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.