9.5% guaranteed addition on LIC’s Navjeevan Shree – sounds attractive? Check details when you opt for it
Last Update Date: 06-10-2026
Published by The Economic Times
Abhishek Kumar's role: Quoted
Abhishek Kumar explained that the plan's annual additions do not compound and shared calculations of its effective return. He cautioned against the marketing pitch and suggested a pure term plan plus a mix of equity and debt suited to one's risk appetite.
More of Abhishek's views on money management
The article examines a new non-linked life insurance savings plan from a state-owned insurer that advertises high annual additions. It explains that these additions accrue as simple, not compound, amounts based on premiums paid, and works out the plan's effective annual yield against small savings schemes and fixed deposits.
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9.5% guaranteed addition on LIC’s Navjeevan Shree – sounds attractive? Check details when you opt for it