1 cr worth of Jeevan Anand Policy of my client – whats next ?

POSTED BY VAIIBHAV USHAKANT JHAVERRI ON October 12, 2013 10:26 pm COMMENTS (3)

One of my client is having 1 cr Jeevan Anand policy.

Premium of INR 2,16,455 p.a. He has paid in all 4 installments. 5th is already due. 40 years premium paying term. What should be advice to him. Should he surrender with 3,83,000 some value or should he paid up this policy and continue for a while?

3 replies on this article “1 cr worth of Jeevan Anand Policy of my client – whats next ?”

  1. ashalanshu says:

    Dear Vaibhav, the paid up value assigned today ‘ll be certainly higher than Surrender value but no increase ‘ll be there after it’s assigned. Now this Paid up value ‘ll be delievered only after policy term i.e. 40Y or death, which ever comes earlier. Now you decide on your own, what is good for him? Waiting for this paid up value with out any fresh increase in vlaue or surrender it now and investing elsewhere to recover not only the loss but also some positive gains.

    Thanks

    Ashal

  2. VAIIBHAV USHAKANT JHAVERRI says:

    in all he has paid INR 8,65,820. So should he book such a big loss of INR 4,82,000 or else should he just paid up this policy and wait till surrender value atleast comes to the level of his total cost of INR 8,65,820.

  3. ashalanshu says:

    Dear Vaibhav, From the prem. figures I assume your client falls in NHI category. As the policy term is 40Y and just 4 prem. have been paid, it’s advisable to book loss and receive the surrender amount. Invest the surrender amount as well as fresh prem. elsewhere.

    Thanks

    Ashal

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