Today, I came across IDBI’s Life insurance plan called ‘Bondsurance‘ which is very much similar to LIC’s Jeevan Aastha. Bondsurance is a single premium plan which allows an individual to make a one-time investment and get a guaranteed amount on maturity. One can choose a maturity period of 5 or 10 years for investment under this plan. At the end of the chosen period, investor will receive a guaranteed maturity amount. You can calculate the Single premium amount based on your needs here. I did go through the details of this Bondsurance investment plan.
Listed below are the salient features.
* Single premium policy – you can decide on either of premium or maturity amount.
* Discount on single premium account if you are investing more than 1.5 lakhs.
* Tax benefit on investment premium as well as on maturity amount.
* Insurance cover is five times the premium through out the tenure.
* Premature Surrender facility available.
* No loan facility against this plan.
If you are confused on which one to go for, here is a bit of calculation to help you understand better. I am going with the good old example as on LIC’s site by considering an individual of 35 years old. All the calculations in Indian Rupees.
Maturity Benefit 5 years 10 years LIC’s Jeevan Aastha 48,975 ~72,500 1,00,000 IDBI’s Bondsurance 48,975 65,475 94,002
So, the major difference between these two would be:
1. Returns are higher in LIC.
2. Insurance Coverage is 5 times through out the tenure in IDBI.
Now you choose whichever suits the best for your requirement!
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 details as available on the respective provider’s sites.