhs Per Year Premium and now i am not able to pay it anymore as my financial status is very very bad.

    I need your help in what to do to get back my money.

    Please Advice.

    And can You Provide me your Personal Number if Possible so that i can Call you directly.

    Thank You.

    • Hemant Beniwal February 11, 2012, 7:36 AM

      Hi Vikram,
      Sorry to learn about your current financial status & so many money back policies. Prima-facie Paid up looks the right option but still suggest you that as there is big money on stake – either sit with you existing agent or hire a financial planner at your own place. If you would like to contact us visit http://www.arkfp.in

  • Butasinghsaini February 19, 2012, 5:44 PM

    Hello,
    I am sailing as an Engineer with a shiiping company on contracts with 10 lacs p.a not just the contract as sometimes i sail for long periods & stay at home for long. I am 30 yrs of age now & am insured in jevan shree for the last 5 yrs for a cover of 5 lacs . After going through yor site & finding out from agents have decided on taking a term insurance of 25 lacs cover. But am still confused bout retirement or pension policies which agents want to sell you. As i am planning on settling down for my exams in the near future considering a break of a year ll not make it possible for me to pay the high premiums then as source of income would be Nil.
    But i can afford premium for the term insurance policy & secure my families future in terms of insurance
    If you could please help me out with the same & also let me know if there are any special norms or poloicies sailors like me can invest in
    Thank you
    Butasingh

    • Hemant Beniwal February 19, 2012, 10:49 PM

      Hi Butasingh,
      There are no special polices for sailors – you should take offline term plan. Jeevan shree is OK & you can continue it – but don’t buy any other insurance policy for sake of investment.

      • Butasinghsaini February 23, 2012, 10:27 AM

        Thanx Hemant for your reply
        Considering on taking a term plan soon

  • Dimple February 20, 2012, 4:33 AM

    Hi,

    I purchased a policy from ICICI prudential…I am paying 20000 as yearly premium towards it, its a gurenteeed SIP life insurance…with assured amount of 140,000 after 15 years.
    I am not sure if this is the correct amount for me my annual salary is 315,000, I was told i could have got a better option with LIC.. if that is correct i have two question for you..

    1) Can i withdraw my one year premium paid towards ICICI? If yes will there be any dieductions?
    2) if i cannot withdraw my premium paid can i swich my policy from ICICI to LIC with the same thing or do i need to start fresh?

    Please guide me
    🙂

    • Hemant Beniwal February 23, 2012, 7:27 AM

      Hi Dimple,
      I don’t find any connect between your premiums & guaranteed sum assured – I think something is missing here. Coming to your questions:
      1. Yes You can surrender the policy but you will get the amount after 5 years – talk to your agent.
      2. No you cannot switch to from one company to another company.
      I will also suggest you that think beyond insurance for investments.

  • sanjay February 22, 2012, 6:16 PM

    I have a HDFC Standard UL Endowment Suvidha Plus policy from Feb 2007 with premium amount as Rs. 1 Lac annually. The current value of the policy stands at Rs. 5.89 lacs after five years. The total term of the policy is ten years. I would like your advice whether it is beneficial to keep paying the premium amount for the next five years or to discontinue paying now since I have already paid for five years.

  • priya February 27, 2012, 9:56 AM

    sir i invest 5000 what amount i ll get it on second year

  • Va March 10, 2012, 12:24 PM

    Hi Hemant,

    There is an insurance plan from LIC, their selling pitch says..”pay 3600 p.m. and get 50 lacs after 15 years.” Please help me knowing which is this plan and is the promise they are making true?
    Thanks in advance!

    Regards

    • Hemant Beniwal March 16, 2012, 8:14 AM

      Hi Va,
      I am not sure about the plan you are talking but the return they are mentioning is over 20% – this is a clear case of Mis-selling.

  • Srabanti Modak March 13, 2012, 12:24 PM

    Hello, I am a LIC money back policy holder. I started at 09/01/2009. My last premium I gave 01/2012. My insurance Table is 75-20. My sum assure is 55000 and half yearly premium is 1770. I want to know if any time I have any problem to continue this policy and want to surrender my policy and want my money back, is company give back my money which total I pay or cut my money? Example I pay my July 2012 premium and surrender policy January 2013, Total I pay 1770*8=14160 Rs. Is company give me this amount money or cut money from here?This policy assured give me 10000 each 5 year. so if I surrender policy completed this 5 year which mean 12/2013 how much money I get? Please give me this information.

  • Pradeep March 18, 2012, 1:01 PM

    Dear sir,
    I had taken a poilicy (Reliance Money Guarantee-plan) in Dec.2007 a ulip plan. I want know that if i withdraw yet now then , how much get amount? While policy amount 10000 per annum and i have deposit 35000.00 in three years.

    Pls reply asap.

    Thanks
    Pradeep
    9694100000

    • Hemant Beniwal May 30, 2012, 7:53 AM

      Hi Pradeep,
      Its really tough to evaluate the current value – talk to your agent or insurance company.

  • Yachana Singh March 18, 2012, 3:03 PM

    Hi Advisors,
    I am a 25 yr. old professional. Last yr. in Dec. 2011 i invested 80,000 Rs./ yr. towards the ICICI prudential Pinnacle Super policy. this is a 5 yr. investment that is supposed to pay an assured sum of 8 lacs after 10 yrs. and guarantees NAV of 11. But the agent who fooled me with this policy did not mention clearly about the various charges involved. I wanted to do this for 80C tax savings. But now I feel cheated. I want discontinue with this as soon as possible. I don’t think I can afford to pay the entire 4 lacs over 5 yrs. How much money approx am I going to lose if I inform after a month or so to ICICI bank that I am not going to pay any more premiums? there are some clauses saying that 4% charges for not continuing , but that is from yr. 2 and not in the first yr. itself. Should I wait till Dec. 2012 so that my tax does not get recalculated for withdrawing this policy?

    • Hemant Beniwal May 30, 2012, 7:51 AM

      Hi Yachanan,
      You read it right “there are some clauses saying that 4% charges for not continuing”.
      You can surrender this policy after first premium but will get this amount only after completion of 5 years – talk to insurance company.

  • Mahendra March 22, 2012, 1:04 PM

    Hello SIr,
    very nice and informative articles. thanks a lot for sharing..
    I am 24 years old and earn Rs.25000 p.m.I want to ask about Bajaj Allianz iGain III ULIP plan? Is it advisable to invest through this plan or i should directly invest through Mutual funds. Also if i invest through insurance co. there are extra service tax burden to be bared which automatically reduces my investment amount. I understand that the basic purpose of insurance is to cover life risk but if they are also giving good returns is it suggested to buy for investment purpose?

    • Hemant Beniwal May 30, 2012, 7:47 AM

      Hi Mahendara,
      For investment go for Mutual Funds – for insurance term plan is the best way.

  • Praveen Jotwani March 25, 2012, 10:35 AM

    To,
    Mr. Hemant Beniwal,

    Sir, first of all let me take the privilege of presenting you a bouquet of thanks for such a lot of useful and worthy advises…that too for free.
    I’m 32 years old with my spouse, a child of 6 yrs and parents as dependents.
    I’ve got a jeevan anand policy for 5 lacs sum assured, two policies of term plan from bajaj allianz worth Rs. 5 lakhs each. (one with rider and another not.)
    Two previous policies purchased by my father from lic total sum assured 1.5 lacs.
    I lack of mediclaim policy as very confused regarding the product offered by various companies.
    Kindly also suggest me where to invest 30,000/- annually in jeevan saral or mutual fund.
    Which is more suitable MF or jeevan saral.
    In case of mutual fund kindly suggest for its product also, for investment.
    My need is assurance than compared to high returns.
    Thank you,

    • Hemant Beniwal May 30, 2012, 7:45 AM

      Hi Praveen,
      For medicalim you can check easy health policy from Apollo Munich. For investments if you don’t want to take any risk – stick with FD & PPF rather than LIC policies.

  • Neeraj Tiwari March 28, 2012, 9:33 PM

    Sir

    I am having a money back policy for 15 yrs from SBI Life from 2007 , Now i want to surrender that policy in 2012 , pls guide

    Rgds
    Neeraj Tiwari

  • Jacob Oommen April 16, 2012, 3:18 PM

    Dear Hemant, I have a vision for life policy with Metlife alico.the premium is $450 quarterly. If I pay this amount for 10 years and what will be the maturity
    value after 15 years?

    Jacob Oommen

    • Hemant Beniwal April 16, 2012, 3:27 PM

      Hi Jacob,
      TFL is personal finance blog for Indians – I have no clue about the policy that you have mentioned.

  • Harikesh Giri April 23, 2012, 5:40 PM

    Hi,
    This is Harikesh Giri having a life insurance policy with M/s. Metlife Insurance Pvt. Ltd.
    I am being unable to pay my premium since last 6 months and I have completed my 3 years period before giving my last two premiums.
    Can I withdraw my policy from Metlife Insurance?

    Harikesh Giri

  • Mridul May 12, 2012, 8:57 AM

    Sir, I have taken Sbilife unit II regular and have paid premiums of 3yrs of 99000 should I continue or switch or surrender the policy please help as the 4 th premium is due in may itself

  • Maverick May 13, 2012, 1:39 PM

    Dear Sir,
    I have taken LIC Jeevan Anand Plan 149 in 2009 for 25lakhs for 26 years and my yearly premium is 94000. The sum assured is 25lakhs. I want to know how much will I get at the end of 26 years. I am serving in Indian Army, so will the policy hold good if I die in a battle.

    • Hemant Beniwal May 30, 2012, 7:34 AM

      Hi Maverick,
      You can’t expect more than 5% return – which to be frank is very low. Increasing amount to DSOP was the better option.

  • Rashmi May 18, 2012, 1:00 PM

    Good informative article.
    I have a question on ULIPs. I have a HDFC ULIP maturing in 18 years. They has charged a huge allocation charge in the first 2 years and so now after 6 years of investing 1 lac per year, the total amount collected in the fund is only close to 6 lacs (which is worse than an FD) I wanted to close the ULIP but was assured by the agent that it would fetch better returns in the long run. Is that true? Also, since the current NAV affects the total fund value, it may be possible that when my policy matures, the total fund value will be low in case the NAV is low. In such case, do I need to buy the annuity immediately or can I wait until the NAV is high and correspondingly my total fund value?
    Pls advise. Thanks in advance

    • Hemant Beniwal May 30, 2012, 7:30 AM

      Hi Rashmi,
      From your question it looks that this a pension plan – please confirm.

      • Rashmi May 30, 2012, 12:10 PM

        Yes, it is a Unit linked pension plan

  • Abhitanshu May 29, 2012, 8:19 PM

    Hi,

    I am 28 year non smoker male. I want to take term insurance for 30 years of 50 Lacs. Could you please tell which one would be better online or offline ?
    And if its online then which term insurance shall i buy. I checked Aegon Religare is the cheapest one available but is it trustworthy? Among private insurance provider which option would be the best as per my needs?

  • anand gharmalkar May 30, 2012, 8:44 PM

    my father is no more…..my sister have no idea about his lic policies. what is the procedure to know about it?

    • Hemant Beniwal May 31, 2012, 9:05 PM

      Hi Anand,
      You should search for the lic agent or reach nearest branch of lic with your father’s pan & date of birth.

  • Om Prakash Singh June 3, 2012, 1:23 PM

    Sir,how much Total appriciation I will receive in INR ? through old lic jeevan shree policy at my retirement i.e.on 31st Dec.2021.Sir I had total invested in Lic jeevan shree Rs.4,66,920/-(Rs.19455x2x12) in 12 years since 2001.

    Regards.

    Om Prakash Singh.

    • Hemant Beniwal June 4, 2012, 9:15 AM

      Hi Om,
      Jeevan Shree (old) was having decent guaranteed bonus – you can expect around 6-7% returns.

  • Guna June 3, 2012, 4:26 PM

    Dear Hemant

    My father in law had bought a LIC market Plus 1 (Table 181) policy for his daughter (my wife) before marriage, paying a one time premium of one lac (two policies of Rs. 50,000). This was in 2006 I think. Now the agent is advicing him to withdraw the policy since the markets have not been doing well. As i understand, this being a pension plan, if the policy is withdrawn in current conditions, the losses will be huge. should he withdraw the policy. What’s your advice?

    • Hemant Beniwal June 4, 2012, 9:00 AM

      Hi Guna,
      Market performance should not be the reason for withdrawal.

  • sailaja June 4, 2012, 2:00 PM

    Hi Hemanth Sir,

    Thanks so much for taking time to help others .

    I have taken ICICI pru life time gold policy in 2008 with an yearly premium of 40k for 10 year tenure and paid 178000 till date. I took it for insurance , but i understood now that sum assured is only 2 lakhs in this. also its a multiplier fund. Currently the fund value is 177000. I am not finding it worth to continue it but i dont know if its right or wrong decision. Planning to take PPF on my husbands name as i already have one rather than continuing this policy. Please suggest whether its good to continue or to stop it. Thanks alot for your time.

    • Hemant Beniwal June 10, 2012, 7:26 PM

      Hi Sailaja,
      If you are taking this decision because equity markets are not performing – I don’t think it is a good decision. Read this
      http://www.tflguide.com/2012/05/its-tomorrow-that-matters.html
      But I will suggest you to evaluate this policy on basis of expenses – check illustration in the policy document.

