ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Life Insurance Comparison India - LIC Jeevan Aastha Policy Review

Updated on August 29, 2011

This is an exclusive review of LIC Jeevan Aastha Policy in India and answers the following questions: Does it make sense to buy LIC’s Jeevan Aastha Policy as it is advertised widely nowadays? How it will affect our personal finances? What about returns of Jeevan Aastha? Is our money worth investing in it or should we go for mutual fund investments?

As per the illustration in LIC Jeevan Aastha Policy terms and conditions, for a 35 year aged individual:

  • A 10-year Jeevan Aastha policy expects a premium of Rs. 48,975 and guarantees a maturity value of Rs. 1,00000, which is a 7.4%, annualized growth.
  • A 5-year Jeevan Aastha policy expects a premium of Rs. 51,930 and guarantees a maturity value of Rs. 72,500. That’s a 6.9% annualized growth.

Use Microsoft Excel or your Calculator to double-check the numbers at your side.

Neither 7.4% nor 6.9% is anywhere close to that heavily advertised 10% and 9% return. 10% and 9% are clear marketing gimmicks within the legal ambit with extraordinarily confusing terminology (for any layman). 10% guaranteed return that too, an insurance company, oh well. That’s something too good to be true. Such policies can be great for the commission seeking insurance brokers and for the insurance company for sure. Not for your wallet or for your financial health. The same thing applies for anything that’s being hard sold. After all, you will do good only when you are not fleeced. If you need life insurance for free, switch to BSNL Telephone (throwing away all those private telecom services). Have a landline and also a mobile from BSNL and get worth Rs. 1,00,000 cover that arrives automatically under your name.

If you need a much bigger life insurance at an unbelievably low cost, go for a Term Policy and protect your family.

You want tax benefits and guaranteed return over a long term at a very competitive interest rate, open your PPF account today. All in all, take care of your hard earned money. Don't squander it over insurance policies disguised as investment products. If your investment horizon is 10 years, just go and buy Benchmark S&P CNX-500 Fund worth Rs. 48,975. Doing this, your investment will become Rs. 1,00,000 in a much much more shorter time than 10 years. As soon as it becomes Rs. 1,00,000/-, redeem and put it in a Bank Fixed Deposit. Don't ever get greedy.

At the end of 10 years, who knows, you might have some 1.5 lakhs or even more out of that Rs. 48,975 investment? Jeevan Aastha would have generated a maximum of just 1 lakhs for you over the same time period. I know we all need insurance cover but we can do this by just throwing away our private sector telephone connections and take up BSNL landline and mobile phones (both). Rs. 1,00,000 cover will automatically come totally free.

Moral of the Story

When your investment is a low-cost investment, your financial health and personal finances will prosper by leaps and bounds.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://hubpages.com/privacy-policy#gdpr"

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized. (Privacy Policy)
    CloudflareThis is used to quickly and efficiently deliver files such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisements has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)