LIC Jeevan Shagun – Should you buy this new plan?
Jeevan Shagun refers to Life’s good and auspicious day. On 58th anniversary, LIC has launched new plan, LIC Jeevan Shagun Table no. 826. LIC Jeevan Shagun is non linked, single premium, money back insurance plan with profits. This single premium insurance plan is available only for a 90 day period starting from 1st September, 2014. This new plan is making buzz in the market now and I thought I should write LIC Jeevan Shagun review about it. What are the features of LIC Jeevan Shagun insurance plan? Should you consider this LIC Jeevan Shagun money back plan?
Features of LIC Jeevan Shagun Money back plan
This week, LIC has launched its new plan Jeevan Shagun which is basically to attract individuals who want to consider savings cum insurance protection. Below are its features
- Minimum age of entry: 8 years
- Maximum age of entry: 45 years
- Tenure of policy: 12 years
- Single premium policy
- Flexible policy offering multiple benefits
- Sum Assured: 10 times of tabular single premium
- Minimum Sum Assured: Rs 60,000
- Maximum sum assured: No limit
- Insurance plan available between 1st September, 2014 to 30th November, 2014 (90 days) only. Short period product, but is more attractive
- Percentage of sum assured is paid at the end of the duration at maturity.
- Liquidity through loan facility
Also Read: Should you buy SBI Smart Shield Term insurance plan?
What are the benefits available in LIC Jeevan Shagun money back plan?
a) Death Benefit
- Within 5 years from the date of policy: Basic sum assured i.e. 10 times the tabular single premiums shall be payable
- Beyond 5 years from the date of policy: Basic sum assured i.e. 10 times of tabular single premium along with loyalty additions (if any) would be payable.
b) Survival Benefit:
On survival of life insured, the following benefits would be paid:
- At the end of the 10th policy year, 15% of maturity sum assured.
- At the end of the 11th policy year, 20% of maturity sum assured.
- At the time of maturity / end of the 12th policy year, 65% of maturity sum assured.
What is the surrender value of this Jeevan Shagun Policy?
If you are not happy with the policy during the tenure of the plan, you can surrender this insurance plan and below would be paid:
- Less than 1 year from the date of policy, 75% of single insurance premium paid.
- More than 1 year from the date of policy, 90% of single insurance premium paid excluding survival benefits and taxes (if any).
Can we get loan on this LIC Jeevan Shagun insurance plan?
Yes, you can get loan on this insurance plan as follows:
- 2nd to 3rd year of policy – 50% of surrender value
- 4th to 6th year of policy – 60% of surrender value
- 7th to 9th year of policy – 70% of surrender value
- 10th to 12th year of policy – 90% of surrender value
How the premiums are calculated?
Premium for every Rs 1,000 sum assured would be Rs 508 for 20 years age individual, Rs 521 for 30 years individual and Rs 595 for 40 years individual.
Also Read: Why should you consider settlement ratios before you buy insurance policies?
Jeevan Shagun explained with sample example
If a 30 years age individual would take Rs 60,000 maturity sum assured, he need to pay Rs 31,275 (60,000 / 1,000 x 521) single premium for this 12 year policy. He would get following amounts on death and on maturity.
Download complete details from LIC website here
Should you opt for LIC Jeevan Shagun single premium policy?
This is a single premium policy which can be used for savings cum protection purpose. However, one has to compromise on the returns. Generally LIC policies would provide returns between 5% to 7%, depending on the schemes and loyalty additions etc. apart from risk coverage. Low risk appetite investors who want to stay away from financial markets (stocks, mutual funds, etc.) can opt for such policies. Alternatively like I always say, one can consider term insurance plans for risk coverage purpose and balance, invest in bank FD schemes which can provide better returns.
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Suresh
LIC Jeevan Shagun Money back plan
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Hello friends, You’hv worked very hard to earn money.why to invest it in schemes, where you not only lose your earnings but also peace of your mind ? Invest your earnings with LIC, secure your family financially and get good returns as well as peace of mind.
To have a proper guidance about investment in LIC, kindly give me a call on my number.
Riddhi Shah
07666674508
Hi anyone interested to buy Lic policy and mutual fund in fridabad region. Contact me at 9810402310.
