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I have bought a Jeevan Saral policy three years ago. I am 49 years old and the sum insured is ₹12.50 lakh. Please tell me should I continue with the policy or surrender it?
- Vimal Dhariwal
LIC Jeevan Saral is an endowment policy and you can surrender it after the completion of three years. Since your policy has competed three years, you can surrender it.
Jeevan Saral offers a surrender value that will be the greater of the guaranteed surrender value and special surrender. The guaranteed surrender value will be equal to 30% of the total amount of premiums paid minus the premiums paid for the first year. The special surrender value will be 80% of the maturity sum assured if 3 years' premiums have been paid. The maturity sum assured for this will be the maturity sum assured corresponding to the term for which premiums have been paid under the policy.
In future, do not buy endowment plans like Jeevan Saral. Such insurance-cum-investment plans typically offer a very small insurance cover and they also offer very modest returns. These plans are also silent on expenses. 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 life insurance cover because they have very low premiums.
This article was originally published on April 06, 2016.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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