I have a LIC Jeevan Anand Policy. I am planning to surrender it. Could you please advice how much refund amount I can expect? I started the policy in May 2003. The sum assured ₹2 lakh, the annual premium is ₹7,439, premium paying term is 27 years and the bonus vested till date s ₹1.13 lakh. The next premium is due on May 2016 and I have paid premium for 13 years.
- Mohammed Vaid
LIC Jeevan Anand Policy is an endowment policy. It s an insurance-cum-investment product. The guaranteed surrender value of your policy will be 30% of the premiums paid minus the first year's premium. Since you have completed 13 years, the surrender value will be ₹24,549. You can check with the insurer the option of making the policy paid up which will be paid at the end of the policy term. The paid up value will be a proportionate Sum Assured plus proportionate bonus, depending on the premium and policy term. Compare the paid up value with the surrender value and compare the returns with a bank savings account interest for further clarity and take an informed decision.
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 for insurance cover because they have very low premiums. It is better to invest in equity mutual funds to achieve long-term financial goals.
This article was originally published on March 29, 2016.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
