Hi Manish
I have a Tata AIG Nirvana policy for 2.5lakhs pension+2.5lakhs additional accident coverage, with a premium of 11,538/- for 21 years (started in 2004 & maturing in year 2025). At the end of 21years, I get around 33% lumpsum & rest as annuity for life at the ‘rate prevalent at that time’!
I have paid 10 annual premiums, around 1.2Lakh, already. Did a simple math as suggested in your blog and found that the net yield once the policy matures, will be at least be ~30% less than if I deposited the current policy Surrender Value (~1Lakh) & remaining premiums till 2025 in FD.
Please let me know of your thoughts on whether there’s any error in my calculation and whether it makes sense to surrender the policy right away & invest the surrender value elsewhere than continue paying premiums for another 10+ years.
Awaiting feedback from the more experienced rest of you too.
Thanks for all your insights!