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Respected Sir,

I want to know weather it is wise enough to get LIC Jeevan anand policy ,paid up after 5 yrs. of commencement of it.
Afterall it is whole life endowment Policy.

I am paying Rs.22000/pm for Sum Assured of Rs.500000/- for a tenure of 25 yrs,since april 2005.
+ I am getting Rs. 45/-per thousand of Sum assured as bonus/yrs.

How much i will get on surrendering my LIC policy at present.

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6 Answers

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1 Hemant B September 28, 2010 at 6:56 am

Doctor Sahab

Paid up is a great option if you don’t want to waste your money on such policies.

What is meant by PAID UP?

When you stop paying premium but do not withdraw the money from the Insurance company, the company reduces all your benefits proportionality. The benefits like SUM ASSURED, MATURITY VALUE etc. But in case of Endowment & Money Back Plans Insurance Amount ceases to exist. You do not lose anything by this approach. For example, if your policy is for 10 years with SUM ASSURED of Rs. 2 lacs and you have paid premium for 5 years, your SUM ASSURED will now be 1 lac only and other benefits will also reduce by 50% as you have paid 50% of the overall amount that your were supposed to pay.

Reply

2 vazzy September 28, 2010 at 12:22 pm

Doc,

I recently surrendered my LIC Jeevan anand policy which was 6 years old. The surrender value was around 60% of the premium paid. Still i find it worth to discontinue endowment policies and going for term insurance provided if you have discipline of investing the money in PPF+ term + MF SIP etc.

Reply

3 JayaprakashReddy December 22, 2010 at 7:17 pm

vazzy,

did you also get the bonus amount in the surrender value?

Reply

4 krishna kumar July 21, 2012 at 8:06 pm

u would also get bonus which is= bonous decided for the year per thousand of sum assured

Reply

5 vazzy December 22, 2010 at 8:12 pm

@JayaprakashReddy

No.. the bonus was not included I believe.. anyways the amount was paltry

Reply

6 Rajesh Gupta February 19, 2013 at 2:20 pm

It is worth surrendering this policy. I did the same thing earlier and I felt I made a good decision. Dont go for such policies if you want to do investment.

Reply

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