Hello Madam/Sir, I have Jeevan Saral Policy (Plan 165) since Oct 2008. Sum Assured Rs 750000/-. Premium 36030/- per annum, Policy term 35 yrs i.e. maturity in Oct 2043 having Double accident benefit. Can you Pls tell me approximately how much will I get after maturity? Is it worth continuing it or not? Pls guide me ?

Ans: Hello;

You may expect a XIRR of 5.5-6% or even lower on premiums invested in this policy.

If you get better then this it would be great.

Best wishes;

Ans: Dear sir ,

you need to approach your lic agent or nearest lic office to get exact details like policy copy and no

please consult qpfp/financial planner for complete planning

Best regards,
Naveenn Kummar, BE, MBA, QPFP
Chief Financial Planner | AMFI Registered MFD
www.alenova.in

Ans: I appreciate your patience in holding this policy for many years.
Many people continue such policies without clarity.
You are doing the right thing by seeking understanding now.
This shows maturity and financial awareness.

» Basic Understanding of Your Policy
– You started the policy in June 2011.
– Policy term is 15 years.
– Maturity is due in June 2026.
– Entry age was 51 years.
– Yearly premium is Rs 24,260.
– Life cover is only Rs 50,000.

This policy is insurance plus savings combined.
Such policies focus more on forced savings.
Protection element is very small.

» Total Premium Paid Over Policy Term
– You pay premium for full 15 years.
– Yearly premium remains constant.
– Premium payment ends before maturity.

By maturity, total premium paid will be substantial.
This is important for comparison.

» How Maturity Value Is Decided
– This policy does not give bonus like others.
– It works on a maturity value factor system.
– Maturity value depends on age and term.
– Loyalty additions may be added at maturity.

Returns are pre-declared, not market linked.

» Expected Maturity Value Range
– For your age and premium, returns are modest.
– Such policies generally give low annual growth.
– Growth is closer to traditional savings products.

Based on past experience with similar cases:
– Maturity value is usually between Rs 4.5 lakh to Rs 5.2 lakh.

This is an approximate range.
Exact figure depends on final loyalty addition.

» Why Maturity Value Feels Low
– Large part of premium goes toward costs.
– Mortality charges are high due to entry age.
– Returns are not linked to equity growth.

These factors reduce wealth creation potential.

» Life Cover Assessment
– Life cover is only Rs 50,000.
– This amount is too small today.
– It does not protect family needs.

Insurance objective is not fulfilled properly.

» Investment Assessment
– Policy forces discipline, not growth.
– Returns do not beat long-term inflation.
– Purchasing power reduces over time.

This impacts real wealth.

» Liquidity Aspect
– Money is locked for long term.
– Exit before maturity causes loss.
– Flexibility is limited.

This restricts financial freedom.

» Risk Versus Reward Balance
– Risk is low.
– Reward is also low.
– Long holding period gives limited benefit.

Such balance does not suit wealth creation.

» Tax Aspect at Maturity
– Maturity proceeds are usually tax free.
– This is a positive aspect.
– But tax benefit alone is not enough.

Net outcome still remains weak.

» Emotional Attachment Factor
– Long association builds emotional comfort.
– Familiarity creates false security.
– Numbers should guide decisions.

Money decisions must be practical.

» Opportunity Cost Over 15 Years
– Same premium invested differently grows better.
– Time value of money is lost here.
– Compounding opportunity is underused.

This is the hidden cost.

» Should You Continue Till Maturity
– You are very close to maturity now.
– Only limited premiums remain.
– Exit now may reduce value.

From pure practicality, holding till maturity makes sense.

» What To Do After Maturity
– Do not reinvest maturity money here again.
– Do not buy similar policies.
– Separate insurance and investment clearly.

This improves clarity and control.

» Insurance Requirement Going Forward
– Insurance should be pure protection.
– Cover amount should be meaningful.
– Premium should be affordable.

This protects family properly.

» Investment Requirement Going Forward
– Investments should focus on growth.
– Long-term horizon suits market-linked options.
– Discipline should be maintained separately.

This builds real wealth.

