Yearly premium 24260....i buy premium at age 51 in 2011 ....death sum assured 500000 rupees....plzz calculate maturity

Ans: You have stayed committed since 2011.
That kind of financial discipline is very rare and valuable.

Let’s look at your policy from a full 360° angle.

» Understanding Your Policy Details

– You started this policy in 2011.
– You were 51 years old then.
– You have paid yearly premium of Rs. 24,260.
– The policy sum assured is Rs. 5,00,000.
– Now, it is 2025, so the policy has completed 14 years.

You are likely nearing maturity, depending on policy type.
Exact maturity value will depend on the plan type.

» Identify the Type of Policy

– There are mainly 3 types of such life insurance plans:

Endowment plans

Money-back plans

Whole life plans

– Some may also be ULIP (Unit Linked Insurance Plan).
– If you don’t know your plan name, check the original policy

This is important, as maturity value depends on plan type.
Bonus and returns vary across plans.

» Estimate of Total Premium Paid So Far

– You have paid Rs. 24,260 per year.
– For 14 years, that’s around Rs. 3.39 lakh in total premium.

Now the question is — what will be the return?

It will depend on:

– Policy bonus rates
– Final additional bonus (if any)
– Type of policy
– Maturity period

» Expected Maturity Value Estimate

Let’s assume it is a traditional endowment policy.
Most such policies give a return of 4% to 5% per year.

In that case:

– You may receive Rs. 5.5 lakh to Rs. 6.5 lakh.
– Some high bonus plans may touch Rs. 7 lakh.
– This includes your sum assured and bonuses.

Please note this is only an estimate.
For exact figure, check with the insurer or agent.

You can also call customer care of LIC or log in online.

» Is This Return Good Enough?

– You paid Rs. 3.39 lakh over 14 years.
– If you get Rs. 6.5 lakh, the return is around 4.5% yearly.
– This return is lower than inflation.

Traditional policies often give very low returns.
They are not meant for long-term wealth building.

» What You Can Do After Maturity

– Do not reinvest in any new insurance-cum-investment policy.
– Avoid ULIPs, money-back or endowment plans.
– Avoid annuities. They give very low returns.
– Do not go for any policy promising “guaranteed” return.

Instead, invest the maturity in mutual funds through a Certified Financial Planner.

Start with regular plans, not direct plans.

» Why You Must Avoid Direct Mutual Funds

– Direct funds offer no review or help during market ups and downs.
– You may not know when to switch or rebalance.
– Mistakes can wipe out long-term wealth.

With regular plans through a Certified Financial Planner:

– You get personalised asset allocation
– You get periodic portfolio review
– You get discipline and peace of mind

Guidance matters more than 0.5% savings in expense ratio.

» Why Index Funds Are Not Suitable

– Index funds copy the market.
– They can’t protect downside during market crash.
– They don’t exit falling sectors.
– They don’t reallocate intelligently.

Actively managed funds are better.
They adapt to market, change sectors, and can beat inflation.

You need active decision-making, not passive returns.

» Better Ways to Use Your Maturity Proceeds

If you need monthly income:

– Use SWP (Systematic Withdrawal Plan) from mutual funds.
– Start from low risk hybrid or balanced funds.
– Set up Rs. 5,000 to Rs. 10,000 per month.

If you don’t need income now:

– Invest lump sum in equity-oriented mutual funds.
– Take SIP or STP route to manage volatility.
– Stay invested for 7 to 10 years.
– Let it compound with proper guidance.

This way, your Rs. 6.5 lakh can grow to Rs. 15–18 lakh in 10 years.

» Don’t Repeat These Common Mistakes

– Don’t buy another insurance product for investment.
– Don’t go to the same agent who sold the earlier plan.
– Don’t reinvest in another guaranteed return plan.
– Don’t invest without written goal or guidance.
– Don’t panic and put it all in FD.

Low return = lost opportunity.
You have already waited 14 years.
Now, make this money work smarter.

» Speak to a Certified Financial Planner Before Reinvesting

– They can help match the maturity amount with your goals.
– They can build a plan around your retirement needs.
– They will review your entire portfolio, not just this money.
– They can guide you on tax-efficient withdrawals.

This is not just about returns.
It’s about using money meaningfully for future security.

» MF Taxation You Should Know

– Equity mutual funds: LTCG above Rs. 1.25 lakh taxed at 12.5%.
– STCG taxed at 20%.
– Debt mutual funds: All gains taxed as per your tax slab.

You can plan redemption smartly to reduce taxes.
Certified Financial Planners can help manage it effectively.

» Final Insights

– Your long-term discipline in paying premium is very inspiring.
– The return may be low, but your effort was high.
– Now, use that maturity money more wisely.
– Avoid insurance for investment going forward.
– Focus on mutual funds via expert guidance.
– Use regular plans with goal-based approach.

You still have time to grow your wealth.
Even at 65, people build portfolios and invest.
You are only 65 – still strong and aware.
You can make this next chapter very powerful.

Start fresh. Start smarter. Stay invested. Stay peaceful.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

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