LIC LIC’s New Jeevan Labh Plan (936): Start: 25.02.2021 Premium End: 25.01.2037 (16 Years) Maturity: 25.02.2046 (25 Years) Monthly Premium: 4983+GST (GST paid upto August 2025) Sum Assured: 1300000 Premium pid till 25.01.2026 (total 60 month) What if I discontinue further premium and convert it into paid up policy What will be maturity amount? Also what will be surrender value as of now? Also what will be maturity amour if I continue to pay premium till 16 years?

Ans: Assessing Your LIC Jeevan Anand Policy
Understanding Maturity Amount
Your LIC Jeevan Anand policy is nearing the end of its 21-year term. Given a policy sum assured of ?14 lakhs and an annual premium of ?71,000, the maturity amount will include the sum assured along with any applicable bonuses. However, without specific bonus rates, an exact figure is challenging to determine. Generally, LIC policies like Jeevan Anand accrue bonuses over the years, which can significantly enhance the maturity amount.

Life Coverage Post Maturity
One key feature of the LIC Jeevan Anand policy is the continuation of life cover even after the maturity amount is paid out. This means you will still have a life cover equal to the sum assured (?14 lakhs) after the policy matures, providing continued financial security for your beneficiaries.

Investment Recommendations for Maturity Amount
Risk Assessment and Goals
Before deciding where to invest the maturity amount, consider your risk tolerance, financial goals, and investment horizon. Since the maturity amount is likely to be substantial, diversifying across various investment options is prudent.

Investment Options
1. Mutual Funds
Equity Mutual Funds: If you have a high-risk tolerance and a long-term investment horizon, consider equity mutual funds. They offer high growth potential but come with higher volatility.

Balanced or Hybrid Funds: For a moderate risk appetite, balanced funds invest in a mix of equities and debt, providing a balance of growth and stability.

Debt Mutual Funds: If you prefer low risk, debt funds are safer and provide regular income, suitable for short to medium-term goals.

2. Systematic Investment Plan (SIP)
Consider investing a portion of the maturity amount in mutual funds through SIPs. This helps in averaging the purchase cost and reduces the impact of market volatility.

3. Public Provident Fund (PPF)
For long-term, risk-free investments, PPF is a good option. It offers attractive tax-free returns and has a lock-in period of 15 years, making it suitable for retirement planning.

4. National Pension System (NPS)
NPS is another long-term investment option, especially beneficial for retirement planning. It offers a mix of equity, corporate bonds, and government securities with tax benefits.

5. Fixed Deposits (FD)
If you seek safety and assured returns, consider investing a portion in fixed deposits. Although returns are lower compared to equity, FDs provide guaranteed income.

6. Gold
Investing in gold through Gold ETFs or Sovereign Gold Bonds can provide a hedge against inflation and add stability to your portfolio.

Diversified Portfolio Approach
High-Risk Investments: Allocate around 40-50% in equity mutual funds or direct stocks for high growth potential.

Moderate-Risk Investments: Allocate 20-30% in balanced funds or hybrid funds for balanced growth and stability.

Low-Risk Investments: Allocate 20-30% in debt funds, PPF, or FDs for assured returns and safety.

Alternative Investments: Allocate a small portion, around 5-10%, in gold or other alternative assets for diversification.

Conclusion
Upon maturity of your LIC Jeevan Anand policy, you will receive a significant lump sum. Continue benefiting from life coverage even after maturity. To optimize this maturity amount, diversify your investments across equity, debt, and alternative options based on your risk profile and financial goals. Regularly review and adjust your portfolio to stay aligned with your objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: You have held these LIC policies for a long time.

You have been disciplined in paying premiums.

That shows commitment and patience.

But it is also important to assess if they are helping you build wealth.

Let us do a complete 360-degree assessment from a Certified Financial Planner’s view.

This will help you take a confident and informed decision.

Your Existing LIC Policies – A Summary Review

Policy 1: Jeevan Saral (started Dec 2008)

Monthly premium: Rs.1,021

Sum Assured: Rs.2.5 lakhs

Maturity: Dec 2043 (35 years term)

Policy 2: Jeevan Saral (started July 2007)

Half-yearly premium: Rs.15,162

Sum Assured: Rs.6.25 lakhs

Maturity: Dec 2043 (36.5 years term)

Policy 3: Jeevan Mitra – Triple Cover (started April 2003)

Annual premium: Rs.3,731

Sum Assured: Rs.1 lakh

Maturity: April 2033 (30 years term)

Policy 4: Jeevan Anand (started Nov 2003)

Annual premium: Rs.4,176

Sum Assured: Rs.1 lakh

Maturity: Nov 2027 (24 years term)

What Needs to Be Evaluated in Your Policies

Total premium paid so far.

Number of years left for maturity.

