Understanding the Returns on LIC Jeevan Shree Policy Plan 112
The LIC Jeevan Shree Policy Plan 112 is a popular combination of endowment and whole life insurance. This policy provides multiple benefits, including a lump sum payment at maturity or a death benefit, depending on the circumstances. The return on this policy is influenced by several key factors, which are discussed in detail below.
Factors Influencing Policy Returns
There are several key factors that determine the returns on your Jeevan Shree Policy Plan 112:
Premium Amount
The premium that you pay has a significant impact on the final payout. Higher premiums generally result in higher returns. The premium amount is a critical component that needs to be carefully considered during the policy planning stage.
Policy Term
The duration of the policy also plays a crucial role in determining the maturity benefits. Longer policy terms often provide higher returns because they allow the policy to accumulate wealth over a more extended period.
Sum Assured
The amount you choose to insure is another important factor. A higher sum assured can lead to higher returns, as it represents a larger portion of the policy's potential payout.
Bonuses
LIC policies typically provide bonuses, which can enhance the maturity amount. These bonuses are usually linked to the performance of the LIC's investment portfolio, and they can significantly impact the overall returns on your policy.
Expected Returns on LIC Jeevan Shree Policy Plan 112
As of the last updates, the expected return on this policy is generally around 5-7% per annum. However, it is essential to note that the actual returns can vary based on the performance of LIC's investments and the bonuses declared. It is always advisable to obtain specific figures for your situation by contacting LIC directly or consulting their official website or a licensed insurance advisor.
Common Misconceptions About LIC Jeevan Shree Policy Plan 112
While the LIC Jeevan Shree Policy Plan 112 offers significant benefits, there are some misconceptions that need to be addressed:
Financial Literacy and Investments
It is true that life insurance is not solely intended for returns. However, it is always beneficial to have a diversified investment strategy. Consider investing in SIP ELSS (Equity Linked Savings Scheme), Public Provident Fund (PPF), or schemes offered by the Post Office for additional financial security. Shares of top companies can also be a good investment option, though they carry inherent risks.
Maturity Returns
Several sources have mentioned that you can get double the sum assured or more. This statement is somewhat accurate, depending on the bonuses and other factors involved. It is important to understand that the maturity returns depend on the performance of the policy and the specific circumstances at the time of maturity.
SIP and Insurance Policies
The Internal Rate of Return (IRR) for the Jeevan Shree policy is often quoted in the range of 4 to 5%. However, it is crucial not to rely solely on advice from insurance agents or employees, as they may have a conflict of interest. Instead, seek advice from financial experts who can provide unbiased insights based on your unique financial situation.
Conclusion
The returns on the LIC Jeevan Shree Policy Plan 112 can be highly variable and depend on several factors. To get the most accurate and personalized information, it is recommended to contact LIC directly or consult their official website or a licensed insurance advisor. Understanding the key factors that influence policy returns will help you make informed decisions and achieve your financial goals effectively.