      • Kanth October 18, 2014, 1:28 AM

        Hi Hemant , I have taken ICICI Prudential Life time gold in Nov 2007 and kept investing Rs.50K /year till 5 years. Since I didn’t see much appreciation in this ULIP, I have stopped investing in this ULIP after 5 year(right now it is in Premium holiday). Can you please suggest If keep invest in this ULIP/surrender. Please guide me in this regard.

  • Natz June 4, 2012, 3:55 PM

    Hi Hemant,

    I am 32 years old and have taken a Term Plan for 75 Lacks last year. My second installment falls on this September. How ever, starting from this mid September I will be traveling out of India for a minimum of 1 year. Since this plan will not cover my Insurance for the year I’m outside India, I am planning to discontinue it from this September and get a new one once I return back. Please let me know if this decision is correct and if there is any finer point that I hv to look into…

    Thanks,
    -Natz

    • Hemant Beniwal June 5, 2012, 8:40 AM

      Hi Natz,
      Your term plan will cover you even during your international visit so you should continue that.

  • Natz June 4, 2012, 4:01 PM

    Hi Hemant,

    I have been following online Term Plans for few months now. I already have a Term Plan for 75 Lacks (Including all Riders) for which the second due date comes this september…

    The Online Term Insurances comes much cheaper while there are not much options for taking additional raiders… (Eg: ICICI ICARE provides only Accidental Death Benifit and doesn’t provide Permanent and Temporary disability riders)

    So, can I opt for online Term Insurance and separately take insurances for the above mentioned three riders? If yes, please let me know how to approach the same.

    Thanks,
    -Natz

    • Hemant Beniwal June 5, 2012, 8:42 AM

      Ya Natz,
      Don’t take riders go for comprehensive accidental policy.

  • Yogesh June 4, 2012, 4:05 PM

    I Just want to know your opinion about AEGON RELIGARE iMaximize Insurance Plan. Policy Bazar is selling this plan for the promotional period wherein the benefit is the plan can be started with small premium.

    This is a ULIP plan with advantage of Triple benefit and ZERO percentage of allocation charges. The lock in period is 5 years.

    I want to buy this plan. I need your opinion in this regards. Kindly guide me.

  • AJAY June 4, 2012, 4:49 PM

    Hi,Hemant please give your assesment how many people in % really know about mutual fund,ulip’s,shares specially when we say that 80% of indian population lives in rural India. THANKS.

    • Hemant Beniwal June 5, 2012, 8:45 AM

      Hi Ajay,
      May be less than 10% but I am not able to understand your point.

  • Amit Dave June 4, 2012, 4:53 PM

    Hello Hemant,

    I have 4 LIC policies –

    Jeevan Saathi
    Annual Premium – 8060
    Sum Assured – 2,00,000
    Commencement Year – 2006

    Jeevan Chhaya
    Annual Premium – 4468
    Sum Assured – 1,00,000
    Commencement Year – 2006

    Jeevan Kishore
    Annual Premium – 7912
    Sum Assured – 2,00,000
    Commencement Year – 2008

    Child Career Plan
    Annual Premium – 10816
    Sum Assured – 2,00,000
    Commencement Year – 2008

    I would want to know of I should continue with these policies. When I bought these, I did not have access to your blogs 🙂 and hence did not know if they were right policies. Not that I am very sure even now.

    Please provide your inputs on –
    1. If there are similar policies with Better returns
    2. Another investment options with the same investment amount and period

    Thanks
    Amit

    • Hemant Beniwal June 10, 2012, 7:28 PM

      Hi Amit,
      You know my answer, don’t you…..

      • Amit Dave June 19, 2012, 12:29 PM

        Hi Hemant,

        Can you please explain further on which are the other investment options that I can invest this amount for better returns.

        I am a moderate risk taker.

        Thank you

        • Manish June 19, 2012, 1:12 PM

          Hi amit returns cannot be ur goals. only
          investing for better returns will not lead
          u to reach ur goals.first pen down ur
          goals n invest according to ur risk
          appetite,ur tenure, n accordingly choose
          the investment products also want to
          know ur investment time horizon If u
          have 20 to 30 yrs left for ur retirement u
          can invest in diversified equity mutual
          fund as it can beat the inflation also
          make the balance portfolio n diversify it.
          as u r a moderate risk taker balance
          mutual fund work for u so it all depends
          on ur goals,risk tolerance,time horizon
          factors also take the term plan as it is the
          first priority of the finacial planning.

  • AJAY June 4, 2012, 5:10 PM

    Hi,Hemant I was going through all question and ansers in insurance section and wondering how little people know about insurance in which we all are dealing from last so many years on the other hand you are advising people to go for pure term ins. and other share market related products. As you know 80% indian population still lives in rural india and they even don’t know what is insurance so how one can suggest them for such kind of products where guranttee word is missing.

    • Hemant Beniwal June 5, 2012, 8:49 AM

      Hi Ajay,
      “so how one can suggest them for such kind of products where guranttee word is missing.”
      Read the Disclaimer: All the content on this blog (tflguide) is solely for the readers general information. This blog contains our personal commentary on issues that interest us. Nothing on this blog is intended to be a personal advice and reader is himself/herself responsible for their decisions. Before acting on any of the information provided, consult your financial advisor.

  • Abhishek Deep June 4, 2012, 7:23 PM

    “Irda also takes mortality, morbidity charges out of overall 3% cap. You can now surrender your unit-linked insurance plan (Ulip), purchased from a life insurer, after four years without having to pay any charge. This was announced by the Insurance Regulatory and Development Authority (Irda) today.” This statement has come in “Business Standard” of 4th June edition.
    How far this is true and what impact will it have on the policies which we will surrender?
    Kindly elaborate.

    • Hemant Beniwal June 10, 2012, 7:12 PM

      Hi Abhishek,
      This applies to new polices which were issued after August 2009 – you should check your policy document.

  • Anindyo Chatterjee June 6, 2012, 6:45 PM

    Dear Mr Ajay

    I have choose ICICI Pru Life Stage Wealth II policy. The agent told me that if i Pay Rs 30000.00 per year for 5 Yrs and thereafter if i exit i will get Rs 275000.00.
    Should i invest on this or not?

    Regards

    Anindyo

    • Hemant Beniwal June 10, 2012, 6:43 PM

      Hi Anindyo,
      Ask him to give this commitment on bond – this is gross mis-selling.

  • KAPIL SETHI June 12, 2012, 5:20 AM

    RESPECTED SIR,
    I AND MY WIFE HAVE TWO POLICY EACH 1 OF MONEY BACK STARED 2004 AND TWO POLCY OF JEEVAN ANAND OF RS 999000/-EACH FROM 2009 AND TILL NOW PAID RS728204/ SIR WE HAD TAKEN A LOAN OF RS 200000/ LAST YEAR NOW YESTERDAY WE WENT TO THE BRANCH TO CANCELL THEM AND GAVE THEM PAPPERS BUT WHEN WE REACHED HOME WE THOUGHT WE WILL MONEY I WANT TO ASK YOU CAN WE CONTINOU WITH OUR INSURANCE IT WAS ONLY YESTERDAY WE APLIED FOR SURRENDER SIR PLEASE REPLY AS SOON AS POSSIBLE THANK YOU AND GOD BLESS YOU

  • sunny June 12, 2012, 11:32 PM

    I am 21 n i am a proffesional guitarist. I live in Delhi. I earn 8000 per month. my income will increase with time. but i want to but a house in dehi when i am 3o. so is there any plan that can help me. n i would appriciate if u could explain it in easy language.thankx

  • Manish June 15, 2012, 3:16 PM

    Hi Hemant,

    First of all, i must thank you for the help you are providing to confuse investors like me.
    I have Hdfc Endowment Supreme Suvidha ULIP plan with me. The yearly premium is Rs 50,000 and I purchased this policy in 2010, due to financial issue, I cud not pay the 2nd year premium but now I have sufficient fund to pay the premium and revive the policy. The policy term is 12yr and Sum assured is Rs. 250000.
    I want to know if it is the good policy to hold as I had to buy the policy as a condition for opening a locker at HDFC bank. If no, the please suggest the alternative for me.
    Please help me in my decision.

    Thanks,
    Manish

    • Hemant Beniwal June 19, 2012, 9:00 AM

      Hi Manish,
      I am not having any idea about this policy – talk to your financial advisor.

  • Juzar S Contractor June 15, 2012, 10:30 PM

    Dear Hemant,
    I have bought ICICI Pru Pinnacle super policy for yearly premium of 50000 for 5 years. The policy is for 10 years. Now my advisor says i can pay him 160000 as against the remaining 4 premium left. Is this correct or is he cheating??

    • Hemant Beniwal June 17, 2012, 5:39 PM

      Hi Juzar,
      It smell fishy – I will suggest you to have a word with ICICI call center.

  • Manish June 19, 2012, 1:09 PM

    Hi amit returns cannot be ur goals. only investing for better returns will not lead u to reach ur goals.first pen down ur goals n invest according to ur risk appetite,ur tenure, n accordingly choose the investment products also want to know ur investment time horizon If u have 20 to 30 yrs left for ur retirement u can invest in diversified equity mutual fund as it can beat the inflation also make the balance portfolio n diversify it. as u r a moderate risk taker balance mutual fund work for u so it all depends on ur goals,risk tolerance,time horizon factors also take the term plan as it is the first priority of the finacial planning.

  • C.P.Jeya Kumar June 25, 2012, 12:25 PM

    Dear Sir,

    My insurance policy was rejected by the TPA on the ground that the disease was pre-existing and less than 48 months of its start.
    However the TPA provider taken 10% loading while renewing a policy two years back on operaton done in 2010 and the claim was settled.

    my question is : Can the TPA provider reject my claim under the above circumstances and can I approach their grievance cell for my redressel.

    Thanking you,
    Yours faithfully,
    C.P.Jeya Kumar

  • sudipto June 26, 2012, 3:38 PM

    My LIC agent has told me 2 buy 1 Policy of LICI which shall yield 2.5 times of the
    amount ( that should be deposited by me–1 time ) in 10 years time .
    So,I want 2 ask that whether that type of any LIC Policy is really present in the Market, at this moment>as,then I am ready 2 BUY it.
    I want 2 Double My amount in less time>so, where shall I keep my money ?

  • natarajan July 1, 2012, 10:48 AM

    Sir,
    I am a business man assessed to IT.My annual income is Rs,2 lacs.I want to take a term insurance for Rs.50 lacs for a term of 30 years. Can I take this term insurance.If so which good company is issuing at a cheapest premium.Kindly help me with your advice through Email and oblige.

  • Ramchandra July 4, 2012, 4:33 PM

    Dear Sir I have taken ICICI LIfe time gold policy on May 2008 with 20k investment in a year.Till now i have paid 20* 3 years = 60k as of today.The fund values presently is 73k thousand.Should i continue with this policy or surrender it.I heard for ULIP you need to complete the term to earn good benefits(its 10 years for me).Please guide me. Regards Ramchandra

  • Khushi Sharma July 4, 2012, 6:17 PM

    Sir,

    I have taken LIC Jeevan saral in 2009 with 32000/p.a for 15 years. If I want to stop the premium repayment from 10th year and want to withdraw the sum maturity amount, how much should I get on 11th year.

    • Vikas October 23, 2012, 9:22 PM

      Hi Khushi,

      In any traditional plan there are surrender charges applicable if you withdraw before the term. LIC has generally two options- A fixed surrender value which is 30% of the total premiums paid excluding first year premium or a special surrender value (This is higher) as decided by the company.

      You will have to contact the company to know the exact amount in your policy.

  • Avishek Chandra July 6, 2012, 4:04 AM

    1>i recently passed irda agent certification exam from max life i also get the code
    i want to know that if i can’t able to sell a policy ,what will happen my code will cancel or it has some time limit(i want to know the rule mention by irda).

    2>is there in any process of renewal the license & what is process fee?

  • Manish July 6, 2012, 10:10 AM

    Dear khushi u have not mentioned ur sum assured depending upon ur s.a ur policy will be paid up tht means u ll not lose all the benefits but receive the reduced s.a+bonus already vested till 10th year after tht u ll not b eligible to participate in future profits+loyalty addition.so the formula to calculate the paid up value is paid up value=(s.a*no.of premiums paid/no.of premiums payable)+vested bonus.this benefits u ll get on maturity but if u want to withdraw on 11th year then u get the surrender value in order to calculate this=paid up value*surrender value factor.

  • Jahangir July 7, 2012, 11:40 PM

    Greetings,

    I like get some information about LIC agent. Actually my wife interested to become an LIC agent. she is staying in Hyderabad. what are the benefits and what will be the Target, it will be monthly. If you can give advice it will be helpful for us.

  • hurricane July 9, 2012, 4:31 AM

    I am 37 years old. I am planning to take LIC Jeevan Chaya for 10 lakh sum assured for 20 years. The premium comes to about 60,000 yearly. The returns after 20 years is about 24.5 lakh. The objective is that in case of the parent’s demise, the family gets 10 lakh immediately and remaining premiums are waived. Accidental death the policy pays 20 lakh. In case of permanent accidental disability, the family gets 10 lakh in 1o half yearly installments. Future premiums are waived off here too. So, even in the absence of a parent, the child gets some 24.5 lakh at the end of 2o years.

