Dear Manish,

I have taken LIC Jeevan Saral policy for me and my son with yearly premium of Rs 53440/- from April 2008.
i have also invested in mutul funds through sip. Now i want to purchase term insurance plan.
Can you please sugget me what to do with jeevan saral policy?
What will happen if i stop paying premium? Do i need to wait for 10 years to receive all that money which i have paid from last 4 years.
Waiting for your kind reply.

14 Answers

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1 Manish Chauhan April 28, 2012 at 8:20 pm


I think jeevan saral is the only LIC policy which gives back a lot of your money after 5 yrs .. just make one more payment and take your money back after 5 payments


2 SACHIN VAMAN SHIVGAN April 28, 2012 at 10:39 pm

Good to know that I will get my money back after 5 years. Shall i get entire amt. or need to sacrifice some?


3 ashal jauhari May 13, 2012 at 7:25 am

Dear Sachin, please check with LIC office & not the agent. In all probability, you ‘ll get 90% of the prem. paid excluding the first year prem. So for sake of calculation, out of 2L Rs. paid as 4 prem. till now by you, you ‘ll get 90% of the 1.5L Rs., which is 1.35L Rs.

As rightly pointed out by dear Manish, Jeevan Saral is a bit different product from other policies of LIC, offering gtd. surrender vlaue, so once again I w’d request you to visit LIC office to pin point the surrender value now or next year & accordingly decide.




4 wealthucreate April 28, 2012 at 11:30 pm

what is your policy tennure? If i was you i would have personally visited the LIC office and check what would be the amount i would be getting if close it off today Vs paying another premium and closing it off after getting the money back.

This details should help you in taking the right decision… dont go to your agent. go to office directly.


5 durga May 5, 2012 at 3:53 pm

Yes, I agree with wealthucreate. Always the agents try to convince you so that you would continue to paying the premiums which will indirectly help them to get their commision.


6 vivek January 9, 2013 at 12:31 pm

Hi Ashal,

I am 23 year old and want to get a policy which have below features,

1) good return
2) risk cover
3) No surrender charges not even 1st year premium.

Also i am from Madhya Pradesh n living in delhi please suggest whether i should take policy from my home town or Delhi only.

I have gone through ur posts and would request you to pls help on this also :)


7 Ramesh January 9, 2013 at 1:02 pm

There is no policy with all those features. And there will never be one either.
So forget it.

Keep things simple.


8 Ashal Jauhari January 9, 2013 at 2:30 pm

Dear Vivek, do you own a vehicle (no matter 2 wheeler or 4 wheeler)? If yes, how much return you are getting from the vehicle insurance policy? As rightly pointed out by dear Ramesh, there is no such policy as you demanded.

I believe in KISS – Keep is simple silly. So what’s there for you in KISS?

Please purchase adequate term cover as per your requirement. Invest the remaining amount in combination of PPF & MFs. That’s it. No surrender charges on your MF money & as it’s Term plan, you need not to worry about return. Till the time, you are alive within policy term, you are creating wealth for your family, if something happens to you during your policy term, your family ‘ll receive a huge amount of money.

Please update me with your views.




9 vivek January 9, 2013 at 2:36 pm

Dear Ashal,

Thanks for ur prompt response.. :)

please advice me abt Jeevan saral or jeevan anand or flexi plus, which one will be good for me and where should i buy plan from my home town or delhi itself.

i can pay 24000 per year for 21 year term


10 Ashal Jauhari January 9, 2013 at 2:48 pm

Dear Vivek, do you love your family or your agent’s, lic people, lic officers……. family?

Please answer this simple question.




11 vivek January 13, 2013 at 10:40 am

Of-course family Ashal…


12 Ashal Jauhari January 13, 2013 at 4:52 pm

Dear Vivek, then why are you so forcefully asking for LIC policies? any special bond with LIC? any reasoning?

Please clarify.

Sample this – paying 24000 Rs. prem. in a policy in LIC, getting a cover of 4-5L Rs. after paying for next 4-5 yeatrs, you are no more. Family ‘ll receive 6-7L Rs.

Paying 5000 Rs. prem. yly in a term plan, & in this case, you family ‘ll get 50L Rs. when you are no more + the saved prem. of 19000 Rs. on yly basis so in all 51 or may be 52L Rs. Now do tell me, which option is better?




13 nachikets January 20, 2015 at 11:45 am

I am more or less in similar situation. An employee from LIC office suggested me not to surrender the policy after 4 or 5 years, as that will incur losses. Instead she suggested to stop paying premium after 4 years, and then surrender after around 2 or 2.5 more years. This is because it improves the chances of gaining some amount over the premiums paid. Of course it does not guarantee the gains as it depends upon the interest rate, but surrendering after 4 years leads to loss with probability 1, and hence stopping the premium and waiting for 2-2.5 more years sounds better.


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