Jeevan Aastha is the new insurance policy by LIC (Life Insurance Corporation of India) that is being much talked about offlate. I went through LIC’s website to understand the product better.
Before taking up the policy, there are a couple of things one should keep in mind. 
One should clearly understand the difference between Basic Sum Assured and Maturity Sum Assured. For this policy, Basic Sum Assured is 6 times the Maturity Sum Assured. Also, it may be noted that Basic Sum Assured is applicable for the first year of the policy. Apart from these two terms, there is also ‘Guaranteed Return‘ in case of death or policy maturity upon survival. LIC has put up benefit illustation details as well. Let us understand what this means in lay man terms with respect to what is good and what is not.
First the Good:
1. Tax benefit under Sec 80C on initial premium.
2. Maturity benefit is non taxable under Sec 10(10D)
3. On death during the first policy year.
4. Guaranteed Addition at two rates for 5 and 10 year terms.
5. Loyalty Addition – a variable component based on company performance.Keeping aside LIC’s service quality and track record in claim settlement, here comes the bad:
1. Guaranteed additions are not on the Basic sum but on the Maturity Sum assured.
2. Insurance benefit decreases drastically after first year.
3. This policy looks like more of an Investment scheme than an Insurance cover.Now lets see the returns of Jeevan Aastha in comparison with Fixed Deposits and PPF.
Plan (for an individual of 31 yrs) Investment
AmountReturn Amount Risk on 10th year 10th year on maturity LIC’s Jeevan Aastha 53,625 1,65,000 1,07,184 Fixed Deposit 53,625 1,05,814 1,15,338 Public Provident Fund (PPF) 53,625 1,01,525 1,10,155
Disclaimer: I am neither an insurance agent nor an investments advisor. All the info provided in this article is based on my understanding of the policy after going through LIC’s website.
naveen kumar says
i have invested 24787 in 2009 maturity time 10 years how much iam going to get can you give any calculation.
naveen kumar says
i have invested 24787 in 2009 maturity time 10 years how much iam going to get can you give any calculation.
Vinod Lasod says
I received Rs. 50625 three days back (Monday)
RAVINDRAN NV says
I have invested 24772 on 2009 & policy term is 10 YRS and SA is 1.5 L Jeevan Aastha. But After 10 years, I am getting a letter from LIC saying, submit the bond and other proof to collect your 50000 rupees. Now no one is explaining the calculation, asking me to check the rules and regulation specified in Bond. Waste of time and money. I lost hope on these plans.
Mihit says
Hi Mohan,
I have invested 24772 on 2009 & policy term is 10 YRS. What will be my return. SA is 1.5 L.
Can you please even let me know how are you calculating it. As in LIC website it says there won’t be any rebate for customer whose SA < 3L.
Thanks
Mohan says
There are multiple factors Mihit including your age and the amount associated. My suggestion is to reach out to LIC customer care to understand the return accurately.
Mihit says
Hi Mohan,
I have invested 24772 on 2009 & policy term is 10 YRS. What will be my return. SA is 1.5 L.
Can you please even let me know how are you calculating it. As in LIC website it says there won’t be any rebate for customer whose SA < 3L.
Thanks
Mohan says
There are multiple factors Mihit including your age and the amount associated. My suggestion is to reach out to LIC customer care to understand the return accurately.
Manisha ashok yadav says
My single premium was 24772 on dated26 Dec2008 for 10yrs .what will be my maturity amount?
Manisha ashok yadav says
My single premium was 24772 on dated26 Dec2008 for 10yrs .what will be my maturity amount?
Jyoti Sankar Das says
I invested 25192 Rs on 12/2008 what will be the return now.
Jyoti Sankar Das says
I invested 25192 Rs on 12/2008 what will be the return now.
MKS says
I have paid a single premium of Rs 26197 for Jeevan Aastha in Jan 2009. The sum assured is Rs 150000 and policy term is 5 years. The total amount received after 5 years maturity is rs 36350 only. is this the correct value? Kindly clarify
Krishna Soni says
Hello MkS,
U will get 36350+ LA
Vinay says
Hi Mohan Ji,
I baught LIC Jeevan Aastha with maturity sum of Rs. 100000/- and the term is 10 year. But after 5 year now I want to surrender this policy. Can I come to know that how much will be the surrender value.
