Money Excel - Personal Finance Blog

Menu
MENUMENU
MENUMENU
  • Home
  • Business Ideas
    • 225 Small Business Ideas
    • 40 Online Business Ideas
    • 20 Business Ideas for Beginners
    • 20 small manufacturing business
    • 30 Food Business Ideas
    • 100 Business Ideas low investment
  • Stock Market
    • Best Demat & Trading Accounts 2021
    • Best Virtual Trading Apps
    • Best Stock Screener
    • Best Discount Brokers in India
    • Multibagger Stocks of LockDown
    • Rakesh Jhunjhunwala Portfolio
  • Mutual Funds
    • Best Mutual Funds 2021-22
    • Best Direct Mutual Fund Platform
    • Best Mutual Fund Mobile Apps
  • Incometax
    • Income Tax Calculator FY 2020-21
    • Latest Income Tax Slab FY 2021-22
    • Income Tax Refund Request
    • Pay Advance Tax Online
    • Download New 15G -15 H Forms
  • Investment
    • Best Investment Options 2021
    • Long Term Investment Options
    • Best Investment Regular Income
    • Best Investment Options NRI
  • Credit Card
    • Best Credit Cards 2021-22
    • Best credit card for online shopping
    • Best Forex Card in India
    • Best Business Credit Cards
    • Credit Cards against Fixed Deposit
  • Insurance
    • Best Term Insurance Plans 2021
    • Best Health Insurance 2021
    • Best LIC Policy 2021
    • Best Car Insurance Companies
    • Best Mobile Insurance Companies
  • Downloads
Home
Insurance
LIC Jeevan Vaibhav Review – Think Twice

LIC Jeevan Vaibhav Review – Think Twice

Shitanshu Kapadia August 29, 2020

LIC Jeevan Vaibhav
Country’s largest insurer Life Insurance Corporation of India (LIC) has launched a non unit-linked single premium product Jeevan Vaibhav with minimum premium of about 95,000 Rs/-.

LIC’s Jeevan Vaibhav is a close-ended single premium endowment assurance plan which offers guaranteed benefits on death and maturity along with Loyalty Addition, if any, payable on maturity or on death in the last policy year. The plan would be available for a limited period only up to a maximum of 120 days.

Benefits of Jeevan Vaibhav Plan:-

a) Death Benefit:

Do not miss below posts -
  • LIC Bima Shree (Plan 848) – Key Features, Benefits & …
  • IRDA Claim Settlement Ratio 2017-18 – 10 Best Life Insurance …
  • How to check LIC policy status Online,SMS & Phone

On death during the policy term, excluding last policy year: Sum Assured shall be payable.

On death during last policy year: Sum Assured along with loyalty addition, if any shall be payable.

b) Maturity Benefit:

On maturity, Sum Assured along with Loyalty Addition, if any, shall be payable.

c) Loyalty Addition:

This policy will be eligible for Loyalty Addition on date of maturity, rates and other terms will be declared by the Corporation.

d) High Sum assurance rebate:

Sum Assured Rebate (Rs.) Amount (Rs.)
Up   to 3, 90,000 Nil Nil
4,   00,000 to 5, 90,000 2.00   %o S.A. 8000   Rs/- to 11800 Rs/-
6,   00,000 and above 3.00 %o S.A. 18000 Rs/-

e) Loan facility:

Loan facility will be available under this plan, after completion of one policy year.

Eligibility:-

The minimum age at entry for the plan is 8 years while the maximum is 65 years. The minimum premium under the policy is Rs 95,210 with no upper limit. Policy term will be 10 years and Maturity amount will be approximately double than premium paying amount.

Review Returns:-

Annualized return and premium amount including service tax is as under

LIC Jeevan Vaibhav ReturnsSo, overall this policy also gives same type of return 6-7.5 % like most of endowment plan. If you think from return prospective it is not advisable to purchase this policy, Mutual funds or even FD for 10 year can give even more return compare to Jeevan Vaibhav plan.

Risk cover:-

Risk cover by Jeevan Vaibhav policy is just two times of premium paid which may not be sufficient considering your income. It is not advisable to purchase this policy for risk cover Term plan is more suitable option for risk cover.

Tax prospective:-

If you look at this policy from tax prospective, it lacks the current Budget modifications. As per current provision to avail deduction under section 80C your premium should 10% of SA. This policy does not fit in this if you opt for Rs.1000000 SA then your premium should be within Rs.100000 which is not possible from this policy.

So if you are planning to purchase this policy from tax saving don’t purchase this plan.

Catch points:-

(1)   This plan is giving you returns between the range 6-7.5 % No Tax benefit under sec 80C.

(2)   Currently when Bank tax saving FDs are giving 9.5-9.75% tax free returns and 80C rebate is also available, I don’t feel LIC Jeevan Vaibhav is a good plan.

