Hello Folks,
I have seen lots of advertisements and flooded with enquiries about whether LIC JEEVAN SARAL is a good product. Most people are misled by the term '250 times premium'. Actually it is only 20 times the premium, but cleverly camouflaged as 250 times because life cover is calculated as a multiple of ANNUAL premium and not monthly premium. Secondly as in any other endowment plan, the plan is loosely structured and does not have the clarity of what is the net investible amount from your premium, and how it will grow. My take on this - Go for a standard ULIP which gives you a cover component of upto 80 (or 960 in LIC parlance) i.e. 960 times the monthly premium. Else the best plan is to take iTerm Plan from Aegon Religare which is about 40% cheaper than most term plans in the market and then think how you want to deploy your savings. Post Office Monthly Income plans give you a pre tax yield of 8.9% and Public Provident Fund is another beautiful option. Avoid this plan unless you have complete clarity on what it has to offer.
Balaji
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LIC Jeevan Saral is a specially made plan for individuals who are looking for periodic savings along with risk cover. It offers higher cover, decent return, liquidity, considerable flexibility and tax benefits. Policyholders consider to choose the premium they want to pay.
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