Hi
I has taken LIC money back traditional policy (Plan Table 75) in Dec-2003. Below table has all the details about the policy.
Its a money back policy with 20% cash back every 5 years and 40% + Bonus plus Loyalty benefit at maturity.
Surrender value of Rs 1,81,500 mentioned below is the current vested bonus visible in my LIC online account.
Maturity Value is the Value which I had come across using some calculator on one website few months ago.
(However would like to get the exact value from any LIC adviser on the Forum).
Now my calculations below shows that I will get better returns if I surrender the policy and put the Yearly Premium and Surrender Value in a Recurring deposit account like PPF etc. I am not worry about 80C tax rebate as that limit is already exhausted by various investment means like Employee PF, Child Education, Other Term Policies, and Principal of Home Loan.
Could you please guide me and let me know whether I am right or not in my calculations?
(Only thing I need to confirm from LIC Adviser is the Maturity Value and the Surrender Value based on Current Vested Bonus to make sure that my calculations are correct)
| Pending Start Date | 28-Dec-2003 | ||||||
| Pending Maturity Date | 28-Dec-2023 | ||||||
| Total Payment Terms | 20 Years | ||||||
| Pending Term (Years) | 10 Years | ||||||
| Yearly Premium | 31364 | ||||||
| Current Surrender Value as on 30-Jan 2014 | 181500 | ||||||
| Expected Maturity Value After 10 Years | 650000 | ||||||
| One More Cash Back After 5 Years on 28-Dec-2018 | 100000 | ||||||
| Interest Rate % | In 10 Years Recurring Premium will Grow To |
In 10 Years Single Deposit of Surrender Value Will Grow To | Total Returns After 10 Years on Surrendering the Policy Now | In 5 Years Cashback in Dec-2018 (After 5 Years) will Grow to | Total Return on Continuing the Policy | Benefit in Returns on Surrendering the Policy Now | |
| 8.5 | 504838 | 410368 | 915206 | 150366 | 800366 | 114841 | |
| 9 | 519397 | 429677 | 949074 | 153862 | 803862 | 145211 | |
| 9.5 | 534396 | 449798 | 984194 | 157424 | 807424 | 176770 | |
| 10 | 549848 | 470764 | 1020612 | 161051 | 811051 | 209561 |