23/09/2015

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ComparisonbetweenLICJeevanAnandandBank'sRecurringDeposit(RD)Insurance21
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ComparisonbetweenNewJeevanAnandandBank'sRecurringDeposit
(RD)
JeevanAnandofLICismostsoldwholelifeendowmentplanwhichprovidesriskcoverandIwouldsay
good return on survival. I have been encountered various queries related return or maturity of this
planandsomequeriessimplyaskedforcomparisonbetweenJeevanAnandandpureinvestment.One
ofthequeriesisgivenbelow.
Dear Sir, I have JEEVAN ANAND (WITH PROFITS) WITH ACCIDENT BENEFITS (149) POLICY. I purchased
the same on 15 Jan 2010. Sum assured is Rs. 200000 and annual premium is 10922. I feel I should not
continue this policy and the premium amount should be invested in some other investment option for
greaterreturns.IsitokifIsurrenderthispolicy?Orstoppayingpremium.Ihavealreadyapuretermlife
planbyICICI.WouldIbeabletogetfullamountofpremiumIpaidinyears?Pleasesuggest!!

Above question is very genuine and worth a

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discussiononit.Thoughitisnotwisetocomparea
Life Insurance plan with a pure investment plans

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MoreTopics
MaturityCalculatorforJeevanLakshya
(TableNo:833)
LICsNewEndowmentPlus(PlanNo.835)
LICsJeevanAkshayVIPensionPlan
(189)
LICsJeevanAkshayPensionCalculator

likeRecurringDeposit,FixedDeposit,Mutualfunds
and other plans because objective of both are
completely different, but with reference to above

LICsJeevanTarun(TableNo:834)

query, I have tried to compare above Jeevan

Anand case with a Banks Recurring Deposit with

LICsJeevanLakshya(TableNo:833)

LICsAmulyaJeevanII(TableNo:823)

PremiumCalculatorforNewEndowment
Plan814

some assumptions. Two assumptions, tax rebate

on premium paid under 80C @10% and tax free
maturityunder10(10D)@20%havebeentaken.

PremiumCalculatorforNewJeevan
Anand(PlanNo:815)
LIC'sLimitedPremiumEndowment(Plan
No:830)

FirstletslistoutvariousdetailsincludingmaturityassociatedwithJeevanAnandasfollows.
Sumassured:2,00,000(A)
Policyterm:21years(B)
AnnualPremium:10,922(C)

LIC'sNewEndowmentPlan(814)
MaturityCalculatorforNewEndowment
(PlanNo:814)
DifferenceBetweenNewJeevanAnand
andOldJeevanAnand

TotalPremiumPaid(BxC):2,29,362(D)
Taxsavedontotalpremiumpaid(10%ofD):22,936(E)
ApproximateMaturity:4,82,000(F),ClickheretoKnowmore

LIC'sJeevanShagunvsBank'sFixed
Deposit

Now for comparison, lets assume that we are going for a Recurring Deposit (RD) for 21 years with
annualdepositequaltoyourpremiumi.e.10,922whichisyieldingataninterestrateof8.75%per
annum.CalculatingmaturityofaboveRDaccordingcompoundinterestitcomesasunder.
ThematurityamountofRD:6,65,379(G)ClickheretoKnowmore
TotalInterestearned(GD):6,65,3792,29,362=4,36,017(H)
IncomeTaxonearnedinterest(20%ofH):87,204(I)
EffectiveDifference(GFEI):6,65,3794,82,00022,93687,204=73,239
So,asperabovecomparisonwehavecometoknowthatBanksRDishavingedgeoverJeevanAnand
by73,239inourcase.ButJeevanAnandprovideslifecoverevenaftermaturityi.e.incaseofdeath
nominee will receive 2,00,000. If we surrender the policy after maturity an approximately 60,000
rupees will be available which takes down the difference to 13,239. This difference is not significant
becauseincaseofanyunfortunateeventnomineewillbecompensatedbyminimumofRs.2,00,000
even a single premium has been paid. So it may be concluded that with above assumption buying
JeevanAnandisajustifieddecision.

NewJeevanAnandPlan(815)
NewJeevanAnand(Plan815)Maturity
Calculator
JeevanAnand(Plan149)Maturity
Calculator

RelatedArticles
DifferenceBetweenNewJeevanAnand
andOldJeevanAnand
NewJeevanAnand(Plan815)Maturity
Calculator
NewJeevanAnandPlan(815)
JeevanAnand(Plan149)Maturity
Calculator

Comments
AshishKumarwrote:
0509201511:25:29

Hello Mr.Ravi, I am 23 years old and i have recently started earning. I am looking for some savings/investment
optionsapartfromPPF(Ialreadystartedthat).Iamlookingtoinvestaround50Kmoreannualy.Couldyouplease
suggestmesomeappropriateoptions.Onthebasisofwhatihavelookedsofar,JeevanAnandlooksgood.

