Jeevan anand Vs Public Provident Fund Vs Employee Provident Fund

August 3, 2012   ·   6 Comments

 

Do you own policy? Do you know the returns and maturity amount of your Endowment policy? After a year, it is time again to review the returns of vs vs . Why we are reviewing the product again? Interest rate for all the 3 products have changed and i thought of recalculating the final amount received for all the 3 products.

 

Jeevan Anand Calculator:

Premium which a 25 year needs to pay to get an cover of Rs. 5 Lac is 37,500 for 15 year policy.  

Let us check out the final payment at maturity of Jeevan anand policy:

Invested Amount= 37,500*15= Rs. 5,62,500

LIC pays anything between 40-45 Rs. for every 1000 Rs. Sum Assured.

Total accrued simple reversionary bonus = FAB (Final Accrued Bonus) = Rs. 3,92,500

Bonus – Rs. 10,000

How much Comes out to be Maturity Amount of Jeevan Anand?

An Jeevan Anand policy would look like this for a 25 yrs old for a 15 Year Policy

Tenure : 15 yrs
Yearly premium : 37,500
Sum Assured : 5 Lacs Rs.
Maturity amount : 9,02,500 Rs. ( this you get when you survive full tenure , It includes the sum insured + FAB + Bonus accrued)

Along with this, 5 Lac will be paid at demise (death) of policy holder. Now, this can’t be considered as death of a person is not fixed. Say person lives till the age of 5 Lac Rs. The value of Rs. 5 Lac after 50 years will be same as we treat Rs. 22,500 today. This is considering Inflation index of 6.67% which is the average of inflation index from the period became independent.

 Click here to know more about Jeevan Anand policy:

 

PPF Calculator:

Public provident fund for fiscal year 2012-13 is 8.8%.

Term insurance for Rs. 5 Lac is 1430 Rs. which means the balance amount Rs. 36,100 can only be invested from 37,500 Rs.

 

PPF Calculator Results

   

Year

Opening Balance

Your investment

Interest Earned

Closing Balance

1

रु 0.00

रु 36,100.00

रु 3,176.80

रु 39,276.80

2

रु 39,276.80

रु 36,100.00

रु 6,633.16

रु 82,009.96

3

रु 82,009.96

रु 36,100.00

रु 10,393.68

रु 1,28,503.63

4

रु 1,28,503.63

रु 36,100.00

रु 14,485.12

रु 1,79,088.75

5

रु 1,79,088.75

रु 36,100.00

रु 18,936.61

रु 2,34,125.37

6

रु 2,34,125.37

रु 36,100.00

रु 23,779.83

रु 2,94,005.20

7

रु 2,94,005.20

रु 36,100.00

रु 29,049.26

रु 3,59,154.45

8

रु 3,59,154.45

रु 36,100.00

रु 34,782.39

रु 4,30,036.85

9

रु 4,30,036.85

रु 36,100.00

रु 41,020.04

रु 5,07,156.89

10

रु 5,07,156.89

रु 36,100.00

रु 47,806.61

रु 5,91,063.50

11

रु 5,91,063.50

रु 36,100.00

रु 55,190.39

रु 6,82,353.88

12

रु 6,82,353.88

रु 36,100.00

रु 63,223.94

रु 7,81,677.82

13

रु 7,81,677.82

रु 36,100.00

रु 71,964.45

रु 8,89,742.27

14

रु 8,89,742.27

रु 36,100.00

रु 81,474.12

रु 10,07,316.39

15

रु 10,07,316.39

रु 36,100.00

रु 91,820.64

रु 11,35,237.04


EPF Calculator:

Employee provident fund for fiscal year 2012-13 is 8.25%.

Term insurance for Rs. 5 Lac is 1430 Rs. which means the balance amount Rs. 36,100 can only be invested from 37,500 Rs.

