[Info.] Leader App - LIC Financial Calculations Helper

My suggestion never go with lic endowment or lic term insurance, but still if u want to go then use leader app for premium , sum assured calculation easily.

titamazon wrote:

My suggestion never go with lic endowment or lic term insurance, but still if u want to go then use leader app for premium , sum assured calculation easily.

Exactly bro, Term Insurance(Online Plans) + SIP in Mutual Funds(Direct Funds) are currently the best from both assurance and investment perspective.

Stay away from endowment plans.

For me it is showing 7.4309%. Is it good?

MrFreak wrote:

For me it is showing 7.4309%. Is it good?

Plan details please, if you did it correctly, then congratulations on achieving the above average rate of 4-5%. These rates does not exist anymore as far as I know.

Is it good? Certainly not if you consider mutual funds rate of returns, but it’s relatively better in this market.

Thunder766 wrote:

Plan details please, if you did it correctly, then congratulations on achieving the above average rate of 4-5%. These rates does not exist anymore as far as I know.

Is it good? Certainly not if you consider mutual funds rate of returns, but it’s relatively better in this market.

Policy details
Sum Assured : 5000000
Policy term : 25
Annual Premium : 208748

MrFreak wrote:

Policy details
Sum Assured : 5000000
Policy term : 25
Annual Premium : 208748

Jeevan Lakshya Plan

MrFreak wrote:

Policy details
Sum Assured : 5000000
Policy term : 25
Annual Premium : 208748

Your calculations seems to be correct. Returns are on par with FDs. This plan only provides life cover until your policy term, unlike other LIC endowment plans which provide additional life cover till age 100. That’s the reason for higher returns I guess.

Term insurance would have given you way more cover with more coverage at lower prices though.

Nice initiative bro. Keep it up.
People really need to understand actual IRR before investing & which is very very difficult to calculate particularly with LIC due to bonus etc.

People are blindly trusting on LIC without knowing actual facts.

titamazon wrote:

My suggestion never go with lic endowment or lic term insurance, but still if u want to go then use leader app for premium , sum assured calculation easily.

Not only LIC, but stay away from private players’ product also which provides life insurance + investment in single plan under ULIP & other names.

They are good for nothing – Neither good life coverage, nor good return on investment.

MrFreak wrote:

Policy details
Sum Assured : 5000000
Policy term : 25
Annual Premium : 208748

sorry for the confusion, paying 2 lakhs and 8 thousand per year for 25 years already amount to 50 lakhs plus. aint it?

titamazon wrote:

My suggestion never go with lic endowment or lic term insurance, but still if u want to go then use leader app for premium , sum assured calculation easily.

What’s the problem with term insurance?

Thunder766 wrote:

Your calculations seems to be correct. Returns are on par with FDs. This plan only provides life cover until your policy term, unlike other LIC endowment plans which provide additional life cover till age 100. That’s the reason for higher returns I guess.

Term insurance would have given you way more cover with more coverage at lower prices though.

this luks like a better investment plan considering u save 10k plus a year as premium for term insurance, which means extra 5% savings on the investment, though the coverage is for 25 years only

karthi4052752 wrote:

sorry for the confusion, paying 2 lakhs and 8 thousand per year for 25 years already amount to 50 lakhs plus. aint it?

Paying term is 22 years.

tarunsingh wrote:

What’s the problem with term insurance?

They are charging more than double for the brand name LIC

karthi4052752 wrote:

this luks like a better investment plan considering u save 10k plus a year as premium for term insurance, which means extra 5% savings on the investment, though the coverage is for 25 years only

These returns are on par with FDs, life assurance till policy term is an extra benefit. If you calculate costs under same yearly premium if he had choosen Term + SIP option, he would have saved and earned way more. Here’s my calculations(estimated),

Initial Age – 23
Requirements –
50 Lakh Sum Assured till age 48
Rest Yearly SIP in a fund that offers at least 10% XIRR

Term Plan Details:
Sum Assured – 50 Lakh
Yearly Premium – Rs. 3,932
Coverage – Till age 48
Paying Term – 20 years
(Checked on Policybazaar website)

Money leftover:
Rs. 2,08,748(Annual Premium) – Rs. 3,932 = Rs. 2,04,816
Rs. 2,04,816 for 20 years and 2,08,748 for 2 years
Total – Rs. 45,13,816

Dividing it by 22 equal parts and investing it annually SIP (Direct Growth Plans) in a fund that provides at least 10% returns XIRR.

