Dear Sir, I have taken an LIC policy jeevan shree on 31st Jan' 2002 with sum assured of 5 lacs and yearly premium of 24520. What maturity proceed can I expect in 2027. It had a premium paying term of 16 years and maturity of 25 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: Hello;

Expected to be around 6 L.

Request you to kindly confirm the same with your LIC advisor.

Best wishes

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.