10 replies on this article “Life Insurance Policy Closure”

1. Raj says:

   January 26, 2013 at 8:27 am

   Hi Muthu,

   I do not think there should be a blanket closure of all LIC policies – this has to be situation dependent. If you can afford to pay the premiums then you may look at doing so. As it is 2 lacs insurance is grossly inadequate if you have dependents, so the term insurance is a good idea.

   Before you do the calculations on MF returns, I would like you to remember that many people investing in them have seen very little returns in the last 5 years. Yes, equities should logically do well in the long term but that is only an assessment not a guarantee.

   Personally, I will favor an approach that is a combination of all investment avenues, the proportions being decided by your situation and risk taking ability.

   Regards
   Raj

   Reply
   1. yegappan Muthu says:

      January 26, 2013 at 11:17 am

      Thanks Mr.Raj

      Reply
2. Ashal Jauhari says:

   January 25, 2013 at 11:06 pm

   Dear Muthu, may i know your family size? Your yly income? Loan liabilities?

   thanks

   Ashal

   Reply
   1. yegappan Muthu says:

      January 26, 2013 at 11:13 am

      Hi Ashal,

      Thanks for your interest shown.
      I am Single, Dependant Mother Only ( Planning for marriage after 2 years).
      Loan liabilities Nil.
      Yearly Income 10 Lakhs Per Annum ( Am a NRI – Presently working in Qatar)

      Reply
      1. Ashal Jauhari says:

         January 26, 2013 at 12:43 pm

         Dear Muthu, please purchase a term cover of 1.25Cr. Rs, As you are NRI as of now, not many indian Insurer ‘ll provide you a term cover. Please surrender these existing LIC policies & invest in NRE FD for debt part. Your return ‘ll be far higher than these policies. I case you can take some risk in Eq, MFs investing, please start investing on mly basis into Eq. MFs.

         thanks

         Ashal

         Reply
         1. yegappan Muthu says:

            January 26, 2013 at 2:17 pm

            Thank you very much Mr.Ashal…. As a NRI, I have to go Offline only… Is it Online also possible????

            Reply
            1. Ashal Jauhari says:

               January 26, 2013 at 3:02 pm

               Dear Muthu, as far as I Know, no online plan is available for NRIs. please check with individual insurers for the same.

               thanks

               Ashal

               Reply
      2. yegappan Muthu says:

         January 26, 2013 at 6:54 pm

         Thank you… Will surf the net for individual insurers…

         Reply
3. Free Financial Calculators says:

   January 25, 2013 at 10:40 pm

   Yes. Please surrender the policies after you get term insurance and invest both the premium and surrendered amt in better investments like mfs with PPF to crease a well diversified portfolio

   Please check carefully the insurance amt you need. If you are married and without kids
   you could use this

   http://freefincal.wordpress.com/insurance-calculator-for-the-young/

   If you have children you could use the comprehensive child planner available there.

   How to close please visit the LIC office connected with your policy and close it. You will told about bonuses and how you will loose money. Dont worry about it. You will loose much more by continuing these policies.

   Reply
   1. yegappan Muthu says:

      January 26, 2013 at 11:14 am

      Thanks for your valuable reply

      Reply

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