POSTED BY March 24, 2014 5:44 pm COMMENTS (12)ON
I have a question about my LIC ULIP policy. Policy is LIC profit plus growth. I bought it in november 2007. premium was 15k per annum and it had to be paid for 5 years and policy duration is 20 years. I paid all 5 premiums i.e. in total 75k. today the value is 82k. I checked online and found that after 5 years there will not be any deductions if i surrender my policy. now the question is should i surrender?? OR should i keep it as it is and let the fund value grow?
Insurance for this policy is only 2lac. i am not in need of money at the moment i can keep the policy intact. If i surrender i can use the money to make some part payment of my home loan where the outstanding principal is now only 1.91lacs. OR third option is take out the money and invest it elsewhere like liquid/debt fund.
What should i do? Do you think i will get higher returns if i keep my policy intact? Will power of compounding help me if i did not surrender it?
Thanks in advance.