LIC JEEVAN VRIDDHI REVIEW

Life corporation of India -LIC has launched new plan in the month of march to attract people who are in hurry to do last minute tax saving investment. The LIC plan name is Jeevan Vriddhi (UIN: 512N268V01). But let me remind the benefits with pros and cons about LIC Jeevan Vriddhi plan.

LIC Jeevan Vriddhi plan benefits:

1) Policy term is 10 years and you need to pay single premium only

2) Sum Assured will be "ONLY" 5 times of premium amount. This will be your death benefits.

3) Maturity Benefit of Jeevan Vriddhi plan  is Guaranteed Maturity Sum Assured and Loyalty Addition(Any)

4) Minimum Premium  is Rs. 30,000

5) Guaranteed Maturity Sum Assured for "each age at entry" per Rs.1000 of Single Premium as follow

            Age   Sum Assured(Rs.)

             10    1979.15

             20    1955.50 

             30    1941.60

             40    1857.10

LIC Jeevan Vriddhi plan Illustration :   A 30 year old person goes for minimum single premium Rs 30,000 then he will get life coverage(Sum Assured) of Rs 1,50,000 and As maturity benefits, he will get  Rs 58,230 as Guaranteed Maturity Sum Assured. There can be some Loyalty Addition if any

LIC Jeevan Vriddhi review:

 1) Death Benefits: Life coverage(Sum assured ) is 5 times of Single premium is very less and it does not fulfill the first and most important aspect of life insurance policy plan to protect  your dependent if something happens to you.

 2) Maturity Benefit: If you calculate 8.5% compound interest for 10 years for Rs 30,000 then it comes to Rs. 67,829.50 but You will get Rs 58,230 as Guaranteed Maturity Sum Assured which is less also.

3) As of now, Nobody knows the exact amount for loyalty additions and there will lots of LIC agent will update some random numbers to get policy from you. I suggest not to believe any agent LIC agent for loyalty addition and ask for written proof for same.

LIC had launched Jeevan varsha plan last year with similar benefits and lots of agent wrongly sold policy by showing wrong calculation. you invest Rs 25,000 then you will get 75,000 at maturity which includes 25,00 of premium, Rs 25,000 of  Guaranteed  Sum Assured and 25,00 of Loyalty additions.

Summary: If you want just want to save some income tax and you don't have any other option then you can consider LIC Jeevan Vriddhi plan.You can review Complete Tax Saving Instruments Options  But It's pure investment plan and it's not insurance plan for sure. Please read Term Insurance vs Endowment Insurance