Limited payment whole life with profit plan (table 5) LIC policy – Review needed

POSTED BY Hvishal ON September 26, 2013 11:30 pm COMMENTS (14)

Hi , Thanks for all your valuable comments. I need your help to understand whether I’m going for right plan.

My LIC agent has suggested me Limited payment whole life with profit plan (table 5). Premium per year is 31000. SA is 9,00,000. Premium paying terms is 20 years. Maturity is at age of 80. Risk cover given is 9 lac from first year and keep on increasing till 71 lac towards the maturity i.e. it increases by 50,000 every year. Maturity benefit is around 71 lac.

Can you please let me know if this is good plan to buy, as risk cover appear to be good. Of course the guaranteed risk cover is 9 lac but including bonuses it goes upto 71 lac. Please help.

14 replies on this article “Limited payment whole life with profit plan (table 5) LIC policy – Review needed”

  1. D says:

    I have a The Whole Life Policy – Limited Payment 5 policy no-443592578 but i seen my policy copy my maturity date is 2019 .please give me information .how many money i have to got.

  2. ashalanshu says:

    Dear Hvishal, is this vehicle insured?



  3. basunivesh says:

    Hvishal-Then I think Ashal will inspire you 🙂 Over to Ashal—–

  4. Hvishal says:

    Hi Ashal
    Yes I do have. Are you trying answer my previous question?

  5. ashalanshu says:

    Dear Hvishal, do you own a vehicle?



  6. Hvishal says:

    Yes Basu. I’ve put same question there as well for you to answer 🙂 I need to understand if not LIC insurance then what are the other options. I don’t want to go for term insurance and already know about PPF. What is the best option considering both insurance and investment as requirement. If you’re going to suggest MF, I’m very new to it so if you can put same relevant link/guide that would help – if at all you’re going to suggest MF. But I’m open to here other options as well from you apart from PPF and FD. Thanks for your help.

  7. basunivesh says:

    Hvishal-The same is discussed in my blog about the doubt you raised above. Also I think Ashal’s reply matches with mine and the link for the same is here.

  8. Hvishal says:

    Hi Ashalansu
    I understand the point you’re coming from but then I request you to suggest more better options considering both insurance and investment as requirement, I don’t want to go for term insurance. Also forgot to mention for previous plan that premium payment term is only 25 years.

  9. ashalanshu says:

    Dear Hvishal, what is the CAGR for you in this policy? For the given number’s it comes out 6.36%. Interestingly there is no guarantee of any bonus which may come down in future and so do your over all return. this policy is neither good for investment nor for insurance. Still if you are ok with it. Go and grab it.



  10. Hvishal says:

    Hi Ashalanshu

    9L cover out of this policy is not just the one source I’ve kept. I’ve couple of other insurance policy and I’m investing only 25% of my investment amount. Also as I said before, 9L is just SA, there is vested bonus and final additional bonus which gets added up to that. The bonus gets added up to returns at the rate of appx 45,000 per annum which makes final return amount around 71 lac at the age of 80. Risk cover also includes 9L SA and whatever is the accumulated bonus component at that point. Premium amount per annum is 31,000. Please suggest.

  11. ashalanshu says:

    Dear Hvishal, show me the reason that 9L Rs. is the all sum assured you need for your loved ones. Do you think with a large sum of 9L Rs. your loved ones can live happily after you? may i know your income details, mly expenses, family size, loan liabilities……..?



  12. Hvishal says:

    Hi Ashalanshu

    Thanks for quick reply. This is table no 5 in LIC chart.

    The SA is 9 lac given for this policy. Vested bonus and final additional bonus increases the returns. At maturity, it is around 71 lac i.e. at 80 years age. Risk cover is also SA + Vested bonus + final additional bonus. So at any point in time, risk cover is higher than 9 lac and goes close to 70 lac. I need this as both insurance and investment. I’m considering this looking at the higher risk cover.

  13. ashalanshu says:

    Dear Hvishal, how can you say that sum assured is increasing due to addition of your bonus? What do you want from this policy? Do you want insurance or investment? Please clarify about your needs.



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