Discontinuing LIC policy

POSTED BY Prasad Kurdi Matta ON January 3, 2012 10:31 am COMMENTS (3)

Hi,

I have 2 LIC policy Jeevan Shree and Jeevan Anand. I am paying a one premium per year.
Till now i have paid 7 years or premium.

Now i don’t want to continue paying premium as i am diverting the money to term insurance and PPF.

1) To make the policy as paidup policy is it ok to stop paying premiums?
2) Will get the amount paid till now + bonus occured till now during maturity?

3 replies on this article “Discontinuing LIC policy”

  1. Dear R Shiva Prasad, please read the reply given to dear Prasad & accordingly decide your own way.

    Please do note in case you opt to surrender, the initial loss ‘ll look high but over the period you can cut down that loss by reinvesting the surrender amount & may end up earning more than what you ‘ll get from that traditional plan of LIC or any other insurer.

    Thanks

    Ashal

  2. Dear Prasad, Please check with local LIC office, what ‘ll be the paid up value & what ‘ll be the surrender value as on date for each of your policies.

    Please do note, In case of a paid up policy, the bonus addition ‘ll stop & the money ‘ll lying idle with insurer. In case of surrender, you ‘ll recieve the money now & ‘ll have the option of reinvesting the same to else where.

    Please check which option is suitable to you based upon the monetary value assigned to each by LIC.

    Thanks

    Ashal

  3. I too have the similar question.
    Without knowledge, we took some traditional or ULIP policies before coming into Jagoinvestor Forum.
    Now it is clear that we should take term policies and no use of traditional. Thanks to Jago Investor and Forum Members.
    But sir what about the policies already taken? Is it right to stop or surrender those polcies? Because we will get very less, if we stop or surrender.

    Request advice.

    Thank You
    R Siva Prasad

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