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,
Aasheesh