LIC’s Jeevan Varsha is a close ended Money Back Plan with Guaranteed Additions. The plan returns periodical payments as a proportion of Sum Assured at specified durations, on survival during the term of the policy and on maturity. This plan returns full Sum Assured on death irrespective of earlier pay backs. Guaranteed Additions are payable on death and Maturity. Loyalty Additions *may* also be payable during the last year of the policy on both maturity and death.
Since LIC couldn’t collect the expected amounts from Jeevan Astha policy, now they have come out with this Jeevan Varsha money back policy with a tenure to choose from 9 years and 12 years. The plan will be open for purchase from 16th February, 2009 to 31st March, 2009. Let us look at this policy features and analyse more.
Features:
* The minimum entry age for this policy is 15 years while maximum maturity Age is 75 years.
* Policy Term : 9 years & 12 years
* Premium Paying Term: 9 years
* Premium payment modes: Yearly, Half-Yearly, Quarterly, Monthly (by ECS mode only).
* Minimum Sum Assured Rs 75,000/- for monthly ECS mode while Rs 50,000/- for other modes
* Maximum Sum Assured: No limit. Also, sum assured shall be in multiples of Rs 5,000/-
Benefits:
Survival Benefits:
| Survival Benefit | Term 9 years | Term 12 years | |
| 3rd Year | 15% of SA | 10% of SA | |
| 6th Year | 25% of SA | 20% of SA | |
| 9th Year | 60% of SA + GA + LA (if any) | 30% of SA | |
| 12th Year | – | 40% of SA + GA + LA (if any) | |
Guaranteed Addition:
* Rs. 65 per 1000 of SA/year for a policy of 9 years term.
* Rs. 70 per 1000 of SA/year for a policy of 12 years term.
Loyalty Addition:
Applicable to those policies where in Life Assured has survived the stipulated date of maturity or on the Life Assured’s death during the last policy year. All this again at the descrition of LIC based on various factors which they haven’t specified clearly. For better understanding and benefits illustration visit LIC site here.
My take: Be specific on what you are looking for. If insurance is your basic need, go for pure insurance policies than compromising on both the insurance and profits via this kind of policies. Think about term insurance policies for cover while think of fixed deposits, mutual funds for investment. FD’s will give atleast 8-9% returns as compared against 6.5% of this LIC’s Jeevan Varsha. Prioritize what your needs and plan accordingly.
Update: Some of the readers requested for more detailed info with respect to calculations. So, here it is. I have compared the Jeevan Varsha with Bank fixed deposits and take a look at the image below to understand it before. I have considered the same example as that of a 35 years individual for the calculations at Rs 65 per thousand as Guaranteed Additions for a term of 9 years. However, I have not included Loyalty additions as there is no clarity on that from LIC of India. For bank FD’s I have considered interest at 8.5%. So, I leave the remaining analysis to your descrition. May be the elite knowledgeable LIC agents may be able to prove me wrong completely!
Disclaimer : This information is based on the details as available on LIC site at the time of writing this article. Please contact LIC agent / Development officer/ Regional office for official and accurate details.
NARESH says
Gud Morning Sir,
How much will i get at the end of the 9 years if my annual premium is 15671. in Jeevan Varsha. I paid all my premium , just wanted to know the exact value of maturity.
Bhawesh Barnwal says
Naresh bro did u get ur amount in 3rd and 6th year as mentioned above??
NARESH says
Gud Morning Sir,
How much will i get at the end of the 9 years if my annual premium is 15671. in Jeevan Varsha. I paid all my premium , just wanted to know the exact value of maturity.
Bhawesh Barnwal says
Naresh bro did u get ur amount in 3rd and 6th year as mentioned above??
sumit says
hello sir i have paid 4018 half yearly in jevan varsha of 9y plan i want to know my maturity amount.
sumit says
hello sir i have paid 4018 half yearly in jevan varsha of 9y plan i want to know my maturity amount.
tilok singh says
My jeevan varshaplan completed in September 2017 and maturity on March 2018.my yearly instalment is 15828.my plan for 9 year. How many final rate I claim March 18.
