LIC · InvestmentExisting policyDecodedWrong category?

Jeevan Anand (Plan 915)

Life Insurance Corporation of India · Complete policy analysis before you rely on it.

lic-jeevan-anand-915-policy.pdf·2200 KB

What you really own

This is a traditional LIC endowment-cum-whole-life plan. You're paying ₹38,500/year for 25 years (₹9.6L total) and will receive ~₹16–18L at maturity, plus whole-life death cover of ₹10L afterwards. IRR works out to ~4.5–5% — lower than a PPF, much lower than an index fund. Liquidity is tight: surrendering in the early years returns very little. Decision frame: if you value guaranteed corpus + life cover and are OK with low returns, keep it. If you're optimising for returns, term + equity SIP beats this badly.

Clarity score

36
/100

Confusing

Lower means heavier fine print and more room for claim-day surprises.

Sum assured

₹10.0 L

₹10,00,000

Annual premium

₹39K

Maturity date

14 April 2050

2050

Life insured

1

under this policy

Investment verdict

Poor investment return

Below inflation-adjusted alternatives

Not worth it for returns

You'll pay in

₹9.6 L

25 years × ₹39K

You'll get out

₹17.0 L

@ est. 5% IRR

Nifty 50 SIP

₹48.9 L

same ₹ at 11% / yr

PPF (govt. safe)

₹26.5 L

same ₹ at 7.1% / yr

Math summary. Over 25 years you pay ₹9,62,500. The policy is projected to return about ₹17.0 L — an internal rate of return of roughly 5%. The same premium into a Nifty 50 index SIP at historical returns would likely grow to ₹48.9 L — that's an opportunity cost of ~₹31.9 L.

Benchmarks are illustrative long-run averages (Nifty 50 ~11%, PPF ~7.1%). Actual returns vary. Not investment advice.

Breakdown

What you get, what you don't

Top covered items vs common exclusions, straight from the policy schedule.

The good

What this policy covers

4
  • Sum assured of ₹10,00,000 payable on death during the paying term
  • Maturity benefit at end of 25 years: sum assured + accumulated reversionary bonus + final additional bonus
  • Whole-life death cover after maturity — ₹10L paid to nominee whenever insured passes
  • Loan against policy after 3 full years of premiums — up to 90% of surrender value

The gaps

What it doesn't cover

3
  • Suicide within 12 months of start or revival — 80% of premiums paid refunded
  • Non-disclosure of medical history — classic LIC rejection reason
  • Death from self-inflicted injury, hazardous pursuits, war (for some variants)

Catches

What to watch for

Clauses most likely to surprise you on claim day.

High

IRR of ~4.5–5% is below inflation-adjusted alternatives

After 25 years, the real (inflation-adjusted) return on this plan is close to zero. A term plan + PPF + index SIP combination typically produces 2–3× the final corpus.

High

Illiquid in early years

Stopping premiums in the first 2 years means losing everything you paid. Between years 3–10, surrender value is ~30–50% of premium — a real financial penalty.

Watch

Bundling insurance + investment costs you both ways

You pay more for less cover (vs term) and get worse returns (vs equity). Unbundling — buy term separately, invest the difference — is mathematically dominant in almost every scenario.

The fine print

Rules that change real outcomes

Room rules, co-pay and restoration shape claims more than headline cover.

Surrender value
Surrender value: roughly 30–40% of premiums paid in years 2–3, gradually rising to near-100% near maturity. Early surrender is a financial mistake.
Profit-share basis
Not applicable. But note: LIC's profit share (bonus) is discretionary and declared annually — it's not guaranteed.
Bonus / Loyalty addition
Reversionary bonus compounds annually — but at rates (usually 4–5% of sum assured) that don't keep pace with inflation or equity returns.
Revival · surrender · suicide
Suicide clause — 12 months
Surrender value builds only after 2 full policy years; before that, surrender = ₹0
Revival window — 5 years from the first missed premium

Insured & nominee

Life insured and nominee

Akhil

Life insured · 32

Try it on yours

This was a sample. Decode your own document in under a minute.

Same breakdown, on your actual policy, offer letter, NDA or agreement. Your file is private to your account; only the extracted text is analyzed.

Premium is ₹999 for 1 year. No auto-renewal.