LICs Jeevan Sugam – SIngle Premium March End Dhamaka

As per LICs tradition to launch new products in Feb & March,LIC has come up with a new product LIC Jeevan Sugam.Few days back only LIC was come up with couple of new products Viz.Jeevan Nidhi & Flexi plus & now a single premium plan, Jeevan Sugam.

This is a single premium plan which is available for limited period of 45 days from 25th feb i.e its opening date.

Some Key Features Of LIC’s Jeevan Sugam:

1. Min Age of entry: 08 Yrs completed.
2. Max Age of entry: 45 Yrs .
3. Maturity benefit: Sum Assured + Loyalty additions.
4. Policy term: 10 years.
5. Policy can be surrendered at any time. Guaranteed surrendered value will be 70% if surrendered within first year & it will be 90% if surrendered after one year.

High sum assured benefit:

High sum assured will result in some higher maturity benefits as shown in table below.Please understand it clearly as one may get impression that suppose for S.A of 2 lakh ,there are 3.5% higher returns..but its not the case.

Maturity sum assured	Increase in maturity sum assured
Below 1,50,000/-	Nil
Between 150000 /- – 3,99,999/-	3.50%
Between  4,00000 –above	4.50%

Suppose, any one have opt for sum assured of Rs. 5 lakh then at maturity instead of 5 lakh maturity benefits payable will be:

= 5,00,000 * (1+4.5%)

=5,22,500/-+ loyalty additions .

One should take important note that it doesn’t mean that  returns are 4.5% more for sum assured of 5 lakh in above illustration.

Premium rates Illustration – LIC Jeevan Sugam:

Single Premium payable for LIC Jeevan Sugam will be at following premium rate:

Age	Sum Assured	Premium Payable
10	100000	53,775 + ST
20	100000	55,290 + ST
30	100000	56,265 + ST
40	100000	62935 + ST.

Returns of LIC Jeevan Sugam Plan:

Overall returns will depend on the loyalty benefits awarded at maturity.

Loyality additions are not guaranteed.But we can conclude that returns of LIC Jeevan Sugam will not be more than 6.5 – 7% per annum in case of 30 yr old.

For 40+ year old individuals returns will be much more pathetic.

So as far 80C benefits are concerned,one should prefer to invest in PPF than this plan. Young risk takers can also think for  ELSS schemes as better alternatives.

Link for LIC Jeevan Sugam brochure.

Bottom Line:

Any product you are investing in it should be compatible with your overall saving & investment process.Its meaningless to invest in this plan just because because of safety..rather one should have some concrete plan pointing towards important milestones in the life  & if you think this product have place in your plan then only think to invest in it…isn’t it?