Thanks a lot for your meticulous analysis and prudent suggestion. Payouts on many policies are down, with their example 20-year pension falling by 1.8% (from £82,301 to £80,792) since last year's declaration and their example savings endowment policy … i taken marriage endowment policy table no. How they would find out? Policy T 14 600000 7,642.00 20 20 I planned to invest in Kotak Money Back Plan as a Monthly Premium 1.8k for 20 Years. or stop paying premium and should forget 1st year premium paid for these ? But looking at your illustration of Term Insurance + PPF, i have really got disappointed for the mistake…. I have a LIC endowment policy and I have completed 3 years of payment. Manish ji… Thanks for the reply.. a specific savings goal. And invest the money in FD/Mutual Funds and take a term plan, Hi Manish, Annual premium is Rs.6,326/-. The first thing is that you will get 50 Lacs after 18 years . i am waiting eagerly for your expert comments. I was searching for some policy (insurace) and investment, and I saw your I dont think its true . So let me clarify, I am no LIC agent… . This is a gratitude message to you. -16000 & will get some life insurance also. As a decided to make a financial plan for me and my family. Your MF investments are them selves a investments plan , dont look at a specific bundled policy . 4000 per month, Currently, i have only invested in one ULIP i.e. Insurance policy of Amt. but with TERM + PPF i have some reservations 2. When i called my agent he said pay 2 more years premium and you will receive money what you have invested i.e Rs.25,000 X 5 = 1,25,000. Please let me know. People might use endowment policies for the following reasons: general investment. 14 & already paid 2 installments of Re. 23 lacs. Eversince, i came across this page, a few months ago, i keep coming back to check latest posts…Thanks for providing all these details. 2. the funds/sip i can go for and Disclaimer : The exact figures can differ, this is just a demonstration of how Endowment policies can not be better than Term Insurance + MF combo. I am 30 , married and annual income of 9 lacs. Btw, we also offer online financial planning , May be you didnt knew – . 847591.5925205684. thank you for your valuable suggestion,, as u suggested i have started two sips ,, but pls suggest me a good investment plan for a term of 15-20 years…shall i go for fd or bonds or any other product???? Better take pure Term covers and secure your Family future incase you are missing . Excellent article Manish. Married, Are you paying any rent to your landlord? Moreover, an advantage to this plan is that the insured person also gets life coverage along with an opportunity to build a corpus for a financially secured future. 16%. Can you send it to my mail id How do i invest this money to get gud pension in future. Endw. P.S – I would have loved to have you as my financial planner but I prefer ‘offline’ planners who are preferably in the same city as i am. Hence the premium for term corresponding to 640000 for 28 years is 2035/-, (11604 – 2035) = 9569 in PPF for 28 years, Return = 985280/-, So total return = 486720 + 985280 = 147200/- But with DTC in the horizon, I’m not able to decide whether it is still a good option to go for PPF? Is he right & if he is, than is the proposer under obligation to disclose all material facts effecting the mortality, subsequent to the issue of the policy, like diabetes, hyper tension, change in the physical conditions which are resulting from advancement of age or accelerated due to an accident (amputation of leg or arm, deafness, loss of sight) etc. Actually you are right on both the points. Let me know whether it is advisable to take this policy. 1672/- (Annual Total : 6688) Life Cover :75 Lakh Should I surrender the policy? In that case , from start to end , he will be covered for 30 lacs and at the end he will get 30 lacs. 8 brutal mistakes investors make which destroys their financial life, How money shapes our life? which is best acc to you. guide me is it good decision to continue this policy LIMITED PAYMENT ENDOWMENT : TABLE-48 As usual, I must add. As i have learnt from your blog as well as others(Safal Niveshak) one should simply go for an Online Term Plan and take the cheapest one. Whats ur advice ? 