I have purchased a Jeevan Anand policy (annual premium: ₹32,626) in January 2011. After completing 5 years, I want to surrender the policy and want to invest in MFs. Will it be beneficial if I surrender the policy at this stage? Also kindly tell me how much amount can I get after surrendering this policy?
- Anildatt M Sonar
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 your death during policy term or you will receive maturity benefit on survival. If the policyholder dies after the term, nominees will still get death benefit.
For more details, refer here: Consider Surrendering your LIC Jeevan Anand Policy.
If you surrender now, the insurance company will pay a guaranteed surrender value equal to 30% of all premiums paid after deducting the first year's premium. In practice, the Corporation will pay a Special Surrender Value - which is either equal to or more than the Guaranteed Surrender Value. The benefit payable on surrender reflects the discounted value of the reduced claim amount that would be payable on death or at maturity. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances, in case of early termination of the policy, the surrender value payable may be less than the total premium paid.
Surrender the policy and start investing in mutual funds based on your objectives. To start with, you may invest in balanced funds or ELSS. Read this: Your first mutual fund.
To know exact amount that you will get on surrender, you need to talk to insurance company.