    Apart from this I am planning to take an online term plan for about 50 lakh with a premium of about 10, 000.

    Is it a sensible thing or am I wasting money?

  • Gaurav July 9, 2012, 4:05 PM

    I got a call from reliance life telling about the following details:

    1. Deposit 20k per annum for 5 yrs
    2. 6th yr you will receive Rs 165000
    3. insurance cover is 200000 ( for accidental death 4lac )
    4. bonus after 14 months of policy 22500
    5. critical illness benefit riders 4 members with cashless card for 4 members of familiy

    I told them I dont see any such plans in the reliance website. They say its a anniversary promotional plan. Do you think its real??

  • Ashish July 10, 2012, 4:09 PM

    Hi,

    My Name is Ashish. I want to ask you a question related to general insurance.

    I am going to enter a venture with my uncle(not relative) and 2 other persons who are already a director of a Pvt ltd. company. When I enter I would become the 4th director.

    They have already planned to set up a cast iron foundry to manufacture some product. For this they have applied for a loan amounting around 4 crores(total project cost including term loan and cash credit). But they are falling short of security money of around 40-50 lacs. Since I have ready property of my own I want to invest in the project since it is a profitable one.

    Now my question is that –

    1. Can my mortgaged property be insured? so that in case of bankruptcy the insurance company bears everything and I can get my property back from the bank without any issues.

    Please also suggest other ways of keeping myself in safe place..

  • Anna July 14, 2012, 8:34 AM

    I have invested in ICICI pinnacle in year 2011 (Dec) amount 60,000 (yearly).
    I plan on withdrawing this plan before paying the next premium. May i know what will be the refund value and when will they return the amount?

  • monika rana July 14, 2012, 11:07 AM

    hiii….
    i hv a que cn u pls hlp me…
    a person receives cost taxation 5% return on a fixed deposit in a bank if his net return is 3% what can be the reason….??????

    • Vikas October 23, 2012, 9:02 PM

      Monika,

      Bank fixed deposit rates are fixed and if you have estimated post tax returns then you should receive it. However, in case of premature withdrawal you loose the remaining period interest and that can be one of the reason.

  • J.V.SAGAR August 1, 2012, 8:37 PM

    My 6 years health insurance has lapsed due to non payment,last date is 30/07/2012 can i renew the same policy after 10 days….?

  • Sai Kumar August 3, 2012, 9:15 AM

    Dear Sir/Madam,
    Right now I am having four different ULIP policies from four different companies. All Policies are more than 5+ years old. The total sum assured of all the policies are 4, 75,000/- and my annual income at present is 9, 00,000/-
    Recently I came to know that sum assurance of the policies should not cross 20% of his annual income, for salaried person. Please confirm me.
    (1) If the above statement is true, then I crossed the limit, what I have to do.
    (2) Due to lack of knowledge I have not disclosed my policy to any other insurance companies, if I want to disclose now, is there any harm for me.
    Please clarify
    Regards,
    Sai Kumar

    • Vikas October 23, 2012, 8:51 PM

      Hi Sai,

      1) Your total SA is Rs 4,75,000 which is way below your annual income. The rule you are talking is on premium which states that if your premium in any year exceeds 20% of SA then your maturity amount will be taxable.Hence, you are infact under insured.
      2) Not disclosing information while applying for any insurance policy is treated as supression of facts.

  • Mohit August 3, 2012, 5:37 PM

    Hi Hemant,
    i am 33 year old i have TWO query.
    1. I want Child plan for education & future purpose to my kid. please suggest me what would be best for me.
    2. I want a investment plan & i am real confuse what would be best for me insurance/Ulip/Term or SIP. please suggest product also.
    Please suggest me…

    • Vikas October 22, 2012, 9:09 PM

      Hi Mohit,

      For your child planning, it is essential to estimate your requirement first. How much funds you need to accumulate for various needs of your child? This will help you in knowing the amount of savings you have to allocate and choosing the right avenue. A child plan is a costly affair when you compare it with other options due to higher charges and inadequate insurance coverage. For high life insurance, take a term plan which will be cost effective.
      SIP will be the ideal option for accumulating a corpus for your child future. You can also consider PPF due to its tax free nature.

  • uma viswanathan August 7, 2012, 9:29 PM

    Hi Hemant,

    Its heartening to see you respond to the queries.
    I have taken 3 policies for LIC Market plus 1 ( table no.191) for Rs.40,000/- per policy. I would like to discontinue the same as I have completed paying for 3 years and withdraw the amount.
    Do let me know what could be the realisable amount as on date.
    Thanks

  • Krishna Kumar August 8, 2012, 10:54 AM

    Hiii,
    I had purchased a LIC Policy (An annual premium of Rs. 14,400/-) in 2009 and paid its premium till 2010 but after that due to some personal reasons I was unable to pay my premiums till date but now I want to re-open my same LIC Policy. Can you please tell me the procedure for the same so that I can re-open my same LIC Policy.

    With Regards,
    Krishna Kumar

  • Premanand August 8, 2012, 4:44 PM

    Dear Sir

    Its very helpful to me if you reply to my query .

    I had purchase Money Plus policy from LIC in 2007. After 5 years term:

    Total Paid ₹50,000/-
    Fund type : Growth
    Unit earned – 4113.126
    Is it feasible to continue the Policy? Yes / No. then why?

    • Vikas October 23, 2012, 9:09 PM

      Hi Premanand,

      If your policy term is only 5 years then you cannot continue further.

  • ajit August 11, 2012, 5:25 PM

    hi hemant ….

    i m a self employed person and my income is 20k-25k per month …… is it possible to have a term insurance cover of 1 cr.

    • Vikas October 22, 2012, 7:42 PM

      Hi Ajit,

      Insurance companies generally give coverage upto 15-20 times of annual income.With your income you will not be able to avail a term insurance of Rs 1 cr.

  • brij August 12, 2012, 2:45 PM

    my lic get matured
    And 10000 of payment had done by lic
    But next payment vil b done aftr 1 yr
    And dn aftr 2 year n so on.
    Is der any way to get all money at the same tym ?
    If yes, what is procedure ??

  • S.Shiv Kumar August 14, 2012, 1:43 PM

    I have deposited Rs.6000/- In the Financial Year 2011-2012 in my PPF A/c. How much interest i will get back. Please clearify and give the calculation method.

  • harpreet singh August 15, 2012, 3:02 PM

    what is best children plan

  • Simitha August 17, 2012, 6:03 PM

    Hi,
    I am investing Rs25000/year under the Metlife Met Easy plan. Recently I switched from Multiplier fund to Protector fund. Please suggest which of these two funds are better (return wise) for long term investment.
    Thanks

  • Thomas August 23, 2012, 10:24 AM

    Hi,
    I have bought a Ulip wealth policy icici pru super nav fund B last month. i am paying a premium of Rs 100000/annum for five years .what the agent said was i will get 110% of the highest nav of the fund in first 7 years and 2% bonnus at the completion of 10 years.I would like to know is this highest nav does it means from the begining of the policy has started or from the time i started. The nav when i started was 9.73.This is a 5 pay term and their charges goes like 1st year 6%,2nd 5%,and 3%,3%,3%.If at invest 5lakh in 5years what would be my average return at the end of 10years.

  • viplav gupta August 26, 2012, 1:56 PM

    agr mai lic ki koi bhi policy kharidata hun to kya mujhe,policy kharidate samay,pehala tin (three) primium ek sath dena prta hai.jbki policy ka primium /month pekrna hai

  • shivprasad August 26, 2012, 7:59 PM

    I would like to withdraw my daughter’s policy which was lapsed before expiry date.Because,I unable to remit all premiums.So these is possible or not?

  • shivprasad August 26, 2012, 8:03 PM

    can I withdraw my deposited amount?

  • Shivamurthy August 27, 2012, 11:08 AM

    Which is the good traditional plan in LIC (Other than Term & ULIP) ?

  • sunny kumar August 27, 2012, 6:08 PM

    HI HEMANT JI

    SIR I WANT TO KNOW THAT,HOW MUCH MONEY I WILL GET AFTER LOCK PERIOD.I HAVE A FUTURE ANAND POLICY OF FUTURE GENERALLY.PLZ PLZ HELP ME.I WANT STOP THIS POLICY AFTER LOCK PERIOD.

    • Vikas October 22, 2012, 6:50 PM

      Hi Sunny,

      After lockin period is over you will receive value as per the surrender charges applicable in the product. The information on the same is available in your policy document.

  • Prasanna September 1, 2012, 10:17 AM

    I paid first premium of ICICI Pru life insurance on oct-2009, than due to financial problem i failed to pay. Now i want to withdram it. Plez tell me what to do.

    • Vikas October 22, 2012, 6:11 PM

      Prasanna,

      In any insurance plan there are surrender charges applicable within a certain period. The details of the same are available in your policy document which you can refer. However, do note that first year premium in all policies ( if its a traditional plan) goes towards expenses of the company and hence is not payable.

  • Vijay Singh September 2, 2012, 12:52 PM

    sir, i want to know , when i surrender ageon religare poliy of 30,000/- after completion of 1 years, how much i got.

    reply me soon.

    • Hemant Beniwal September 2, 2012, 8:32 PM

      Hi Vijay,
      Read policy document or talk to your agent.

      • kamini November 2, 2012, 4:19 PM

        Hi Hemant Ji,

        My Husband is 31 yrs old.

        From Oct 2010, we have BIRLA SUN LIFE INSURANCE – CLASSIC ENDOWMENT POLICY (Magnifier- 30 yrs plan) for me and my husband.

        We pay Rs.5600 per month as premium for both of us. Policy document reads that this fund invests more in equity.

        Sum Assured is 39 lacs for my husband and 9 lacs for me….. But surrender benefit end of 30 yrs worked @6% is 18 lacs for him & 14 lacs for me. It seems very disappointing.

        We dont ve any other insurance policy other than this.. Are we adequately insured?? Will this help for our retirement?

        Do u recommend to continue this policy Or drop this and take a term plan? But term plan will not even fetch any surrender benefit also, then how come is it beneficial??

        Plz help…..

        Also, My target corpus for retirement in 30 yrs – 2 crores (2042), Child education in 14 yrs – 25 lacs (2027), Child marriage in 18 yrs – 25 lacs (2031)

        Does my target corpus for all segments, match with the rocketing inflation in respective future years ?? Are these targets achievable?

        How much should we invest in MF, FD and gold respectively to achieve these targets??

        We can set aside Rs.20K per month and that will grow up gradually.

        Ur advise would be highly helpful. plz suggest..

  • naresh September 3, 2012, 5:07 PM

    1.what is the procedure to get loan on life insurance policy of LIC ?
    2. how much loan can i get ?
    3. how many years old should be LIP for getting loan on it ?
    4. what will be the rate of interest ?

    I want to take loan for taking home.

    kindly revert soon

    thanking you
    Naresh

    • Vikas October 22, 2012, 7:13 PM

      Naresh,

      For getting a loan on your LIC policy, you need to approach the nearest branch in your location or contact your agent.

  • Mani September 7, 2012, 8:58 AM

    Sir, I have bought HDFC ULIP with annual payment of 50K, now my fourth payment is due, if i surrender now, i am loosing 60k in charges.

    The fund value id hovering around 104000…I am loosing my money!!
    Should i stop paying my premium and wait till it matures in 2019 ? or should i surrender after not depositing my fourth payment…since my surrender charge will reduce in the fourth year (if i understood the policy document correctly regarding the surrender charges)..

    I have also read somewhere that even if i deposit my fourth payment, they will be another charge on that (about 30%)..so that in both case i will be loosing my money,,..

    please advice me..

    regards, Mani

    • Vikas October 22, 2012, 7:24 PM

      Mani,

      If you pay your fourth premium the amount invested will be post charges applicable in the product. If you are not keen on continuing the product for long term then exiting would be a wiser choice.

  • Rabi September 9, 2012, 11:33 PM

    Sir,

    Sir,
    My father bought two ULIP max life insurance money maker gold-growth fund with annual premium of Rs 30000 and Rs. 20000 respectively. We have paid only two years premium of 2008 and 2009. The policy is on lapse mode and is about to terminate. The unit allocated to us as on 29.04.2009 is 1467 and 965 @21.36 NAV respectively. If we don’t revive the policy we are going to lose 1lakh already paid. If we revive, we have to pay 1.5Lakh. Do we get any amount after revival over 1.5Lakh or let the policy to terminate? Kindly suggest.

    • Vikas October 22, 2012, 5:43 PM

      Rabi,

      In any life insurance product, there is a minimum time horizon for continuation of the policy before you can withdraw your funds. If you stop paying premium in between you can revive the policy within two years by paying the outstanding premium. However, in a ULIP product the policy still continues provided your Fund Value do not fall below a threshold limit.

      Some ULIPs may benefit cost wise when you continue it for at least 12-15 years. But funds under performance and other factors does not leave an option to the policy holder but to exit from the policy. Also,unlike mutual funds, it is difficult to create a portfolio through ULIPs, within your parameters.Hence, in such scenario it is advisable to avoid such costly products.