Murali says
How will i get at the end of the 9 years if my annual premium is 47564. paid in the year 2009.
Murali says
How will i get at the end of the 9 years if my annual premium is 47564. paid in the year 2009.
Ranjana Kanungo says
i have taken jeevan varsha in 2008.when i will get 2nd money back.??
Ranjana Kanungo says
i have taken jeevan varsha in 2008.when i will get 2nd money back.??
Shanker says
I am having a policy of Jeevan Varsha with an annual premium of INR 15985/- Date of commencement is 31/03/2009. I have paid all instalments till 28/03/2014. My next premium due date is 28/03/2015. If want to surrender this policy how much will I get back. Will it be a loss for me? Also appreciate if you could provide me your email id so that i can send you my other policy details and their doubts.
Shanker says
I am having a policy of Jeevan Varsha with an annual premium of INR 15985/- Date of commencement is 31/03/2009. I have paid all instalments till 28/03/2014. My next premium due date is 28/03/2015. If want to surrender this policy how much will I get back. Will it be a loss for me? Also appreciate if you could provide me your email id so that i can send you my other policy details and their doubts.
srinivas says
You will incur a loss if you surrender. I presume that Premium payment term is 9 years . Complete this and take a loan under the policy.You can also pay for 8 years and allow the 9th year premium to be adjusted against the return from Lic at the end of 9th year. Then take a loan and wait it out for 3 years to get the balance money at maturity to avoid any loss and gain the full benefits under the policy.
Tej says
Hi Mohan,
Premium mentioned here 15720/= is before tax benefit? If I will add tax benefit (30%) then premium is only 11004/=
Regards
Tej
Tej says
Hi Mohan,
Premium mentioned here 15720/= is before tax benefit? If I will add tax benefit (30%) then premium is only 11004/=
Regards
Tej
wing team says
Do you mind if I quote a few of your posts as long as I provide credit and sources back to your blog?
My blog site is in the very same niche as yours and my users
would definitely benefit from a lot of the information you present here.
Please let me know if this ok with you. Cheers!
Mohan says
As long as you can quote no more than a line with proper linking to my site should be fine. But if you are scraping the whole article, a strict NO. Also, if you do blatant copy paste, you will be punished by google wrt site ranking in search albeit few lines as is from my blog.
mukesh says
i have taken jeevan varsha in 2009.when i will get 2nd money back.??
mukesh says
i have taken jeevan varsha in 2009.when i will get 2nd money back.??
vivek says
2012 you will get first
20015 second
g.sreenivasulu says
I took jeevan varsha policy for five lakhs. I paid fi’ve annual premiums. Now I would like to surrender the policy due to money requirement. Whether taking loan or surrender the policy which is best. Please guide me sir.
g.sreenivasulu says
I took jeevan varsha policy for five lakhs. I paid fi’ve annual premiums. Now I would like to surrender the policy due to money requirement. Whether taking loan or surrender the policy which is best. Please guide me sir.
g.sreenivasulu says
Sir,
I took jeevan varhsa policy for 5 lakh. I paid 5 annual premiums so far. Now I would like surrender policy due to money requirement. How much could I get or taking loan. Which is wise decision.please
Guide me.
Amruta Shewale says
hi,
i hd taken lic profit plus policy growth plan 188 in 2009. i hv paid annual premium of rs.10000/- for 5 yrs. at the end of 5 yrs i can quit the policy..but the nav is very low..i.e around 11.70..pls help me..wat shud i do now..are there any surrender charges.if i quit now..i m worried whether i wil get my atleast rs.50000/- invested. pls reply asap..
