I was mis sold Birla SunLife Vision Plus insurance policy.Kindly go through the followings details & advise me whether to continue or discontinue it.I have paid the first premium till now & I am 26 yrs now.
Premium : 100000/
Commencement date: 31.05.13
Policy paying term(GSB) : 21 yrs last due on 31.05.33
Sum Assured: 19,47,860/
Guaranteed Survival Benefit: 26,99,733/
Monthly Addition: 8473/ (for FS:2013-14,it is subjected to change every year)
On survival of GSB term 21 yrs:
G.Survival Benefit=26,99,733/
Total Monthly Addition=8473*21*12 (considering Rs 8473 avg monthly addition)=21,35,196/
Total Maturity Benefit=26,99,733 +21,35,196=48,34,929/
Maturity value is tax free under 10(10D)
I have done the IRR calculation in the attached excel file.Kindly review that & tell me if I am wrong.
Doubts
Initially I was mis-sold these policy as an investment tool & letter on I realized my mistake.I fall under 30.9% tax bracket.
First of all whether my IRR calculation saying 7% return is right or wrong? Should I stop paying more premium or should i continue? If i stop paying premium then where should I invest that money to gain long term tax free return other than mutual fund? I alredy invest 100000/ in PPF in on 1st april each yr.I invest 10,000 pm in Mutual fund & 3000/ pm in ETF.
I am grateful expecting your kind reply.
Regards,–
PRIYAJIT