I am looking for an LIC plan with fully guaranteed returns. I’ve heard about Dhan Vridhi and Jeevan Azad. Which of these two plans offers a higher guaranteed return on investment?
A direct comparison between these two plans for a new purchase is not possible, as the LIC Dhan Vridhi plan was a close-ended policy that is no longer available for sale in 2025. The available option between the two is LIC Jeevan Azad, which is a plan that offers completely guaranteed, though modest, returns.
The First Point: LIC Dhan Vridhi is a Closed Plan
My friend was asking me about the Dhan Vridhi plan last week, as he had seen some positive reviews about it online. I had to do some research and then confirm with an LIC agent that Dhan Vridhi was a limited-period plan that was only open for new sales for a few months in 2023. Therefore, it is not possible to buy this plan today.
Understanding the Guaranteed Returns of LIC Jeevan Azad
The agent then explained the currently available alternative for guaranteed returns, which is the Jeevan Azad plan. He said this plan is specifically designed for people who want complete certainty and do not want to take any market-related risks. It is a ‘non-participating’ plan, which means the final maturity amount is fully guaranteed and written in the policy bond at the very beginning. The return does not depend on any variable annual bonuses.
The Nature of ‘Guaranteed’ Returns
I was discussing this type of plan with a financial planner, and he helped me put the “guaranteed” returns in perspective. He explained that while the maturity amount in a plan like Jeevan Azad is certain, the effective rate of return (IRR) is quite low, typically in the range of 4% to 5%. He described it as a product for someone whose absolute priority is the safety of their capital and a predictable outcome, not for someone aiming to earn high, inflation-beating returns.
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