I have invested 1.23 lakh in LIC Market Plus I in 2009 August. I want to know if this investment can create good income. Otherwise, I want to withdraw this money and put it in a better scheme . My horizon is 5-8 years.
- Ashokan Aramughan
This is a unit linked deferred pension plan which aims at accumulating and investing your money gradually for years before vesting age and then converts into an annuity plan. The annuity plan will provide you annuity as per the then prevailing annuity rates and plans on offer. Vesting age is that age when you wish to start receiving pension.
Minimum vesting age under this policy is 40 years.
But from your query it seems that you did not invest for pension needs in future. If it is so, you have been mis sold this policy by your agent. Now you have two options:
Option 1: Continue with the plan if your objective is to generate regular income after retirement. We are recommending that you continue in this situation because yours is a single premium policy. You have already borne major portion of expenses and selling now would mean losing out on the returns. At vesting age, select the right annuity plan and enjoy your regular income generated as per the then prevailing rates.
Option 2: Surrender the policy if your intention was not regular income. There are no surrender charges. You will receive the fund value upon surrender. You may call LIC with your policy details and the customer care executive would let you know the current fund value.
Take your call on basis of your objectives. Instead of this plan, you could have invested into mutual funds and bought an annuity policy at time of retirement.
This article was originally published on September 17, 2014.
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