» Why Such Policies Are Not Ideal
– They mix two different objectives.
– They dilute both protection and growth.
– Transparency is low.

Clarity always wins financially.

» Should You Surrender Similar Policies
– Yes, for long-term underperforming policies.
– Especially investment-cum-insurance types.
– Evaluate surrender versus paid-up carefully.

Each policy needs separate review.

» If You Hold Any Other LIC Policies
– Check premium versus life cover ratio.
– Review maturity value realistically.
– Assess opportunity cost honestly.

Do not assume all LIC policies are safe wealth tools.

» Behavioural Lesson From This Policy
– Forced savings feels comfortable.
– Comfort does not equal efficiency.
– Awareness changes future outcomes.

This lesson is valuable.

» 360 Degree View of Your Policy
– Protection is inadequate.
– Returns are low.
– Liquidity is poor.
– Tax benefit is limited advantage.

Overall outcome is average at best.

» Positive Side You Should Acknowledge
– You maintained long-term discipline.
– You honoured commitments regularly.
– You avoided policy lapsation.

This discipline is powerful.

» How To Use This Discipline Better
– Channel it into transparent investments.
– Keep insurance purely for protection.
– Review annually with clarity.

Discipline plus right structure creates wealth.

» Finally
– Expected maturity value is around Rs 4.5 to 5.2 lakh.
– Exact amount will be known near June 2026.
– Holding till maturity is sensible now.
– Avoid repeating similar products later.

You are in a position to improve future outcomes.
This awareness itself is progress.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

Ans: Thank you for the query. I suggest you to kindly contact your Agent or LIC Branch in this regard.

Ans: I appreciate you for sharing full policy details and for your long-term commitment since 2008. Staying invested for so many years shows discipline and responsibility towards family protection. It is good that you are reviewing this now instead of blindly continuing.

» Understanding What You Will Receive at Maturity
– This is an insurance-cum-investment policy, not a pure investment product.
– At maturity, you will receive:

Sum Assured

Loyalty addition, if declared by the insurer
– The maturity amount is not guaranteed upfront. Loyalty additions depend on the insurer’s performance and are declared closer to maturity.
– Double accident benefit applies only in case of accidental death, not for maturity value.

» Return Expectation – Reality Check
– Over long policy terms, such plans generally generate low returns compared to long-term market-linked options.
– Premiums are locked for decades, reducing flexibility.
– Inflation impact is high over 35 years, which reduces the real value of maturity proceeds.
– The policy is safe, but safety comes at the cost of growth.

» Insurance and Investment – Mixed Role Issue
– This policy combines insurance and savings, which reduces efficiency on both sides.
– Life cover of Rs 7.5 lakh is inadequate for long-term family protection today.
– At the same time, the investment part grows slowly and does not match long-term goals like retirement or children’s education.

» Should You Continue or Exit
– Since this is an investment-cum-insurance policy, it is important to reassess its relevance today.
– If your main objective is wealth creation, continuing may not be optimal.
– If surrender value is reasonable and future premiums are still large, surrendering and redirecting money to better growth-oriented options can make sense.
– The decision should be based on: years already paid, current surrender value, and future cash flow comfort.

» What to Do After Surrender – Direction, Not Guesswork
– After surrender, the focus should be on separating insurance and investment clearly.
– Adequate pure life insurance cover should be ensured separately.
– Long-term investments should be aligned to goals, time horizon, and risk capacity.
– Actively managed mutual funds provide flexibility, professional decision-making, and better inflation-adjusted growth over long periods compared to traditional insurance products.

» 360-Degree View on Your Financial Plan
– Review existing insurance coverage across life and health.
– Align investments with specific goals instead of policy maturity dates.
– Maintain liquidity for emergencies.
– Periodic review with a Certified Financial Planner helps avoid emotional decisions and keeps the plan on track.

» Final Insights
– Your intention to secure the future is absolutely right and deserves appreciation.
– The policy offers safety, but growth is limited and may not meet long-term needs.
– Mixing insurance and investment has worked against optimal wealth creation.
– A structured shift towards goal-based investing, after careful surrender evaluation, can significantly improve your financial outcome over time.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment