≡ Menu

Jeevan Aastha is the new insurance policy by LIC (Life Insurance Corporation of India) that is being much talked about offlate. I went through LIC’s website to understand the product better.

Before taking up the policy, there are a couple of things one should keep in mind.  jeevan-aasthaOne should clearly understand the difference between Basic Sum Assured and Maturity Sum Assured. For this policy, Basic Sum Assured is 6 times the Maturity Sum Assured. Also, it may be noted that Basic Sum Assured is applicable for the first year of the policy. Apart from these two terms, there is also ‘Guaranteed Return‘ in case of death or policy maturity upon survival. LIC has put up benefit illustation details as well. Let us understand what this means in lay man terms with respect to what is good and what is not.

First the Good:
1. Tax benefit under Sec 80C on initial premium.
2. Maturity benefit is non taxable under Sec 10(10D)
3. On death during the first policy year.
4. Guaranteed Addition at two rates for 5 and 10 year terms.
5. Loyalty Addition – a variable component based on company performance.

Keeping aside LIC’s service quality and track record in claim settlement, here comes the bad:
1. Guaranteed additions are not on the Basic sum but on the Maturity Sum assured.
2. Insurance benefit decreases drastically after first year.
3. This policy looks like more of an Investment scheme than an Insurance cover.

Now lets see the returns of Jeevan Aastha in comparison with Fixed Deposits and PPF.

Plan (for an individual of 31 yrs)Investment
Return Amount
Risk on 10th year10th year on maturity
LIC’s Jeevan Aastha53,6251,65,0001,07,184
Fixed Deposit53,6251,05,8141,15,338
Public Provident Fund (PPF)53,6251,01,5251,10,155

Disclaimer: I am neither an insurance agent nor an investments advisor. All the info provided in this article is based on my understanding of the policy after going through LIC’s website.

{ 107 comments… add one }
  • Manisha ashok yadav April 19, 2016, 12:33 pm

    My single premium was 24772 on dated26 Dec2008 for 10yrs .what will be my maturity amount?

  • Jyoti Sankar Das November 3, 2015, 3:27 pm

    I invested 25192 Rs on 12/2008 what will be the return now.

  • MKS January 26, 2014, 8:32 pm

    I have paid a single premium of Rs 26197 for Jeevan Aastha in Jan 2009. The sum assured is Rs 150000 and policy term is 5 years. The total amount received after 5 years maturity is rs 36350 only. is this the correct value? Kindly clarify

    • Krishna Soni September 2, 2016, 10:07 pm

      Hello MkS,

      U will get 36350+ LA

  • Vinay December 25, 2013, 11:22 am

    Hi Mohan Ji,
    I baught LIC Jeevan Aastha with maturity sum of Rs. 100000/- and the term is 10 year. But after 5 year now I want to surrender this policy. Can I come to know that how much will be the surrender value.


  • Sandeep April 19, 2013, 2:26 pm

    Where to get the present share value of jeevan astha.

  • Harish April 11, 2013, 8:49 am

    We all Indians should stop investing in LIC first of all. They talk about risk coverage. Whatever the extra amount we pay as part of our premium they use it for insurance with understanding with health insurance companies. LIC give benefits only if you die to the people who are dependent on you. PPF, NSC, RD or other post office deposits are much more better than LIC. and also now a days there are lot of medical insurance policies are offerred from others SBI, HDFC etc we can go for that. Why to stick on to LIC….LIC is outdated and their business is outdated. it does not suite to the current INDIA. It was fine for our fathers and fore fathers who did not have any knowledge on financial savings they blindly going there. Even now being educated we are going to LIC. It should be stopped immediately by all young indians.

  • Hoysala February 24, 2013, 10:09 am

    kindly revert me details of LIC Jeevan Anand please

  • vikram gajjar November 28, 2012, 6:55 pm

    dear mr mohan
    i am impressed by your blog.
    i am a nri and have never purchased insurance from lic or other india based insurance company
    i have crossed age of 60 and am considering to retier in india and would like to purchase health insurance with all possible hospitalisation benifit etc.

    can you propose me a good scheme for insurance of 10 lac.
    i will be locating in baroda/gujrat.
    you may forward me the contact of any honest and reliable agent in baroda



  • Nitesh Kumar July 24, 2012, 12:09 pm

    Sir I have surrendered my LIC’s Money Plus policy plan no. 180 after completed 5th year in march 2012, i have deposited Rs. 10000 yearly for 5 years i.e. Rs.50000 and I have received Rs.51000 on prematured. So I want to know that is Money Plus policy prematured amount is exempt from Income Tax and is covered u/s 10(10d) and should i show this amount in income tax return in A.y. 2012-13 for Rs.51000 or only Rs.1000. so please reply me as early as possible so i can submit my Income Tax Return.
    Thanks and Regard
    Nitesh Kumar

  • baladjy N February 13, 2012, 5:14 pm

    I have took Jeevan Astha Policy in 2008 that is 01.08.2008. My agent told me that you will be getting double the amount at the end of 5th year. I invested Rs.25000/- then what will be the maturity value at the end of 5th year.

  • ajay August 6, 2011, 12:14 am

    i have jeewan astha policy of lic.i am paid single prem.26625for 5yrs plan.i’m want to surrender after two yrs. What value i get

  • pragya July 27, 2011, 3:06 pm

    i have taken jeevan astha in 2008 can you please tell me what are the benefits i am eligible for

  • DP February 1, 2011, 9:42 am

    Hi I am having two LIC Money Plus TN 180 policies of 25K and 10 K each. I have started this in the year 2007, I am wondering if its worth to retain this policy. I have the same query for one more of my LIC policy which is Jeevan Anand TN 149 of worth 500,000 with a premium of 34801 for 20 years, the accrued bonus so far is close to 1lac. I don’t see any great returns from these policies. please suggest.

    • Saurabh August 8, 2011, 12:22 pm

      First thing is that Jeevan Aanand is not about the investment it is a life insurence policy. I have the same policy.I feel it is a good policy and every one should get such one policy.Good thing is that
      you will have a life insurence for the rest of the life even after termination of policy.

      In case of death by accident (subject to an age limit of 70 years), the policy holder can get an additional sum assured upto Rs 500,000. In case of permanent disability of the policy holder (due to accident), the additional sum assured is payable in instalments.
      I can understand that returns are very attractive,but it is covering our life risk.There should not be more than 1 such policy. :)

  • Sukanta Das December 20, 2010, 12:08 pm

    I need advice on investment. I have Rs. 80,000/- which I want to invest some where as a one time premium for 5 years. If liquidity is possible that would be great. Please suggest a plan where I can get the best return. I heard about ICICI RGF, as per the representative I can take plan for minimum Rs. 40000/- as an one time payment for 5 yrs term. They will assure 14% NAV guaranted and current NAV value is 20%. Please suggest if this is good or any other plan.

  • Joy November 22, 2010, 3:05 pm

    Dear sir,
    I have an endowment policy for 25 yrs, and premium of 26630/- yrly. So far I have paid just 1 premium, and its not even 6 months, since i have started. I want to get rid of this policy. I want to know if that is somehow possible before 3 yrs. I have heard that i can even sell my policy, but i have no idea where and how to do that, and if there are any losses. Please send me some information on this.

  • Vashi October 18, 2010, 9:25 pm

    Excellent website for the people who want to know more info about lic plans. Great efforts.

  • Rahil September 28, 2010, 10:34 pm

    Hello to all the viewers well as u people know that LIC is one of the best Insurance company but u might be wrong well i have sufferd bcoz of LIC we made 8 polocies = Market plus one growth & in that 8 1 has some mistake & we made all this polices in 2009 last year, we got some money frm LIC bcoz of my Father expired so we made that & i was roamming around the office all this 11 mnths but thy have not yet rectified so pls think before you invest ok plS LIC IS VERY IRR-RESPONSIABLE SO THINK BEFORE U MAKE ANY INVESTMENT.

  • vijay kaushal August 5, 2010, 12:23 am

    Sir\Madam, I am lic holder. But i need for some info for lic money plus plan 180 please this is right pay 30,000 for 3 years and after 20 years you get 16 lakes please clarify .

  • S Nayak April 16, 2010, 10:49 pm

    Dear Mr Mohan,
    First of all,this is a great blog for people to clear their doubts and put their minds to rest. Great job!
    I have taken Jeevan Asta policy for 5 years with single premium of 300411.00.My maturity sum assured on the policy says 290000. Shouldn’t maturity sum assured say 300411+290000= 590411. Also, is this tax free?


  • banu February 18, 2010, 9:13 am

    hello,The new jeevan astha policy announced in Oman for a period of 2 months now in Feb—– how good is it?How does it compare with the earlier jeevan astha policy?

    • Mohan February 18, 2010, 9:42 am

      Hi Banu, I am not aware of the Jeevan Aastha being offered in Oman. This article is about the LIC plan in INDIA. Please go through the policy details and compare yourself.

