I have an LIC Policy (Plan - 133) for a 25-year term. The sum assured is ₹50,000. I paid premium for 10 years, but now I want to discontinue it. I want to surrender it, but I may loose a lot on the premium paid. Please suggest. What forms do I need to submit?
- Pritom Bordoloi
Jeevan Mitra - Table no 133-- is an endowment plan which is an insurance-cum-investment product. Such products mostly fail to offer adequate insurance cover and they also mostly don't offer good returns.
Yes, if you surrender the policy, your will incur loss. However, surrendering it will help you to stop a bad investment and earn better returns elsewhere. The plan offers a guaranteed surrender value of only 30% of the total premiums paid minus the first year's premium.
Do not buy an insurance cum investment product in future. Always invest in an equity mutual fund scheme to achieve your long-term financial goals.
This article was originally published on March 14, 2016.
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