What to do with my LIC Money Back policy?

POSTED BY Arunkumar A Vijayan ON April 9, 2012 12:19 am COMMENTS (8)

Hi All,
I have a small doubt. I had taken an LIC money back policy.
Term 20 yrs. SA is Rs.5,00,000/-. Money back of Rs.1,00,000/- on 5th,10th and 15th year and remaining SA and bonus on 20th year.
Payment is Rs.8069/- per quarter i.e. Rs.32276/- per year. I started paying in September 2010 and have made 6 or 7 quarterly payments i.e around Rs.50000/-.
Recently I read in Jago Investor that money back and other policies are not good and ‘term plans’ are the good ones.
However, my doubt is having made this much payment in my policy, what is the best course of action that I can take now.
1. Should I surrender my policy?
2. Should I make my policy paid-up?
3. SHould i wait till 5th year to get Rs.1,00,000/- and then make policy surrender/paid-up?
4. Should I continue with my policy as usual?
Your advice will be highly apreciated..

8 replies on this article “What to do with my LIC Money Back policy?”

  1. Arunkumar A Vijayan says:

    Thank u very much..Ashal…will do accordingly..

  2. Arunkumar A Vijayan says:

    yeah :).. thank u ashal.. got ur point..

    If i amputate my finger , which is the best way to do it so that it causes minimum pain?

    Should I “surrender” my policy or should I make it “paid up”??

    1. Dear Arun, as 3Y are not completed with LIC, I doubt any surrender value ‘ll be assigned to your policy. Please check with LIC people/office/customercare to know the surrender/paid up value if any & decide accordingly.

      Thanks

      Ashal

  3. VSD Drives says:

    U dont worry regarding the market crash nw as ULIP is a long term saving tool and in a long term it will not give a loss to u . keep investing for a long term and at a regular interval .

  4. VSD Drives says:

    Will i get back atleast my invested money fully in the 4th year or 5th?Can you suggest what to do at this point of time.

  5. VSD Drives says:

    U dont worry regarding the market crash nw as ULIP is a long term saving tool and in a long term it will not give a loss to u . keep investing for a long term and at a regular interval

  6. VSD Drives says:

    You need not worry about the sensex crash, since yours is a long term commitment. And you will get more units when you invest while NAV is low. Continue investing atleast for 3 years before thinking of surrender to avoid losses.

  7. Dear Arun, ‘ll you like to amputate a finger now or a hand after 5-7 years?

    Choice is your’s.

    Thanks

    Ashal

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