Regards
Vinay
Vinay says
Hi Mohan Ji,
I baught LIC Jeevan Aastha with maturity sum of Rs. 100000/- and the term is 10 year. But after 5 year now I want to surrender this policy. Can I come to know that how much will be the surrender value.
Regards
Vinay
Sandeep says
Where to get the present share value of jeevan astha.
Harish says
We all Indians should stop investing in LIC first of all. They talk about risk coverage. Whatever the extra amount we pay as part of our premium they use it for insurance with understanding with health insurance companies. LIC give benefits only if you die to the people who are dependent on you. PPF, NSC, RD or other post office deposits are much more better than LIC. and also now a days there are lot of medical insurance policies are offerred from others SBI, HDFC etc we can go for that. Why to stick on to LIC….LIC is outdated and their business is outdated. it does not suite to the current INDIA. It was fine for our fathers and fore fathers who did not have any knowledge on financial savings they blindly going there. Even now being educated we are going to LIC. It should be stopped immediately by all young indians.
Harish says
We all Indians should stop investing in LIC first of all. They talk about risk coverage. Whatever the extra amount we pay as part of our premium they use it for insurance with understanding with health insurance companies. LIC give benefits only if you die to the people who are dependent on you. PPF, NSC, RD or other post office deposits are much more better than LIC. and also now a days there are lot of medical insurance policies are offerred from others SBI, HDFC etc we can go for that. Why to stick on to LIC….LIC is outdated and their business is outdated. it does not suite to the current INDIA. It was fine for our fathers and fore fathers who did not have any knowledge on financial savings they blindly going there. Even now being educated we are going to LIC. It should be stopped immediately by all young indians.
Hoysala says
kindly revert me details of LIC Jeevan Anand please
vikram gajjar says
dear mr mohan
i am impressed by your blog.
i am a nri and have never purchased insurance from lic or other india based insurance company
i have crossed age of 60 and am considering to retier in india and would like to purchase health insurance with all possible hospitalisation benifit etc.
can you propose me a good scheme for insurance of 10 lac.
i will be locating in baroda/gujrat.
you may forward me the contact of any honest and reliable agent in baroda
regards
vikram
Nitesh Kumar says
Sir I have surrendered my LIC’s Money Plus policy plan no. 180 after completed 5th year in march 2012, i have deposited Rs. 10000 yearly for 5 years i.e. Rs.50000 and I have received Rs.51000 on prematured. So I want to know that is Money Plus policy prematured amount is exempt from Income Tax and is covered u/s 10(10d) and should i show this amount in income tax return in A.y. 2012-13 for Rs.51000 or only Rs.1000. so please reply me as early as possible so i can submit my Income Tax Return.
Thanks and Regard
Nitesh Kumar
Nitesh Kumar says
Sir I have surrendered my LIC’s Money Plus policy plan no. 180 after completed 5th year in march 2012, i have deposited Rs. 10000 yearly for 5 years i.e. Rs.50000 and I have received Rs.51000 on prematured. So I want to know that is Money Plus policy prematured amount is exempt from Income Tax and is covered u/s 10(10d) and should i show this amount in income tax return in A.y. 2012-13 for Rs.51000 or only Rs.1000. so please reply me as early as possible so i can submit my Income Tax Return.
Thanks and Regard
Nitesh Kumar
baladjy N says
I have took Jeevan Astha Policy in 2008 that is 01.08.2008. My agent told me that you will be getting double the amount at the end of 5th year. I invested Rs.25000/- then what will be the maturity value at the end of 5th year.
ajay says
i have jeewan astha policy of lic.i am paid single prem.26625for 5yrs plan.i’m want to surrender after two yrs. What value i get
ajay says
i have jeewan astha policy of lic.i am paid single prem.26625for 5yrs plan.i’m want to surrender after two yrs. What value i get
pragya says
i have taken jeevan astha in 2008 can you please tell me what are the benefits i am eligible for
DP says
Hi I am having two LIC Money Plus TN 180 policies of 25K and 10 K each. I have started this in the year 2007, I am wondering if its worth to retain this policy. I have the same query for one more of my LIC policy which is Jeevan Anand TN 149 of worth 500,000 with a premium of 34801 for 20 years, the accrued bonus so far is close to 1lac. I don’t see any great returns from these policies. please suggest.