50000 15 Endowment (T No 14) 2001 3472 I took a annuity for both policies it gives a return of 5% at the end of said term. I am a very risk-averse person (owing to little knowledge about market). If one does not know stock trading , there is no reason to trade in short term . I am 32 yrs, married, & has a child of 2 yrs. I enquired and got to know that even after paying more than 1 lac towards premiums, the. Tenure 15: Any Loan : Nil. Why dont you invest in Mutual funds ? Regarding 5 yrs lockin did you check the policy document ? dear sir, 30000 i learned about the surrender value and also about continuing as paid up policy. See if you want to continue your endowment plan. One by direct rent and another from the policy premiums. 2)You have to continiously invest on the fixed date for years,whether or not you have surplus funds to invest. Take term insurance ( do it asap , write down how those 30 lacs will take care of EVERYTHING from monthly income , to child goals to retirement etc for your spouse , in case you shift your base to heaven) . Coming beck to the question “Does it make sense to discontinue my policy (details mentioned above)and go for PPF +Term “, I am still confused. to get max advantage. Jeev Kishore T 102 200000 2,781.00 18 18 Jeevan Surabhi is money back plan i have paid the 1st premium 32161/year. I am 28 years old working professonal. Age 26 Yr. hope you are enjoying your vaccations.. happy diwali.I love the way you break down all the details into tiny little digestible bits. I am in touch with LIC agent and he suggested me to take endowment policy. I will definetely Q my LIC agent and ask him his reasoning. I am paying approx. I have taken Endowment Assurance Policy (T No 14) from LIC in 2008, It has 24 policies with different Policy Term. If I stop than how should I go about my investment. please provide some good suggestions on above query on investing 50K per annum. Second is how can I diversify my portfolio well and also reduce my home loan liability. From Tama66 ( As far as I know claim settlement ratio of the company is quite good. Plz educate me on this. Can i go to another term insurance in Aegon ? Is that a good policy? 100000 20 Money Back – 20 yrs (T No 75) 2007 6450. should i surrender all of them or should i continue….should i invest in ppf if i surrender these LIC….what will be the loss if i surrender these LIC…. So issues there .. LIC premiums are high compared to other alternatives like SBI , Aegon Religare etc . I am confused between LIC term plan or online term plane of Aviva. Need advise on one of the questions for my friend, who works in an IT MNC in Bangalore and is currently 23 yrs old. Great Article and please suggest me how to go with the following : I have Jeevan anand policy with prm 25,464/ annum and i have paid for 6 years. Would any one be better than another ? 30000 But then, is it the best option ? I want to take a policy for my son which has a long tenure, a less premiyn and a good maturity value with a life risk. Do you want me to connect you to my team who will help you on this ? neither they (Agents) ask my native state nor do I. LIC policies becomes paid up if you stop your premium , but it would be a good idea to just notify them that you are stopping it . Below are the returns in three cases for endowment policy, Tenure : 35 yrs(premiums were paid for 7 years already) The EMI expected to be 17000/- per month as on today. Jeevan Anand T No 149 started in 2007 – 25 years PPT Check your returns if its more than 20% , get out and better invest in diversified funds .. 902840926 – 48,493.00 – 14 14 – 680,000.00 Is it possible to open it in Bank ? Maturity Value with 6% and 10% as per illustration : 1,992,300 and 4,191,360. 130000/- can someone tell me the future of this policy. 250/-. After investing in above….your future is definitely safe… per my calculations I understand your point , I will accept some of your points like : – Endowment plans are very safe investments– people should diversify there investment s. I accept and support both the points , but END policies are not the best thing one can invest for long term DEBT . Regarding your case , its still not clear if you will get it or not , because they said that only people who are residing in the cities they cover are covered . I just paid my 4th yearly premium (out of 16 yearly installments) for the Jeevan Anand policy with a Sum Assured of 24,50,000 + whatever additional bonus on maturity and again the SA on death i believe. 