Paid up LIC policy

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.

6 CommentsAdd Comment

  1. Rajesh Gupta

    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.

  2. vazzy


    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.

  3. 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.

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