Annual SIP: (till 22 years)
Amount – Rs. 2,05,173
Expected XIRR – 10%(at least)
Expected Return Amount – Rs. 1,61,14,907

Moreover if he lets it stay there for another 3 years after SIP completion like he will do in LIC, it’ll grow even more(it’ll outgrow at least 2 Crores).

You are welcome to correct me if I’m wrong on the calculations part.

Thunder766 wrote:

These returns are on par with FDs, life assurance till policy term is an extra benefit. If you calculate costs under same yearly premium if he had choosen Term + SIP option, he would have saved and earned way more. Here’s my calculations(estimated),

Initial Age – 23
Requirements –
50 Lakh Sum Assured till age 48
Rest Yearly SIP in a fund that offers at least 10% XIRR

Term Plan Details:
Sum Assured – 50 Lakh
Yearly Premium – Rs. 3,932
Coverage – Till age 48
Paying Term – 20 years
(Fetched from Bajaj Allianz website)

Money leftover:
Rs. 2,08,748(Annual Premium) – Rs. 3,932 = Rs. 2,04,816
Rs. 2,04,816 for 20 years and 2,08,748 for 2 years
Total – Rs. 45,13,816

Dividing it by 22 equally parts and investing it annually SIP in a fund that provides at least 10% returns XIRR.

Annual SIP: (till 22 years)
Amount – Rs. 2,05,173
Expected XIRR – 10%(at least)
Expected Return Amount – Rs. 1,61,14,907

Moreover if he lets it stay there for another 3 years after SIP completion like he will do in LIC, it’ll grow even more.

You are welcome to correct me if I’m wrong on the calculations part.

thanks for the detailed explanation bro. KG

for those of us who are scared to put too much money in MF due to risks associated and as a side investment, this policy maybe good.

My case,

for 30 year old like me , the term insurance shows about 8-9k plus due to my occupational risk , they are doubling the premium.
this policy will be good if the premium is same as him for me also

Thunder766 wrote:

These returns are on par with FDs, life assurance till policy term is an extra benefit. If you calculate costs under same yearly premium if he had choosen Term + SIP option, he would have saved and earned way more. Here’s my calculations(estimated),

Initial Age – 23
Requirements –
50 Lakh Sum Assured till age 48
Rest Yearly SIP in a fund that offers at least 10% XIRR

Term Plan Details:
Sum Assured – 50 Lakh
Yearly Premium – Rs. 3,932
Coverage – Till age 48
Paying Term – 20 years
(Checked on Policybazaar website)

Money leftover:
Rs. 2,08,748(Annual Premium) – Rs. 3,932 = Rs. 2,04,816
Rs. 2,04,816 for 20 years and 2,08,748 for 2 years
Total – Rs. 45,13,816

Dividing it by 22 equal parts and investing it annually SIP (Direct Growth Plans) in a fund that provides at least 10% returns XIRR.

Annual SIP: (till 22 years)
Amount – Rs. 2,05,173
Expected XIRR – 10%(at least)
Expected Return Amount – Rs. 1,61,14,907

Moreover if he lets it stay there for another 3 years after SIP completion like he will do in LIC, it’ll grow even more(it’ll outgrow at least 2 Crores).

You are welcome to correct me if I’m wrong on the calculations part.

Just in case if someone was wondering if he gets the same rate of 7.43% in SIP, then also his expected amount will be Rs. 1,41,20,845 (After 25 years, 22 years SIP and 3 years idle).

I took 10% as it’s very common rate to get in mutual funds for long term investment.

@Sudarshan61
Did you calculate the XIRR on your funds about which you posted in some other thread?