Surrender Jeevan Anand Policy

POSTED BY balaky ON March 12, 2012 2:32 pm COMMENTS (4)

I have taken a Jeevan Anand Policy and paid the premium for 6 years. yearly premium is Rs28,448/-. The accured bonus is 134400/- and the surrender value I get is Rs 101081/-. The sum assured is 6 Lakhs. Can you a) Let me know if it is good to surrender and take a Term Insurance for 50Lakhs or so. b) What will be the implication of Tax on the premium?. I think apart from the first 2 years I did not need the premium to cover for 80 C.

4 replies on this article “Surrender Jeevan Anand Policy”

  1. Dear Balaky, May I know the back ground of your pin pointing the 50L sum assured?

    Please invest the surrender amount in either Eq. MFs or a balanced fund for a long term say 12-15 years. As the 5Y holding period is already over, no need to worry for taxation or 80C reversal on Jeevan Anand prem. Surrender is tax free.



    1. says:

      Hi Ashal,
      Thanks for the update that the return is not taxable.

      Let me know your views on Surrendering vs Paid up. Which is good?
      As far as the 50L while I do have a 50L Term cover from my employer this was purely to cover the Housing Loan and I did not take any Insurance when I took the loan .

      1. Dear Balaky, surrender is better than paid up. As you ‘ll get the amount fixed today with out any more earning in between after X years. Whereas in case of surrender, you have the option to invest it & earn higher returns.

        Please purchase a separate term plan for yourself, apart from the one provided by your employer.



    2. Muthu says:

      Hi Ashal Jauhari,
      1. Is 5 yrs- the minimum holding period to escape the reversal of tax benefits?
      In few places, I came to know it as 2 yrs. But not sure. Can you please clarify this?
      2. Also, if i don’t pay any premium after the 1st half yearly payment, will i be entitled to pay tax for it the next year because I have not held the policy for that stipulated time of 2/5 yrs?..
      If so, how do I show it while filing income tax.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today