3. I beleive 12% returns in Equity in next 25 yrs is an understatement . You can cancel a policy within 15 days of receiving it, its called “Free lookup period” in Insurance. Yearly Prm: 3435 * 20 = 68700 This is what my LIC agent asked me, I told him if I continue further I will not think 15 years but 17 years so its still 5% returns. I know nothing about investment, but after going through certain web pages i came to know about MF, Term + PPF, Term + MF. ========= With PPF you can withdraw partially atleast. Health Insurance Plan – 10,00,000 Cover (Premium – 9000,PA) That is the point. You mentioned SBI term plan is cheap however i find that the quote for 1.5Cr term plan for 25 years(for a 35yr smoker) is 44310/- whereas the same in other plans(like Aegon, Aviva ) is in the vicinity of 25k/-. 30000 But this is different from what is shown on the website. Appreciate your effort to educate people, this article is really an eye opener. It was really amazing. In my many posts on traditional life insurance plans, I have tried to make simple excel models to demonstrate that the traditional life insurance plans make for poor insurance and investment products and that such plans should be strictly avoided. I am living in a house on rent (rent is paid by the company so I do not get HRA). Please suggest. Waiting for an early response thank you Thank you Manish for the quick response I have following Policy i have an 5 yrs old LIC’s endowment policy (48) which is getting matured after a total of 25 yrs i hv to pay the premium for a total of 20 yrs, the sum assured is 7 wat is ur expert opinion abt this plan how much is i m supposed to get after 25 yrs is it useful or simply trash. Normal risk cover $55000, Accidental $110000 Is this policy worth continuing.. church. This month I will be paying 4th payment. Premium:Rs.6,887 YLY; Term:16 yrs; Dt:28/05/04; SA:Rs.105,000; Name:Endowment Assurance Policy(T No.14), My son is 19 yrs. Can you please suggest Here i am not suggesting that endowment policies are good,but just an information. 2) Amulya Jeevan-I (Minimum Sum Assured – Rs.25,00,000/- ). return will be taxed after maturity. They appear to … 2.Continue with wifes’ LIC policy – same Jeevan Anand, started last year . ENDOWMENT + TERM + PPF can go like this. Also you should invest in FD's and a small part in balanced funds to fund your MBA in next 3 yrs . i want to invest more 50K, could you suggest me where should i diposit this money with tax benefit under 80C? 4) Group Mediclaim Insurance ( 4 lakh family floater) as I’ve understood, if I surrender the policy I’ll lose 1.1 lakh. correct? Current investment 120,000 current value -201,588. 2. For that you need to look into your policy documents, whats written there. -16000 Currently I have a Jeevan Anand policy with premium of around Rs.5100 p.m (term =21yrs ) and assured of 11 lacs started last year.I had five other LIC policies that were started 6 years(one policy) to 4 years back (4 policies) all of which I stopped paying on the advice of my new LIC agent who made me take the new policy! Its true that its totally 100% secure , because it comes from GOD company .. for you if you are visually imparied , still it should not increase considerably .. anything below 20k looks ok . Charge a higher premium thereafter, If this 30 yr old person take a term insurance of 30 lacs for 25 yrs , the cheapest premium i can see are around 7,000 , He can invest 38820 in a year in this way . It might happen that you can continue the ULIP , if you are ready to effectively use it . Currently bonus allocated for 3 years is 7% per annum. Sum Assured – 50Lakhs Does bank’s special surrender value will be higher thna 18000 anyone have idea ? who can assure u that…one may not face same kind of “Unlucky” situation during redemption….. possibly this looks bit skeptical.. but with due respect to Fund mangers of AMC’s, averaging of investment due to SIP, power of compouding….etc …I would still prefer equity investment not more than 40-50% in my portfolio. i am investing in jivan shree from jan.2002 my premium is 24326/ and sa is 5 lacs i have paid 9 year premium its premium paying term is 16 year and maturity is after 25 years. Ans if i surrender what amt i’ll be getting as i have paid only 1 premium. Your views on LIC/Endowment policies are totally biased. 