RaviReplied:
0509201513:13:37

Yes,JeevanAnandisagoodplanofLIC.youcandivideyour50KinJeevanAnandandjeevanlakshya(833).
Reply

http://www.insurance21.in/comparisonbetweenjeevananandandbanksrd13.php

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23/09/2015

ComparisonbetweenLICJeevanAnandandBank'sRecurringDeposit(RD)Insurance21

N.VinayKumarwrote:
0209201510:29:27

Mr.Ravi,I have a kid of 7 months and i would request you to suggest me some good money back plans for my
childrenseducationandsuggestmewhichageshouldbebettertostarttheinvestmentsothatthereturnswillbeat
timeofrequirementforeducation.lookingforwardforareply.Thankyou,Vinay

RaviReplied:
0209201521:36:06

Iwouldnotsuggestmoneybackplanratheryourcanhaverecurringdepositifyourneedmoneyatcertain
timeintervals.IwouldsuggestJeevanLakshyaplanwhichwillensurefinancialneedsinyourpresenceaswell
asabsence.
Reply

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moniwrote:
2508201519:45:40

Dearsirima26yroldlady.iwanttobuyaplanforupto25yearinwhichiwantmaximumreturn.kindlysuggest
me2planwhichoneistermplanandanotherislicpolicy.icaninvestmaximum60000permnth.kindlymention
premiumforbothplan..pleaseguide.

RaviReplied:
2508201522:19:27

FortermplanyoucangoforLICsAmulyaJeevan2with1croresumassured[yearlypremium17328]and
forrestoftheamountyoucanbuyjeevanlakshyaofLIC.
Reply

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Jitendrawrote:
2407201520:06:29

Dear Ravi, Really nice comparison I have "Jeevan Anand(149)" policy for span of 20 yrs. Policy Date : July 2007
MaturityDate:July2027SumAssured:750000Requestyoutoguideme,onpostmaturityLumpsumAmount=
in2027?AlsowhenwillIbegettingsuchLumpSumamount(Ifpolicynotsurrendered)In2032In2037
Reply

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Rajawrote:
0407201516:37:55

HiRavi,Iam23yearold,Iwanttobuyaplanforupto15yearsonwhichIwantmaximumreturn.Icaninvest
maximum 40000 p.a. I have searched for PPF and many other insurance plan. But, I am very confused about
buyingaplanforupto15years.SocouldyoupleasetellmewhichplanshouldIchose?

RaviReplied:
0607201513:46:18

Iwouldsuggestyoutobuyatermplanwithatleast50LSumAssuredandrestamountinplanno814.
Reply

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Santhoshwrote:
2206201508:19:39

HiRavi,CanyoucomparewithPPFwhichalmostsimilartoLICexceptinsurancepart(Imean,wewillgettaxbenefit
andwon'tpaytaxoninterestforbothPPFandLIC),sowecanhavebettercomparison?

RaviReplied:
2206201510:53:15

YesIwillwriteanarticleonthistopicandletyouknowbyemail.

subratamondalwrote:
0309201502:53:33

YesIhavesamequary

RaviReplied:
0309201507:31:07

Pleasewriteyourquery.
Reply

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Abhishekwrote:
1906201514:31:22

Iam31YearsOld,Iwantapolicywhichcoverslifeaswellagoodreturnfor25YearsPremiumAmountmax.of25
KPlzsuggest.

RaviReplied:
1906201520:59:43

BuyJeevanAnandorNewEndowmentplan.
Reply

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hariwrote:
0906201519:06:02

Youcomparisonsimplyshowsthatforlifecoverpurpose,wecangowithtermplanandforinvestmentpurpose,we
cangowithonlyinvestmentplans.Ifwelinkboth,weareloosingourtrack.Thanksforyouranalysis.Plsguideme
inchoosingbestterminsuranceplan.myageis30andIamsalaried.plsreplyifanyotherdataisrequired

RaviReplied:
0906201519:13:22

Youcangoforlicamulyajeevan2(823).
Reply

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PradeepKumarSinghwrote:

http://www.insurance21.in/comparisonbetweenjeevananandandbanksrd13.php

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23/09/2015

ComparisonbetweenLICJeevanAnandandBank'sRecurringDeposit(RD)Insurance21

0406201506:46:29

DearsirIamsalaried(taxpayee)

RaviReplied:
0406201521:23:51

itwillbebeneficialforyou.
Reply

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sivawrote:
1205201511:19:42

DearRavi,VeryNicecomparision

Harkamalsinghwrote:
0205201511:28:15

Respectedsir,maturitysumassuredisRs.1919050,pleaseguide

kamalwrote:
1004201511:00:44

respectedsir,anotwellknownagentoflichasdonemypolicyjeevansaral(ATMPlan)ofspan27years.hesaidI
wouldgetRs.83.00Lacsapprox.after27years.isittrue.,incasetrue,wouldIbegettingRs.83.00Lacsinone
shotorinsmallinstalmentsorpensionregards,pleasehelpandguidemekamal

RaviReplied:
1004201511:56:44

WhatisyourSumassured?
Reply

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