Additional Features
Jeevan Vaibhav is a single premium plan where premium payable is almost half the amount of the sum assured. When analysed over a 10-year period, the returns generated by the scheme during the entire work out to 7.7-8.0% per annum., after accounting for high sum assured rebates.

Policy At A Glance
Assuming the age of a healthy male policyholder as 30 years, the annual premiums payable for various amounts of sum assured are illustrated herewith…

Jeevan Vaibhav is a smart adaptation of the Jeevan Vriddhi policy launched by LIC a few months ago. Jeevan Vriddhi offered returns ranging from 4.7% to 7.09% compounded annual growth rate (CAGR) and death cover equal to five times the amount of single premium. For Jeevan Vaibhav, LIC has limited the death cover to about twice the amount of single premium and has increased the annual returns to 7.7% to 8.0% CAGR instead.

Jeevan Vaibhav is thus an interesting investment plan, an alternative to term deposits offered by banks. With interest rates having begun to soften gradually, investors can use this latest offering by LIC to park their money for 10 years for an assured tax-free return of about 8% p.a.

The comparison reveals that returns of LIC's Jeevan Vaibhav gain over those of bank term deposits earning interest @ 8.75% for 10 yrs; after accounting for tax impact @ 20.6% and above and the cost of premium paid to buy a term plan.

However, purchasing this scheme solely for life cover does not really make sense. Those with a preference for insurance over investment may give this plan a miss and purchase a pure term plan instead