Action Month: Surrendering Useless Policies

POSTED BY J ON September 8, 2011 12:36 am COMMENTS (3)

Hi All,

I have been investing in the Jeevan Anand Policy of LIC since October 2008. I already have paid 3 premiums and the 4th premium is due next month. My annual premium for this policy is Rs. 20,222/- for a sum assured of 4 Lacs.

I do not wish to continue with this policy and I am a bit confused whether to surrender the policy or turn it into a paid up policy.

Please share, what will be the best way out? Also, please share the procedure of surrendering the policy and turning it into a paid up policy.

Thanking all of you in advance. 🙂

Kind Regards,

J

3 replies on this article “Action Month: Surrendering Useless Policies”

  1. Abhishek says:

    Hi J,

    Jeevan Anand is an Endowment + Whole Life Plan.. Since you have been paying for the last 3 years, it would be beneficial to continue the whole term. But this call needs to be taken after you check ur asset allocation in Equity and Debt..

    Still if you would like to Surrender, following is the calculation :

    Guaranteed Surrender Value = 30% of (Total Premiums Paid – First Year Premium – Additional Premium paid towards Accident Benefit)

    Abhishek

  2. Dominic Prakash says:

    4 months back I surrendered the same policy and got a Health insurance and increased one of my SIP in a MF. You wouldn’t regret doing the same.

  3. Nayandeep Saha says:

    Hi J,
    I have also stopped my 2 LIC policies from this year. You just call up the LIC helpline no.(www.licindia.com). Just tell them that you want to make it paid up. That’s what I did. I did not need to do anything else.

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