  • p.jesintha September 13, 2012, 4:05 PM

    what can i do when i didnt pay the premiun for lic policy for more than 2 years

  • Sureshkumar September 18, 2012, 5:19 PM

    Hi,
    I am working in Saudi Arabia and my age is 53. My wife is almost 44 and my Daughter is 21. I wish to go for Unit Linked Medical Insurance of LIC. What would be the premium payable for Rs.2,00,000/- & Rs.4,00,000/- coverages?

    Hoping for early response.

    Regards
    Sureshkumar

    • Vikas October 22, 2012, 5:03 PM

      Hi Suresh,

      It will be advisable to have a comprehensive health policy for medical insurance as most combo products are considerable only as a supplement to basic health plans.

  • AYAN KUMAR B September 18, 2012, 5:30 PM

    Dear Sir,

    Greetings for the day!!

    I really appriciate your advice on how to manage the funds, as one thing i have understood very clearly… If u want to invest, go for MF, and for Insurance..Term Plans…may your kind guidance help all, God Bless.. 🙂

    Thanking You..

    Warm Regards,
    Ayan.

  • pankaj rathod September 19, 2012, 10:54 PM

    My name is pankaj rathod and working in police department for 7 year. Resently i bought kotak e preff. Term insu. Of Rs. 2700000 and policy issued and dispached by them according to thems mail.
    I have taken most care while filling proposal form. Disclose all policy and other fact. But one mistake done by me was that time i dont know my accurate gross annual income,so my mothly salary is Rs.12102 and i multiply it by 12 and wrote round fig. Rs.144000 as my annual income. Which is wrong gross anum.
    After it i wrote to my department for my gross annual income and is Rs.118058 for 2011-2012 financial year. Because i was in fix pay Rs.4500 only for last five year according to gujarat govt. Rules. Now i m in full pay from last august- 2011. My salary is 12000/month now.
    So that time while was filling proposal form i had not perfact figure of gross annual income. they issued me policy of Rs.2700000 on the base of my wrong annual income. After it i mail them govt. Certificate proof of my actual gross annual income of last year as Rs.118058. But they said me that they had issued policy and despached it to you. Further said your annual income mistake will not creat any problem while claim settle because our uderwritten depart. Had veryfies your all doc then issued you policy. now i m lost confuse because at cailm settle time i will not there to resolve problem…what should i cancel it or continue it ?????

    • Dhawal Sharma September 20, 2012, 10:16 AM

      Dear Pankaj,

      As an advisor for Kotak life insurance in Delhi, let me clear your doubts..In your case, there is absolutely zero chance of any discripency based on your annual income. It is never asked of a client to fill the exact figure. So you need not to worry at all. When company has issued you the policy based on your annual income of Rs 1.18 itself, that means you fulfill the criteria to have SA of 27 lakhs on your life. It does not matter if your income is somewhat above..

      There is no need for you to worry at all for CLAIM SETTLEMENT. At least on this count, there is ZERO chance of claim being rejected..So please continue this policy and enjoy the benefits of TERM PLAN..

      • pankaj rathod September 20, 2012, 3:00 PM

        Thax for answer
        they have issued it on Rs144000 not on 118000

  • pankaj rathod September 19, 2012, 11:07 PM

    Further want to say that my city not listed in thems web. For online purchase. Kotak ensurence advisor said me to wright nea rest city in proposal form an print out proposal form then cut nearest city which mention in proposal form and wright your city there.
    second thing that shoul.i continue this policy or go with offline policy which is expensive then online.

  • AMIT SASMAL October 7, 2012, 10:44 AM

    DEAR SIR,

    I HAVE PAID RS.10000 P.A. FOR 3 YEARS IN ALIANZ BAJAJ INSURANCE.
    AFTER 5YEAR HOW MANEY AMOUNT I WILL BE RETURN.

    THANKING YOU,

    AMIT SASMAL

    • Vikas October 22, 2012, 7:48 PM

      Hi Amit,

      Check your policy document for surrender charges and other clauses applicable in your policy.

  • Mohinder Bir Singh October 18, 2012, 5:39 PM

    15 years ago I bought a moneyback policy for 1 lac from LIC. I was paid Rs 20000 on completing 5 years and again Rs 20000 after 10 years What am I suppose to get today on maturity

    • Vikas October 22, 2012, 4:50 PM

      Dear Mohinder,

      In a money back policy, the maturity amount is SA (Less survival benefit paid) +Accumulated bonus.Since you have already received Rs 40000, you will be paid remaining SA of Rs 60000 along with bonus accumulated, as declared by LIC every year.You can confirm the bonus amount through your agent or from the company.

  • v.k agarwal October 24, 2012, 3:31 PM

    i am 56 yrs male ,wanna take policy that offers single premium ,sum assured 10 times or more,accidental cover 20 times with fixed maturity time period….

    • Vikas November 4, 2012, 7:14 AM

      Dear Mr. Agarwal,

      With your query it seems you are looking at multiple benefits in a single product which is difficult. At your age any combo insurance product will be too costly to derive good benefits.

      Rather, you should look at different needs in isolation and then search for the right avenue.For e.g. for death cover, a term insurance is the most viable cheapest option while for covering risk through accident a comprehensive accident policy will give you more benefits.Similarly for investments there are many low cost options which you can select from.Thus, listing your objectives in details will help in making the right decision.

  • John October 25, 2012, 6:40 PM

    Dear sir,

    Is Max Life Life Gain™ Plus 20 good to invest?

    thanks

    • Vikas November 4, 2012, 7:32 AM

      Dear John,

      Its an endowment plan. Such traditional products have a very defined objective of investing in debt and not in equities. Add to the cost within the product they are not able to yield higher returns when you look at post inflation.

      If your objective is investment, then analyse other avenues and then make a decision.

  • BV SASI BUSHAN RAO October 31, 2012, 9:12 AM

    sir I have a LIC’S ENDOWMENT PLUS (Plan No. 802) sum assured 5, 50000 and paying quarterly premium of 12500. Due to some financial problems I am facing difficulties for paying further premiums. What will happen if I will not pay further premiums. What will be my loss?Will I get my money back? Please suggest me whether I continue or stop.

    • Vikas November 4, 2012, 8:49 AM

      Dear Mr. Bhushan Rao,

      If you are not able to pay future premiums then your policy gets lapsed. In case you want to revive it then you can do it in within two years from the date of first unpaid premium by paying the outstanding amount along with penal interest.

      However, if you have paid at least three year premium and do not revive it within the stipulated period, then the policy becomes paid up.In such case your SA is reduced wrt. the premium paid and maturity is paid accordingly.

      To continue or stop is a financial decision you should take after matching the product benefits with your requirements.

  • syed nasir ali October 31, 2012, 4:34 PM

    hi,
    i am nasir ali i am about to purchase 7 year gsip plan its locking period is 3 year after 3 yr can i get 11% rate of interst of my premium amount 105000?? and what are its other benefits?

    • Vikas November 5, 2012, 1:16 AM

      Dear Mr.Sayed,

      I am not able to understand the name of plan.Can you elaborate more.

  • kamini November 5, 2012, 2:47 PM

    Hi,

    My Husband is 31 yrs old.

    From Oct 2010, we have BIRLA SUN LIFE INSURANCE – CLASSIC ENDOWMENT POLICY (Magnifier- 30 yrs plan) for me and my husband.

    We pay 36K per annum for my husband (sum assured is 39 lacs) and 32k per annum for me ( sum assured is 9 lacs). Policy document reads that this fund invests more in equity.

    What would be the maximum return in these endowment policies end of 30 yrs??? Will this help for our retirement?

    We dont ve any other insurance policy other than this.. Are we adequately insured??

    Do u recommend to continue this policy Or drop this and take a term plan?

    Plz help…..

    Also, My target corpus for retirement in 30 yrs – 2 crores (2042), Child education in 14 yrs – 25 lacs (2027), Child marriage in 18 yrs – 25 lacs (2031)

    We can set aside Rs.25K per month for investments…. Does my target corpus for all segments, match with the rocketing inflation in respective future years ?? Are these targets achievable?

    How much should we invest in MF, FD and gold respectively to achieve these targets??

    Ur advise would be highly helpful. plz suggest..

    • Vikas November 6, 2012, 11:46 AM

      Hi Kamini,

      This is Unit Linked Plans where the returns are generated from investing in various markets like equity or debt as per the option you choose. The important point to note here is that these policies have certain charges which is deducted from your premium and then the remaining amount is invested. Since these charges are very high in initial years, this policy benefits only if you continue in the long term.But you have to track the performance to ensure it meets your desired objectives.

      However, the basic rule o financial planning is that keep insurance and investment seperate. Any combo products will be too costly and will not be able to meet either objective.

      Surely, for insurance term plan is the most viable option and for investment you need to choose as per your objective. Asset Allocation is the right approach which is based on your risk tolerance and time horizon of your goals.

  • kamini November 7, 2012, 12:23 AM

    Thnx Vikas. Please help me which top 3 insurance company for term insurance plan.

    • Vikas November 15, 2012, 7:04 AM

      Hi Kamini,

      You can consider Kotak, ICICI and HDFC for your requirement.

  • ankitkataria November 14, 2012, 9:33 PM

    sir on 6/11/09 i buy market plus policy of 25000 so now 3 year are over sir so how much i got? sir pls reply me how much intrest i got?

    • Vikas November 16, 2012, 11:55 PM

      Hi Ankit,

      You will get this required information from the company or else you can view fund performance at companies website .

  • vinoy shanker November 18, 2012, 4:38 PM

    i was purchased 80ccc jeeven suraksha policy in 2002 on qtrly based premium due some reason i deposited only two premium can i get my money whatever i have deposited

    • Vikas December 10, 2012, 10:57 AM

      Dear Vinay,
      In any traditional plan,if you stp paying premium then the policy get lapsed.you can revive it within two years by paying the outstanding premiums along with penal interest. However, if you wish to surrender your policy then company pays you a surrender value. In Traditional plans it is generally some % of your paid premium excluding first year premium. However, this is applicable only if you paid premium for certain years.In current Policy it is minimum 2 years.You should check with the company the exact details since its being very long you discontinued your policy.

  • Tushar November 28, 2012, 7:40 PM

    Hi Vikas,
    I have taken an ICICI Pru Life Stage Pension Advantage Plan ,bought it in 2010 with a premium of 50000 per annum. I have only paid my first Premium as of now and as i checked today the fund value is 40000.. Should i pay the balance premium of 100000 or shud i exit after the completion of 3 yrs without paying the balance premium? Do u think this fund will reap profits? what kind of returns can i expect after 5 years? Thanks:-)

    • Vikas December 10, 2012, 11:20 AM

      Hi Tushar,

      Its a ULIP product which benefits only when you continue in the long term.One of the main reason is initial charges which are high and to even out it takes few years performance from the funds.So even if the funds perform since your entire premium is not invested you might not see the desired profitability. Mutual Funds are wiser option as the are more transparent and highly liquid instrument.

      Review the charges in your products and then take a decision.

  • Perumal K December 9, 2012, 4:57 PM

    Sir,

    I invested in LIC’s Profit Plus (Plan No 188) during Dec 2007 by paying a single premium of 10,000. Afterwards i didn’t pay the premiums in the subsequent years. Now almost it is 5 years over. Is is possible for me to surrender the policy, if it so, how much will I be paid?. Please guide me.

    Thanks
    Perumal K

    • Vikas December 10, 2012, 12:12 PM

      Dera Premul,

      You should check your policy term i.e. what is the term you have choosen. Accordingly the surrender charges will be applicable, if any. You can check in your policy document on this.Since its a ULIP product, you will be paid the fund value on basis of NAV of your withdrawal date.

  • PRAKASH December 10, 2012, 8:48 PM

    Hi ,

    I would like to purchase LIC Marriage Endowment Policy ( T.No.90) for SA= 5,00,000 and Premium Yearly = 22,513 and Paying Term= 21.

    As per LIC Agent, I will be getting appro., 11 Lakhs after 21 years.

    Please suggest me whether this policy is good or not

  • pritam December 11, 2012, 1:07 AM

    Please suggest me shall i take LIC Marriage Endowment Policy Table 90 for future purpose

    Premium= 22,513
    Paying Term= 21
    SA= 5,00,000

    Please guide me any other future best LIC Plan

  • BASANT LOHIYA December 14, 2012, 2:14 PM

    IS LIC DECLARE ITS PORTFOLIO LIKE MF IN ULIPS???? I HAVE LIC MONEY PLUS

    • Vikas December 28, 2012, 11:02 PM

      Hi Basant,

      ULIPs are not required to declare their investment portfolio in detail like in MF.

  • Deepthy December 27, 2012, 1:08 PM

    Hi Hemant,

    I have a Tata AIA Life – Nirvana Pension + Accident Cover Policy that I took in 2004 when Section 80D of Income Tax for upto 10,000/- premium for pension plans existed separate from other insurances covered in Section88. Policy details below:

    Details: 11,538/- + Tax premium for 21 years(Yr2004 to 2025) for 2.5lakhs pension+2.5lakhs accident coverage

    Benefit: In 2025, 10% guaranteed addition to sum assured i.e. assured is 2.75L. Upto 33% of 2.75L is commutable as lumpsum received back in 2025 & the rest (or whole) is paid as monthly income / pension until death, rate of annuity decided in Yr2025.

