Hi,
I am planning to stop 2 policies —
1) Endowment policy from ING which I have for more than 5 years. Now, the policy is in grace period, i.e. I missed the premium on 20th Feb. So, questions regarding this policy are:
1a) can I still surrender it at this time and get some money (around 25K)?
1b) I have shown around 15,000 this year under 80C for this policy. Will there be some tax implication?
1c) Should I pay some tax on the money I get from surrender?
1d) If there are tax implications will it be better to wait till end of financial year (march) and surrender in April 2012?
2) ULIP from Metlife bought on Oct 2007. I’m planning to surrender this too. Again same questions as above
2a) Will I need to pay tax on the money I get from surrender?
2b) I have already shown this in my 80C for this year. Will it get reversed?
2c) If that’s the case, should I wait till April 2012 or maybe even Oct 2012 (to complete 5 years) before surrendering?
Thanks in advance
Ram