Life insurance

POSTED BY Ahmed ON May 16, 2012 4:57 pm COMMENTS (7)

Dear Manish,
I took a Life insurance policy from LIC called “Limited Payment whole Life with Profit, with DAB” with Sum assured of 10 lac. I pay yearly premium of 30,864 and the policy will be matured on 2033.Plus I have 22 LIC “Endowment assurance with profit with DAB” Policy which will mature from 2033 up-to 2054 Actually when i took the policy i didn’t know anything about it.

I am really confused where to continue or stop my policies, I pay yearly premium of 1,47000. Please help

Thank you

7 replies on this article “Life insurance”

  1. Ahmed says:

    Dear Ashal,
    Thanks for your kind suggestion.

    Ahmed

  2. Dear Ahmed, please answer following questions –

    your current age

    family size

    no. of dependents

    yly income

    loan liabilities

    other assets & investments

    total sum assured aka insurance in all these 23 policies

    when these policies were started……………….

    Thanks

    Ashal

    1. Ahmed says:

      Dear Ashal,
      Current Age:32

      Family Size:5

      No of Dependents: 5

      Yearly Income:1,25000

      Loan Liabilities: Nil

      Other assets :Nil

      Sum Assured in all these policies: 48,85000 (10lac for whole life + 38,85000 for endowment).

      All my policies where started on 15 jan 2010

      Currently i am working in Kuwait.So i don’t think i can remove Term insurance.

      Thanks for your help i really appreciate it.

      1. Dear Ahmed, yly income only 1.25L?

        Please check & confirm.

        Thanks

        Ashal

        1. Ahmed says:

          Dear Ashal,
          Sorry its 15lac, monthly 1.25lac. Sorry 4 the mistake.

          Thanks

          1. Dear Ahmed, you are paying too much prem. In my opinion, whenever you visit next time in India, please purchase LIC’s Term cover Amulya Jeevan for 50L Rs. The prem. for 28Y policy, i.e. till your age 60, is 17900 Rs. only. It means you ‘ll have around 1.29L Rs. in your hand for investment purpose. As you are an NRI, the NRE FD ‘ll yield you a far better return than these LIC policies can provide combined.

            Thanks

            Ashal

  3. 1.47 lakh premium for Insurance? Friend, honestly i re-read your premium figures.

    Here is what i would have done. Visit the LIC office, ask how much would you get back if you surrender the policies. Before surrendering these polices go for pure term plan.

    Invest 1.25 Lakh per year i good mutual funds for next 10 years via SIP, there is good amount of chances you would make decent money.

    The surrendered money, can be invested as per your risk apetite.

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