Hi
This financial year end is nearing..
Any one looking for tax saving plan kindly contact 8553916937 for detailed quotation.
JIVAN SHAGUN PLAN DETAILS
If you are looking for any kind of LIC policy in Delhi -NCR kindly contact me at 9810270889. I am an authorized policy adviser from LIC of india
IF U WANT TO BUY LIC POLICY CONT ME AT 9871461397
i cant undertood this lic jeevan shagun plan but i m interested to any savings plan in this lic jeevan shagun plan we have to submit our all policy amout in one time at a start time or we can save in installment monthly actually at a time submit all plan amout i cant bt in monthly saving installment i m interested
i have 100% guaranteed monthly income plan for u….r u interested. then leave msg on my mail id
Earn upto 48% by investing in LIC, save Income Tax on Salary, save TDS on Bank FD/MOD Bal/Auto Swipe. also save Income Tax/TDS on money back/maturity. Call/mail for details/special cashback offers, if interested. Mob 8102810104 licrashmikumari1405@gmail.com
Hi Suresh,
I’m 29 year old. I’m planning to take Aegon Religare for Term Insurance. So is this a good move?
Also, would like to know your thought as planning to invest next 5 year with 50k/Yearly in ICICI PRU Maximiser V.
Thanks,
Sanjeev
I need enquary about the policy
If any one looking for LIC Jeevan shgun policy in Bangalore concat 8553916937.
This plan is going to close on 29th november 2014.
hello sir i want invest 2lacks in l.i.c jeevan shagun. I want to know how many rupees i will get after 12years.my age is 12year.please suggested me sir.my number is 9931433421 please call or massege me.i don’t believe at agent.
HI FRIENDS FOR CLEAR VISION AND NO RISK CONTACT 9501257744 FOR JEEVAN SHAGUN POLICY CLOSING 29TH NOV WE WL HELP U ANY TIME CHANDIGARH DIVISION NO. I IN SHAGUN SALE
Hi Suresh,
I am an NRI of age 56 and my wife at 50. We will be coming back to India. Please suggest me a life insurance plan which will cover me and my spouse and will have accidental and critical illness cover in India.
we have max bhupa gold medical plan.
Best
FRIENDS DON’T TAKE TENSION JUST GO FOR JEEVAN SHAGUN ITS SIMPLY GD INVESTMENT + RISK WTH TAX REBATE & NO TDS INVEST MAXIMUM
IF you want invest in LIC Jeevan Shagun in chennai please contact me 9444824544
Dear Plz call me give me details of this policy
shagun policy
Plz call me on dis.r mail me.m intrstd
Hi Suresh,
Currently im 33 yr old ,having 2 yr old kid please suggest me good investement option for
1. child future /education also to make mother(as of now my wife dosent have good coverage) get insured for the same.
Regards
Diwakar R
please call me,as i want to know more about jivan shagun policy
Plz call me & give me detail jevan sagun plan
Dear Suresh,
in your example chart you have mentioned maturity amount as Rs.9000+Rs.12000+Rs.39000 = Rs.60000.
pls clarify
pls note that Minimum Maturity Sum Assured : Rs. 60,000/-
Also above Rs.150,000 to Rs. 395,000 lakh you can get a rebate of Rs. 15 per thousand
AboveRs.4,00,000 and above you can get rebate of Rs. 20 per thousand.
I dont know whether i can share my details, if any doubts i can clarify upto the best of my knowledge.
Thanks for an opportunity to discuss this on your forum.
Sorko, These are cumulativie amounts at the end of the 10, 11 and 12 years.
Dear Friends Please suggested me for LIC New Plans
I have a daughter her age one year , I have one 55000/- endowment plan in 2005 , and i have P.P.F. account open in 2013. i invest per year Rs. 1000.
Please suggest any policy for my daughter Education/ Marriage/Pension plan
Regards
Is the maturity benifit taxable?
Insurance maturity amount is tax free.
I am a retired person ,aged 70 years old. Iwant to invest my retirement benefits in some safe plan.pl advise.