Amruta Shewale says
hi,
i hd taken lic profit plus policy growth plan 188 in 2009. i hv paid annual premium of rs.10000/- for 5 yrs. at the end of 5 yrs i can quit the policy..but the nav is very low..i.e around 11.70..pls help me..wat shud i do now..are there any surrender charges.if i quit now..i m worried whether i wil get my atleast rs.50000/- invested. pls reply asap..
Florentina says
Hi, I do believe this is a great blog. I stumbledupon it 😉 I’m going to come back once again since I book-marked it. Money and freedom is the best way to change, may you be rich and continue to guide other people.
Bhaskar says
Bank FD will return the invested amount with accrued interest on maturity; but in case of an unfortunate incident, nominee gets at least Rs.1,00,000/- only from the 6th Year onwards.
LIC JV will not only return the invested amount with accrued interest on maturity; but in case of an unfortunate incident, nominee gets at least Rs.1,00,000/- during the entire policy period.
Hence, pls do not compare only the Money value in returns; think about how comfortable our family can still remain even if e are not there !
Bhaskar says
Bank FD will return the invested amount with accrued interest on maturity; but in case of an unfortunate incident, nominee gets at least Rs.1,00,000/- only from the 6th Year onwards.
LIC JV will not only return the invested amount with accrued interest on maturity; but in case of an unfortunate incident, nominee gets at least Rs.1,00,000/- during the entire policy period.
Hence, pls do not compare only the Money value in returns; think about how comfortable our family can still remain even if e are not there !
Mohan says
The plan was open for purchase from 16th February, 2009 to 31st March, 2009 only! you can’t buy it now.
HM Shaik Jalal says
pls detail need jeevan varsha policy
i am shaik jalal from chennai
i have one policy in my wife name
i need one more jeevan varsha
Mohan says
The plan was open for purchase from 16th February, 2009 to 31st March, 2009 only! you can’t buy it now.
Saravanan says
Hi!I have enroll a Every 3 years Money back policy in 2009 but still i didn’t got the first money back from LIC.. Can any one help to retrieve this problem. What should i want to do..
Saravanan says
Hi!I have enroll a Every 3 years Money back policy in 2009 but still i didn’t got the first money back from LIC.. Can any one help to retrieve this problem. What should i want to do..
Subash Singh says
I took 9 years jiwan varsha policy on February 28, 2009 (Money back) amounting to Rs.100000. In this I pay Rs. 15700/ annum. As per policy the LIC will recieve an amount of Rs.141480/ upto 9 years. But still i am in doubt what benefit I will get besides this paid amount from my own pocket.
Subash Singh says
I took 9 years jiwan varsha policy on February 28, 2009 (Money back) amounting to Rs.100000. In this I pay Rs. 15700/ annum. As per policy the LIC will recieve an amount of Rs.141480/ upto 9 years. But still i am in doubt what benefit I will get besides this paid amount from my own pocket.
P Shrivastava says
I have taken a jeevan varsha polciy on 22/03/2009 is the first premium date , sum of 100000.00 of 9 years and when I will get Rs. 15000.00 in 3rd year can you give the approximate date of the same .
thanks
P Shrivastava
Didar says
hello mohan .
I HAVE lc policy name jeevan varsha for 9 years .
total amout = 50000 , yearly premium – 8210.00 .
date of commencement = 28/03/2009 .
i want to know that what benefit i got after maturity of my policy .
vikram says
my father (age=62 years) has invested in lic jeevan varsha (sum assured=200000) he paid premium of 35000 in april 2009 how can he get out of this policy now what will he get back if he stops future premiums.
rah says
Thanks for your prompt reply. Let me give the policy details, may be beneficial for people who don’t really read the policy document before taking the policy. Like the way I did 5 years back , believing few statistics & photostats from the agent. Policy sum assured is :5Lakh, Yearly premium is 50,324, start date-Dec2004, date of last payment is sep 2014, maturity is Dec 2019.The benefits as per policy are as per policy document are as follows:-
1)sum assured 5 lakhs- hmmm which is nothing but the money I paid as premium.