Guaranteed maturity benefit.

Bonus declared each year by LIC.

Internal Rate of Return (IRR).

How Jeevan Saral and Other LIC Plans Really Perform

LIC policies are mostly traditional endowment-type products.

They promise guaranteed returns and bonuses.

But the real returns are usually very low.

In most Jeevan Saral cases, final returns are between 4% to 5% per year.

Some even get less than 4% IRR.

That is much below inflation.

Why Jeevan Saral Needs Serious Review

LIC stopped selling Jeevan Saral.

There were many complaints about maturity mismatch.

Projections made by agents were often too optimistic.

Agents showed high maturity values which were not guaranteed.

In reality, maturity depends on age at entry and term.

Older policyholders often got very low maturity values.

Your Jeevan Saral Policies – Key Concerns

One policy has Rs.1,021 monthly premium for 35 years.

The total premium paid will be nearly Rs.4.3 lakhs.

Sum assured is only Rs.2.5 lakhs.

Expected maturity can be Rs.5 to 6 lakhs depending on bonus.

But that means less than 5% return for 35 years.

Second Jeevan Saral policy has higher premium of Rs.15,162 half-yearly.

Total paid will cross Rs.21 lakhs by 2043.

Sum assured is Rs.6.25 lakhs only.

Even with loyalty additions, returns may remain under 5.5%.

What About Jeevan Mitra and Jeevan Anand?

These are older plans with low sum assured.

Jeevan Mitra offers triple cover but investment value is low.

Jeevan Anand continues coverage even after maturity.

But it is of no real benefit unless it is for life insurance need.

Premiums are small, but the returns are not attractive.

Total investment is locked in for long term.

Big Issue – Mixing Insurance with Investment

LIC policies combine insurance and investment.

This is not ideal.

Insurance should give protection only.

Investment should create wealth.

Mixing both gives neither good coverage nor good returns.

Why You Should Surrender – Analytical Assessment

Your goal should be wealth creation and financial protection.

These LIC policies give low returns.

Real return after inflation may be zero or negative.

Even if held till maturity, returns remain weak.

These funds are better used in mutual funds with CFP guidance.

What Happens If You Surrender Now?

All your policies have completed more than 20 years or close to it.

That means surrender value will be higher than early years.

LIC will give you guaranteed surrender value plus bonuses.

In most cases, surrender gives 30% to 50% of total premiums paid.

But if you reinvest wisely, you can recover this gap.

The earlier you surrender, the faster your wealth creation begins.

Reinvestment Strategy – 360-Degree View

Surrender values can be reinvested into mutual funds.

Use actively managed equity funds with long term view.

Always invest through a CFP and MFD, not in direct plans.

Direct funds do not offer help or regular review.

Regular funds via CFP give guidance, rebalancing and emotional support.

Why Not Direct Funds? Key Disadvantages

No one to support during market fall.

No plan to shift asset when goals change.

No help in tax planning.

No family guidance in your absence.

Most people stop SIPs or withdraw in panic without advisor help.

Returns in direct funds may look high, but are rarely achieved.

Why Not Index Funds Also

Index funds copy market blindly.

They can’t protect from downside.

They don’t shift allocation during market bubble.

You get average market returns only.

No active fund manager to add value.

Good active funds have beaten index consistently in India.

India is not yet a mature market for passive investing.

What You Must Do Now – Action Steps

Take surrender quotes for all four LIC policies.

Check exact surrender value and accumulated bonuses.

Do not delay. Every month wasted is loss of growth.

Consult a Certified Financial Planner and execute surrender with confidence.

Shift the proceeds to mutual funds under long-term plan.

Allocate funds based on your risk level and goals.

Use SIPs and STP for reinvestment if large corpus.

Do You Need Insurance Now Separately?

Buy a term insurance plan for full protection.

Term plan is pure cover, no savings.

Premium is very low for large cover.

It is best way to protect your family.

Final Insights

You have kept the policies for long. That discipline is rare.

But continuing them will not create meaningful wealth.

LIC policies serve purpose only for guaranteed returns and simple safety.

But they don’t grow your money fast.

You should not mix insurance and investment.

Surrendering is not a loss. It is a correction.

Mutual funds offer better returns, more flexibility and full transparency.

You will also get better control of your money.

Your money must work for you. LIC policies are not doing that.

With right CFP guidance, you can recover and grow faster.

Start now. Every month delayed is growth lost.

Take smart decisions. Not emotional ones.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ans: Hello;

You may expect to receive a sum of 10-12 L at maturity from this endowment policy.

Best wishes;

Ans: Since this is taken from LIC's Agent, Please connect either with your LIC Agent or Nearest LIC Office. At maturity you shall be getting Maturity Sum Assured Plus Accrued Loyalty Additions.

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