I am a LIC-Jeevan Shree policy holder. Starting from year 2000 will mature in 2025 ( 25 years). Insured amt. Rs.5 lacs and premium Rs.26121.00.

What will be the proceeds to me in 2025 ? My agent not clear hence somebody shall help me?

5 lakhs

(A meagre return of 4.5 % after 25 years) and you pay premium for 16 years!

Total payment to LIC = 416000

Maturity Amount = 500000

You can calculate your return!

It is a crappy policy!

The return should be higher. You should deduct the mortality charges from the premium paid and only after that calculate your return.

There is more then that

Check http://www.licindia.com/high_worth_001_illustration.htm for more details.

Thanks for correction! I miscalculated.

You are right there is participation in business of LIC from 6 year of policy and assuming they make profit at rate of 6%, we should see better returns at end of policy totaling around Rs 8,78000!

This comes down to 4.74% return based on Compounded calculation for premium paid for 16 years of 25000/- and Guaranteed money will be paid back at 25 year!

------------------------------------------------------------------

Just to add why it is crappy

If for some good reason , buyer chooses to go for term Insurance instead of LIC jeevan shree policy

total amount in hand = 25000

If you take Term insurance
Cover = 50 lakhs
Premium = 12500/- per year or 1000 per month

You can invest rest 12500 in safest PPF and have 8.5 % return for 25 years!

Total amount in hand after 25 years from PPF = 983347 GUARANTEED Money

Now you see we have better insurance cover + returns!

P.S: in spite all this knowledge I have Jeevan Shree from Year 2002!. At that point of time I knew nothing about all this!...What a blunder! My agent made a kill on my expense!

We should have all types of taste so that we can judge which is better/bitter. .

Aforesaid details given about maturity proceeds are not correct.
The actual position is as follows:-

INVESTMENT IN 16 YEARS(Jeevan shree -old)
-------------------------

Gross investment (premium 26121 x 16 yrs.) - Rs. 4,17,936

Less I.T. saving 20% of premium
per year Rs.5224. so for 16 yrs x 5224 - Rs. 83,584

-------------------
NET INVESTMENT Rs. 3,34,352
==============



BENEFITS ON MATURITY
------------------------

Sum assured as per policy Rs. 5,00,000

+ Guaranteed addition
(@Rs.75/- per 1000 per year
Rs.37500 x 25 yrs.) Rs. 9,37,500


+ Loyalty addition
( 75% Of sum assured after
25 years) Rs.3,75,000
-------------
Total proceeds Rs.18,12,500
=============


arunam

Guaranted addition(are for first 5 years only)
http://www.licindia.com/high_worth_001_features.htm
AND
From where Loyalty addition came from?

They have illustrated the Final payment after 25 Years
http://www.licindia.com/high_worth_001_illustration.htm

I don't think LIC can give me 6% return from there historic performance record! so I am aiming only for Assured SUM! which is plainly 625000 nd if I have my bout of good luck! maybe 800000 in total!

Finally income tax saving benefit you are counting in Final return, which I will get from any instrument in market!

So lets not fool our selves!

the calculation given above is for JEEVAN SHREE-I ( new plan) But the calculation given by me is for JEEVAN SHREE (old plan) as the policy started in year 2000.

I strongly doubt that Policy in 2000 had some loyalty addition in 2000! Can you point me to link of that page where you claim that?

Regarding rest calculation for policy whether from year 2000 or 1995 it remians same!

The final payment illustration of 6% and 10% return on policy is standard procedure by IRDA for all insurance company with a disclaimer that Final returns may differ as per performance of Company.

IRDA link
http://www.irdaindia.org/lifecouncil040204.htm

latest news Link

http://www.thehindubusinessline.com/...0451401000.htm


This is my final comment on this subject. If people still believe in this policy, they can make their choices. For me it is a bad investment!

Hi,
I am also one of the person who have taken Jeevan Sheee policy. but mine is little different one what I feel is. It is New Jeevan Shree ( T.No 151), taken in Dec 2003, maturity is 20 yrs. premium 43454/- per annum. can some one pls help me with this policy proceeds. thanks in advance.

-Sreekanth

What is your Insured SUM?

Is it 10,00,000?

What is promised amount on maturity by LIC?

--------------------------------------------------------------

As per rough calculations

You will be paying LIC for 16 years a amount totalling to 738318 or 7.3 lakhs
and
On maturity after 25 years (in year 2028) assuming LIC makes 6% return on your investment you will get 19,353,15 or 19 lakhs

This is actually 5.165 % return on annual compounded basis for 25 years!

---------------------------------------------------------------------------------------------

Don't wish to scare you but LIC might end up making meagre 3% return in 25 years, then your retrun might turn into 1233830 on compounded basis!

So lets wait for 25 years and see what we get

Sum Assured - 5,00,000
Policy term 20 yrs ( premium payment term 12 yrs)

I'm not sure about promised amt on maturity. I called them but very poor response.

thanks for quick response.
-sreekanth

You have 12 years or term and 20 years maturity. Calculation changes as follows

Total net payment to LIC = 564902 for 12 years
Return based on 6% after 20 years(year 2023) = 1206190

Annual compounded return of 5.5%

----------------------------------------------------------------

Assuming conservative 3% rate

Return = 859700

Good luck!

Thank you.
Is it possible to tell maturity benefits Guaranteed addition & Loyalty addition in amt figures. Basically I was looking for breakup amounts of those benefits.

thanks again for quick response.

-Sreekanth

You guys only talking about the returns..
Don't forget it also gives you guarantee if something bad or worst happens in your life..

When we invest in any insurance company, We don't expect the huge return.. but security of life.

Moreover LIC does not have that bad reputation. At least can trust at some extent.

So Buddy .. not to worry.. it pays somehow.

Your Guaranted SUM is 500,000 and Guaranted addition is Rs50 Per thousand
Which comes out to total 760724!

Now after 5 years, depending upon how company performes, you will get return based on 3% or 6%!

There is no Loyalty addition!

If we would have been serious about insurance, we would not have taken this policy at first place. .

Term insurance calculation above in thread with PPF gives you cover of 50 lakhs and better returns!

OK. You are saying that Guaranteed addition is Rs50 per thousand but it is given as Rs70 per thousand in the site:

http://www.equitymaster.com/licindia/jshree.asp

Pls clarify here.

Hello all,
This has been a very good discussion on this policy. After this discussion I also went back to my agent and got the details and did some calculations.
First, I believe there are more than one type of Jeevan Shree policies and we should quote the table & term to uniquely identify our policy.
Mine is 112-25-16. Hence the calculation which I did below is applicable to all holders of this particular Jeevan Shree and not to anyone else.
My annual premium is 24375/-. This one has Rs. 80 per thousand bonus per annum i.e. for full 25 years. And some Loyalty component which is declared by LIC every year. This normally varies between 5-10%.
So here are my calculations
Investment
Yearly Premium 24,375
Num of premiums 16
Gross Investment 3,90,000
Less IT saving (30% on premium) 1,17,000
Net Investment 2,73,000

Benefits on Maturity
Sum Assured 5,00,000
Guaranteed addition (@Rs. 80 per 1000 sum assured per annuum) 10,00,000
Loyalty addition (Between 5-10% of total sum at end of 25 years) 1,05,000 (assuming 7% here)
Total 16,05,000
Tax deduction on maturity amount 0

Net Benefit 13,32,000

Now based on this I calculated Annualized return on investment using XIRR formula in excel sheet. This comes out to be a cool 10%.
So I think this was a pretty good policy which my Dad took bec it gives you approx 10% return as well as life insurance.

Please let me know if I have made any mistake here. Also feel free to ask me any questions, I'll answer to my capacity.

Thanks
Surya

http://www.dnaindia.com/report.asp?newsid=1223378

Checkout the explanation from a professional which I explained earlier that TERM insurance is always better than any other LIC policy!

Even I have Jeevan Shree, Plan 112 with SA of 5L and PT of 25yrs & PPT of 16 yrs but the guaranteed addition I am aware is Rs 75 pa. Please can you confirm how you calculated the Guaranteed addition & the Loyalty addition with some calc. Sorry for being too ignorant about it.

