I woke up this morning to a WhatsApp message from a friend. A terse “Let me know your comments” was added to a PDF of LIC Jeevan Umang and its benefit illustration.
“OK. Here it comes…again.”
I sit down, open the PDF on my computer and start reading through the information. If I decide to take all the information presented as a layman, LIC Jeevan Umang looks like a fantastic proposition.
Here are the key highlights of the plan as offered to my friend.
- Current Age – 29 years
- Policy Term – 71 years (that is till age 100 as is expected for Whole life policies)
- Sum Assured – Rs. 1 crore
- Premium payment term: 15 years
- Year 1 premium: 818,695
- Premium Years 2 to 15: Rs. 801,067
- Assured 8% return on Sum Assured from year 15, that is, Rs. 8 lakh per year till maturity / death
The big pitch of this plan is that the interest rates the world over are reducing significantly (currently 1 to 2%). As India develops further, the interest rates are going to get lower here as well. Hence, why not lock in the assured return of 8% now?
Now, tell me, doesn’t this sound great?
Let’s look at the reality of LIC Jeevan Umang
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