I have a LIC Jeevan Anand Policy and I have have been paying an annual premium of ₹68,000. The policy term is 15 years and the sum assured is ₹10 lakh. I have already paid the premium for three years. I want to know whether I should surrender this policy? If I surrender it, what will I get from LIC? Also, what are my investment options to invest the same amount?
- Prashant Kumar Jha
LIC Jeevan Anand is a combination of endowment assurance and whole life plan which cover you against death throughout lifetime with a provision of paying a lump sum amount on survival, at the end of chosen term. This means either your nominee will receive death benefit in the event of death during policy term or you will receive the maturity benefit on survival. If the policyholder dies after the term, nominees will still get the death benefit.
This policy does not disclose any expenses. It lacks transparency. If you surrender the policy after three years, the insurance company will pay a guaranteed surrender value equal to 30% of all premiums paid after deducting the first year's premium which in your case comes to ₹40,800. The company might pay a special surrender value at its own discretion.
To begin with, you can invest your surrender proceeds to a balanced fund. Familiarize yourself with mutual funds, and start investing in diversified equity funds to meet your long-term financial goals that are at least five to seven years away.
Click here for a list of best balanced funds,
Refer the links for more details:
Costly Life Insurance Policy
Consider Surrendering your LIC Jeevan Anand Policy
This article was originally published on December 16, 2015.
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