Should I stop my LIC policies and invest somewhere else ?

POSTED BY Satnam ON December 5, 2013 6:00 pm COMMENTS (5)

Dear Manish,

I have starting reading your articles and find these are very informative.

I’m 36 years of age, married and bought the below 3 policies from LIC for which I\’m paying the premium around 59000 per annum:

1. Jeevan Anand – 149
SA – 200000
Commencement date – 18/10/2007
Policy Term – 72
Premium term – 22
Premium 9981 pa
Vested bonus – 45800


2. Jeevan Anand- 149
Commencement data – 16/1/2012
Enrollment date – 18/2/2012
SA- 450000
Policy term – 65 yrs , premium term – 21
Premium – 12463 half yearly
3. Jeevan Saral – 165

Commencement date – 16/1/2012
Enrollment date – 18/2/2012
Policy Term – 20
SA – 500000

Premium- 12130 half yearly

After going through your articles; I assumed that I have made mistake in buying the above mentioned policies fro LIC.

Now I have Term Policy from Aegon Religare now. but the above policies from LIC eating a lot of the savings and the profit is not adequate.

I would like to stop all the 3 policies and want to invest the amount somewhere else to get more profits. Could you please suggest/guide me about the same!

1. If I surrender or make the paid up for the 1st policy, please let me know what will be more beneficial from the two!

2. I guess I cannot surrender or make paid up both the 2nd and 3rd policies as both were started in Jan 2012. Please suggest what can I do in this case!

Please let me know if you need more information.


5 replies on this article “Should I stop my LIC policies and invest somewhere else ?”

  1. ashalanshu says:

    Dear Rockinguy, show me the money that in 3-4-5 Y, dear Satnam ‘ll not lose his money. Please provide the facts and figures. Regarding insurance cover as a good sum assured from a plain vanilla term cover is there, hence no need of such small insurance amounts.



  2. rockingguy says:

    If you don’t have financial problems, then continue with your policies

    Sum assured in 2nd & 3rd policies is 750000 INR. In case you die, due to accident or natural causes, your family will benefit financially, if the policy is active

    I’ll suggest you continue your policies for around 3-5 years, then get surrender value and then decide whether to surrender or not

    At least, you won’t lose hard-earned money

  3. Satnam says:

    Thanks Ashalanshu for a quick reply!

    I will stop the further premium for 2 and 3 policies with a loss 🙁 however thanks for your articles that I have learnt a lesson 🙂

    For the 1st one will check with the LIC office and decide the future actions.

    Thanks a lot 🙂

    1. Satnam says:

      Hi Ashalanshu,

      The Surrender value of 1st policy would be Rs 40327 and the Paid Up value would be around Rs one lakh and that too in year 2028 🙁 I think Surrendering the policy is better if I invest the amount somewhere else.

      What you suggest!

      For other 2 policies nothing is there for me in Jeevan Anand.
      But yes 1 question for Jeevan Saral for that I have paid 3 installments (half yearly- Rs 36390) but to get Special Surrender value of 80 % ; I need to pay 3 more installments of Rs 36390 for another 1 and half year.

      What you suggest on this as per the feature of Special Surrender Value!


  4. ashalanshu says:

    Dear Satnam, for 2 and 3, please forget the prem. as loss and start investing the future prem. elsewhere in pure investment product like RDs, FDs, MFs, PPF etc.

    For 1, please get surrender and paid up value from LIC and decide the fate of this policy on the basis of the values.


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