ANS. - Dear Vinod Pulari, Plz. don't opt Jeevan Tarang, for ur age the return from this policy r very poor. Sample this -
For a 5L cover, for ur age, the prem. for 20Y policy = 24610 Rs.
For past 4 years the LIC have announced 48 Rs. bonus per annum per 000 sum assured, so we can take this as benchmark for our calculation.
At the end of 20 year, u 'll get amount = 20*48*500 = 480000 Rs. or appx. ur prem. back.
From 21st year u 'll get 25000 Rs. (5% of 5L Rs.) as survival benefit every year tax free till u r alive.
After ur death, ur nominee 'll get the basic sum assured of 5L Rs. back as maturity benefit.
Now compare this with the combo of PPF+Term Plan (Anmol Jeevan from LIC).
Plz. note cheaper term insurance plans r available in market but i'm limiting it to LIC's Anmol Jeevan for comparing of product within same Ins. co. The annual prem. for 5L cover for 20 Year plan = 3193 Rs.
difference in the prem. = 24610-3193 = 21417 Rs.
Invest this amt. every year in PPF, at the end of 20 year, the amt. in PPF = 10.58L
This 5.78L Rs. 'll remain in PPF 'll earn interest for next year. After 1 year the interest on 5.78L Rs. = 46240 out of which u may withdraw 25K Rs. as tax free.
Balance amt. 'll remain with PPF & like vise every year, u 'll withdraw only 25K & the PPF amt. 'll keep on increasing.
Plz. note in this case even after 25 years or 30 years from now onwards or for ur age of 65-70, at ur death, ur nominee 'll receive more than what they 'll get in Jeevan Tarang (the basic sum assured of 5L Rs. only).
Now do tell me, what r u going to opt?