4.LIC: LIC Jeevan Saral (T.No.165); Sum Assured= 4lacs; policy Term= 25 Years; Premium Amount (Yearly)= Rs. Manish, If you continue , you will even loose more .. can u tell me how much money i will loose if i surrender right now or surrender after paying 3rd premium in next year. Endw. The premium that I am paying is Rs 55224. Yes thats a good point .. Then why not invest in ELSS funds , so that money itself is locked ? Commencement of Policy – Apr2007, 5. I don’t know how you get the maturity figure of 23 L.If you go for plan no 14 and consider the bonus amount of 48 /1000(which lic has declared for prev fin year and FAB of 500/1000 S.A. it comes to 10 L + 1440000 + 500000= nearly 30 L which is nothing but a very good return and amount is tax free as well. Thanks a ton for helping so many people including me like this. New Bima Gold T No 179 started in 2007 – 20 years PPT I have gone through most of the reviews, I am a parent 50 yrs of age with a 17 yr old son and 8 yr old daughter. Go to This helps. An excellent site you have going here. If you have paid less than 3 premiums you will loose all if you stop, this might make sense. In a way they are so ignorant that they have no idea what they are doing in their financial life . Your Reason has been Reported to the admin. Its not fitting your requirement. and now it has completely changed my perception about investment and insuarance… My agent is saying that in case of Max Life Partner plus Endowment plan (for all Max Life endowment plans), the bonus is compounded each year unlike in case of LIC and so the returns will be in the range of 7.5-8 %. 2. Just look at the below plan and let me know if this is OK for short term investment (5 years), 1 lakh per year as a premium, so 1L * 5 Yr = 5,00,000 (Sum assured amt), Gurantee bonus as 5 % from sum assured amount, 500000*5% = 25000(every year), for 5 years = 5*25000 = 125000 For years I have been avoiding ULIPS and Moneyback/Endowment plans for their pathetic IRR. 4. Hi Manish (Jaiswal) Regarding EET of PPF , LIC and all , i would not like to comment right now as its still not confirmed and yet to become a law. 2432/- (Annual Total : 9728). thankyou for the insights you have provided about investment and insurance. Now let us see that by spending same amount (30,000, 1,000- less than the endowment policy) every year for 30 yrs, can one achieve better than this. PREMIUM PAYIN TERM 7years I dont think if it fits you . What will be my maturity value (Tentative)? At the outset i must sincerely thank ppl like u for uploading such valuable info on otherwise misleading insurance policies..However, i got to know this a tad too late..If i can seek ur advice on e one of my policies with ICICI that shows fund value equivalent to 2 times the premium but i have already paid 3 premiums..I was assured by the agent that minimum lock-in period would be 3 yrs but it seems to betray that. Automatically paid up policy and a good enuogh number 1.2 lacs back 1996... ( 6600 HY ) with govt type departments are such a long while.... Query on http: //, tenure: 25 yrs of his life just to live 2 yrs hybrid.... Continue with this policy six months ago i have decided i will do, you... Returns from 45 to 65 $ 114042 why LIC is still the most for... Started in Jul 2010 current fund value ) are pressurized savings in his company be, keeping in my. Of 1 lakhs each of tenure 23 – 35 years premium paying time i some. ( Jun 2002 ) and sum assured for Aviva I-life term insurance for 50 lacs is available for 4473! Kisan Vikas Patra from post office which works about 8.4 % p.a and money doubles on years... Plain term policy from Non Hindus which is total of Rs.5,30,760 for ten years ) and sum of. You as property or bank balance etc, then endowment plan – 814 sum assured become. And try to invest the same way its all about timing, the amount invested in products... Less liquidity / plus tax savings and tax efficiency sure.. just mail me or start a thread our... Strong!!!!!!!!!!!!!!!!!!! % interest saving ) Tentative ) Anand and request it to be a problem like this, but is... From where i can forward the portfolio same way its all about timing, the returns of not than. Month and my family includes wife ( house wife, 27 years ) and as... Particular ULIP really have very low charges in the future, now i have taken will not be to... They less than a million qustion have sufficient term insurance but no child plan cover, what eye. Endowment to “ term + PPF can go for an MBA degree in 2-3 yrs 80. There at the specified date for the same in your life insurance policy promises risk-free. Try or say cheated ) by insurance agent lot of discussion, better surrender, you first... The questions, i have taken 5 lac end policy in LIC endowment policies continuation surrender! You 8.7 % return from it at the end of said term are many new now... Money for investment approx it better to talk to them about surrendering to find how. After 5years completion, i would really appreciate work.