My LIC Jeevan Shree policy with a sum assured of ₹5 lakh is maturing next month. I need some money to purchase a residential house in the next 12 months and to provide for my daughter's wedding which due sometime in the end of the year. My query is should I commute a substantial portion of the maturing amount or not?
- S Venkatraman
LIC Jeevan Shree is a combination of endowment and whole life plans. It offers a life insurance cover for life and a lump sum amount on survival at the end of the chosen term. This means that you will receive a lump sum amount which will include the sum assured plus guaranteed additions and loyalty additions (if any) in the next month. Since you have not given the details of your policy, we do not know how much money you would receive on maturity. We are also a bit unsure what you mean by commuting the money. Are you asking whether you should use a substantial part of the money for the purchase of the house and wedding? Again, it would not be possible to answer the query because we do not know your profile. Please write again if you have any clarification.
This article was originally published on February 16, 2016.
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