LIC Endowment Plus table 802?

How is Endowment insurance plan from LIC India?(Life Insurance Company)?

• hi i am single,37 yr old. How is Endowment insurance plan from LIC India?(Life Insurance Company)? if I pay premimum of Rs 60000 per year for 10 yrs in this policy ,is it ok? how is this policy for retirement purpose??is it only insurance or investment also.

• Answer:

  Are you thinking about investment (for retirement ) & going for insurance (endowment plan) to achieve the goal. Please keep in mind to keep investment & insurance seperate. The charges & agent commission & simple rate of return (not compounding) affect the return. You will get just 5% return from your endowment policy. If you can increase your time span to 15 Years, then PPF is best for you as return is tax free. You can also invest in Mutual funds but that will have some risk. I am not telling you to avoid insurance. You should insure yourself with term insurance if you have dependent. It is low cost pure insurance. If you invest 60,000 annualy for 15 years in endowment insurance policy ( 5% return ) you will get 1359449.51. If you invest the same amount for 15 years in PPf(8.5% return), you will get 1837920.72. Choice is yours.