But seems I am not the only person trying to figure out the policy proceeds of this policy after holding it for more than 7 yrs now. ;-).

I completely agree with man4urheart's comments on how Endowment (be it LIC or non LIC) are not the best Insurance policies.

Some points why i think so:

1. Dont mix your investment and Insurance. Eg.A meagre 5lak Sum Assured doesnt cover my major liabilities in case something happens. So i want a highier cover at affordable cost. Nothing other than Term Insurance will give me that. I pay about 30K premium for 16 year Jeevan Anand Policy for 5 lak cover. Instead i can opt for 50laks cover by paying 14k premium with any Term insurance policy.

2. I would like my investments to return highier yeild. None of the Endowment policies of LIC will yeild more than 8% (infact the yield will range from 4-7.53%).

Often these Endowment policies are mis-sold by the agents who themself didn't know the full details. They do it because they get huge commissions (on a 30K premium the agent can get upto 11k commission).

I have surrendered mine and my wife's LIC policies (Jeevan Anand) and invested that money in NSC. We both opted for Term policies for much higher risk coverage. We will invest the difference of premium in various secure investment instruments.

Some links on same subject:
http://www.indiaabroad.com/getahead/2007/mar/23ulip.htm

http://www.rediff.com/money/2007/dec/07bspec.htm
http://www.rediff.com//getahead/2005/mar/10insure.htm


-Srini

HI,

It is really nice to see some interesting discussion. I was looking for information on my policy, jeevan shree and was encouraged to find out more after reading through your comments.

Im holding Jeevan shree policy #112- started in 1999
Confirmed the below info with the LIC helpline.

-> Term - 20yrs
-> premium to be paid until 12yrs only.
-> annual premium- 35,578
-> guaranteed sum assured/insurance- 5,00,000 + 80Rs per thousand * 20yrs (as per website it is 50rs upto first 5 yrs only for new plan)
-> loyalty bonus(as per LIC last years performance)- 125 rs per thousand * 20yrs (as per website it is 6%-10% from 6th year upto maturity for new plan)


INVESTMENT IN 20 YEARS(Jeevan shree -112) OLD PLAN
-------------------------

Gross investment (premium 35578 x 12 yrs.) - Rs. 4,26,936

* most of us have housing loan which takes care of the 80c exemption, hence not including the tax benefit here.

-------------------
NET INVESTMENT Rs. 4,26,936
==============


BENEFITS ON MATURITY
------------------------

Sum assured as per policy Rs. 5,00,000

+ Guaranteed addition
(@Rs.75/- per 1000 * 20 yrs
Rs.40000 x 5 yrs.) Rs. 800,000


+ Loyalty addition
( 125 Rs per thousand * 20yrs) [125 is the figure arrived at based on fixed returns calculated by LIC advisors and was last years figure and is stable around that for a while]
Rs.12,50,000
-------------
Total proceeds Rs.25,50,000
=============

So anyone planning to opt or have opted for new plan the returns were not as attractive as per the old plan!!!

I had started this discussion on JEEVANSHREE(OLD)policy-plan112 of LIC and I thank you all for taking discussion to different dimensions.Still the opinions are varying.So I discussed with a senior agent.He has given me a
new information regarding FAB(Final Additional Bonus).LIC rewards those
policy holders with FAB, who keep their long term policies in force without default unto last installment.
The present rate of FAB is up to Rs.1850 per thousand sum assured(not per
annumm).

Regarding Loyalty additions, the present rate declared is Rs.150 per thousand sum assured(not per annum).

so the final proceeds may be as follows:-

Benefits on Maturity
Sum Assured 5,00,000
Guaranteed addition (@Rs. 75 per 1000 sum assured per annuum) 9,37,500
Loyalty addition at present rate Rs.150 per thousand(subject to change in future) 75,000
Total 15,12,500
+Final additional bonus(conditional as mentioned above)-present rate up to
Rs.1850 per thousand(actual rate to be declared at the year of maturity
of policy)

Thanks for the info, would you please check with your agent regarding the new Jeevan Shree policy. I would like to compare the benefits. I think the table no. is 151 for the new jeevan shree.

kind regards,
Sreekanth

Hi

I have LIC Jeevan Shree (Table 112-25[16]) policy taken on 1 Apr'2000 for Rs 6L. Yearly premium is Rs. 32600. I have a letter from LIC abt Loyalty addn after 5 yrs of policy in force. No LA figure is mentioned. However My Polciy doc name is Jeevan Shree without profit (wout accident cover).

1. What does this name mean?

2. Due to this policy name, what things are NOT applicable to me?

3. My agent had given me similar illustration ( as in this forum) but now after 9 yrs of paying premiums, I chanced on this post & am revisting my policy.

4. A fully agree with man4heart that Term Life Ins is BEST. I have Rs 60L of Term Ins plan with annnual prem of only Rs 30k. I was keeping LIC Jeevan Shree alive only because of the rosy picture painted by my agent ( I don;t believe him now).

5. When will I get Maturity proceeds? At end of 16th year (Last Prem paying yr) or at end of 25th year?

6. If at 25th year, what returns LIC gives me from 16-15th year?


A. Pl advice me maturity value of my policy.

B. Should I continue this policy or exit? If exit, what will I get?

Thanks in adv for all those who read my post & replied to it.

Cheers!!!!

PS.. I did some caln on Jeevan Shree (JS) (OLd) vs. Combi of Term Plan+PPF & found that Jeevan Shree returns are much higher. See below

1. Premium paid @16298 HY x 16 Yrs i.e Rs 32,596 x16 = Rs 521356
Sum Assured SA 600,000
Guaranteed addition (@Rs. 75 per 1000 sum assured per annum)=720,000
Loyalty addition at present rate Rs.150 per thousand= 90,000
JS Maturity proceeds = 1,410,000

2. If I take Term Ins of 6L & invest Bal prem amount in PPF @8%
Term Ins Prem of Rs1650 x 16 Yrs = Rs 26,400
Annual PPF contribution (32596-1650)=Rs 30946
Maturity of PPF at end of 16 Yrs @8% = 1,013,488

Thus JS gives Rs 396,512 more giving by Padam's nos in above post.

After reading your point, I contacted my agent as I too am holding old Jeevan shree (taken in July 2000) and inquired.

He gave me following information

Benefits on Maturity
Sum Assured 5,00,000
Guaranteed addition (@Rs. 75 per 1000 sum assured per annum) 9,37,500
Loyalty addition at present rate Rs.120% of Sum Assured (subject to change in future as in 2000 was 75% of Sum Assured) 6,00,000

Total 20,37,500

+ Final additional bonus: SORRY TO DISAPPOINT BUT UNFORTUNATELY NOT ELIGIBLE FOR THIS POLICY.

I don't agree. One can just dream in so much commissions. Don't blame endowment policy, for common man who cannot take risk in stock, such insurance policies are the best who can get benefit without any concerns and remember it also insures their life.

But I agree agent must also tell a prospect about term insurance and let him to decide which he wants.

Let's come to the topic, Jeevan Shree was one of such best policies which gives over 10% return including loyalty addition.

I am a Jeevan Shree-112 policy holder, starting in 1998, will mature in 2023 (25 yrs). Insured amount is 5 Lacs and yearly premium is 25268/-.which is supposed to pay till 2014. What will be the total benefit I will get on my maturity? As my agent is not clear to help me.

Benefits on Maturity:

Sum Assured 5,00,000.

Guaranteed addition (@Rs. 75 per 1000 sum assured per annum per year) 9,37,500

Loyalty addition at present rate Rs.120% of Sum Assured 6,00,000 (subject to change in future as earlier in 2000 it was 75% of Sum Assured)

Total 20,37,500

This is as told by my agent. Unfortunately they themselves are not clear. Please confirm with any other agent and let us know.

This is the best discussion I have read on Jeevan Shree policy.

Even I have taken the Jeevan Shree -1 policy for 16/25 years for SA of 10 Lac. My annual premium is 50254. I have paid only one premium, now after reading this post, I am thinking to discontinue this policy and take a term insurance of 25 Lac for ~6,000/- and invest the remaining in PPF or start a SIP. Please advice if it make sense to discontinue the policy.

Thanks,
Sriharsha

See post no. 5 and take your decision!