  • Nazar December 25, 2009, 11:09 am

    Sir, I would like to know about money plus (lic). I investing 10000 rupees every year.
    Is it good policy? kindly let me know all details
    Thanks and regards

  • chandra sekaran December 5, 2009, 5:25 pm

    Excellent. Thanks for your effort.

  • Krishna November 21, 2009, 8:00 pm

    Hello Mohan, Thank you for the reply. I too have one site for financial articles.

    • Mohan December 4, 2009, 8:41 pm

      You are most welcome! All the best with that.

  • Krishna November 21, 2009, 2:21 pm

    Hello Mohan, Thank you for the good article. Is the plan not available now? It shows that it is only for the 45 days. Please confirm me. Is there any new policy introduced by LIC?

    • Mohan November 21, 2009, 7:42 pm

      Hi Krishna, you are most welcome. I am glad that you liked this post. Jeevan Aastha is not available any more. It was offered only for a limited period of 45 days during last financial year and this policy availability ended on March 31st of 2009.
      Yes, there is a similar new policy by LIC called Jeevan Nischay. You can read my review on that plan here.
      You can keep yourself updated with this blog by subscribing to email notification. If you haven’t subscribed yet, please feel free to do so by clicking here

  • Vishal Agarwal November 20, 2009, 4:35 pm

    Sir I have invested 24900 single premium for jeevan astha a now after 10 years want to close the policy.

    • Mohan November 21, 2009, 7:32 pm

      Vishal, please check with your agent or the regional LIC office to know the returns. I don’t understand what you mean by close the policy after 10 years.. it is anyways going to mature by then!

  • Imtiaz shaik November 11, 2009, 5:19 pm

    I have invested 36,000 per year in LIC Jeevan .. , now after 4 years want to close the policy.

    How much I will get back the amount

  • Arup Baruah October 6, 2009, 3:40 pm

    I am a Govt. employee. Recently I am taking this policy with 20 years plan and premium Rs. 1885/- for quarterly. How this is called money back and I much money back to me after 4 or 5 years. My LIC agent call me that after 5 years when money will come if I invest it to LIC for next years then no other money required. I mean to say actually 5 year due for receiving this policy. Please explain how much I get after 20 years(my plan is for 2 lacs).

  • Srikanth Matrubai July 25, 2009, 3:58 pm

    Dear Mohan, you are doing a great job with your blog. Keep it up.
    Mohan, don’t you think that going for a Term Insurance and investing the difference in either Mutual Funds or ULIP is much better idea than investing in these products like Jeevan Aastha…

    • Mohan July 25, 2009, 4:40 pm

      I am all game for pure insurance products like term insurance. People don’t buy insurance, they go for products that save them income tax. But the fact is, they are loosing more money on these kind of variants of insurance products. Keeping those in mind, i wrote this article to find out the good and bad of the product.

  • Raj March 31, 2009, 11:47 pm


    The Following clause 10(D) of section 10 by the Finance Act, 2003, w.e.f. 1-4-2004:

    (10D) any sum received under a life insurance policy, including the sum allocated by way of bonus on such policy, other than-

    (a) any sum received under sub-section (3) of section 80DD or sub-section (3) of section 80DDA; or

    (b) any sim received under a Keyman insurance policy;or

    (c) any sum received under an insurance policy issued on or after the 1st day of April, 2003 in respect of which the premium payable for any of the years during the term of the policy exceeds twenty per cent of the actual capital sum assured:

    my comment:
    Pls note the words, “any of the years during the term” and “exceeds twenty percent of the capital sum”. So, if this policy covers 5x in one years and drops to 1x next years, the 10(10D) exemption is not available. LIC agents and Managers have target to achieve and they would easily overlook few things to sell..

  • rakesh March 23, 2009, 8:18 pm

    There is a good confusion abt sec 10(10D) implcation even CBDT is not clear on this issue. Alike Jeevan astha some companies like IDBI Forties wealthassurance offers a sum assured of only 1.10 times and relaince total investment plan and other single premium plan gives minimum sum assured of 1.25 times only. Its still not clear as for Single Oremium policy whut is the minimum sum assured requries for 10(10D) benefit. u can see CBDT(central board of Direct taxes) in this regard . I am still not clear as whut is the min SA required.

