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POSTED BY ON June 4, 2011 1:35 am ONE COMMENT
Hello friends,
When we plan to get rid of those endownment or moneyback policies(at 4 year and so on) what is the better option ? Is it paid off or surrender the policy ?
As per my knowledge(please correct me if I am wrong), paid off gives back all the premiums we paid so far including guaranteed return+ bonus till that date. BUT we get this money at the time of maturity.
with surrender option, we get into loss and receive less money but we get it immediately.
I think that with paid off option even if we get all the money we paid but after those many years its again huge loss bcoz of value of money
what are your views ?
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Thats true
Paid up options gives you money at the end of the tenure which means you loose the opportunity to do something better with that money . Surrendering a policy gives you lesser amount at the same time, but then you can do better investments with that money . You need to look at your potential and see if you can make better money than paid up option or not .
Also you need to think about other things like loosing bonus amount in case of surrender option .
Manish