LIC Jeevan Vriddhi : Life Cover & Maturity Gains

LIC's Jeevan Vriddhi is a single premium policy with a ten  year term that offers guaranteed returns on maturity. The guaranteed additions are determined by the age of the policyholder &  the amount of single premium paid. The death benefit in this scheme is equivalent to 5  times the amount of premium paid.

Key Features of Jeevan Vriddhi ..!

The guaranteed maturity benefit ranges from 4.70% to 7.09% Compounded Annual Growth Rate (CAGR ) for a period of ten years.  The same is determined by the age of the policyholder at the time of investing from eight years to 50 years.

However, in the case of single premium payments above one lakh, there is an increase of about 0.46% CAGR in the guaranteed maturity benefit. For single premium payments between Rs. 50,000 and up to Rs. 1 lakh, the increase in guaranteed maturity benefit is about 0.20% CAGR for a period of ten years.
Surrender Value: Minimum guaranteed surrender value is 90% of the amount of the single premium.

Assuming a single premium payment of Rs. 1 Lakh  for a policy term of ten years, the comparative analysis of the maturity proceeds that will accrue to various age groups from LIC Jeevan Vriddhi vis à vis a similar investment made in a bank fixed deposit (net of term plan premium to ensure life cover &  taxes) is illustrated herewith.

Investors who don't currently have a term plan &  are looking out for a comprehensive investment cum insurance plan can consider LIC's Jeevan Vriddhi. As compared to the highest returns currently offered by a bank FD (9.25% by a PSU bank  for ten years), Jeevan Vriddhi offers better gains on maturity if one were to adjust the bank fixed deposit's returns for premium paid for term plan &  income tax at the highest tax slab

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