Dear Mr. Reddy
I am planning to invest in Jeevan labh policy, my requirement is good returns on maturity. I am investing for higher education for my girl child, currently age 10 months. Initially I was planning to invest in Sukanya Yojna, but its return are decreasing every year.
Below is the calculation I have received from the LIC agent
Plan : LIC's Jeevan Labh (836)
Age :29
Term :21
P.P.T. :15
D.A.B. : 2200000
Death Sum Assured :2200000
Basic Sum Assured :2200000
1st year Premium With TAX 4.5% :
Yearly : 122429 (117157 + 5272)
Halfly : 61845 (59182 + 2663)
Quarterly : 31238 (29893 + 1345)
Monthly(ECS) : 10412 (9964 + 448)
YLY Mode Average Prem/Day : 335
After 1st year Premium With TAX 2.25% :
Yearly : 119793 (117157 + 2636)
Halfly : 60514 (59182 + 1332)
Quarterly : 30566 (29893 + 673)
Monthly(ECS) : 10188 (9964 + 224)
YLY Mode Average Prem/Day : 328
Total Approximate Paid Premium : 1799531
Approximate Return at Maturity Time :
S.A. : 2200000
Bonus : 2371400
F.A.B. : 220000
Total Approximate Return : 4791400.
Is there any other plan which will give better guaranteed returns.
3 Answers
Hi,
LIC Jeevan Labh is a traditional Endowment plan. The return on policy maturity on these kind of plans can be in the range of 5 to 7% (max).
Considering your investment time-frame (15+ years) and investment objective (good returns), suggest you to not to invest in these kind of life insurance plans. Kindly do not mix insurance and investment.
Read my review on Jeevan Labh plan:
https://www.relakhs.com/lic-jeevan-labh-plan-table-no-836-features-review-returns-calculation/
May I know if you have adequate (existing) Life insurance cover?
Kindly ask your agent to calculate the Returns on this plan instead of giving the illustration in just figures (amounts)..
Related articles :
https://www.relakhs.com/traditional-life-insurance-plan/
https://www.relakhs.com/calculate-kids-education-goal-amount/
https://www.relakhs.com/list-of-best-investment-options-schemes-in-india/
Hi Mr. Reddy,
Thanks for your reply.
Yes I have additional adequate life insurance policy.
Can you suggest a better investment options, but I am looking for guaranteed returns.
Looking forward to hear from you.
Hi,
Kindly note that returns on Traditional life insurance plans are highly dependent on bonus rates.
Do note that these rates vary from year to year. So, a fixed rate of return is not guaranteed on most of these plans.
To accumulate the required corpus for higher education, you may consider mutual funds, ULIPs (I prefer MFs to ULIPs), stocks etc to generate returns which are over and above inflation rate.
In case, you want to invest only in low risk products then your may consider PPF, Sukanya deposit scheme etc., Kindly note that you are investing in these product for 10 to 15+ years, and the interest rates will not remain the same (they move in a cycle).
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