Dec 21, 2002 05:07 PM
90783 Views
(Updated Dec 21, 2002 05:09 PM)
I was initially irritated when I was contacted by an LIC agent every otherday suggesting me to go in for Jeevan Shree policy. Slowly I yielded to him and took this particular policy. That was way back in May 1999 and today
I feel that I have to be thankful to him for irritating me so much!
Though the minimum sum assured is Rs.5lakh in the policy, the buyer has to actually pay only an 80% of the sum assured. In the sense, for a Jeevan Shree policy of Rs.5 lakh for 25 years cover, we need to pay a premium of about Rs.25000 for just 16 years which amounts to Rs.4 lakh. Until the completion of 25 years from the 16th year onwards, you are covered for free without having to pay premiums.
If you are worried that the premium is too high to pay every year in this uncertain world, it is sufficient if you can pay the premiums for the first 3 years. From the 4th year onwards, if you feel that this policy is a burden on you, take a loan from the policy and pay your premium. To put it in simple terms, it is a policy that pays its premium itself!! (barring the first 3 premiums ofcourse) and still end up getting huge amount of tax-free money at the time of maturity.
The best part ofcourse of the policy is its guaranteed additions. I am the best example - I have paid only 4 premiums till date (an amount of Rs.1 lakh, since May 1999 to May 2002) and as of date, its surrender value is Rs.2.35 lakhs. Probably the best investment option that came my way!! Apart from enjoying the insurance for 4 years now, I have got my money more than doubled in these days of lower interest rates and a bear stock market.
I do not know much about the recently launched New Jeevan Shree which comes with reduced returns but still one could easily go in for this policy.
Sometimes, insurance agents really prove God sent!!
