‘Term Insurance + PF’ is better than LIC’s Jeevan Anand

Let’s compare LIC’s Jeevan Anand plan with the combination of a term insurance plan (Kotak Life e-Preferred Term) and PF. We have kept the sum assured same in both cases so that if an eventuality occurred to the insured will get the same amount.

Insured Age – 35 Years; Term – 25 Years

In first case (Jeevan Anand) the beneficiaries would got the sum assured of Rs 10,00,000 and on maturity of plan the individual’s beneficiaries would have got approximately Rs 12,75,000. Total would be Rs 22,75,000 in 30 years in case of an eventuality occurred to the insured.

In second case (Term Insurance + PF) the beneficiaries would still have got the sum assured of Rs 10,00,000 with the term insurance plan (Kotak Life e-Preferred Term). He invests the remaining amount. The current rate on the PF is 8.6%. At this rate, the individual’s maturity value after a period of 30 years would be approximately Rs 3,709,752. But in addition, they would also have inherited the maturity amount of Rs 1,000,000, in case of an eventuality occurred to the insured. That is considerably more than what the nominees would have got had the individual invested all his money in LIC’s Jeevan Anand.

PF Interest
PF offers 8.6% interest compounded yearly.The interest for the month is calculated on the minimum balance available in the account from 5th of a month to the last date of the month.