Comments on: Why Endowment policy must be avoided

By: Manish Chauhan

Manish Chauhan — Wed, 08 Sep 2010 19:54:33 +0000

Jayesh

LIC policies becomes paid up if you stop your premium , but it would be a good idea to just notify them that you are stopping it . Doesnt take much

Manish

By: Jayesh

Jayesh — Wed, 08 Sep 2010 12:22:11 +0000

Hi Manish,
I have Lic policy of Jeevan sathi which i discontinued after 5 years . My question is i have not paid up it? Am i need to paid up it or it will automatically paid up after five years if somebody not pays the premium . Pls clarify it.

By: Manish Chauhan

Manish Chauhan — Sun, 29 Aug 2010 08:02:54 +0000

You should

By: Sunil

Sunil — Sun, 29 Aug 2010 07:28:28 +0000

Thanks for your quick response.

Just started having that sinking feeling….

By: Manish Chauhan

Manish Chauhan — Sun, 29 Aug 2010 06:59:58 +0000

Sunil

You have already paid 6 premiums , now when you retire you have to see how much you will get , I dont think you will get more than what you have paid at this point . Check with you agent and also documents . Yes , LIC policies come handy at the time of urgency when you need loan , but you have to see if it makes sense at the cost of returns you get.

Manish

By: Sunil

Sunil — Sun, 29 Aug 2010 06:56:28 +0000

I accidently happen to see this site and now regret my decisions to buy 3 LIC policies purely because of requests (read as emotional blackmail) from relatives
Now I have decided to surrender 2 of my policies (Jeevan Anand+Jeevan Nidhi) for which I have paid premium for 6 years. However, there is one policy (Jeevan Shree 1-Plan 162) for which I have been paying 25K premium from past 8 years and am thinking to continue. The reason is that I can get loans at 9% without any hassles. I used it twice when I needed it on urgency. Is that sensible?

By: Manish Chauhan

Manish Chauhan — Sat, 21 Aug 2010 10:03:14 +0000

Prasad

1) this is very simple , If you pay me Rs 10 each year for next 100 yrs , you will pay 1000 , is it same as paying me 1000 today itself ? No !!

The Rs 10 you pay me next year would be worth Rs 9 approx today , Rs 10 you pay me 10 yrs from today , will be worth Rs 1-2 today , So if you pay in advance everything , you should be paying much lesser as you have to see what is the current value of those future premiums , read more on this at http://www.jagoinvestor.com/2009/05/importance-of-net-present-value-and-how.html

2) I remeber someone told me this , It should be true

Manish

By: Prasad

Prasad — Thu, 19 Aug 2010 15:41:31 +0000

Hi Manish,

Great job. A must read article for every one!!!
Meanwhile, I have a 2 questions about LIC’s term insurance plans. Requesting you to provide some information.

1. LIC’s Amulya Jeevan policy provides an option of making a single down payment of complete premium amount, in addition to other options of yearly and half-yearly payments. Is there any downside in purchasing the policy with this single payment mode. Also this single down payment is lot cheaper compared to (yearly premium amount * policy term). Is there any specific reason can you think of for this huge difference.

2. One of the comments above mentioned that “LIC will not issue a fresh policy for at least 3 years in case an earlier policy of yours stands lapsed or was converted into a paid-up one.” Is this true ?

Regards
Prasad