Jeevan Anand – Surrender or Continue?

POSTED BY Navneet Kumar ON November 8, 2012 6:07 pm COMMENTS (10)

Hi,

 

I am in a bit of dilemma right now. I have 2 LIC policies in my name. Details are as follows:-

1. Jeevan Anand :-

Start – October 2010

Sum Assured – 10 lakhs + Bonus Accrued

Premium paying term – 20 years

Monthly premium – 4523

Maturity Value – 21-23 lakhs

Premium paid till now – 108552

2. Money Back Policy

Start – March 2010

Sum Assured – 10 lakhs + Bonus Accrued

5 yearly payments – 15%,15%,15%,15%,40% (of SA)

Premium paying term – 25 years

Monthly premium – 4412

Maturity Value – 25-27 lakhs

Premium paid till now – 141184

Now the confusion I have, is whether to surrender these and buy a term plan, or continue with these. I have invested around 2.5 lakhs and most I will be getting back if I surrender Jeevan Anand now is 0, and if I surrender Money Back in march 2013 is around 40k. A loss of more than 2 lakhs. 

Also, as I have availed tax benefit under 80C using these policies for last 2 fiscal years, would I be taxed extra upon surrendering? I mean would I have to pay as tax the benefits I claimed?

Someone please help me. 

 

Sincerely,

Another victim of LIC agents 🙁

10 replies on this article “Jeevan Anand – Surrender or Continue?”

  1. Mohit says:

    Dear Friends,

    Pls suggest should i surrender my Jeevan Anand Policy or make it Paid up, as i don’t want to continue this policy.

    Premium : 25028 Annualy
    Sum Assured : 5 lac
    Term : 21 years
    Started from : Jan 2010

    1. You should make it paid up

  2. Dear navneet, Please accept my congratulation for becomeing a JAGO(ed) Investor. 🙂

    thanks

    Ashal

  3. Navneet Kumar says:

    An update.

    Done. 🙂 And actually relieved of the ever hanging sword over my head. Stopped payments effective from this month.

    Thanks again.

    P.S. – Was having 2nd thoughts about doing it at the last moment in my pay section while stopping the payment. Then just remembered the 5.65% return I would be getting at the cost of investing 54k per year, and stopped the payments with double conviction that I was doing the right thing.
    For those who are just stalling it (I stalled it for 2 months) so that they do not have to take a hard decision, please look at the bigger picture. The long term gains are nothing. If you want insurance and are hesitant about the newer companies, go with the well established players like SBI LIFE or ICICI. Just remember to disclose all the details and if you have doubts if a fact is important or not, better disclose it. It might increase your premium by a few thousands, but will give you the satisfaction and sound sleep at night knowing that you have not hidden anything that might cause your claim to be rejected when you’re gone. 🙂

    Thanks again for all the help.

  4. Ritz P says:

    Hi Navneet

    One more thing, if you have decided to go for long term benefits.

    Go for financial planning as it well help you to set your long term goals.

    You can either go to Manish at jagoinvestor or Hemant at tflguide.

    You can check which one suits you. Both are writing for benefits of a common man like us.

    I am reading both blogs for last 2-3 years and admire both for their efforts.

    Regards
    Ritz

  5. Ritz P says:

    Hi Navneet

    It all credit to you who have the courage to take a good decision.

    and all thanks to Manish who started this forum.

    Asides Dear Manish

    Request your views on the same.

    Just ensure one thing

    Surrender these policies only when you get term policy in your hand. Do not surrender first.

    Regards
    Ritz

  6. Ritz P says:

    Hi Navneet

    Please go through this link. it will help

    http://localhost/jagoforum2/surrendering-jeevan-anand-policy-2/4633/

    Same is with money back policy.

    1. Navneet Kumar says:

      Thanks a lot Ritz 🙂 I have applied for Aegon Religare’s iTerm Policy and am surrenderring Jeevan Anand…well its more of like stopping payments to it by writing to my pay section. I will lose 1,04,029 in this crap policy but will save 54k annually. That is the only positive I can take from this. Also, my money back policy will be 3 years old at the end of february 2013 and I will get 43,000 by paying an extra 14000 from now. So I will properly surrender it then only. In all, I’d be saving 1,08,000 annually, which I am planning to invest in PPF,Mutual funds and pure equity in parts. I am losing around 2.5lakhs in all but its worth it. Was shocked at my agent’s attitude and rude behave when I told him that I’d be closing it. He was demanding the two initial monthly premiums he paid for luring me into these scams. I assured him he will get his money( As if he will ever get it!!!) It was a big decision for me and required a lot of courage. But its better to cut a finger now than to cut the whole hand tomorrow or even worse, to kill myself 20 years later.

      Thanks again,
      Navneet 🙂

  7. Ritz P says:

    Hi Navneet

    1. First go and buy a term insurance policy( to surrender or not is the secondry issue)
    2, Jeevan Anand Policy- You can not surrender it now as the premium has been paid only for 2 years. You can only surrender after 3 years in Jeevan Anand.
    You have a second option of making it paid up, that will also be after 3 years only.

    Money Back Policy:Surrender it and invest the money in some good mutual fund, otherwise you will be stuck throughout. I know 1 Lakh is a big loss but it will only increase with time and trouble you more.

    This year, you would not be allowed for any deduction if you surrender the policies.

    I hope it will clarify.

    1. Navneet Kumar says:

      Thanks Ritz P 🙂

      Some quick queries though
      I am paying 54276 p.a premium for jeevan anand. so should i pay this much amount to get about 30-40k after 1 year or abandon it right away?

      Also, I think money back has advantage in the fact that it gives me 1.5 lakhs every 5 years.(over jeevan anand). And it has higher cover(and premium paying term) too.

      If I surrender Money Back after the end of this fiscal, I will get the exemptions for this fiscal or not?

      Thanks again for your patience.
      Regards,
      Navneet

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today