    Due to some constraints I have taken a break from work and I am rethinking if I need to continue this Nirvana policy.

    Other insurance policies that I have is a Tata AIA Mahalife (premium till 2015) and a AMHIC Easy Health Insurance policy. I dont need a Term Insurance as I have no depedents.

    Request your advice.

    • Vikas January 30, 2013, 11:31 PM

      Hi Deepthy,

      As it is a traditional plan the returns you will receive will hover around 5-6%. it may not great for creating a retirement corpus. Contrary to this with such along term if the same amount is invested in equities through MF then you can expect a decent corpus.The annuuity depends on how much you accumulate

      It will be wiser approach to identify your corpus i.e. how much you need and then take a decision. In all probabilities, making the policy a paid up will be more viable.

    • Vikas January 30, 2013, 11:47 PM

      Hi Deepthy,

      Being a traditional plan it wll not fetch you more than 5-6%. Considering inflation, it may not help you accumulate a good corpus for your retirement. In such a long term equity exposure is viable.

      You can make the policy paid up in which your SA will get reduced as per premium paid and look for investing in equity through MF. Mahalife you can continue as only two years are left.

  • SIMMI SAHAY December 27, 2012, 5:45 PM

    I have invested 45000/ in 3 years in HDFC Unit Linked YoungStar Plus II,now my fund value is 32000.what shall I do?Shall I Pay next premium or withdraw my money?
    Please suggest how I will recover money,which I am loosing after investing in this
    plan?

    • Vikas January 31, 2013, 12:04 AM

      Hi Simmi,

      Its a UNIT linked so the performance is dependent on the market. Your FV can be low for two reason-Charges and non-performance from market. In a child plans the charges are bit higher due to features.
      On surrendering you might have to pay surrender charges.So the net value you receive will be much lower. If you do not wish to continue then you will have to surrender it bearing the loss.

  • prasad December 27, 2012, 10:17 PM

    Sir,
    1) I have 3 LIC policies from LIC. I have given my temporary resedential address for correspondance, to the agent, at the time when the policies were taken.That address was printed in the insurance bonds also.But now Iam not residing there due to transfer to other place.Is there any problem while claiming the insurance ?

    2) I want to take a term insurance plan covering 50 lakhs (sum assured) from a private insurance company.In Indian market, Which insurance companies have the best claim settlement ratio according to the latest reports.
    Please mention top 5 in this regard.
    3) For an easy claim settlement process, What precautions should be taken at the time of proposal form filling ?

    Please guide me to take better decision… Thanking you Sir…

    • Vikas January 31, 2013, 3:20 PM

      Hi Prasad,

      1. You should update your address with insurance companies.During claim the company verifies what you have stated in the document and so a line of process will add up if there is any variance.

      2. For term plan you should read this

      http://www.tflguide.com/2011/03/best-term-insurance-plan-india.html

      3.At the time of filling up application form ensure you disclose all the information regarding you other insurance and health, if any.Its better to fill the form yourself so that you will know what information is required by the company

  • Panchami Banerjee January 16, 2013, 10:18 PM

    Sir,

    In Aug 2009 ,I took a SBI lifelong Pension Plan 1 policy,truely speaking i wasnt sure about the policy at all but the Bank Manager made me to do it anyway.

    Now I m in mammoth doubts:

    1)Reading all the policy clausess i dont find any benfits related post retiremnt benifits,just stated targeted PPA is 2,31,000.What is targeted PPA.

    2)This policy is for 5 years tenure.And i was supposed to pay rs 3000 each year ,but i wasnt acknowledged neither i paid any premium afterwards.The only signing amount i paid 40000 in the commencement of the policy.

    3)I would like to surrender it now,but the policy staes that i m eligible to gurrented surrender value provided if i cleared every dues for the first 12 months from the date of commencement .What should i do i missed every premiiums form the first year itself just paid the first PPA amount.

    Plz help me sir, I m nearly a senior citizen,neither the agents are answering me generously.

    • Vikas January 31, 2013, 11:21 PM

      Dear Panchami,

      In any pension product the pension depends on the corpus you are going to accumulate.Since bonus every year is not guaranteed the amount of pension is also not guaranteed. So you wont find much information in the policy document.

      If you have not paid premiums then it will be in lapsed status which you can revive within a certain period by paying outstanding premiums along with interest. You should check with the company for exact details after which you can take a decision.

  • Sanil January 26, 2013, 12:24 PM

    I have taken Tata AIA Life Nirvana Plus policy in the year Sep-2005 for 400,000/- and will mature on Sep-33. Now paying monthly premium of 1795/- puls ST 28, totalling-1823/-. Can you advice me whether I can continue this till maturity or not. If not, pls give me your valuable comments.

    • Vikas January 31, 2013, 11:30 PM

      Hi Sanil,

      Its a traditional plan and will not fetch returns more than 5-6%. This may not meet your objective in the long term due to inflation. You can make the policy a paidup.

  • Sanil February 18, 2013, 2:59 PM

    Dear Vikas,

    Thanks for your valuable reply.

    Can you please explaine me to how to proceed further? How I can make the policy paidup?

    Rgds

    • Vikas March 12, 2013, 4:04 PM

      Hi Sanil,

      The policy can be made paid up either by applying with the insurance company or if you stop paying the premium then after the lapsation period it is made paid up by the company provided you have paid three years premium.

  • Es Kumar February 23, 2013, 9:51 AM

    My DOB is 09.06.1952.
    If I go for an insurance (other than health insurance), which will be the best ?What will be the premium for 10 years term for 1 lac assured amount ? Will it be right for opting for LIC’s Jeevan Anand Policy ?

    • Vikas March 12, 2013, 4:13 PM

      Hi Es Kumar,

      Term insurance is the most viable option when you want to buy a life insurance coverage. For investments you have much cheaper and efficient options to consider. Any combo product will not be able meet your either objective.

  • Piyush Sharma March 8, 2013, 1:00 PM

    I have a LIC Magic policy. had i take the right decision?Waiting for reply.

    • Vikas March 12, 2013, 4:22 PM

      Hi Piyush,

      Not sure what Magic it can bring it for you. It is combination of different traditional plans with returns remaining in the conservative range. It will be difficult to beat inflation and so you should review it if it is not meeting your end objective.

  • Ravi March 21, 2013, 11:59 AM

    Hello Hemant,

    Glad to read you comments/recommendations.

    Post reading many of your comments on the benefits of Term Plan I finally decided to purchase Term Plan and I am happy about my decision too. I have already purchase a Term Plan online iPru for 25,00,000 and I wish to get more to make the total reach at 60,00,000 or 70,00,000. My present Annual Gross Salary is 7,50,000 and by this I decided to reach up to a cover equal to 10 Times of my present annual salary. Could you please SUGGEST which all plans can I consider to get the additional say 35,00,000 cover? Is it safe enough to put all the risk on one company?

    I am happy you are not biased towards any company nor are you against also. But would need your best guidance for my case.

  • Thilaga May 9, 2013, 11:20 AM

    Hi Hemant,
    I have 20 yrs LIC money back policy. Paid 7yrs premium. Now i realised it is giving enough profilt to complete the remaining 13 yrs. So, I planned to stop paying/Surrender.
    If i surrender now, below is the case:
    Totatlly paid: 2,23,000
    Got Paid after 5 yrs: 1,00,000
    So, the expected net amt : 1,23,000
    But, the agent told me that 77,000 will only be paid. Hence, 46,000 loss for me.(No profit also huge loss).
    Meanwhile, I have noticed in online(with my credential) that 1,17,000 as VESTED Bonus for this policy. What is this Vested bonus ?
    I am confusing that whether surrender or stop payment(and get the amt once maturity period reached). However, i am not willing to continue the payments.
    Pls suggest me. Thanks

    • Vikas May 9, 2013, 4:49 PM

      Hi Thilaga,

      Firstly the total premium you have paid is not entirely invested for returns. After deducting charges such as mortality, agent commission etc. from the premium, balance gets invested as per policy mandate. The amount you receive on maturity in any money back policy is Sum Assured+ Bonus – Previous withdrawals. If you want to surrender, traditional policies have very high surrender charges which you have already noticed.
      The other option you have is making policy paid up where the policy SA is reduced as per your paid premium and you receive the remaining SA plus any bonus accrued to this date on maturity.
      You can check this option also online and take a decision.You will find making policy paid up a more viable option.

  • LG May 9, 2013, 3:49 PM

    Dear Sir,

    I bought a HDFC Standard Life Endowment Plus II Policy for my son with a single annual premium of Rs.50000/- for a period of 30 years commencing from 07.05.2009. We have till date paid 4 premiums of Rs50000/- each totalling Rs.2,00,000/- and till now, the fund value is ONLY Rs.1,89,000/-. Are there chances of a good growth (NAV Fund Value) on maturity of 30 years. Request your feedback and help in this regard. Thanks a ton. Kindly send me your reply via e-mail please. Thanks once again.

  • raju June 15, 2013, 1:53 PM

    Hi,
    I took the 3 aegon religare money back plus of premium 30000/year.[It means 3X30000=90,000/year].I paid the 2 premium I thought of withdrawing after the 3rd year because of my very financial conditions .Please suggest me.I am really worried..

    • Vikas June 22, 2013, 3:58 PM

      Hi Raju,

      In any traditional plans if you withdraw, you are paid a surrender value which is roughly 30% of total paid premium. The terms may vary with different products. Money back are generally the costliest products and so not advisable. you can take a decision after checking your policy documents.

  • Vikas June 16, 2013, 10:32 AM

    Hi LG,

    In any ULIP product you have initial charges due to which less amount of money goes for investment then what you have paid as a premium. You might have got returns on your invested value but it will not be equal to the premium paid due to this reason. 30 years is a good long horizon to invest in equities market and a ULIP can deliver you the desired returns if the fund performs. But you will have to monitor it to identify any underperformance and take necessary steps when required.

  • Rohit August 3, 2013, 2:47 PM

    Hi i have an jeevan anand policy T.N0 149 which was commenced in the year 2005 what if i close this policy will get my money back

    • Vikas October 20, 2013, 10:28 AM

      hi Rohit,

      This is a traditional policy and so there will be surrender charges applicable,Generally it is 30% of all premium paid excluding the first year premium. You can consider paid-up option instead of surrender based on the term remaining for your maturity.

  • kaajal August 26, 2013, 12:46 AM

    Hello sir,
    me and my husband are planning to buy new house and want to close all our existing lic’s – please suggest is it beneficial to close them or should we continue with them 1st is jeevan varsha DOC – 24/03/09, 2 nd is jeevan anand DOC – 14/11/09 3 rd is jeevan saral DOC – 28/03/12

    • Vikas October 20, 2013, 10:36 AM

      Hi Kaajal,

      In Closing any traditional plans before maturity you generally have to forego a good amount as there are surrender charges applicable. These charges are generally 30% of all premium paid excluding first year premium. A paid up option becomes more viable if you have already paid your premium for good number of years.
      However, since you have started your policies in 2009 you can take a decision on surrender based on your requirement. Any traditional policy where at least three years premium have not been paid no amount is payable on surrender of policy.

  • narendra August 29, 2013, 1:54 AM

    my agent recently gave me LIC Magic plan(retire & enjoy ii);(i had payed 1st premium),my age is 30 & p.a. premium is 69,706/-till 25 years,means till 55 age i pay 17,42,650/-.At 56 age to 75 age,i will get 4,34,219/-p.a.there is provision of risk cover and Loan against policy also.high risk cover of rs 24,39,510/- from age 30 and growing to rs 61,79,160/-at age 56.(my yearly income is 3 lakhs from my job,married,1 daughter of 3 months age).
    Plz suggest me i have taken any wrong plan or i m on right track.
    If not plz suggest me Any good term plan.

  • Natz August 29, 2013, 10:05 AM

    Hi narendra, pls note, you have been misled by the agent. With your annual salary, you should have gone for term insurance only… pls take professional help and try to get out from the magic plan…

    • narendra August 30, 2013, 12:14 AM

      @ Natz,thanks natz for ur suggestion.
      i will definately kick out magic plan,but i will also be highly obliged if u suggest me any ‘Term insurance plan'(as for myself u r only professional).
      Also one more query…
      my father’s age is 51,he wants pension or retirement plan for 10 to 15 years term & 1,40,000/-p.a. premium.
      Agent has suggested him jeevan tarang for 15 year term-premium 12775/-yearly.sum assured is 20,000,00/-,after 15 years in 16th year he will get 13,80,000/-and after that 1,10,000/-yearly full lifetime.
      plz suggest me…

    • narendra August 30, 2013, 12:16 AM

      @ Natz,thanks natz for ur suggestion.
      i will definately kick out magic plan,but i will also be highly obliged if u suggest me any ‘Term insurance plan'(as for myself u r only professional).
      Also one more query…
      my father’s age is 51,he wants pension or retirement plan for 10 to 15 years term & 1,40,000/-p.a. premium.
      Agent has suggested him jeevan tarang for 15 year term-premium 12775/-monthly.sum assured is 20,000,00/-,after 15 years in 16th year he will get 13,80,000/-and after that 1,10,000/-yearly full lifetime.
      plz suggest me…

  • Arti Singh September 13, 2013, 12:22 AM

    Hello Sir,

    I am 38 yrs old single mother. I have taken Foresight Plan from Birla SL Insurance on 14/08/2012. My Policy`s details as as below:
    Pay 5 – 10Year Policy – Guaranteed Plan
    Premium – 333300/- Annually
    Sum Assured – 3333000/-
    Guaranteed Benefit – Taking Lowest 1yr NAV for Investment and take Highest NAV of 1st 7 Yrs to calculate profit.

