I was planning to surrender my LIC policy. (Plan: Endowment Plus (Table No 802), Policy term: 10 years, Sum Assured: ₹4 lakh, Quarterly Premium: ₹9,000, Commencement Date: 29/06/2011). Can u please give me the surrender value of this policy on completion of five years (June 2016). Also, I want to switch from LIC (low interest) to some other scheme that would offer me good returns. Please guide me.
- Brajesh Upadhyay
LIC Endowment Plus policy is a combination of ULIP and endowment plans. It is meant to serve as a two-in-one investment-cum-insurance product. It is not possible to offer you the surrender value of the policy after five years as the surrender value would depend on fund value at that time. The fund value would depend on how the investments have fared over the five years.
However, we believe you should seriously consider surrendering the policy. Such insurance-cum-investment plans typically offer a very small insurance cover and they also offer very modest returns. Do not mix your insurance and investment needs in future. Always buy a pure term life insurance to buy an adequate life insurance cover. Term insurance products are ideal to buy a large insurance cover because they have very low premiums. Always invest in an equity mutual fund scheme through a monthly Systematic Investment Plan (SIP) to achieve your long-term financial goals that are away by five years or more.