Hi,
I started following your forum regularly and have understood the perils of regular endowment policies. I wanted to make one of my policy paid up and had a call with LIC officer – i wnted to verify the same.
Endowment policy of SA 200000 , 18 years with yearly premium of 10703 started in 2007
Question 1) Surrender value is 35k, maturity value on paid up is 89k. I calculated 8% interest on 35k and it came to around same amount if invest for remaining 13years. So i am thinking to leave it as paid up – am i correct in my analysis? I am comparing this with a debt instrument returns like PPF as against the pains to go through surrender since the amount is not very high and i am not in need of it right now.
Question 2) Also the LIC officer did tell me that if i continue with the policy, i will get definitely 400000( and a little more mostly) on maturity and that comes to 8%. Do you think his assumption is wrong?
Question 3) Bonus accrued in 5years is 33k till now. Generally it is likely that this bonus get accumulated at the same rate ( as opposed to power of compounding ) and i might end up getting around 3, 25,000 or max of 3.5Lakhs. Is my understanding correct or the LIC officer’s figures?