Advice needed to surrender LIC policies & retirement investment

POSTED BY Babu.c ON February 16, 2012 9:41 am COMMENTS (11)

Hi Friends,
I’m 35 Yrs. old. I have invested in three LIC polices.

Invested Policies –

i) Jeevan Samridhi – 15 Years ( From 2005)
Sum Assured 1 Lakh, Yr.Premium – 10364

ii) Jeevan Anand – 15 Years ( From 2005)
Sum Assured 1 Lakh, Yr.Premium – 7300

iii) Bima Gold – 20 Years ( From 2005)
Sum Assured 2 Lakhs,Yr.Premium – 6716

Total LIC Premium-> 24380/-

After realizing last year, I have taken term insurance from SBI for 40 Lakhs with the premium of 13000/-. I’m also thinking to take another term insurance, if I surrender LIC polices.

Can you pls. advice…
– Is it worth continuing above said LIC policies? Can I surrender the LIC polices?
– Also advice, if any better investments to redirect LIC premium (ready to pay more premium for better plans)
– Pls. advise me to invest on retirement, child future plans

Thanks in advance.

11 replies on this article “Advice needed to surrender LIC policies & retirement investment”

  1. Srinath says:

    I am Srinath from Hyderabad and I am about 30 yrs old and about to marry and I earn around 20k per month and I can spend around 3000 per month for insurance.
    I want to take a LIC policy so please suggest me a insurance policy which gives me a good return if survive the policy period or good money to my family if something happened to me.
    So basically I am looking for a policy which gives me life cover and good returns too.
    Some one suggested me a LIC Jeevan Anand and Amulya Jeevan are good choices but I want to know is these policy are good or is there any other policies like these in LIC or any other.
    And can I take this Jeevan Anand and Amulya Jeevan policies online or I have to go through some agents because when I check for premiums there is a difference between agents and LIC portals premium for 5L rs.
    Your advice is imp for me

    1. Jagoinvestor says:


      It sounds great , but are dumb investments products .
      You should invest in mutual funds for long term as they will help you create far greater wealth in a meaningful way !


  2. hems says:

    i have lic profit plus whose Doc is 2007 and last premium pais on 30/11/2011.
    at present what should i do whether surrender or continue.
    today its only 10000 plus.

    1. Hi hems

      The best answer you can get only from the agent you invested through or just contact the company. The thing is your case is a bit personalised and other than company, no one can give accurate information


  3. tusharmuthal16 says:

    Hello Sir,

    My name is Tushar Muthal & I living in Mumbai.

    I have starting My two LIC Premium Policy in 2009 year. My 2 LIC Premum Policy number is = 906179570 / 906179571.

    I want urgently money so i décidé Close my two LIC Policy and 6 month after i will starting new LIC Premium Policy.

    So please Sir, give me details how to me process to close my LIC Policy.

    Sir, How much money will Lic after closing.

    Sir, I waiting for your reply.

    Thank You

  4. Dear Babu C. You may invest in in Index funds or a balanced fund. Please opt from HDFC AMC for the index fund or the balanced fund. Please do note – Safety & return do not go hand in hand.

    MF investments are subject to market risk,

    Please invest only after understanding the risk.



  5. Dear Babu.c, as you have the back up of PF & PPF for you, please stop these money drainer policies right now. Instead of focusing only on investment oriented life insurance policies, please try to look around. You may invest in MFs also. If you are not comfortable with the risk of Eq. investing. You may start your MF investments first into high debt, low Eq. hybrid MFs like HDFC MIP Long Term Plan.

    Once you are ok with the Eq. as an asset class, you may gradually move to balanced fund (red high Eq. & low Debt) like HDFC Prudence & then to full Eq. funds like Franklin India Bluechip fund.

    Is your wife also earning or is she a housewife?



    1. Babu.c says:

      Thanks ashal. My wife is not earning.. Can you advise to invest in index MF thru SIP? Is it a safest approach?
      Also looking for tips in investing on Gold ETF’s to diversify the investment.


  6. Dear Babu, Do you have PF &/or PPF? Please update the same for us. It ‘ll help us to identify a right product for you.



    1. Babu.c says:

      Thanks for the reply.
      Yes. I do have PF & PPF accounts. I have PPF accounts for myself, wife & child.

      My primary concern is not to spend high premium for low outcome in LIC polices, when I have term insurance. So i would like to surrender the LIC policies & just checking it’s worth decision. Thanks.

  7. Sowmi says:

    Hi All,

    This is the eye opener doc which i came across few months before and after that i started spending enormous amount about my FP etc. This is a must read article regarding the issues involved with endowment policies. Please circulate this and save our community.


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