EPF Calculator Results

   

Year

Opening Balance

Your investment

Interest Earned

Closing Balance

1

रु 0.00

रु 36,100.00

रु 2,978.25

रु 39,078.25

2

रु 39,078.25

रु 36,100.00

रु 6,202.21

रु 81,380.46

3

रु 81,380.46

रु 36,100.00

रु 9,692.14

रु 1,27,172.59

4

रु 1,27,172.59

रु 36,100.00

रु 13,469.99

रु 1,76,742.58

5

रु 1,76,742.58

रु 36,100.00

रु 17,559.51

रु 2,30,402.10

6

रु 2,30,402.10

रु 36,100.00

रु 21,986.42

रु 2,88,488.52

7

रु 2,88,488.52

रु 36,100.00

रु 26,778.55

रु 3,51,367.07

8

रु 3,51,367.07

रु 36,100.00

रु 31,966.03

रु 4,19,433.10

9

रु 4,19,433.10

रु 36,100.00

रु 37,581.48

रु 4,93,114.59

10

रु 4,93,114.59

रु 36,100.00

रु 43,660.20

रु 5,72,874.79

11

रु 5,72,874.79

रु 36,100.00

रु 50,240.42

रु 6,59,215.21

12

रु 6,59,215.21

रु 36,100.00

रु 57,363.50

रु 7,52,678.71

13

रु 7,52,678.71

रु 36,100.00

रु 65,074.24

रु 8,53,852.96

14

रु 8,53,852.96

रु 36,100.00

रु 73,421.12

रु 9,63,374.08

15

रु 9,63,374.08

रु 36,100.00

रु 82,456.61

रु 10,81,930.69

 Click here to know:

Verdict: The clear winner for the year FY12-13 in comparison between Public Provident Fund Vs Employee Provident Fund Vs Jeevan Anand calculator is Public provident fund.

What do you feel about this comparison? Let me know your views in the form of comments. I would love to hear them.

Check out this link to know the latest interest rate offered by post office and other schemes:

You can also refer this link to know more about financial planning and power of Regular Savings:

  • Power of Regular Savings – Part 2

 

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Rajesh Singla

Rajesh is the founder & CEO of Stockssavvy, Stocks analyst,financial advisor by choice,software engineer by fate,biker,gamer,cricket lover n enthusiastic person. He believes in doing things not just to get by but to get Ahead...

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  • Chhabra Romit

    Hi Rajesh,
    I would like to know your view on one thing, the future rates of PPF and the amount paid by LIC per 1000 rs. What i think is in future PPF rate will reduce and LIC’s per 1000 amount will increase.
    What is most likely according to you?

  • @Romit,

    Interest rate depends upon the cycle of Inflation and tightening of CRR/SLR/Repo and reverse repo by RBI.
    Last year, when inflation was high, all the above mentioned parameters were high..
    Therefore interest rate and loans EMI were high. With inflation easing off, interest rate has cooled down a bit and so is the interest rate on PPF or EPF.
    Overall Govt do keep a track for PPF that they provide 8% or more on consistent basis to investors.

    I hope this answers your query.

  • rajsingla

    @Romit,

    Interest rate depends upon the cycle of Inflation and tightening of CRR/SLR/Repo and reverse repo by RBI.
    Last year, when inflation was high, all the above mentioned parameters were high..
    Therefore interest rate and loans EMI were high. With inflation easing off, interest rate has cooled down a bit and so is the interest rate on PPF or EPF.
    Overall Govt do keep a track for PPF that they provide 8% or more on consistent basis to investors.

    I hope this answers your query 🙂

  • prakash

    Hi Rajesh
    I am NRI please let me know can i invest in PPF if yes how & where i have to go when i visit to india

  • rajsingla

    @Prakash,

    You can visit SBI, ICICI bank or Post office to open a PPF account. If you open the PPF account in bank, then you will have the option to transfer money in PPF account online.

    I hope this answer your question.

  • Srinivas Bandaru

    NRI cannot open PPF account. only indian residential can open this account

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