Surrender or Make Paid Up – LIC Jeevan Anand & Saral

POSTED BY Kunal D ON December 25, 2012 12:17 pm COMMENTS (5)

Hi Manish,

              I happened to take a look at your article :  today and need your guidance as I have decided to stop paying premiums for LIC.

I need to know the difference if I make the policies paid up OR Surrender them now after 4 yrs of premium payment. Policies are Jeevan Anand and Jeevan Saral – Annual Premium: 27K/-

I need to know the pros if I make it “Paid Up” as I know the surrender amount will be very meagre if I opt to surrender.

I already have secured 2 Term plans – Aegon and HDFC Life – with an annual premium of 21K/-

Awaiting your opinions.




5 replies on this article “Surrender or Make Paid Up – LIC Jeevan Anand & Saral”

  1. Kunal D says:

    I have the following additional queries:

    What happens to a Paid-Up policy?

    Will the policy be in force until maturity?

    Will LIC reduce the Sum Assured? Will the premiums paid till now accure any bonus/interest which will be paid after maturity?


  2. Kunal D says:

    Thanks for the suggestions.

    How to make a policy paid-up? Is there a process inolved to notify LIC?


  3. Once you stop paying premiums it becomes paid up automatically. Of course your agent might bug you!

  4. Tapas Majumdar says:

    My question related to making a policy paid-up. What is the process for the same ? Do we need to write to LIC or there are specific forms.

  5. As suggested by Manish in the article if you don’t need the money immediately then make the policies paid up. They will give you a little something when they mature, The most important thing to do is to stop paying premiums.
    Older policies close to maturity can be surrendered. and younger policies made paid up.

    The point is the moment we realize the product is bad we stop paying premiums..


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