Advice on LIC Policy: Surrender or Not?

[SiddharthR]

Policy Name: Jeevan Lakshya
Start Date: 03 Feb 2018
Policy Paying Term: 16Y
Policy Term: 19Y
Premium: ₹14742.5 (inc. GST)/HYly
Sum Assured: ₹3,70,000
Bonus: ₹80,000
Premium Paid till now: ₹1,47,425
Surrender Value: ₹87,640

Now the question is, should it be surrendered or not? Or any other solution.

 

[arnalghosh88]

Policy Name: Jeevan Lakshya
Start Date: 03 Feb 2018
Policy Paying Term: 16Y
Policy Term: 19Y
Premium: ₹14742.5 (inc. GST)/HYly
Sum Assured: ₹3,70,000
Bonus: ₹80,000
Premium Paid till now: ₹1,47,425
Surrender Value: ₹87,640

Now the question is, should it be surrendered or not? Or any other solution.

so, you will pay (14742.5×16×2)rs=471760rs for 16fuc*ing years and get 450000rs after waiting 3more years.You get 21760rs less with 7-8% compounded inflation negative return for 19years for only 3.60lakh insurance cover???

 

[Slayer]

Average LIC enjoyer

 

[SiddharthR]

so, you will pay (14742.5×16×2)rs=471760rs for 16fuc*ing years and get 450000rs after waiting 3more years.You get 21760rs less with 7-8% compounded inflation negative return for 19years for only 3.60lakh insurance cover???

Not taken by me, but very sad how LIC works & lots ot different terms, which average person can't understand & go into this confusion of surrender or not?

Even now it's not clear what is death benefit, survival benefit, etc & stuck in this f*cking policy.
Any other suggestions from community members...

 

[arnalghosh88]

you would get almost 1067000rs with a bank fd(7% interest calculated) after paying 14742.5 twice a year for 16years and waiting 3 more years or 19years total.

 

[arnalghosh88]

Not taken by me, but very sad how LIC works & lots ot different terms, which average person can't understand & go into this confusion of surrender or not?

Even now it's not clear what is death benefit, survival benefit, etc & stuck in this f*cking policy.
Any other suggestions from community members...

I would personally suggest you to surrender the policy because 4.5lakh rs will have very less value after 19years.
You can take that loss of 60k(after surrendering) and think that you have lost that money in F&O.
You may invest the rest amount in blue chip stocks like hdfc bank,kotak bank,divis lab,asian paints,nestle,pidilite,bajaj finance,astral,Tcs,Ltts,Lti etc to compound your money at 18-20% annually.

 

[SiddharthR]

Are you sure that S.A. + Bonus is the final amount at Maturity? Or does the Bonus increases with time?

 

[arnalghosh88]

Are you sure that S.A. + Bonus is the final amount at Maturity? Or does the Bonus increases with time?

You may contact LIC helpline number and confirm the same before taking action.

 

[SiddharthR]

You may contact LIC helpline number and confirm the same before taking action.

They saying to visit branch for that, they were saying that we have limited info

 

[arnalghosh88]

They saying to visit branch for that, they were saying that we have limited info

They are simply not giving you the information which you will not like at all.Branch guys are worse than this.

 

[Rohit_Gupta]

what I heard and I am not very sure about it but LIC doesn't charge if surrender the policy post 3 years of the purchase date.

 

[SiddharthR]

what I heard and I am not very sure about it but LIC doesn't charge if surrender the policy post 3 years of the purchase date.

They charge, and not just charge but charge very hard....(At any time)

 

[Rohit_Gupta]

They charge, and not just charge but charge very hard....(At any time)

damn!

My wife also has one policy which was sold by some relative, now I need to see what to do with that

 

[SiddharthR]

I think you have received 80k bonus till now. So you will receive more bonus on maturity. Sum assured means the total amount (guaranteed return) you will pay to LIC except taxes.

If that's the case then I need to check that bonus part & need to understand properly from LIC agent or office..

You can check these details after login in to lic website

I checked these details in app

 

[Enthusiastic]

Policy Name: Jeevan Lakshya
Start Date: 03 Feb 2018
Policy Paying Term: 16Y
Policy Term: 19Y
Premium: ₹14742.5 (inc. GST)/HYly
Sum Assured: ₹3,70,000
Bonus: ₹80,000
Premium Paid till now: ₹1,47,425
Surrender Value: ₹87,640

Now the question is, should it be surrendered or not? Or any other solution.

Consider INCOME TAX exemption too....

Sorry for extra confusion...😜😜

 

[SiddharthR]

Anyone know how LIC Bonus is calculated?
Above Policy doc for reference

https://licindia.in/getattachment/Products/Insurance-Plan/jeevan-lakshya/Final-Policy-doc-LIC-s-Jeevan-Lakshya.pdf.aspx

 

[Deleted member 9785]

calculate XIRR