    I am comfortable to pay each premiums. I am confused to continue it or to discontinue it now and take pure term plan as it looks costlier and also afraid because almost every people suggested to not to take any ULIP as its return are very poor.

    I have paid only single premium of Rs 3,33,300/- . Kindly advice me what to do with this policy.

    Thanks & regards,
    Arti Singh

    • Vikas October 20, 2013, 11:00 AM

      Hi Arti,

      The product guaranteeing highest NAVs of a term has been the most missold product and that is why IRDA has announced complete ban on them. The primary reason is that they work entirely on a different strategy then what they promise.
      Its more wiser to go for a term plan for insurance need and look at asset allocation for investing. Create an investment portfolio which is based on your risk tolerance and your time horizon. The product basket may have equity mutual funds,PPF or any other instruments which is suitable for your objectives.

  • Shubhada Manjrekar September 23, 2013, 3:42 PM

    Sir, I have recently purchased Jeevan Tarang Pension Policy-Plan 178 I pay premium of Rs.8,060/- per month for 6 years. What benefit will I get after 6 years or 10 years?

    • Vikas October 20, 2013, 11:12 AM

      Hi Shubada,

      Its a traditional plan and so you should not expect high returns since the underlying investment is debt.Also the term you have mentioned is not too long for accumulating a good corpus for retirement.
      You should consider other avenues where you can earn reasonable returns to beat inflation.

  • VICTOR October 18, 2013, 9:08 PM

    Sir, I have a new money back policy (table no-93) of S.A- Rs 5 lac with premium of 25908/- p.a.
    I have paid premium for 5 yrs and now going to receive first survival benefit of Rs75000/-. Now the fact is I want to discontinue this policy. so if I surrender this policy after receiving first survival benefit, how much amount would I get and whether vested bonus would be paid to me or not??? Or what would be better option – surrendering or leaving it in paid up zone. Please suggest me immediately

    • Vikas October 20, 2013, 11:35 AM

      Hi Victor,

      In traditional money back policy The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium and all survival benefits paid earlier. Yes, you will receive the accrued bonus till date in your policy.

  • Ziaulla Khan October 25, 2013, 11:57 AM

    Dear Sir ,

    I have a baby of 1 month i have planned to invest of Rs.50000/- for his marriage & education purpose. so i doesnt no how to go with this & which plan will be better for these.. Pl help..

    regards
    Ziaulla khan

  • PCPANDEY November 13, 2013, 5:25 PM

    QU. 1 ) Sir my relative invest in Jeevan Anand and pay one installment by unfortunately he expire in a accident can I take the claim or not.

    QU. 2 ) Sir one agent of Lic tell me that in case of Accidential deth the policy benifit is double. it is true.

    pl help

    ( P.C.Pandey )

    • Vikas November 14, 2013, 6:39 AM

      Dear Mr. Pandey,

      1. Yes the legal heir of the deceased can claim the policy.

      2. Yes, Jeevan Anand do have accidental benefit wherein it pays an additional amount for death due to accidents but the maximum limit is Rs 5 lakh.

  • Nilesh Tapadia November 18, 2013, 11:21 AM

    Hello Sir,

    Can you please help me understand the benefits of LIC’s Jeevan Anand (Table 143). I have it from Nov 2007 (6 yrs from now) with SA of Rs 5 lacs and anuual premium of Rs.25464/-

    I didn’t know much details on 5 yearly returns etc. Can you help please?

    • Vikas April 13, 2014, 5:45 PM

      Nilesh,

      Jeevan Anand is a combination of a traditional endowment plan and term insurance. Here you pay a premium for a specific term and on completion of teh term i.e. maturity you are given the maturity value which is Sum Assured and All bonus accrued during the term.
      In addition to this feature, Jeevan Anand also gives you a term insurance for your life even when the policy have matured.
      With regard to returns it is in the form of bonus. This bonus is declared every year on the basis of performance of its investment which si majorly in debt instruments in traditional plans. You can get details of previous bonus declared from the company. The only concern is the net returns you receive in traditional plans which is quite lower when inflation is also taken into consideration.

  • mir sajad December 15, 2013, 2:18 PM

    sir ,
    I want to go for an insurance policy for which I want to invest total of 2 lacs and the policy should be money back and for period of 12-14 years as my dob is 01-11-1987

  • Hema December 16, 2013, 2:32 PM

    Hi Hemanth,

    I have a question regarding the term plan from Religare.

    Its a sum assure of 96 lakhs, 8 k per year premium and various benefits, like Accidental, terminal illness, death of any form.
    My question here is, Say i take this term insurance for 20 years and nothing happens to me for 20 years (fingercrossed 🙂 ) so does that mean whatever money i pay for 20 years i wont receive back anything. and does this sum assured is given only in case of unfortunate situation within that 20 years??

    my q might be confusing, but awaiting ur reply.

    Regards
    Hema

    • Vikas April 13, 2014, 6:52 PM

      Hema,

      Yes. A term insurance is a death benefit policy i.e. the amount is payable only on death. There is no maturity benefits and due to this its the cheapest insurance you can avail for getting a high cover. Rs 95 lakh for just Rs 8000 p.a. is fairly cheap to give you a piece of mind for your family protection.

  • Sampath Kumar January 6, 2014, 2:42 PM

    Sir,

    I am investing ICICI pru savings suraksha – every year 50,000/- for 10 years please tell me this plan is good or bad

    • Vikas April 13, 2014, 6:59 PM

      Sampath,

      You need to analyse its net return you will receive. In traditional insurance plans the returns are fairly low when you adjust with inflation. This is due to their underline investment and cost. So if the returns you are receiving does not help you in meeting your goals then the product is not a wise one.

  • ameer March 20, 2014, 10:35 PM

    hi sir

    i’ve taken up icici prudential life insurance in the year 2009 and have been paying the premiums regularly while searching for the insurance bond i missed it somewhere. is it a problem while claiming back the maturity amount?
    is there any other alternative such that i can get a duplicate copy of the bond paper??

    • Vikas April 13, 2014, 7:03 PM

      ameer,

      During claim the company will ask for the copy of the bond. You can get a duplicate copy from the insurance company through some formalities.

  • Dhiren April 4, 2014, 8:58 AM

    Hi Hemant,

    I have recently got your book ‘financial life planning’. I am a very slow mover on financial planning. I want a suggestion from you. I have taken ICICI Pru money back policy, also Jivan Anand. Is it some thing will benefit me if I surrender those policies? Thanks Dhiren

    • Vikas April 13, 2014, 7:24 PM

      Dhiren,

      Money back are probably the costliest among traditional plans whose net returns are quite low. Jeevan Anand to is a traditional plan where the net returns will be lower. You should match these with your end requirement and then see how it benefits you.

  • Amit April 11, 2014, 12:50 AM

    Hi Hemant ,

    A very detailed Q&A. thanks for help. i started taking seriously my financial planning now only and after reading your artical i am wondering if anything i have done so far is any good.
    can you suggest me your views.
    i have taken last year ICICI smart kip RP education plan, considering it would be wealth accumulation option. but while taking i was not 100% sure that it will be that beneficial. can you give some insight should i continue with it.

    • Vikas April 13, 2014, 10:20 PM

      Amit,

      Its a traditional plan. The returns will be lower since it invest majorly in debt instruments. You need to look at your requirement and compare with alternative which will help you in making a decision.

  • Saumabha April 12, 2014, 4:59 PM

    Respected Sir,
    I have become a huge fan of yours of late by reading your financial articles and wish I had them earlier. MY QUERY IS SIRJI–
    1>>>> I am 28 yr old and unmarried and will settle in 30( i.e. 2 yrs from now) and thats why sir , I have not taken any term insurance till now as my plan is to have it at 30 so that it covers my death till my 60 ( Preliminarily I have shortlisted HDFC Life Click to protect). My question sirji is that, For how much amount shoiuld I go (I am in Centrl Govt service but no defined pension plan but pension scheme) ?
    2>>>> I have recently started 2 RD”s for 10 yrs of 1000/- and 5000/- and sip in Birla Sun Life Top 100 Fund (G) for 2000/- monthly.
    I dont need tax saving as I am saving 100000/- in my PPF account for the last 3 yrs and intend to doing it at the maximum level for the whole 15 yrs and even beyond by extension of 10 yrs.
    I want to start another SIP ( Of amt. 1000/-) but cant decide on which? • ICICI Prudential Focused Bluechip Equity or ICICI Prudential Exports and Other Services Fund (G) or any other ?Please suggest me sir and also advise me if my portfolio is right or wrong and if wrong , how can I improve it?
    Take all hearty well wishes from your this younger brother brother sir.
    Regards
    S Roy
    – See more at: http://www.tflguide.com/2011/05/mutual-fund-question.html#comment-31362

  • sonu April 14, 2014, 2:20 PM

    today i have bought a term insurance from india first and also paid the premium online today itself. Do i get covered under the term plan starting from today only or i am insured after the issue of policy document by the company.

    • Vikas July 20, 2014, 12:08 PM

      Sonu,

      In a term insurance you are covered from the policy issuance date i.e. the date on which your policy is issued.

  • Sumit Singh April 14, 2014, 7:25 PM

    Hi Vikas Sir,

    My question is for Birla SL Foresight Plan. I have taken this ULIP a year before with a premium of Rs 1.5 Lakh p.a. for 5 pay & 10 yrs plan. Want to surrender/ discontinue it. When i approached to branch, they told me that i will surrender it only after completion of 3 yrs.
    But there is mentioned in my Policy Documents that if i am unable to pay any premium then my policy will discontinue and the Balance amount (after deduction of Discontinuation Charge) will return after 5 yrs with minimum interest @4% p.a.

    Kindly advice me.

    Regards,
    Sumit Singh

    • Vikas July 20, 2014, 1:40 PM

      Sumit,

      In newer policies there is a lockin of five years for withdrawal/surrender. Before that if you discontinue then the investment goes in discontinued fund which is given to you after five years.
      You should look at the savings you will make and the alternatives you are seeking. Then you can decide, In my view the continuation of policy can be considered only when you wish to do it for the term and not for completing the time to surrender it.

  • abhishek April 15, 2014, 9:58 PM

    Is komal anand policy is better ?
    I have buyed this policy where 1 chart shown to me which display total amount i’ll get near by 14 lac after 22 yrs and i have to pay 42000 pa till 16 yrs.
    So is this policy better ? and i saw thr is mentioned 5 lac amount on my policy.
    My agent is telling that i’ll get 14 lac definitely after 22 yrs.
    So confused is this policy is good or fraud.

    • Vikas July 20, 2014, 2:01 PM

      Abhsihek,

      Can you specify clearly the name- is it komal jeevan or jeevan anand ?

  • abhishek April 15, 2014, 10:00 PM

    my policy name is
    Komal Jeevan Policy

    • Vikas July 20, 2014, 2:36 PM

      Abhsihek,

      Its a traditional plan and so the returns will be lower. In general it will range in between 5-6% but in komal jeevan it may even be lower due to delayed payment. Check the bonus rate of LIC in the past. This will give you an idea of what bonus LIC has been declaring in this policy and what you can expect in your policy. Then you will be able to do some estimation of the maturity amount.

  • RABIN DAS May 8, 2014, 4:49 PM

    Sir,
    I have a LIC Policy and pay yearly Rs.11,800/- , continue 3 years, last premium I have paid on February,2011. After that I am unable to continue. Now I want to continue the policy but there is problem that at a time investment of 3 installment. If any possibilities to pay in three installment .

    RABIN DAS

    • Vikas July 20, 2014, 2:40 PM

      Rabin,

      No you will have to pay the outstanding premiums first in able to continue. But you can check with LIC.

  • vijay sawant May 19, 2014, 5:57 PM

    Hi I have HDFC SL ProGrowth Maximiser – Highest NAV Guarantee Fund (HDFC) from 20/09/11.. locking period is 10 years but min lock period is 5 years, I believe next year i can withdraw policy equivalent to market value
    I urgently need money,
    my question is can i withdraw or sell this policy before 5 years which is now and if not after 5 years also it is not giving returns same as FD also , please advice?

    Thanks in Advance

    • Vikas December 14, 2014, 12:14 PM

      Vijay,

      When you bought the policy the clause of five years has come in ULIPs. As per this clause you cannot withdraw before five years. If you stop paying premium then the fund is transferred to a Discontinuation fund which is paid to you when five years get completed.

  • rahul July 16, 2014, 8:45 AM

    i hv sbi life insurance policy…. i want my money back before maturity… so how many rupees i will get…? plzz tell me….

