Should I continue my 3 different LIC policies ?

POSTED BY SANDEEP JAIN ON December 11, 2013 9:07 pm COMMENTS (3)

Dear Manish,

I want to take your suggestions/ opinion on the below policies of LIC. Want to check whether should i continue or shall i stop these. Since taking into consideration the high premium and less coverage than Pure Term insurance policies. If not to continue these policies, what will be better options available in the market and which policy shall i opt. Also not much info on Term “Vested bonus”. Since these policies had been taken from Agent with out much knowledge about the product.

My current Status:

My current age is 30 years and my wife is 26, i have a baby with 3.5 yrs. My father are still earning and not dependant on me, both my mother and my wife are housewife.

Policies currently with me:

Name of the policy

 

Sum Assured

 

Commencement Date

 

Policy Term

 

Premium

 

Policy Term

 

Premium Payment Term

 

Vested Bonus

 

Jeevan Anand

 

200000

 

28-12-2007

 

75

 

10369

 

5

 

1

 

45800

 

Jeevan Sathi

 

200000

 

28-12-2007

 

25

 

8565

 

75

 

21

 

48000

 

Jeevan Saral

 

375000

 

24-12-2009

 

21

 

18015

 

25

 

25

 

0

 

SBI – Swadhan

 

50000

 

02-07-2012

 

562

 

Last year, i have opted for E-term policies from Aegon and HDFC with below details.

Name of the policy

 

Sum Assured

 

Commencement Date

 

Policy Term

 

Premium

 

HDFC LIFE – CLICK 2 PROTECT

 

5500000

 

24-11-2012

 

30

 

7169

 

AEGON RELIGARE – ITERM PLAN

 

5300000 (+ 3144000 In case of Accident) = 8444000

 

22-11-2012

 

46

 

7147

 

Please guide me.

Regards,

Sandeep.

 

3 replies on this article “Should I continue my 3 different LIC policies ?”

  1. ashalanshu says:

    Dear Sandeep, the decision is very easy. Just check how much term is remaining in each LIC policy. Now do calculate can you recover your losses and get some positive return if you invest the surrender amount into a safe product like PPF or bank FDs?

    Regarding SBI Swadhan, you need to contact SBI life for delinking of auto debit.

    Thanks

    Ashal

  2. SANDEEP JAIN says:

    Hi Ashal,

    Thanks for your reply, Yes i would like to restructure my Insurance portfolio, as i see there is not much i can get it in case of LIC policies, as like other all have been bought with out much knowledge about the product. though i m literate but while investing myself acted like an totally illliterate :(. But as long as i m understanding Personal finance in my life now, i m learning the leasons myself. (Thanks to you guys, I understand Personal Finance only from Jagoinvestor and still keep learning)

    Regarding SBI – Swadhan, It was Linked while opening a new Savings accounts @ SBI and also premium was linked as Auto Debit every Year. Just also want to know the process how to delink this Policy with my savings account and i want to stop the policy as well.

    I have enquired in LIC office regarding my Existing policies and its surrender value, I m getting back only 60% of my premium and am not feeling happy for this 🙁 .

    I m now in a very crtical stage whether to surrender these or not ?.

    Please help me in taking the right decision.

    Regards,
    Sandeep

  3. ashalanshu says:

    Dear Sandeep, why did you opt SBI Swadhan? Are you ready for major restructuring of your insurance portfolio? Can you digest the loss in terms of money which ‘ll be there with you intially if you opt to surrender few or all policies (old policies not the term covers)?

    Thanks

    Ashal

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