LIC Policy Surrender. Need a suggestion.

POSTED BY Biswa Singh ON June 22, 2012 12:42 am COMMENTS (5)

Hello Experts,

I have 4 LIC policies 2 endowment, 1 Pension plan, 1 Jeevan Sathi (I know that i was being really stupid investing on them). All will take another 14-20 years to mature. I have already payed around 5,00,000 as premimum and now i want to surrender all of them. I have applied term insurance from bahrati AXA worth 1Cr cover. I checked with LIC and the surrender value is around 3,11,000. So, i am going to lose around 1,90,000. What do you suggest? Shall i surrender them all and invest in something else or just make it paid up? If any other idea also please do suggest. Mine is a classic case of bad investment. Thanks in anticipation.

5 replies on this article “LIC Policy Surrender. Need a suggestion.”

  1. Ashal Jauhari says:
    June 22, 2012 at 8:58 am

    Dear BRSingh, W’d you like to amputate a finger today or a hand tomorrow? The answer ‘ll decide the fate of your policies.

    Thanks

    Ashal

    Reply
    1. BRSINGH says:
      June 22, 2012 at 11:48 am

      Thanks Ashal. I have already decided to surrender. Just wanted to check if any alternative. In your opinion paid up is also not good option?

      Reply
      1. Ashal Jauhari says:
        June 22, 2012 at 6:11 pm

        Dear BRSingh, in case of Paid up, the value ‘ll be assigned today & no more earning on this paid up value but you ‘ll receive this value only at the time of normal maturity. In case os surrender value, the surrender value ‘ll be lower than paid up one but you have the time in your hand to reinvest elsewhere & make up the losses & to earn some positive returns.

        Thanks

        Ashal

        Reply
    2. Lakshmipathy G says:
      June 22, 2012 at 1:32 pm

      Hello Ashal,

      I have a similar question like BR singh. I have a LIC endowment Policy for last 6 years. I am planning to surrender. Considering i am planning to take an term insurance now. I have heard like any new policies will be scrutnize if it is below 1 year. So Will you advice me to surrrender the LIC now itself after buying a Term Insurance or after an Year old Term Insurance?

      Reply
      1. Ashal Jauhari says:
        June 22, 2012 at 5:55 pm

        Dear Lakshamipathy, First of all that close scrutiny period is 2Y not 1Y. Even after 5-7 years for a claim in term plan, the insurance co. ‘ll check thoroughly to avoid any foul play. So no matter you are surrendering now or after 1Y, it’s your call.

        Thanks

        Ashal

        Reply

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