    • Vikas December 14, 2014, 12:16 PM

      Rahul,

      You can get the details from the insurance company by calling their customer care.

  • mehmood baig August 20, 2014, 6:48 PM

    Dear Sir

    I am planning to buy a policy from a LIC agent, he gave me a Magic Mix Illustration, where I have to invest Rs 10,07,071 at one time and I will get Rs.1,95,000 after completion of every 3 years for 15 years. After 15 years I will receive Rs. 17,56,885. I am a NRI and I want to invest at one time. I want to know from you is this policy is genuine and the amount which agent has calculated is fixed. is there any risk in this policy.

    • Vikas December 14, 2014, 2:03 PM

      Mehmmod,

      The Magic option in lIC is a combination of endowment/moneyback policies with different tenure. The tenure is kept at such an interval that it looks to you as a regular income. But traditional plans has the drawbacks of not generating enough returns. Also the money you are getting periodically will be part of your policy Sum Assured and not the returns. In my view you should look at other alternatives for investments.

  • Mushtaq Ahmed August 21, 2014, 7:39 AM

    Dear Sir,

    I had ICICI prulife stage wealth II policy in Mar-11, , of Rs.25,000/-p.a for 10 yrs (sum assured @ maturity – Rs. 2,50.000/-) paying regularly since. Now my 5 premium payment falls in Mar-15.
    So, shall i continue it after 5th payment or shall i discontinue it.
    if i discontinue it after 5th year, what amount in total can i expect & any deductions if any…

    Kindly guide and suggest me sir and i will follow your valueable suggestion.

    • Vikas March 1, 2015, 7:37 PM

      Mushtaq,

      Its a ULIP policy and so check the value you are going to receive if you discontinue now. You can get this information from the company. Post that it will be easier for you to take the decision.

  • Hussain November 2, 2014, 11:09 PM

    Dear Hemant,

    I have a Jeevan Tarang Policy of 5.0L (Term 15 years, Annual Premium Rs. 34361.00, already Paid Five (5) Premium).
    If I surrender now i am getting Rs.1,26,000 amount I enquired at LIC Branch.
    Shall I make it Paid up policy and invest the premium amount (Rs. 34361.00) in PPF or shall I continue to pay full term premium.

    Please advice.
    Regards,
    Hussain

    • Vikas December 14, 2014, 2:08 PM

      Hussain,

      Traditional plans laggs in giving good enough returns. If you have bought the policy from investment perspective then alternatives you have mentioned will be a better choice.

    • Vikas March 1, 2015, 7:43 PM

      Husain,

      Paid up will be a good option since you won’t be losing money in it. The savings then you can divert to other efficient instrument.

  • Ravi November 3, 2014, 11:48 AM

    One of my friend has made an insurance policy which has the accident death benefit. He was met with an accident and was dead, but unknowingly the renewal amount for the policy is paid the next day after his death by the agent. Now the office people say it is a fraud and the benefits will not be given for this policy. what can be done for this.?

    • Vikas January 25, 2015, 11:24 AM

      Ravi,

      Yes this may be treated as fraud since the agent are not allowed to pay on behalf of the policyholder.The premium payment liability is on the policyholder himself. In my view here the agent will be held liable for doing so. However, you can approach the company grievance cell and ombudsmsan for putting up your case.

  • Mahesh December 10, 2014, 5:38 PM

    I have one doubt ..I am paying to Star health for my family 25 Lakhs sum assured in medical insurance but in the second premium will i get some bonus

    • Vikas January 25, 2015, 11:36 AM

      Mahesh,

      Yes there is No Claim Bonus in Star Health Policy which you will receive. Read your policy wordings for the details.

  • suryakant December 15, 2014, 11:22 PM

    Following is my question , Please answer.
    ‘A’ made a proposal for insurance o his life on form prescribed by LIC containing details of contract and also enclosed a cheque towards the first installment of the premium which was encased by LIC and a receipt issued by its Dev. Officer for LIC . However. ‘A ‘was asked to make good a deficiency in payment that occurred due to wrong calculation by LIC. He paid it. As still there was small mistake they asked for further payment and held the contract in suspense. ‘A’ says contract is complete. is it so?

    • Vikas January 25, 2015, 11:43 AM

      Suryakant,

      This is a silly mistake by the insurer which is difficult to understand. With respect to legality of contract you should seek a lawyer views. Also, details of insurer demand will also be needed to understand its viability.

  • Farhan January 4, 2015, 4:21 PM

    I purchased “ICICI Pru Saving Suraksha” insurance plan to save my tax. After reading your blog I found that I ruined my tax plan from the earlier stages of my job. My policy details is given below.

    Plan name: ICICI Pru Saving Suraksha (LP – Limited Pay)
    Issue Date: 25/03/2014
    Term: 15 years
    Maturity Date: 25/03/2029
    Premium Amount: Rs 50,000.00
    Sum Assured: Rs 500,000.00
    Frequency of Payment: Annual
    My age at the time of policy purchase: 23 years 3 Months (Non-smoker, non-alcoholic)

    After consulting customer care I get to know

    The Accumulated bonus till date are:
    Guaranteed Bonus: Rs.16,336.65/-
    Revisionary Bonus: Rs.11,435.65/-

    Maturity Benefit = Guaranteed Maturity Benefit (GMB) + accrued Guaranteed Additions + vested reversionary bonuses, if any + terminal bonus, if any

    I want to know if I will get adequate fund in return after the maturity or I am in loss totally?

    • Vikas January 25, 2015, 12:04 PM

      Farhan,

      This policy is a traditional plan which mainly invest in debt instruments. So you cannot expect very high returns from it. Also bonus declared every year will vary as per the performance of the investments made by the company.

  • George January 8, 2015, 11:51 AM

    Dear Sir,
    I am having an icici pru life stage pension growth option policy, which I am paying an from 2010 onwards. Recently I got a call from their representative, saying that, it is the best time to surrender this and the funds to some other funds. This fund had given its maximum growth, it is good to surrender it. Please kindly advice.

    • Vikas January 25, 2015, 12:27 PM

      George,

      You are not advised rightly. Firstly any pension product if you withdraw before vesting age the amount is fully taxable. Secondly if the objective was to withdraw in between then why choose a pension product at all. Switching from equity to debt or otherwise is good enough for managing your investments. Also it may be a fake call to lure you in something else.

  • VAKKIL SATHEESH KUMAR January 29, 2015, 4:19 AM

    DEAR SIR
    MY WIFE NOW 46 YEARS OF AGE.I LIKE TO INVEST 30000 RUPEES FOR NEXT 10 YEARS, SO BY THAT EVEN MY ABSENCE IN FUTURE ALSO SHE IS SECURED. PLEASE KINDLY ADVISE ME A GOOD INVESTMENT SOURCE WITH NO BAD RETURNS WHILE SHE ATTAINS THE AGE OF 60 YEARS.
    THANKING YOU
    BEST REGARDS
    VAKKIL SATHEESH KUMAR

    • Vikas February 15, 2015, 9:39 AM

      Vakkil,

      Its difficult to find a single investment which can produce fixed returns in a long horizon. This amount you can invest in a balanced mutual fund where you have a mix of equity and debt. It will protect your downside and will give you inflation beating returns.

  • SK February 3, 2015, 7:17 PM

    Dear Sir,
    My ULIP Policy details are stated below.
    ——————————————–
    Product Name : UNIT PLUS-II REGULAR (SBI Life)
    UNIT PLUS-II REGULAR Acc. Death & Disability Rider : 500000
    UNIT PLUS-II REGULAR Life Cover : 504000
    Premium Term : 40
    Installment Premium(P.a): Rs.6300 X 4 (25200)
    Date of Comm : 17-APR-2008

    As of today I have the below value:
    —————————————–
    Total Premium paid : 176400
    Fund value : 227ooo(approx.)
    Could you please let me know it’s good to continue with this ULIP policy ?

    Best Regards,
    SK

  • Vikas February 15, 2015, 9:44 AM

    SK,

    Any ULIP policy has to be managed well to produce the desired returns. So you will have to manage it actively. Also the fund has to perform well to earn you reasonable returns. So check the performance and see if it is doing reasonably well. You will then be able to make a wise decision.

  • vinay February 26, 2015, 4:38 AM

    Dear sir..i have policy in jeevan anand…my quest is if am pay the amount after 3 months instead of on date..what will happen

    • Vikas March 1, 2015, 7:50 PM

      Vinay,

      In a life insurance policy you get a 30 days grace period to pay your premium. If you are not able to pay within this time your policy get lapse. You can then revive it with penal interest.

  • Karuppiah March 28, 2015, 4:28 PM

    Dear Sir,
    I have policy in Maha Anand on 2009 Nov for the period of 10 years but in my critical financial position 3 month only pay the premium amount. How to claim that 3 month policy amount if it is possible or not.

    • Vikas April 5, 2015, 9:53 PM

      Karupppiah,

      You can claim the surrender value from your insurance company. The quote for the amount you will received you can get it from the company.

  • DR SYAMAL MODI April 7, 2015, 9:45 AM

    Dear Sir
    I have a New India Assurance family floater medi claim policy of 5 lakhs covering me and my spouse. I get the 80 D benefit of it as well. Can I take another medi claim of 5 lakhs from the same/another company with my wife as principal insured and me as spouse, so that she gets 80 D benefit and both of us are covered by the 2nd policy as well, so we have a total health cover of 10 lakhs ? Which public/private company should I opt for as the second insurer ? Is LIC Jeevan Arogya a good alternative ?

    • Vikas April 26, 2015, 6:53 AM

      Dr Samayal Jodi,

      You can either take this insurance from same insurer or any other. LIC jeevan arogya is more of a supplement to your basic health plan and not a comprehensive health policy. You can look at Apollo, Religare for your requirement.

  • DR SYAMAL MODI April 7, 2015, 9:52 AM

    Dear Sir

    I am new to mutual funds. I plan to invest approx. Rs 50,000 in ELSS to save tax and at the
    same time, get good returns on my investments. Can you please suggest me which
    fund or funds I should opt for, invest as a lump-sum or as SIP, for what
    duration, and how to go about this investment-through an agent or directly
    online?

    Regards

    Dr.Syamal Modi

  • Navdha April 7, 2015, 4:11 PM

    Dear Hemant Ji

    I read lots of your articles and they were insightful. I am planning to buy a ULIP plan Reliance classic 2 for 10 years with 50 k premium. Do you think its goof plan to invest in or i should go with HDFC ULIP plans

  • ajay pratap singh April 21, 2015, 9:34 AM

    hi recently i take a lic policy and submit my 1 premium 20000 but i want to take jeevan anand policy but because of my agent mistake he get me money back policy now i am not interested in this policy now i want to my 1 premium money back what can i do please friends give your suggesions

    • Vikas August 23, 2015, 3:43 PM

      Ajay Pratap Singh,

      In a traditional plan if you surrender your premium before three years then you do not get your premiums back. Even after three years you get premium refund at a standard formula i..e 30% of all premiums paid.

  • Mir aisha April 22, 2015, 1:08 PM

    sir, I take a MetLife policy on 20 October 2008, and submit first instalment rs10000.but it was for 10years, so what amount I’ll get after 10years

    • Vikas August 23, 2015, 3:46 PM

      Mir Aisha,

      You need to check whether its an ULIP product or a traditional plan cause underline investments in both these are different and so the way of return generation.

  • R.Kannan July 3, 2015, 5:19 PM

    My son had taken 3 Policies viz. Jeevan Anand, Bima Gold and endowment policies in 2005 from LIC of India and he has been paying premium upto date. In 2012 I took citizenship in Australia. These policies are due for maturity in 2011. What is the procedure for getting the maturity proceds once I finish paying the premiums as I am no more a Indian citizen. Ur valuable advice in this regard is greatly appreciated. Tks.

    • Vikas August 23, 2015, 3:52 PM

      R. Kannan,

      As your status has changed you need to notify the company. As per your status the policy status will also get changed. You will then get refund as per the New citizenship.

  • Partha Goswami August 7, 2015, 3:35 PM

    As a agent of LIC in one year if I deposit 12 nos. of policy and total premium is less than 1,00,000 then am I eligible to get bonus commission

  • suresh August 15, 2015, 7:38 PM

    Hi Sir,

    I have taken a max life insurance whole life participation for my mother. I am paying 78800 per year and I need to pay this amount until whole life of insurer for 15 lakhs of insurance amount.

    We already paid premium for last 3 years and we would like to take option of paid up. Can you please provide me what are the best options that I can choose to not to continue. I see in the policy that after lapse, the optioned mentioned is reduced paid up? what does that mean? As I am discontinuing the policy after 3 years premium, what would be the benefits insurer get?

    Thanks,
    Suresh

  • jittymathew August 26, 2015, 5:02 PM

    i started a metlife jeeval sarala policy in 2010.every monthly a sum of amount have been going from my account.right now i am working in dubai and one month tis year available balance was not there in the account in june from tat month onward amount not getting deducted.i took tis policy from mumbai and agent contacts not present with me.wat needs to be done to continue the policy

  • Chandrashekhar Shinde September 1, 2015, 10:29 AM

    HI,
    I started my 4 different policies in 2012. I have been deposited 90,000 INR in 2012-2013. Now, I need this money very urgently, Can anybody tell me that if I could withdraw my money from LIC? It has completed only 3 year so how much % of amount would be deduct and how much will I get. I am waiting for your reply.

