Help me decide the future action for my Junk Life Insurance Policies ?

POSTED BY Umashankar ON February 10, 2014 11:21 am ONE COMMENT

I want to take action on few junk Life Insurance Policies and buy Term Insurance . Request for guidance –

1. Max Whole Life Policy – I am paying a premium of Rs. 11,000/= per year. The sum assured is Rs. 4,12,000/= plus paid up sum assured of  Rs. 1,00,000/=.  The policy is 9 years old. I want a decision whether to surrender it and invest the money elsewhere or stop paying premium and convert it to an extended term insurance of Rs. 4,12,000/=. The surrender value will be Rs. 55,000/= only.

2. LIC Jeevan Anand Policy – I am paying a premium of Rs. 45,000/= per year for a sum assured of Rs. 7,00,000/=. The policy is 4 years old. I want a decision whether to surrender it and invest the money elsewhere or stop paying premium and get the money back after 14 years. The surrender value will be Rs. 1,00,000/=. If I stop the premium, I will get back Rs. 2,15,000/= (Premium paid till date + Bonus accumulated till date) after 14 years.

I want a decision whether to surrender or stop payment of premium.

One reply on this article “Help me decide the future action for my Junk Life Insurance Policies ?”

  1. ashalanshu says:

    Dear USctty, if you opt for surrender of Jeevan Anand and receive 1L Rs. today, can you not create more than 2.15L Rs. in next 14Y? Even a simple bank FD ‘ll provide you better return even after paying tax than this 2.15L Rs. after 14Y from here onwards. Do not go by my words and calculate on your own.

    Same ‘ll be the case for that Max policy.

    Thanks

    Ashal

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