Investment and SBI MaxGain Account !

POSTED BY Aasheesh ON October 5, 2013 9:40 am COMMENTS (5)

Hello ,

First of all many thanks and congratulations for this great initiative to change the lives of us ! It significantly changed my financial knowledge and I gradually started thinking about what is happening to my hard earned money and as life progresses- how should I plan and save for my future- through your regular posts here !

My current status is : I have a home loan of 28.07 lac for 20 years @10.05% from SBI in MaxGain account and the monthly EMI is 26k. I try to save from my monthly salary as much as I can and transfer to this account (thanks for knowledgeful posts on SBI MG OD account!).

I am having 2 LIC policies: 1) Jeevan Surabhi – 25 years (table 108), premium pmnt term 18, started in 06/2007 with quarterly premium: 4991, SA: 2.5 lac . I have received a money back of 50k in 2011 and ‘ll get 50k in 2015.
2) The whole life policy- t. no. 5, policy term 55, premium term: 18,SA: 1 lac, Qtrly premium: 837, started on same date as above (yes, it was a decision made in haste and I used to know no nothing about LIC then except that it is must in life and saves Income Tax :). Beware my young fellows ! Please learn here as well and thanks again to JI team 🙂 )

Now I have decided to not pay any premiums for above, instead start 2 Term insurance of 50 lac each.
Should I paid up above policies or surrender (so that I can transfer surrender value in SBI MaxGain a/c) which per my agent’s calculation is ~40k) ?
Should I invest in other plans of investment such as PPF etc which returns less than my SBI MG loan interest rate (If my understanding is correct) ? What other investment options I have when keeping my loan interest in mind ?
Me and my family have good med insurance from my employer. If I have sufficient Available Balance(surplus) in SBI OD account(say 5 to 7 lac) would you suggest me to go for med cover other than employer ?

Many thanks,


5 replies on this article “Investment and SBI MaxGain Account !”

  1. ashalanshu says:

    Dear Aasheesh, in my personal opinion, surrender these policies and use the amount to invest now and to earn better returns.



  2. Aasheesh says:

    Thanks Ashal ! Could you please also guide me on my original questions of whether paid-up or surrender my policy and how should I manage my investment plans keeping SBI MaxGain account in mind ?

  3. ashalanshu says:

    Dear Aasheesh, OK. Go ahead. Claim ratio may not remain same down the line.



  4. Aasheesh says:

    Thanks Ashal !

    >>Why are you purchasing 2 covers of 50L each and not a single cover of 1 crore Rs?

    My basic understanding is that if one insurance firm delays or rejects the claim the other one could be be able to settle the claim so that my family need not to wait. I will choose any insurance firm on the basis of their claim-settlement ration. However, is it true that their today’s claim settlement ratio is going to be same after 10-20-30 years ? There may be more benefits in case of single 1crore term insurance but my primary goal of a Term insurance is to provide a quick claim-settlement.

    Please guide.


  5. ashalanshu says:

    Dear Asheesh, I w’d like to discuss things one by one. Why are you purchasing 2 covers of 50L each and not a single cover of 1 crore Rs?



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