SIR INVEST IN LIC VARISHTH PENSION BIMA YOGANA LAUNCHED BY PM MODI ON 15TH AUG WTH 9.38% GUARANTTED PENSION TILL LIFE AND REFUND OF AMT DEPOSITED ON DEATH TO UR NOMINEE
iwant to know detials a
bout jeevan shagun directly with lic agent
Give me detail about jeevan sagun plan in hindi
people in Thrissur can contact me.
i want know about jeevan sagun
Hi suresh,
I am planning 2 invest 5 lakhs in jeevan shagun. Would like to take policy on my daughters name. (9 years old). What will be the benifits after 12 years.please advice.
Hi,
Do we need to go through medical for the premium of 1 lakh rupees?
thanks.
Hi, I want to invest 1 lakh rupees but I am confused in Lic jeevan shagun and bank fd. If u can assist me which one should I choose for atleast 10 to 12 years.
Hi Nitin, Both have different purpose. LIC gives protection and your money would grow. Returns are less. On other hand, FD just provides returns.
Hi , Suresh Ji . Appreciate your comments & analysis on different quries of Lic Policies. Can you plz suggest me , Investment point of view , higher return , Life coverage & Tax benifit , which Lic Policy would be better for me . Lic Varishtha Pension Bima Yojana for my Patrents or Jeevan Shugun . My childrens are already covered with Lic polices My parents are 77 (seventy seven) & 70 ( Seventy) years respectively. They are not present covered with any Lic Policy My age is 52 years. Your suggestiuon will be of great help.Thanks & regards..
Hi IP Gomes, Let us keep LIC schemes for protection purpose. In case you still want to invest in LIC schemes only, you can look for LIC jeevan shagun kind of policies…
Instead of putting your money in LIC policies.. just go for one term insurance and renew every year and put your money in PPF.. you will get assured good return than LIC.. these crooks were swiping our money in the name of LIFE.. its just insurance like any other..
Take term insurance for the period of 15 years do renew every year..
Put your money in PPF for 15 years…
See your money growth at 15th year..
Don’e waste your time and money for small returns like LIC.. they are the lowest return provider.
Regards
Thiru
Dear KP
One of the LIC Agents has told me that if the amount invested in Jeevan Shagun would be tripled after 12 year. eg. If I pay a premium of 1 Lakh then at maturity I would get 3 laks.
Is it possible?
Hi Anand, Your agent gave wrong info. Even you cannot triple your money in bank FD’s in 12 years. Rs 31K invested would become Rs 39K after 12 years and not 100K
Sir,
Very good article sir.
Just one clarification. Based on the above sheet. For the Initial Investment of Rs.31275 the Total return would be Rs.9000 + Rs.12000+ Rs.39000 i.e Total of Rs.60000 right? or is it just Rs.39000 a you have stated above? I was confused between your reply and what my agent mentioned hence wanted to reconfirm.
Thank you in advance.
Suraj
No Suraj. Overall maturity amount is Rs 39K which includes your initial investment of Rs 31K. If your agent is indicating this, you can mail me your contact no and time of call on Sat or Sunday, I am happy to join the call along with your agent.
I read your article with interest. The 10 times the premium as SA is definitely attractive feature of this policy.
I still feel that survival benefit of 15% and 20% at end of 10 and 11 years as per the table should be paid to the policy holder and remainig 65% on maturity at the end of 12 yrs. Otherwise what is the meaning of ‘Maturity Sum assured -Rs.60,000?’
Kindly clarify.
Also kindly intimate the premium rate ( pre Rs. 1000 and rebate) for Maturity amt Rs 4 lakhs for 42 yr old person.
Thank you.
Hi,
I think your calculation on 60k LICI Shagun is wrong.My age 30 and my one time premium/investment is Rs.31275/- My investment gives me Rs.28725/- more totaling 60K within 12 years.As simple as that.This is in reply to Suraj’s question of 28th Sept.,14.
If you are referring 60K of Rs 9K + Rs 12K + Rs 39K then you are wrong. This is cumulative amount at the end of 10, 11 and 12 years and finally the maturity is only Rs 39K
Dear Sri Suresh,
Please refer your reply dt 4oct2014 to Suraj’s query dt 28Sept and my request there dt 27Oct.Is it correct to interpert that Maturity sum is assured and on survival the total assured sum is given in three instalments?
