It will give you approx 7% compound return. Review on LIC Jeevan Anand

I recently opted a Jeevan Anand Policy. I was always against of mixing investment and insurance. That's why I never took any Endowment plan. But when one agent explained me about Jeevan Anand, I did my calculation and it came to 7% quaterly compounded return if we do a term insurance and do a RD.

I took a 50Lacs policy and its details are as follows

(A) term -28

(B) premium-179537

(C) bonus per year-45

(D) Sum assured-5000000

(E) Bonus(D/1000) * C * A)-6300000

(F) FAB approx-450000

(G) maturity amount(D+ E+ F)-11750000

(H) Special Surrender Value at maturity-1868000

(I) Final Maturity-13618000(J) term insurance permium for 50 Lacs-22100

(K) Actual investment  per year-157437

(L) Actual investment  per month-13119.75

(M) RD @7% of Actual investment(L) per month-13606465

So here if you compare I and M both are almost same. So we can say that if we do a term insurance and RD @ 7% then the result will come same.

Here I have considered(H) Special Surrender Value. Most ppl dont know about it. In Jeevan Anand insurance will continue after your maturity also. But after maturity if you dont want to continue your insurance and want to enjoy money you can encash the policy. So if at the time of maturity of policy if I surrender my policy I will get 1868000 rupee more. This is a very good thing. If I dont want to encash this amount then I can keep policy with me and I can encash it any time in future and I will get more value then(H).

I have not considered the case in which death after maturity. If this happen then my family will get additional 50Lac.