After the success of the close ended guarantee returns product Jeevan Astha, the life insurance behemoth comes with another guarantee return, conventional money back policy - Jeevan Varsha. The unique differentiators of the product from the other money back policies of LIC are as follows:
- its a close ended offer. i.e. the policy is open for sale for a limited period
- unlike the conventional money back tenure of 20 + years, the offered terms are 9 and 12 yrs
- the short duration coupled with money back at 3 years interval make your capital free regularly.
- first time LIC coming with a money back starting at 3 years rather than 4 years convention.
- for 9 year tenure, the guarantee return is 65 per 1000 SA and for 12 years tenure, it is 70.
- for 9 years policy, money is back at 3,6,9 years @ 15%,25%,60% and bonus in the 9th year.
However, the premium is slightly on the upper side as the term is less. Average annual premium per 1 lac SA is 16000/-. The product does not offer single premium, as the same is taken care by Jeevan Astha perhaps.
Another contrast is that, Jeevan Astha has a guarantee tag of 90/100 of the maturity SA which is in fact 1/6th of the SA. Many investers would have missed the fine line from LIC. Some agents have canvassed it as 90 per 1000 on SA which makes the return very high.
In that backdrop of truth and misnomer, the 65/70 per 1000 return offered by Jeevan varsha may seem to be less.
Keeping in mind the successful money back plans of LIC having guarantee component, such as Jeevan samridhi, which offered 55 per 1000 as a guarantee return, this offering is very good.