Thankful if you clarify the point
B Gopalan
hey,,,i want to ask some thing abt jeevan shagun plan, as my lic agent told to me that in this plan on 12 year 65% of sum assures and loyality addition would be given. But when iam seeing it on internet it only shows 65% sum assured to be paid ,no loyality adfdition would be given.
and as lic agent also shows the same thing 65% s.a +l.a in there brocher.
please clear would these benefits would be there on 12 year or not…
Hi Krishna, Loyalty additions are payable only in case of death benefit or in case of surrender of policy. This is not payable at maturity at 10, 11 and 12 years. This is what is available in LIC site too. In case you are seeing anything different, scan the brochure and send it to my id suresh@myinvestmentideas.com
k,, sir i will send it by tomm. as i have the single paper pamphlet of the same plan jeevan shagun.
thanks for your corporation….
Helo sir s ds jeevan anand is better r jeevan shagun is better
Dont compare Jeevan anand & Shagun both are different plans.
Anand or Shagun dhoodna band karo buy a term plan also close the door for insurance agents.
if you are ready to higher premium tehn for for LIC & max newyork.
if you want low cost premium then for HDFC, ICICI, Kotak, SBI life
sir, pls give me advise
i hv invested through sip as below
axis equity (G)– —————- 1000/month
birla sunlife tax relief 96———- 1000/month
icici pru tax (G) ———- 1000/month
reliance vision (G) 1000/MONTH
RELIANCE DIVERSIFY POWER (G) 1000/MONTH
PLS GIVE ME ADVISE IS IT OK OR NOT???
ALSO GIVE ME NAME OF OTHER GOOD FUNDS THROUGH SIP FOR INVEST…. I M 33 YRS OLD.
Hi… Suresh sir. I have following 2 question. 1) I want to invest in diversified mf for 8 to 10year. Which is best diversified mf to invest through sip. 2) Gold prize are falling at present. Is it right time for new investor to invest in gold mf throug sip? And which is best gold mf? I want to invest for 8 to 10year. I can take medium risk.
You can invest in reliance equity opps fund, UTI MNC Fund. etc.You can invest in gold ETF’s or gold mutual funds.
Sorry for the Mistake in the returns i calculated. It is not 78000, it is approx 85000.
Hi Suresh,
Thank you for such a wonderful analysis and a clear calculation sheet. As we can see on the returns, it is no where near to the 50% of what we get on FDs. So, i hope everyone should be little more cautious in purchasing such plans. I am not sure why, the Insurance Products are having very less returns similar to it. Even a Tax Saver FD could get us more returns comparitively.
The only advantage they are showing to us is the Life Cover, which brings is taking 90% of our revenue growth to them.
With an average 8.5% returns on FDs, the money would have been grown to 78000 within 12 years.
I hope everyone should now have the tendancy of calculating the average return in FDs before investing in such Policies. I thank you personally, to bring this tendancy within me.
Regards,
Vignesh. S
I think we should always consider the tax implication while comparing the investment and returns based on your personal tax-bracket during both these instances.
If you had invested say 30000/- in this year and you we were in in 30% tax bracket, you could have effectively invested only 70% of your earnings [thats around 23000/- …if you had invested in some other non-tax deductible options you would have give 7000/- to the taxman]
Also on maturity if your FD is taxable, your earnings [78000-31000=47000] would have been taxed, with 30% bracket it could be around 14000/- diluting your earning. So effective money in your hand would have been 64000/- only.
If you consider original tax saving while investing and tax saving at the maturity investing here could give better returns as compared to regular FDs. I see effective return 9.5% in this case.
And on top of it we have added benefit of Risk-Cover of around 3 Lacs for these 12 years.
These calculations may not hold good if your tax-saving limit is already exhausted OR investment amount is much larger which can not utilize the 80cc/c limits.
So I think all computation should be based on our own financial scenario[tax-bracket, your tax-saving options, budget, risk-coverage and return goals and its weightage, risk-appetite and also your financial scenario changes year-on-year, need to be evaluated every year for whats beneficial checking different options in the market.
Hi Suresh,
Is the final return taxable ?
Insurance proceeds at maturity are always tax-free