Dear Friends,

Like many of you must be having, I also have 3 Old LIC Policies as below:

Policy,  Taken On,  Yearly Premium

Jeevan Surabhi ,  28/07/2001,  8002

Jeevan Chaya,  01/04/2005,  15246/-

Jeevan Rekha,  18/02/2006,   7884/-

I have gone through many articles about Tax implications for surrendering these policies.

However, I have specific questions to ask:

1) As these are more than 5 year old policies, I understand no tax is applicable if I surrender them now.

2) I have got Money Back from one policy 2 times (every 5 year, it gives money back).  So, what happens to this amount ?  I mean whether I need to pay tax on the amount which I already got as Money Back if I surrender policy ?

3) I guess my 80 C tax rebate doesn’t have to be reversed.

Also, whether my plan of surrendering these policies is Right ?

I plan to buy one Term insurance and start SIP in pure Equity or Balanced scheme.

Thanks in Advance.