DP says
Hi I am having two LIC Money Plus TN 180 policies of 25K and 10 K each. I have started this in the year 2007, I am wondering if its worth to retain this policy. I have the same query for one more of my LIC policy which is Jeevan Anand TN 149 of worth 500,000 with a premium of 34801 for 20 years, the accrued bonus so far is close to 1lac. I don’t see any great returns from these policies. please suggest.
Saurabh says
First thing is that Jeevan Aanand is not about the investment it is a life insurence policy. I have the same policy.I feel it is a good policy and every one should get such one policy.Good thing is that
you will have a life insurence for the rest of the life even after termination of policy.
In case of death by accident (subject to an age limit of 70 years), the policy holder can get an additional sum assured upto Rs 500,000. In case of permanent disability of the policy holder (due to accident), the additional sum assured is payable in instalments.
I can understand that returns are very attractive,but it is covering our life risk.There should not be more than 1 such policy. 🙂
Sukanta Das says
I need advice on investment. I have Rs. 80,000/- which I want to invest some where as a one time premium for 5 years. If liquidity is possible that would be great. Please suggest a plan where I can get the best return. I heard about ICICI RGF, as per the representative I can take plan for minimum Rs. 40000/- as an one time payment for 5 yrs term. They will assure 14% NAV guaranted and current NAV value is 20%. Please suggest if this is good or any other plan.
Joy says
Dear sir,
I have an endowment policy for 25 yrs, and premium of 26630/- yrly. So far I have paid just 1 premium, and its not even 6 months, since i have started. I want to get rid of this policy. I want to know if that is somehow possible before 3 yrs. I have heard that i can even sell my policy, but i have no idea where and how to do that, and if there are any losses. Please send me some information on this.
regards
Joy
Vashi says
Hi,
Excellent website for the people who want to know more info about lic plans. Great efforts.
Vashi says
Hi,
Excellent website for the people who want to know more info about lic plans. Great efforts.
Rahil says
Hello to all the viewers well as u people know that LIC is one of the best Insurance company but u might be wrong well i have sufferd bcoz of LIC we made 8 polocies = Market plus one growth & in that 8 1 has some mistake & we made all this polices in 2009 last year, we got some money frm LIC bcoz of my Father expired so we made that & i was roamming around the office all this 11 mnths but thy have not yet rectified so pls think before you invest ok plS LIC IS VERY IRR-RESPONSIABLE SO THINK BEFORE U MAKE ANY INVESTMENT.
vijay kaushal says
Sir\Madam, I am lic holder. But i need for some info for lic money plus plan 180 please this is right pay 30,000 for 3 years and after 20 years you get 16 lakes please clarify .
vijay kaushal says
Sir\Madam, I am lic holder. But i need for some info for lic money plus plan 180 please this is right pay 30,000 for 3 years and after 20 years you get 16 lakes please clarify .
S Nayak says
Dear Mr Mohan,
First of all,this is a great blog for people to clear their doubts and put their minds to rest. Great job!
I have taken Jeevan Asta policy for 5 years with single premium of 300411.00.My maturity sum assured on the policy says 290000. Shouldn’t maturity sum assured say 300411+290000= 590411. Also, is this tax free?
Regards,
Sharad
banu says
hello,The new jeevan astha policy announced in Oman for a period of 2 months now in Feb—– how good is it?How does it compare with the earlier jeevan astha policy?
Mohan says
Hi Banu, I am not aware of the Jeevan Aastha being offered in Oman. This article is about the LIC plan in INDIA. Please go through the policy details and compare yourself.
Nazar says
Sir, I would like to know about money plus (lic). I investing 10000 rupees every year.
Is it good policy? kindly let me know all details
Thanks and regards
Naaz
chandra sekaran says
Mohan
Excellent. Thanks for your effort.
Krishna says
Hello Mohan, Thank you for the reply. I too have one site for financial articles.
Mohan says
You are most welcome! All the best with that.
Krishna says
Hello Mohan, Thank you for the good article. Is the plan not available now? It shows that it is only for the 45 days. Please confirm me. Is there any new policy introduced by LIC?