Manish,
I am planning to cancel my following LIC policies,
1. Jeevan Anand, 149. Term: 21 years. Annual Premium=Rs.25,574/-. Policy started in the year 2006. Sum Assured=5Lakh
2. Jeevan Shathi, 89. Term: 21 years. Annual Premium=Rs.10,570/-. Policy started in the year 2009. Sum Assured=2Lakh
I have already took term insurance from ICICI for 1Crore and from LIC for 5Lakh. So, now I feel to close Jeevan Anand and Shathi policy, please advice me further.
Regards,
Nagarajan
Dear Nagarajan, As the Anand was taken in 2006, you can surrender it right now. For Saathi, you w’d have to wait till 2014 to complete 5Y term so that past claimed tax benefits are not reversed.
Thanks
Ashal
The monthly expense towards Jeevan Anand is just 2000. Assuming this is for some specific goal and the monthly investment for that goal (you need to calculate) is much higher than 2000 then all three options are not so bad
(1) continue, (2) make it paid-up (3) surrender it
Same logic for Jeevan Shanthi, However here surrender option is not desirable if you have claimed 80C deductions of the premium amt. If you surrender the past deductions become invalid and taxable in the year of surrender,
The key is list your goals, Find out you need to save and then decide what to do with the polices accordingly.
You can use this calculator to plan
http://freefincal.wordpress.com/financial-health-check-3/with-optimized-goal-investor/