  • Rachit SHarma September 28, 2015, 12:56 PM

    Please suggest weather to take LIC plan like endowment & Money back policy.??

  • Neeraj Singh October 6, 2015, 8:05 AM

    I had purchased a ULIP plan “ICICI prudencial Super Pinacle Heighest NAB Fund B” in 2012 @ annual premium of Rs. 50000 and paid 3 EMIs and 2 are left to pay.I am new and don’t know how my amount will grow in 7 years so please confirm me how much amount I will get at maturity?
    How we calculate the fund value from NAV?
    Currently my fund value showing is 160000 in 3 years.Please help me in detail so that I must be confident.

  • Rajen Singh October 6, 2015, 5:59 PM

    I have metlife policy and I had paid the first premium of Rs.61000/- last year but I would like to discontinue this as I am in financial problem Can I get the premium amount now or will have to wait for how many years?

  • NARESH October 24, 2015, 10:35 AM

    i have a lic policy (jeevan anand) its almost taken in 2006. if i dont pay the prem even after 6 months of due date wil the policy lapse? wil i enjoy the risk benefit? do let me kno

  • leikantsemang Renewang December 9, 2015, 12:33 PM

    Calculate the value of an anticipated endowment assurance for a person aged 25 with the following benefits. (i) A sum of Rs.100 at the end of 2 nd year. (ii) A sum of Rs.200 at the end of 3 rd year (iii) A sum of Rs.300 at the end of 5 th year if the life assured is alive at the end of respective years. (iv) A sum of Rs.600 whenever the dies during the 5 years period Use the data given above with 5 percent rate of interest

  • manjunath December 10, 2015, 5:41 PM

    Hi Sir,

    I had taken SBI’s jeevan ananad policy, i have paid only one year premium of worth 1L, and later from 2nd year on wards i dint pay at all, and later i stopped completely. is there any way or option so i can withdraw or continue or what are the options do i have? I have asked this Q with many people but no answer.

  • Sumit Ghosh February 5, 2016, 9:51 AM

    I have one endowment plan from Edelweiss Tokio Life Insurance which is having guranteed surrender & maturity value. When approached to some nationalised bank for loan against this policy, they decline the request stating that it is possible only for LIC endowment policy. What is the IRDA & RBI guideline on this ? Can the bank decline the request ?

  • Atul June 8, 2016, 4:05 PM

    I have LIC Amulya Jeevan 190-25 policy and last year take SBI home loan and they insist me to buy SBI MAXGAIN SURAKSHA

    My question is shall i proceed with both policy or surrender LIC Amulya Jeevan

    Can my family members claim for both in case of any emergency happens with me.

    Atul

  • Malaya Kumar Maharana June 22, 2016, 3:17 PM

    Dear Sir,

    i have a big confusion on my mind .Supposed i have 5 nos. of LIC plicy & after my death my nominee will get how many claim one or five nos.

  • deval patel July 12, 2016, 8:34 PM

    i have opted for icici prudential pinnacle super lp .First premium Rs 100000 was paid on march 2012 and last premium was paid on march 2015 total 4 premiums are paid.Is there any option to partially or fully withdraw the paid amount Rs 400000/- by way of discontinuing,exiting,surrendering the policy Or could a loan be borrowed against this policy?
    rgds
    dev patel

  • Shishir Kumar sinha July 12, 2016, 10:16 PM

    I had purchased saving assurance plan of HDFC life in the year 2009 with first year premium of 70000 and sum assured was rs 588657 and from 2010 the premium reduced to Rs 5000 and sum assured became Rs 56032.

    The maturity calculation is sum assured + declared bonus but in my case there are two sum assured so not getting the answer by HDFC Life about this. They are telling i will get 56032 which is my existing SA and they are simply overlooking my 1st year SA whereas as per my opinion there should be any averaging or pro rata calculation in case of reduction of premium. But no one is answering in this case. If any one have idea about this then please let me know.
    Regards
    Shishir

  • Ajay kumar sriwastava July 21, 2016, 8:25 AM

    I have purchased accidental policy of 20 lacs from Bharti Axa and created ID password online.Itbis showing sum assured zero and no policy document online.I complained over customer care and they send manual policy paper in word formate with manual signature on my email.I feel it is fradulent activity of Bharti axa

  • MEGHNATH July 26, 2016, 2:52 PM

    I JUST WANT TO KNOW IS IT TRUE THAT IF YOU PURCHASE CURTAIN POLICY ONLINE LIKE FROM POLICY BAZZAR THERE WONT BE ANY AGENT COMMISION CHARGED FOR THIS

  • bhawna August 2, 2016, 2:12 PM

    hi i have started aviva insurance policy 3 yrs back nd as per policy i need to pay atleast 3 installment i.e. for 50000 per year which i have been submitted. now i want to ask if dont submit the other installment that after the plan completion i get the amount which i have submitted…

    • Sanjay Sinha December 21, 2016, 4:32 PM

      Dear Bhawna,

      If you don’t pay any further premium your policy will become paid up & you will get your all three years premium with interest at maturity.

  • Rittu Paul August 20, 2016, 7:14 AM

    I had a medical insurance from HDFC Ergo since 2 years but now I wish to discontinue it. I had no claims during this 2 years and I had paid a premium of around Rs. 10000. Can you tell me when I discontinue it now, is there any chance I get a portion reimbursed from the premium paid last 2 years.

    • Sanjay Sinha February 18, 2017, 2:21 PM

      Dear Rittu,

      You will not get anything.

  • manish kumar September 6, 2016, 11:04 AM

    Dear Sir ,
    Currently running two sbi wealth builder plans of 1 lac & 50k premium in favour of my parents which is issued by some SBI AGENT , I already paid 3 premiums & now i want to flip my agent and deposit the next coming premium through another SBI AGENT which is my relative .

    So, my question is that is this possible to flip agent and can another agent get the benefit of commission from depositing premium ?

    I hope u understand what i mean to say ………..

    • Hemant Beniwal September 13, 2016, 12:31 PM

      Hi Manish,

      That’s not possible. IRDA is talking about life insurance policy portability which I think is impossible. They should at least bring agent portability – which will put pressure on agents to give right advice & better services.

  • Akshay Saxena September 10, 2016, 6:28 PM

    Sir
    I am a bank employee age 29 and have one Jeevan Anand policy of 20k premium. I invest in equities directly and in past one year got 23 % return. As a bank employee my family medical expenses are borne by bank itself and I am a contributor to NPS.
    Can you please suggest which policy should I opt for If I have to buy second home after 15 years.

    • Hemant Beniwal September 13, 2016, 12:22 PM

      Hi Akshay,
      Be very frank, you need to learn a lot before taking such decisions. I will suggest you to consult certified financial planner in your area.

  • Muthu September 19, 2016, 10:48 AM

    Is it possible to withdraw a LIC policy within a month after taking it? Guidance in this regard will be highly appreciated

    • Sanjay Sinha February 18, 2017, 2:16 PM

      Dear Muthu,

      A policy can be cancelled within 15 days of getting policy.In your case its already been a month so you can not withdraw the policy.

  • Ajay October 5, 2016, 9:38 PM

    Dear Sir
    Can U Plz Suggest me i paid Reliance life insurance money back plan one year premium ( 60000/-) and after that i m not able to paid , is there any option to collect first paid amount any charge or this is laps/loss

  • lakshmi October 20, 2016, 10:22 PM

    i took a policy with bajaj allianz on 30 Dec 2011. I paid a premium of 30000 rs. Agent told me that it is new year offer if you take the policy you will get a gold coin. it was Bajaj Allianz Super cash gain. I took policy by paying 30000. After a week i got a policy copy and that agent went missing. and even i was not able to pay other premium so it almost 5 years can i get my money back.

    • Sanjay Sinha December 21, 2016, 4:19 PM

      Dear Lakshmi,

      You should contact bajaj allianz office to know the status of your policy.

  • sourav banik December 10, 2016, 5:03 PM

    sir i didnt work as a lic agent right now. but within 3 years shall i joined lic agent again? because the licese validity is 3years. plz reply me

  • S K SRIVASTAVA December 13, 2016, 3:27 PM

    Hello,
    I have LIC Policy which was purchased through an agent. I pay premium annually but agent does not respond. Neither he intimate on the time of premium payment nor gives any update of policy status but ge gets his commission on the premium which I Pay. Is there any option or procedure to remove his name or stop the commission from my policy? Please help.

    • Sanjay Sinha December 29, 2016, 3:40 PM

      Dear S K Srivastava,

      Contact your nearest LIC branch to remove his name from your policy.

  • rajesh panda December 19, 2016, 7:19 PM

    Sir i want to buy a policy for my 02 year son
    please gave me advice for which plan i got a good maturity amount.
    1000/-PM

    • Sanjay Sinha December 21, 2016, 4:15 PM

      Dear Rajesh,

      You should never mix your insurance & investment.I believe you are the bread winner of the family so you should buy a term plan with your name. For a long term investment you can start SIP of Rs 1000/- PM in equity mutual fund for your son.

  • manjula December 29, 2016, 8:50 AM

    Can i get my husband’s Lic Policy amount with my account if he agree. because now he is not with us he is staying separate but he agree to take many of his lic policy which i was paying every month .please clarify me about this.

    thank you.

    • Sanjay Sinha February 18, 2017, 2:05 PM

      Dear Manjula,

      You can not get policy amount in your account.

  • Kishore Kumar Chatterjee January 5, 2017, 9:09 AM

    Sir , All formalities including Discharge declaration against Policy No . 452044158 DOC : 27.12.1999 Date of Maturity : 27.12.2016 in favor of Mrs. Manjula Chatterjee ( my wife) has been completed and submitted to LIC ,CoochBehar Branch Office but amount has not been received to her SBI a/c till today . Plz . see into the matter.

    • Sanjay Sinha February 18, 2017, 1:58 PM

      Dear Kishore,

      Visit the LIC branch or contact your agent (if any) for this issue.

  • Pratibha Ravindranath Suvarna January 16, 2017, 12:09 AM

    I just want to know my policy maturity date was in March 2016 but i was out of India for 01 year Please let me know can I claim for the maturity amount now. I have all the original documents of the policy. Please let me know can i send the policy documents for the maturity of the amount?

    • Sanjay Sinha January 27, 2017, 4:52 PM

      Dear Pratibha

      Visit the the insurance company (Branch) along with the documents or contact your policy agent (if any).

  • Amey Mairal January 20, 2017, 2:27 PM

    Can I add my mother in mediclaim provided by my employer, when my father is recving pension

  • Suresh January 23, 2017, 7:40 AM

    Sir my father as a policy on his name but recently he was found missing, nearly 14 years as completed from the commence of the policy, still two years are there for maturity of the policy but all of a sudden he found missing, now how to claim the policy. Sir kindly suggest me.

    • Sanjay Sinha February 18, 2017, 2:33 PM

      Dear Suresh,

      Contact insurance company for your issue.

  • ahana January 24, 2017, 7:24 PM

    my dad choosing a fixed deposit plan for 15 years then how much amount he got after 15 years (he pay 6 month plan 4,276rs,)

    • Sanjay Sinha February 18, 2017, 1:52 PM

      Dear Ahana,

      Maturity amount depends on interest rate. Kindly check interest rate with bank.

  • Abhijit Chetia January 27, 2017, 11:33 AM

    My father paid quartely 3yrs full premium in LIC. And he died by accident without paying 3 premium in last what amount should i get.

    • Sanjay Sinha January 27, 2017, 4:44 PM

      Dear Abhijit,

      Sorry to hear about your father. You will get sum assured of the policy.

  • venu February 8, 2017, 7:09 PM

    I had taken taken Jeevan Anand Policy in 2008 for 500000 Sum assured with 21 years term.Now I would like to reduce my policy term to 16 years by paying additional premium.Can you please suggest if that works and will I lose any benefits.

    • Sanjay Sinha February 18, 2017, 1:49 PM

      Dear Venu

      There is no option to reduce the term as such.

  • sankaranarayanan.p February 15, 2017, 5:49 PM

    Dear sir

    Customer wanted to surrender his policy. Explained about the surrender value. i.e. 30 % of the Total premium paid – 1st year premium, which is mentioned in the policy document.

    But customer is not satisfied about the surrender value and also he wants to know the complete break up of 70% of the rest amount which is not mentioned in the cash value calculation.

  • Mahesh March 4, 2017, 5:34 PM

    Sir,
    I am planning of Bajaj Allianz insurance policy of Rs.3000/- per month for 15 years.
    My aim is for tax benefit under 80/c. Pls suggest, the plan is good or not
    and sir please also suggest any good plan for investment

  • Amit March 16, 2017, 11:04 AM

    Dear Sir
    I have taken Future Genrali Saral Anand Policy for 15 years period. Till to date I have paid premium of Rs.8000 /half year. for last 6 years. How much amount I shall get on maturity ? Is it is beneficially to continue the policy ? Or I shall surrender it ?
    Pl. guide .

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