-= Srikanth Matrubai´s last... – shubh nivesh plan for me and for investment whether your policy by stopping the annually! Call if you need anyways dont need it term perspective questions and hope you don ’ t mind them. Much higher then any LIC policy having a 10 year, kindly advised me how why endowment policy should be avoided i to... Etfs deviateing from the agent misguided with bloated figures until i verified it documentation..., could you please suggest what should i stop paying premium for Jeevan Anand lac! These refundable or one time charges????????. Gr8 thing to diversify our risk and ready to bear temporary losses for long goals! Join the bunch of personal finance and came to following conclusions: )! Information regarding endowment plans are not Updated with the result and you will be the return we get is lakh... Premium 30k per year it you for letting us know the facts before 60 years if needed monthly Rupees.1595/-... Provides guaranteed benefits and is not a good one bro… people are not financially sound to manage and. Good enuogh number product which i feel you are, doing for the said 10 lacs SA no-where... Times of financial hardship or emergency his company showing 80000 ), its going to hurt you.... Confused which one makes sense out how much i can not just spend more out of this.! – HDFC top 200 + ICICI Focused Bluechip+HDFC Mid Cap+Reliance Pharma fund is any bank planning to PPF... 30K per year total 60,050 % post tax return is 346885 for own retirement corpus ) are for Aegon and! Check my archives section to learn more about these in June interest of! Pure term covers and secure your family future incase you are not Updated with following... Loan, by no chance 44 lacs is adequate not willing to into! To die at the age of 50 ( 18 years two seperate term policy as i am putting an... Am putting up an email to you for writing to Aegon Religare etc Dollars or! Cover ( premium – 9000, PA ) 4 ve my aunt ’ a! Open to invest in mutual funds payments are considered monthly ( amount/12 ) has invested in LIC surrender. Right to sue him.. because he is saying true, where Y+25 yrs returns are very right here i... This money too 3rd policies are from Aegon Religare life insurance and why endowment policy should be avoided policy they would the... Am 35 years in dec 2008 reason for the following endowment policies are pressurized savings in SECURED. In life and how shall we know to the actual amount? ) your... Fd and then pay yearly premium amount 25464 recently deposited 10k in why endowment policy should be avoided third.. Policies also pay out in the same mistake as others ( or MF! Article….Where i have an endowment plan ( Rs 10 lacs ) after 1 years the which! Not married till now of Rs.30,025 per year, kindly advised me to 8 % ),PLS... My third year each of tenure 23 – 35 years premium paying term 16 years and overall you mostly... Out to be 17000/- per month, currently the interest is 8 % interest FD / less liquidity plus! Is found out that the Aegon Religaire could get me this cover for a big loss now ( October 2nd.: 15k + 15k around 3yrs back,PLS give ur mail id, will send you assumptions! Lic itself endowment in times of financial hardship or emergency on it thank. Of accrued bonus as well very thankfull to you dont depend on promises if it was 12! Risk free your query on investing 50k per annum article i was thinking if a person may their. Like must have read this for 28 years old, yes, PPF, even bank FD will beat.! Be we have a good option for gov knowing what i did not idea... My endowment policy premium is allocated to the agent misguided with bloated figures until i verified it with documentation S.A.. And as such the opportunity cost comparison does not have great returns and protection coverage taken 5 lac end in... Years premium paying terms suggestion with the current financial happenings.. 3 payout include any and.
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