Hi All…

I have a SBI Shubh Nivesh started in Feb2013.

Premium: 35,000/yr
Sum Assured: 6lacs
Duration: 12yrs

After going through the forum I understood that I will not be getting good results through these kinds of so-called insurance plans.

I am thinking of making this paid-up and look for other investment options. The guidelines in the brochure suggest that to make it paid-up I will have to pay the premiums for at-least 3yrs (because the term is more than 10yrs)

That means I will have paid 35,000 X 3 = 1,05,000
The guideline says,
> Paid-up value = Paid-up Sum Assured\”*\” + vested simple revisionary bonus + terminal bonus (if any)

\”*\”Paid-up SA = Basic SA at inception(6lacs) multiplied by # of premium paid(3) divided by total # of premiums payable(12)

so the calculation should be –  6,00,000 X 3 / 12 =  1,50,000 + bonus

1…Please advise me if this calculation is right ?

If I want  to terminate the paid-up policy, then the guideline says that the policy has to be surrendered for Surrender Value (30% for 3yrs term)

Should that mean paid-up policy value as per my calculation above (1,50,000) minus 30% ? Which will be 1,05,000

2…Please advise me if this calculation is right ?

I am trying to get these figures to decide whether to wait for another 9yrs to get the value of the policy or terminate it after paying the 3rd premium + paid-up value – surrender value now. Hence please advise.

Kind Regards,
Ashwin