Comparing LIC Plans with Mutual Fund SIP Returns

Example of Mr. Santosh aged 25 years is taking LIC policy for 15 years and pays a premium of
approximately 10,000/- per month
V/s Mutual Fund Investment and Returns

Duration of Total
SIP (Systematic Investment Plan) of Rs.10,000/- per month
Sum Assured LIC Plan Total Term Premium Premiums Paid Maturity Amount
invested for 15 years - Total invested amount being 18 Lakhs
(Rs.) (yrs) payment (Yrs) (Rs.) (Rs,)
14, 20,000 Jeevan Lakshya 15 12 13,87,543/- 23,21,700 Returns @ 8% Returns @ 10% Returns @12% Returns @ 15%

16,50,000 New Endowment Plan 15 15 17,20,200/- 26,23,500/- 34 Lakhs 40 Lakhs 47.5 Lakhs 61 Lakhs

13,20,000 Single Premium Plan 10 1 10,03,789 18,61,200 Lumpsum Investment of 10 Lakhs in MF for 10 years has given 22,23750 @ 8.32%

Please Note :

Santosh can buy a LIC Term Insurance Plan for 50 Lakh Sum Assured by paying a premium of Rs12,149/- Returns shown as CAGR - Compound Annual Growth Rate
p.a. for 40 years until age 65 - The total premium he will be paying for 40 years will be Rs. 4,85,960/-

Suggestion : Buy a Pure Term Life Insurance plan for which premium is very less. The same savings/investment you can do it in Murual Fund SIP
and get better returns. The purpose of investment in LIC is risk cover or family security for dependants. The purpose of investment in Mutual
Fund SIP investment is to get better returns on the money invested.

7/2/2020