We take a look at whether LIC's newly launched Jeevan Shaghun is worth investing in.
Slight modification in the scheme
The one slight difference that one finds in the scheme is that the insured will get to choose the maturity sum assured. Therefore, the premium would depend on the above and also on the age.
The maturity sum assured will be paid to insured in case of survival by the end of specified durations.
A quick look at the salient features of the plan
1) Loan facility is available against the policy.
2) A single premium needs to be paid.
3) Amounts to be paid after 10th, 11th years and on maturity
During first 5 years of policy
During the first 5 years of the policy the nominee will get 10 times of the premium that has been paid.
During 5-10 years
During this period the amount of benefits that the insured will get is 10 times the premium paid along with loyalty addition, if any.
Money back payments
The moneyback payment are as follows:
At the end of 10 year, 15 per cent of the Maturity Sum Assured.
At the end of 11 year, 20 per cent of the Maturity Sum Assured.
At end of the Policy Term, 65 per cent the of Maturity Sum Assured along with Loyalty Addition is payable.
Should you buy?
The policy is good enough, if you are in the slightly risky age group of 45 plus. For example, if you pay a onetime premium of Rs 75,000, the nominee would get an amount of Rs 7.5 lakhs, in the unfortunate event of death, during the first five years. In the next 5 years, they would get 10 times more and some loyalty additions.
You are unlikely to get a significant return and might get around 6 per cent, if you treat the Jeevan Shaghun as an investment for maturity purposes.
In short, the scheme covers death risk to a certain extent by giving 10 times the amount of premium paid, while also returning the amount in case of survival. All in all, it's a mixed bag that gives you limited risk coverage along with an investment.
So, if you want to buy the policy, you have to first analyze if the amount of money insured is enough to meet the needs of the family. If you already have a term policy you might want to skip this one.