Not able to decide whether I need to proceed or surrender the LIC Policy

POSTED BY Allavali P ON June 3, 2013 4:44 pm COMMENTS (5)

Hi Manish,

I need some help on My LIC Policy – Its a Money Back Policy ( 6 Lakhs)

I am paying the LIC amount per year: 38080 (Policy Started on 28 May 2005)

I have taken this around 8 Years Back without knowing anything about this Product fully.

I got 1.2 Lakh Money in 2009 Year As per the Policy.

I have taken a loan of 86K(Last June-2012) from that Policy. I have paid Interst of 4K for this loan also.

Recently after your Articles..when I check with the LIC Agent, then that guy is saying that its a stupid policy and you wont get much returns also.

When I ask for the Closure then the Agent is saying that i will get only 48K.

If I pay another three Installments (19040*3) then again I will get another 1.2 Lakh mostly in Next Year.

Can you Please suggest me how can I go forward. whether I Can close this policy now? or continue upto the next year then Surrender in 2014. which one will be better. Can you please guide me on this. Thanks in advance.

Thanks,
Allavali P

5 replies on this article “Not able to decide whether I need to proceed or surrender the LIC Policy”

  1. Dear Allavali, you have paid 17 half yly prem. till now & 23 more prem. are to be paid. The amount at stake in terms of prem. = 17*19040 = 323680. Now to get the money back you need to pay 3 more prem. i.e. 57120 Rs.

    But MB ‘ll come to you only in May 2015. That’s 2Y away. Interestingly after the payment of MB, the surrender value ‘ll drop down & accordingly LIC ‘ll ask you to close the loan you have availed already before surrendering of the policy.

    So please check with LIC office, what ‘ll be the situation of your loan in 2015?

    Thanks

    Ashal

  2. Allavali P says:

    Ashal,

    Exact surrentder value s 47850, by removing the 86K loan.

    I need to pay still 23 Installments and the total term is left is 11.5 years.(total is 20 years)

    Thanks,
    Allavali

  3. Dear Allavali, please do not contact your agent. Contact directly to LIC office to know the exact surrender value. As you are quoting it’s 48K, I assume the loan of 86K Rs. has been adjusted already from the total surrender value.

    What’s the remaining term in the policy? I mean for how many more years do you need to pay?

    Thanks

    Ashal

  4. Allavali P says:

    Thanks Ashal for your reply.

    I was wrong on the money got back on April 2010, and I wll get next in 2015 only and the money I will get with this policy is around 48K, if I surrender.

    so I have aound 1.9 years for the next Money Back term.
    Please provide ur suggestion how can I proceed.

    Thansk,
    Allavali P

  5. Dear Allavalli, what’s the term of your policy? is it Money back plan or Jeevan surabhi plan? if first MB came after 4Y into the policy, the 2nd MB should also come after another 4Y, so it should be 2013 & not 2014 or 2015.

    Please confirm.

    thanks

    Ashal

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