Bima kiran is told as ’’cheap’’ by
LIC agents. But it is MUCH more expensive
than pure risk products like ICICI, HDFC or
LIC’s own Jeevan Anmol.
The difference is that you get back the
premium. But remember that you get it back
after the end of term (25/30 years). If
you calculate the ’’returns’’, it is very bad.
Better to take pure risk insurance and invest
the difference in PPF or mutual funds. What
you will get after the 25/30 years will be
MUCH more that Bima Kiran’s return of premium.
Another selling point is the continued coverage
of life for 10 years after the term. This benefit
is useless for young people because the average
life expectency is likely to be 75 after 25 years
from now. Bima Kiran’s coverage will not continue
till that age.
Also the ’’built in’’ accident coverage can be
bought at a very low cost separately from general
insurance companies.