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POSTED BY ON June 10, 2014 8:59 am COMMENTS (4)
I am planning to surrender my LIC policy (Jeevan Tarang) which I took in 2006, Sum Assured Rs, 2,00,000. Term 20 years, How much can I expect to get after surrendering? And where should I Invest this amount for long term?
I have not Invested in Mutual Funds so far. I have a PPF account opened in 2006 there is 7 lakhs in that account. I also have a home loan of 20 lakhs (Tenure 20 years @ 9.9% five years fixed) taken in the year 2011. After some prepayments the balance loan amount is Rs.13, 90,000. I have not taken a Life cover (Term policy) yet and no liquid cash in hand for emergencies. I am married.
I have thought of Investing the surrendered amount in two Mutual Funds, Franklin India Blue-chip fund growth option direct plan and Quantum Long Term Eq. Fund growth option. And thereafter I will pay Rs 5000/- every month via SIP in both funds.
Please tell me what I am doing is right?
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MF you can invest in either of the below funds
1. ICICI Focussed Bluechip
2. IDFC Premier equity
3.Quantum Long-Term Equity Fund
Thank you Hemanth & Sharath for your valuable feedback.
Hi TulsiRam, do not invest the money in mutual funds right away.
You need to have an insurance at any time. Take a term insurance first and then surrender LIC after one month. And whatever the amount you get, keep it in any liquid fund for emergency purpose. As you are married, you would have more responsibilities. So keeping an emergency fund is always good. After doing these two things, you can start SIP.
Please take a term plan before surrendering the LIC plan.
Also, please keep aside some money for emergency purposes