(3)   The term for this plan is also fixed for 10 years. If you buy this policy for risk cover you have to again buy another insurance plan after 10 years to cover yourself, at that time it will cost you a fortune.

(4)   With current inflation index this product may not beat inflation.

(5)   As you will be investing all money at single go for 10 years you may lose opportunity to invest in some better financial product may come during this time period.

Over all this policy don’t provide you enough risk cover, return and tax benefit. Think twice before purchasing this policy.

I hope I have empowered you with enough calculations, reasons to invest or reject LIC Jeevan Vaibhav. Now better take informed decision and that too for the betterment of your finances.

If you have any questions related to LIC Jeevan Vaibhav or any other life insurance policy – feel free to add it in comment section.

Tweet
Share
Whatsapp
Pinterest
Prev Article
Next Article
Tags:Jeevan Vaibhav LIC

About The Author

Shitanshu Kapadia

Hi, I am Shitanshu. By Profession I am Engineer and working in the IT field. I am crazy about Finance and like to research on financial matters. I have written 80+ article on this blog. If you like my efforts kindly subscribe to this blog and also let your friends know about this website by sharing.

14 Comments

  1. Viraj Gulati

    On maturity after 10 years, will the maturity proceeds be taxable in LIC Jeevan Vaibhav ?
    thanks.

    May 28, 2012
  2. Shitanshu

    Yes Maturity amount is taxable in LIC Jeevan Vaibhav.Effective return will be even less than 7%.

    May 29, 2012
  3. krishku

    Mutual funds for 10 years giving more returns?????How many mutual funds have delivered decent returns???

    May 31, 2012
  4. Shitanshu

    Many mutual funds have given more than 10% return in past 10 years. Some of them are:-

    (1) Franklin Templeton Franklin India Bluechip -25.86 %
    (2) HDFC Top 200 – 28.87 %
    (3) DSP BlackRock Equity -26.81 %
    (4) HDFC Equity -28.16 %

    June 1, 2012
  5. Ananth Padmanabh

    Even Bank interest is also taxable. with that in mind, 8.6% interest by Jeevan Vaibhav with insurance coverage seems to be good though not best. But definitely not bad.

    June 1, 2012
  6. Shitanshu

    Dear Ananth,

    Post Tax return will be 5.95% (Highest Tax Slab:-30%).

    If your risk appetite is low, you have adequate protection cover & you are not falling under Income Tax or come under lower tax slab you may go for this plan.

    June 1, 2012
  7. prakash

    Read IT provisions of 80C. There is tax rebate limited to the 10% of the sum assured if premium is more than that. Tax benefit is not zero.

    June 1, 2012
  8. Rakesh

    As per budget provision 2012, Deduction u/s 80C in respect of life insurance policy issued on or after 01-04-2012 not to be allowed if premium is in excess of 10% of the actual capital sum assured.

    June 2, 2012
  9. Murali

    Where is the tax free returns on bank accounts and 80C section.. can you pl clarify

    July 7, 2012
  10. Panna Kapadia

    Intrest Earn up to 10000 Rs/- from saving bank account is tax free.Fix deposit taken for 5 year is also one way to save tax under 80C.

    July 7, 2012
  11. Somnath Bodhak

    This policy is good for nothing, except risk cover.

    July 17, 2012
  12. Richard C

    Is the Maturity proceeds taxable ? Usually Insurance Products have their maturity proceeds tax free under section 10 D. Can we get this benefit?.

    August 11, 2012
  13. Strategic Growth

    Dear Richard,

    No, Maturity amount under this policy is tax free as per current income tax law.

    This benefit may be removed in Direct tax code.

    August 13, 2012
  14. Kartick V Bhat

    very valid info ….

    September 12, 2012

Leave a Reply Cancel Reply

Search

Top Posts & Pages

  • Income Tax Calculator FY 2020-21 (AY 2021-22) – Excel Download
  • Rakesh Jhunjhunwala Portfolio Holdings - March 2021
  • 20 small manufacturing business ideas with low cost
  • Download Income Tax Calculator FY 2021-22 (AY 2022-23)
  • Cash Deposit Machine Locator – How to find CDM Near You?
  • How to check Property Records and Land Records online in India?
  • 235 Small Business Ideas with Low Investment in 2021-22
  • LIC Premium Paid Certificate Download For Income Tax Purpose - Online
  • 30 Food Business Ideas with low investment
  • 10 Best Small Trading Business Ideas

Subscribe to Blog via Email

Join 5,474 other subscribers

Follow MoneyExcel

Money Excel – Personal Finance Blog

Personal Finance Blog
Copyright © 2021 Money Excel - Personal Finance Blog
| About |Downloads | Contact Us | Sitemap | Disclaimer | Privacy Policy |