LIC’s JEEVAN ANAND – continue or surrender ?

POSTED BY Udaya Kumar ON May 28, 2012 7:19 pm COMMENTS (23)

Im 26 yrs old.  Last month (apr 2012) i took LIC’s JEEVAN ANAND policy sum assured for 5 lakh, term period 25 yrs, premium paying quarterly Rs.5,256. After reading your blog on how LIC policies work, I am not happy with this plan, please suggest me any other areas to invest money. Can you do some review on LIC  Jeevan Anand plan and let me know if I should continue or surrender this plan ?

 

23 replies on this article “LIC’s JEEVAN ANAND – continue or surrender ?”

  1. Chanaveer says:

    Thanks Ashal !

  2. Chanaveer says:

    Hi,

    I have following queries regarding surrendering LIC Jeevan Anand policy:

    1. In Form 5074, who should sign for “Signature of Assignee”. Is this the nominee?
    2. Again, in Form 5074, there is a signature field below Revenue stamp, next to witness details. Its not clear who should sign this. Is it witness?
    3. In S.V.APPLICATION form, what should I fill for “Name and Address of the paying Authority, Designation, Present Badge No. & Dept. No.”?

    Thanks,
    Chanaveer K

    1. Dear Chanaveer, here are the answers –

      The policy holder is the assignee. Hence S/he should sign for “Signature of Assignee”.

      After affixing the revenue stamp, the policy holder should sign it across.

      These details are to be filled by the LIC Office where you are depositing that S V form.

      Thanks

      Ashal

  3. Dear Uday,

    You may consider ICICI Pru iCare, a term plan from ICICI Prudential Life Insurance which can easily be purchased online and allows you to get a cover of upto 1 crore without any medical tests. This makes it very easy and quick to get protected.

    This product has a good claims record as explained in the following news articles: http://bit.ly/HejDZA and http://bit.ly/HTbw7S

    To find out more about this product and to see if it suits you, please visit http://bit.ly/IgvQDe
    Consumers have chosen ICICI Pru iCare as Product of the Year 2012 in the Life Insurance Category based on survey of over 30,000 people by Nielsen.

    Please understand that we only offer suggestions based on your requirements, however
    choosing a policy most appropriate for you remains at your discretion.

    Warm Regards,
    Life Insurance Help
    ICICI Prudential Life Insurance

  4. Buying policy like jeevan anand will neither meet your insurance requirement nor investment requirement. Keep them seperate and you will reap the benefits.

    regarding surrender – Why do you want to retain it? You can go for pure term plan + MF combination.

  5. rajan.panchal24@gmail.com says:

    @Ashal,
    I have purchased it for insurance.. Though the insurance amount is not so good.. I am looking forward to opt for a term plan..

    1. Dear Rajan, your answer says it all. You purchased it for insurance but with the typical Indian style – how much return ‘ll I get back at the end of policy? My dear friend, insurance is & should be to cover the financial risk for our family, dear ones, in our absence. What’s the use of a policy if it’s not able to serve the purpose?

      In my opinion, please go for a pure vanilla term plan. Book your losses in this policy & treat this as a lesson for your future life.

      Thanks

      Ashal

  6. Ramz says:

    Yes deepakgudla I agree with you. I am also in similar situation.

    Hi Uday, congrats to you 🙂 as you realized it, in the minimum possible time(of course with some loss)

  7. rajan.panchal24@gmail.com says:

    Can anyone pls tell me whats wrong with this Jeevan Anand Policy?? I am holding this policy for past one year and have invested around 10k so far.

    1. Dear Rajan, did you purchase this policy for insurance or investment? Please clarify.

      Thanks

      Ashal

      1. Prasanna says:

        Dear Ashal,
        Even i am holding this Policy for 3 years & paid around 40K, Can you suggest me what can i do now? (ie) If I surrender now, how much will i get approx.? & for investment can you suggest something?

        1. Dear Prasanna, If you opt to surrender now (which is actually the best option), you ‘ll get around 30% of the prem. paid till date but excluding 1st year prem. as surrender amount.

          If I assume your yly prem. amount is 10K Rs., you ‘ll get around 12K Rs. as surrender amount now.

          To invest, you have a variety of product on offer, from plain products like PPF & Bank FDS to MFs.

          Thanks

          Ashal

          1. Prasanna says:

            Thanks Ashal & i have 2 queries.

            I found few online Term Plans are offering Insurance at very less annual premium (compared to my Jeevan Anand endowment Policy), but i am having fear on their Settlement ratios. Can you suggest good online term policy?

            How PPF is better than FD, because FD I Can get around 10% interest whereas in PPF i think around 8.5% only?

          2. Dear Prasanna, regarding the settlement ratio issue, you w’d have to make a call. If you are not comfortable with the online term plans, you may go for offline ones. Even offline plans are very cheap although not from the big Daddy, LIC.

            Please check the offline plans of SBI, Aviva, ICICIPrulife, HDFC, Kotak to name a few. It’s merely an example & not the order of preference.

            Thanks

            Ashal

  8. deepakgudla says:

    You are really lucky that you realized in 1 month.. It took 6 yrs and costs Rs 50K for me to realize… 🙂

  9. Sachin says:

    Costly learning for Udaya. Just say Good bye to LIC which is trusted as god in investment by common investors.
    I think 80+ % of new/first time investors buy LIC policy ….. thinking it is government company so our money will never get lost.

  10. Dear Uday, if your free look period of 15 days is not over, surrender the policy right now. In case you are already over that free look period, forget the qtly prem. paid & let the policy lapse. Take this loss as a learning.

    Purchase a term cover for yourself of 12-15 times multiple of your yly income + any loan liabilities. For investment needs, please invest your hard earned money in pure investment oriented products.

    Thanks

    Ashal

    1. udayakumarlink says:

      Dear Ashal,

      Thanks for your reply, can u pls suggest me any good pure term plans with the company name…

      1. Ramesh says:

        See other threads, which give you information about the policies as well as personal experiences of people. Then decide or ask about your confusion.

      2. Dear Udaya, below are some names but it’s not the order of preference –

        Online – Aviva, Aegon Religare, Kotak, ICICI Prulife, HDFC, Metlife,

        Offline – Kotak, ICICI Prulife, HDFC, Metlife, SBI Life, Aviva, Aegon Religare, India First,

        Based upon your comfort level, you may opt from either online or offline. Please do remember, offline plans are a bit costly than online plans. I’m not adding LIC in the list for the fact that you are already aware of LIC’s term plans & their high prem. Yes you may opt for LIC also if you are comfortable with that high prem.

        Thanks

        Ashal

  11. Did you free look up period ended ? Did you get your policy in hand ? If not yet , then you can give back your policy within 15 days of getting the policy in hand . Get rid of it

    1. udayakumarlink says:

      Dear Manish, i received the policy and the free look up period was over. Tell me any other ways i can invest this money if i surrender it, pls suggest me…

      1. Dear Uday, as the free look period is over, please forget this policy & move ahead. Book this loss & start thinking to cover yourself with term cover & investing elsewhere.

        Thanks

        Ashal

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