POSTED BY August 11, 2013 1:27 am COMMENTS (7)ON
I have a 15 year (12 premium paying years) Jeevan Surabhi money-back policy for an SA of 2 lakhs with an annual premium of 20k. I wish to convert it to a paid-up policy after realizing the true meaning of insurance but I don’t want to surrender since I don’t intend to lose my money I have already invested and also the tax exemptions I have claimed.
The policy started in 2010 and I have paid 3 premiums till date and this month (in fact within 3 days) I need to pay the next premium. Hence the total amount paid for the premiums will rise to 80k. The reason I have a confusion is that if I pay the premium this year, I would have completed 4 premium paying terms and as per the policy I would receive 30% of SA i.e 60k. So on the whole, I will only have wasted 20k which I will get back after 15 years with bonus on survival. On death, I would have a higher sum assured for a 4 year premium paying term compared to a 3 year one.
If I stick with the 3 premium term and don’t pay the premium this year(and thus converting it to a paid-up), I will have no money back and I will have 60k lying in the pot useless for 15 years and with a lesser SA overall.
What do you all think I should do? Convert to a paid-up now or next year?? Is there any minor thing I might be overlooking?
Thanks for your help!