POSTED BY April 25, 2014 12:12 pm COMMENTS (4)

ONDear Team,

My name is Ajay. I have taken LIC JEEVAN SARAL policy of 60000 P.A which is with yearly payment mode. Since Agent was our relative we blindly believed what he said at that time.

He never mentioned that Premium amount is too high. Also He miss guided us about the Maturity amount and policy surrender.

I have already paid 3 premium i.e. 180000 Rupees. Now I want to close this LIC can you tell me how much Money I will get back ? If it is only 30% then should I pay one more premium i.e. 4th and then should go for closing this LIC as it will give me 90% of my amount paid.

Can I close my LIC immediately after paying my 4th premium or I have to wait for entire year to get 4th year complete.

Dear Ashok, so what is the Maturity sum assured for you in this policy at 4th year and 5th Year?

Thanks

Ashal

It is mentioned in one of the document given by my agent.

This document contains signature of branch manager and lot’s of para(clauses).

In Para No 7 with title ‘Surrender Value’ Following things have been mentioned which I am writing as it is.

”

The policy can be surrendered after it has been in force for at least 3 full years.The surrender value wil be the greater of the Guaranteed Surrender Value (GSV) or Special Surrender value (SSV) as given below.

GSV: The GSV will equal to 30% of the total amount of premiums paid excluding premium for the first year and all the extra premiums and premium for accident benefit/term riders.

SSV: The special surrender value under the policy shall be paid as the sum of (A) and (B) given under:

(A): Discounted value or accumulated value, as the case may be , of the following:

80% of maturity sum assured if less thean 4 years premiums have been paid , 90% of the maturity sum assured, if 4 or more years but less the 5 years premiums have been paid and 100 % of the maturity sum assured, if 5 or more years premiums have been paid.The maturity sum assured for this para will be maturity sum assured corresonding to the term for which premiums ahve been paid under the policy. if the premiums have been paid for a fraction of a year, the maturity sum aassured shall be worked out by way of mathmatial iterpolation.

etc, etc, etc,

B) The loyalty addition, if any, as anounced while declaring the result of the corporations valuation as at 31st march, immediatel;y preceding the date of surrender.

One question: from where did you get the 90% figure?

Dear Ashok, please continue the policy to keep your relationship intact. No need to cry here. Relationship is more important than losing few lakhs rupees.

Above was a sarcastic comment. Below is a financial comment.

Please do not pay any more prem. Purchase adequate term cover. Surrender the policy and invest the surrender value as future prem. in pure investment instruments.

Thanks

Ashal