6 replies on this article “What happens if I discontinue Jeevan Shri -1 , after paying just a single premium?”

1. ashal jauhari says:

   March 25, 2012 at 12:26 am

   Dear Hemant, if you opt to surrender now, you are going to lose all your money paid as first prem. are you ready for it?

   Thanks

   Ashal

   Reply
   1. hemant tiwari says:

      March 25, 2012 at 1:16 am

      Thanks for the reply, can you please suggest what are the options other than surrender so that I dont loose the investment. I have heard of something called making a policy paid -up. Would that apply here?

      Reply
      1. ashal jauhari says:

         March 26, 2012 at 3:06 pm

         Dear Hemant, please contact local LIC office for the same.

         Thanks

         Ashal

         Reply
2. rmohan80@gmail.com says:

   March 24, 2012 at 11:20 pm

   Hi Hemant,

   You’ve decided that this is a bad policy for you. Let’s start from that point.

   The premium to be paid by you is 84575 per annum which works out to 7047 pm

   Let’s assume that you invest 7044 pm in a decent mutual fund (Any mutual fund for our illustration). At ROI of 12.5% (conservative estimate), at the end of 2016, your corpus would be 579,000

   Now, assuming you put this into a debt fund which is very safe and gives you a return of 7.7% over a 5 year period (I”ve used UTI Bond fund (G) for calculation purpose), your final corpus at 2021 would be 838,991 which is 1 lac more than what you would get. Even assuming 30% tax bracket and that you would have to pay around 25,000 in tax for whatever tax investment you saved, you still end up gaining around 75,000 in 2021 (assuming very modest returns)

   Also understand that at end of 2016 you would have 579,000 for use to invest wherever you want or spend per your situation at that time. I’ll let the numbers make your decision for you 🙂

   Reply
   1. Indian_Engineer says:

      March 25, 2012 at 7:50 pm

      Hi rmohan,

      Have you considered the cost of insurance in your calculation?

      Reply
      1. rmohan80@gmail.com says:

         March 26, 2012 at 1:05 pm

         Hi Indian_Engineer:

         That’s a good point; I never considered the cost of the premium, but if the person wants to discontinue since it’s a bad investment, I’m assuming they’re ok with the loss of it

         Ram

         Reply

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