Which is the best policies for Life Insurance and Health Insurance ?

Iam 27 years old and married.I have my father,mother and wife as my dependents and our kids in future.i want to get life insurance for me and Health Insurance for my whole family as they are fully depending upon me.

– I already have Jeevan Anand from LIC
Sum Assured : 5,00,000.00
Policy Term – 74 (Premium payment term – 17)
– i am ready to spent another 20-25 thousand as annual premium for Health and any other good policies.It will be better if its consider as a good investment also.

So please suggest me good policy from LIC and a Health Insurance policy available now.
Your advises will be highly appreciated.

2 Replies to “Which is the best policies for Life Insurance and Health Insurance ?”

  1. Thanks for asking,
    You may have taken LIC policy named JEEVAN SARAL because of
    JEEVAN SARAL is a unique plan having good features of the conventional plans and the flexibility of unit-linked plans. It provides higher cover , smooth returns , liquidity and flexibility.
    For more details you may contact with your trusted advisor.
    And for health insurance you may go with
    happy family floater policy(GOLD PLAN) of oriental insurance company limited.

  2. Ok dude, first of all about your Jeevan Anand policy (table no 149). For your policy paying term of 17 years, at the age of 27 years for sum assured of Rs. 5,00,000/- the annual base premium is Rs. 32,764/-. Let’s round off and consider it to be Rs.32,000/- After 17 yrs you are actually paying Rs. 32,000 x 17 = Rs. 5,44,000/-.What do you get after 17 yrs (i.e your premium paying term), Rs. 5,00,000/- + Bonus + Additional Bonus if any. What do you think, how much will you get as bonus? Read your policy certificate if it says any thing about bonus. Your policy certificate is the only legal document that you can produce before court. The policy will cover you even after your premium paying term (after you got your Sum Assured + Bonus+ Addl. Bonus) till you attend 74 yrs age (your policy term). If the risk happens during this period then Rs. 5,00,000/- is paid to your nominee otherwise nothing will be paid again.

    So this was the calculation for your current policy.

    So, any alternative?

    I think yes. Policy name is Amulya Jeevan of LIC (table no 190). It’s actually a term insurance plan. You don’t get a single penny if the risk doesn’t happens during policy term. Minimum sum assured is Rs. 25,00,000/-. Maximum policy term is 35 yrs.

    For a person of age of 27 yrs, for sum assured of Rs. 25,00,000/- and for a policy term of 35 yrs. you have to pay annual base premium of Rs. 8,150/-. Round off to Rs. 9,000/- per year. How much you save? Rs. 32,000 – 9,000 = Rs. 23,000/-. Now deposit this Rs. 23,000/- to PPF a/c every year.

    So, what will be the balance after 17 yrs, Rs.8,32,839/-, after 20 yrs, Rs.11,36,086/-, after 25 yrs, Rs.18,34,314/-, and after 35 yrs, Rs. 24,78,693/- (A PPF a/c is of 15 yr maturity. After that you have to extend the validity in a block of 5 yrs is very much easy, just like withdrawing money from ATM).

    So, at the end what you get ?

    A cover of Rs. 25,00,000/- from LIC + secured investment avenue giving higher returns them LIC + tax benefit + partial withdrawal facility + loan facility of much higher amount than LIC till 7 th yrs (you don’t draw loan if you are allowed to withdraw your money including interest, will u ? )

    With Jeevan Anand, your agent has got a commission of 25% of the first yrs premium you paid. He will get 7.5% of the premium for the 2nd and 3rd yr and 5% for the remaining premium term.

    If he advices for the Amulya Jeevan of LIC (table no 190), he will get 2% each yr of the premium you pay. Here is the difference.

    Regarding health go for pure health schemes (with out expecting any returns) from any PSU non life insuring body like GIC, NIC, etc.

    Regarding PPF a/c ask from any nationalised banks which provides PPF a/c facility (SBI and lots of others are there including post offices) for official document to verify what I have said above. Only you have to do manual calculation for compound interest or you can use online ppf calculator.

    All the best
    (for any further queries mail me)

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