  • Vashi March 23, 2009, 2:24 pm

    You mention Maturity benefit is non taxable under Sec 10(10D)for jeevan astha; but that is not mentioned anywhere in the LIC Jeevan astha website

  • mahesh March 13, 2009, 10:44 pm

    i dont know english plz send in kannada language what uses this plan plz

  • mukesh March 13, 2009, 10:12 am

    you are cleared my doubts very well… Thanks….I have Jeevan Aastha policy worth Rs. 100000

  • Jitu February 24, 2009, 2:29 pm

    I have Jeevan Aastha policy worth Rs. 30000/-
    Can you please let me know how much i get after 10 years?

  • Deepak Gupta February 6, 2009, 9:35 pm

    Dear Mr. Kumar,

    I think you have clarified every thing one wants to know about TAX benefits in Jeevan Astha Plan. I am my self is an agent of LIC sitting at LIC’s Divisional Office-1 in new delhi,where Sr. Div. manager sits. I had a long discussion regarding Tax with my Branch Manager and he has confirmed to me that sec.80c and 10(10d) is applicable in this plan. Thanks Cheers…………..

  • Mohan February 2, 2009, 8:58 am

    You can view the soft copy of that mail here.

    yes, this plan was closed on 21st Jan ’09.

  • Sanjay February 2, 2009, 2:56 am

    can u give me scan copy of that letter

  • satyabhama January 30, 2009, 9:55 pm

    information to all friends…. jeevan aastha was closed for sale on 21st january.

  • Nikhil January 22, 2009, 7:11 am

    I want to ask that if i invested 26198(25000) in this policy. How much tax deduction i get this year as this one time premium policy ? I am confused with term basic sum assured , maturity sum assured and capital sum assured ?
    I get information from lic site that section under 80c get deduction of 20% of capital sum assured ?
    Please give me information.

  • Gopakumar January 19, 2009, 11:27 pm

    As per sec 10(10(d)), to get tax exemption the premium should not exceed 20% of capital sum assured. To understand what is meant by Sum assured one should look at the various insurance documents.One such document is the premium receipt wherein LIC clearly states the sum assured, which is 6 times(approx)of the single premium.The next thing is the policy document. As per the law each insurer has to affix stamps based on the sum assured of policy. Here again LIC instruction says that stamp is based on the basic sum assured.(first year sum assured). Therefore it can be concluded that the sum assured under this policy is the sum assured at the time of signing of contract.Accordingly jeevan aastha policies will get the benifit of sec 10(10(d)).It may be noted that there are many life insurance policies currently in the market with variable sum assured during the term.

  • raju January 19, 2009, 7:10 pm

    not convinced about the tax free status as sec 10(D) says “any sum received under an insurance policy issued on or after the 1st day of April, 2003 in respect of which the premium payable for any of the years during the term of the policy exceeds twenty per cent of the actual capital sum assured”.
    if i invested 48975,then my coverage after 1st year is 1,10,000.So the premium payed ceases to be les then 20% of sum assured.So how can the returns be tax free?

  • Krishna January 19, 2009, 11:57 am

    you are cleared my doubts very well… Thanks….

  • prabha January 18, 2009, 10:34 pm

    dear sir,
    when a sr manager is not sure of the terms and conditions, how they are giving full details regarding a policy. even in the policy bond of jeevan aastha l i c is silent on this surrender value.

  • Mohan January 17, 2009, 8:54 pm

    I have a mail from Sr.Divisional Manager @ LIC stating that IT Rebate available under Sec. 80C & 10(10(d)) for this plan. Not sure about the terms and conditions you are referring to. I have no information on that at this point of time.

  • Arun January 17, 2009, 10:20 am

    Dear Sir,

    everybody (including LIC) is undfer impression that the returns from Jeevan Aastha is Tax Free. However, as Sec10(10D) the maturity proceeds of insurance policy is tax free only if the Life Insurance Cover is 5 times of Premium. However in Jeevan Aastha after first year insurance cover is equal to premium. Hence, the returns are taxable.

  • nsns January 15, 2009, 1:55 pm

    Wow you guys are the best…i invested today as my uncle is an LIC agent. But then i wasn’t sure whether i had made a wise decision…looking at ur post looks like i’m on the right track…thank you guys for clarifying.

  • vivek January 15, 2009, 9:22 am

    You mention Maturity benefit is non taxable under Sec 10(10D)for jeevan astha; but that is not mentioned anywhere in the LIC Jeevan astha website.
    Please clarify.

  • prabha January 13, 2009, 11:16 pm

    can we believe the statement given by satyabhama. can anybody clarify….mohan sir, please clarify this

Leave a Comment