POSTED BY January 30, 2014 3:53 pm ONE COMMENTON
This is in continuation of my previous post. Reason to choose new thread I could not post a table in the comment part (Comments are just plain text).
“I had taken LIC Money Back policy (Plan Table 75) back in Dec-2003 for 20 Years term. I am paying Rs 31364/- as annual premium for Sum Assured of Rs. 5 Lakh.
Till Dec-2013 I have paid 10 premiums and 10 are still pending. In my online LIC account it shows the vested bonus as 1,81,500/- I have already received 2 cash back of Rs 1 Lakh each at the end of 5 (Dec-2008) and 10 (Dec-2013) years respectively. “
After calculation as mentioned in below table I have decided to surrender my policy even after 10 years (Half of the Policy term) looking for better returns of my investment.
The assumption here is that if I could generate annual returns of 9.5% or more with the Surrender Value and Pending Yearly Premiums (10) I will get more returns than the total returns including one more Cash Back after 5 years and Maturity Amount after 10 years.
Considering a long term of 10 years it should not be difficult to generate a annualized returns of 9.5% or more.