2)Accident benefit of 5 Lakhs
3)Rs 50 per sum assured for each years premium paid for first 5yrs
4)Participation profit-Which is something vaguely described as “after completion of 5yrs the policy shall participate in profits of the “with profit assurance policies” at such rate as may be declared by the corporation.
Not sure of what the hell corporation decides, again there is no guarantee..hmmm
thats it, I paid 3 years premium and I stand to loose more than a years premium if I surrender the policy now as per the LIC official. I stand cheated as the agent told after 3yrs anytime u can surrender the policy, you will get the complete paid premium + interest. Now that’s my mistake that I didn’t properly enquire about the policy or read the document before signing the first premium amount. Anyways it happened during the early part of my career thought LIC was the best means to save money, actually my mom said so :). I have decided to surrender the policy. Ready to forget a years premium, may be a penalty to my foolishness. Reasons for making this decision:-
1)There is no real good benefit of continuing this policy, only the dent in my pocket will increase. 4150 per month, I can put that money in SIP and reap better rewards.
2)To restart the policy I ahve to pay 2yrs premium with penalty charges & interest.
3)I don’t like LIC any more, after talking to the official 1year back I felt cheated and dejected.
4)Lesson I learned that insurance is not investment.
5)The money I get, a little more than a lakh can be put in equity, and hope for the best :). A risky decison, but get some thrill of direct investment in stocks.
Comments are welcome!!
cheers
rahchand
Mohan says
Ah! sorry to hear that. You have set a true example for what to look in for before taking up any insurance or investment plan. I feel you have taken the right step. Go for term insurance to ensure the right cover on life at the lowest premium while the rest can go to investment to gain the best. I will quote your story as a case study in one of my future articles to re-iterate that “investment and insurance should never be combined in a single plan”.
rah says
Hi Mohan/Fellow investors
I did a mistake 5years back by investing in Jeevan Shree 1. My annual premium was close to 53k. I paid premium for 3 yrs, later I realized the mistake. I shouldn’t hae combined insurance & investment. When I went to cancel the policy, the agent told I will loose almost 56K, from the total premium I paid. I was depressed, they are deducting(35%) the money I paid forget the interest or returns. The money is idle there and now I have to decide whether to continue this policy by paying penalty and interest for breaking the policy or withdraw whatever money is there and close the account. Whats your opinion.
Thanks & regards
Rahchand
Mohan says
Dear Rah, there is no straight answer to your question. I suggest you do a complete end to end analysis of what is the benefit if you continue to hold this policy by paying regular premiums against exiting right away. Consider your other financial planning aspects as well in to account before coming to a conclusion. Feel free to share your thoughts once you make up your mind. Probably, people here will be able to tell you whether you are analysing in the right direction or not.
manish says
i did not understand pls make me understand this policy
sharadhakvreddy says
i am an insurance adviser with max new york life insurance and bajaj allianz lfe insurance
if u anybody seriously interested in insurance investments, feel free to post your queries.
manish says
pahle policy hoti thi ki 2000000 laga kar 2000000 twenty years me le le.
ab aisi konsi policy hai
Jeevitha R says
can you suggest me is investing in gold is profitable with small amount (say Rs 5000).
Sandeep says
Mohan that what I am asking to you what will happen to CP_MB after 6 month that is 81480 at the end of 6 year and after cutting 60000 (60 % SA) remaing amt is 21480. Will there is no account for this amount.
vinod says
Hey Mohan,
Lately am thinking of investing money in something (not in shares) like SBI ULIP, where i can expect high returns. Can you pls. recommend anything for me.
Thanks,
Vinod
Mohan says
@Sandeep
You got it wrong. It will be 118500 + money returned during 3rd and 6th year which amounts to 40000. So, the final would be 158500. Check the calculations above to get a better understanding.
Sandeep says
Mohan, Please correct me if I am wrong Total Amount pay back by LIC will be (118500 + 81480 = 239980) (60% of SA + GA + Balance of CP_MB)