Martin Australia 13 Questions 54 Answers 2 Best Answers 408 Points View Profile 1 Martin Asked: February 10, 2020In: Business Is LIC policy a good investment? 1 I want to invest my money for long term. Is LIC a better option? Many people say that LIC gives very little return. Is this right. Share Facebook 3 Answers Voted Oldest Recent Aimy Meir 15 Questions 61 Answers 5 Best Answers 442 Points View Profile Rani Singh Added an answer on February 10, 2020 at 5:09 pm LIC is not for investment. If you want to take LIC policy for investment, then you are thinking wrong. LIC secures your life. If something happens to you, at least your family will get money. If you want to invest then there are more good options available for you. If you do not want to take the risk, then Bank Fix Deposit is the best for you. But if you can take the risk and want to get good returns, then you can invest in mutual funds or shares. 1 Reply Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp RAJESH SURESH DAKE Raigarh, India 210 Questions 106 Answers 0 Best Answers 32 Points View Profile RAJESH SURESH DAKE Added an answer on February 11, 2020 at 5:28 pm No, LIC is insurance product, not good returns compared to other safe option. Let us understand with an example. I have tried to compare LIC’s Jeevan Anand (insurance mixed with investment) case with a PPF+LIC’ e-term insurance (insurance separated with investment) . You will get equal tax benefits in both cases. First let’s list out various details including maturity associated with Jeevan Anand as follows. Sum assured: 25,00,000 (A) Policy term: 21 years (B) Annual Premium: 1,36,525 (C ) Approximate Maturity: 59,20,000 (D) Now for comparison, let’s assume that we are going for a Public Provident Fund (PPF) which is yielding at an interest rate of 8.75% per annum and term insurance for 25,00,000 for 21 years with annual premium 3,089. Both are now equal to your premium i.e. 1,36,525 . Calculating maturity of above PF according compound interest it comes as under. Annual instalment of PPF : 1,33,436 (E) The maturity amount of PPF: 79,44,596 (F ) Annual instalment of e-term : 3089 (G) The maturity amount of e-term : 0 (H) Effective Difference (F+H-D): 79,44,596 – 59,20,000 = 20,24,596 So, as per above comparison we have come to know that PPF+term insurance is having edge over Jeevan Anand by 20,24,596 in our case. Loss of Rs. 20 Lacs Hence Insurance is not a better investment option. 0 Reply Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Site Default 102 Questions 99 Answers 0 Best Answers 295 Points View Profile Adityaoo7 Added an answer on February 11, 2020 at 11:52 am Yes it is good because it is approved by govt. 0 Reply Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer.