LIC Premium Recovery

[bhavyakjain]

Hi

I had taken LIC Jeevan Labh policy in Jan 2021. Some distant relative sold me and I was also unaware about all these.
After I got to know, I stopped paying premiums since Jan 2022.

My monthly premium was about 5000

Is there any way I can recover the premium amount ?

 

[Anupama_Jha]

Yupp. U can surrender it by visiting ur home branch.

 

[tamizhventhan]

Nope don't do that now..If so then you can recovery only 30-50% of the amount what you paid till now.Read the policy document once and after which year you can break even your money then you can redeem them.I also done the same mistake.Now i paid for three years and make my policy paid-up which means I will never pay anu more amount after that but after maturity I can recovery atleast what I paid till now.In my case I have 16 years of policy to break even I have to pay for 6 years.worst ever investment (not) ever

 

[thegame]

for this policy, you need to have paid a min 2yrs full premium and even after that surrender value is less than 50% of the premium only, since you have paid for only 1yr, unfortunately, you will get nothing here

 

[bhavyakjain]

for this policy, you need to have paid a min 2yrs full premium and even after that surrender value is less than 50% of the premium only, since you have paid for only 1yr, unfortunately, you will get nothing here

I assume considering time value of money
I am much better off having lost the 1 year premium compared to if I continued payments in hopes of break even.

Feel free to correct me if I am wrong.

According to my calculations, the CAGR that I would get if I held the policy till maturity would be approx 1.8%

My savings account gives me atleast 2.7%

 

[SHUB11]

Hi

I had taken LIC Jeevan Labh policy in Jan 2021. Some distant relative sold me and I was also unaware about all these.
After I got to know, I stopped paying premiums since Jan 2022.

My monthly premium was about 5000

Is there any way I can recover the premium amount ?

If there is a poll conducted on who sold LIC policy then 90% would be sold by a relative family friend etc..

 

[thegame]

I assume considering time value of money
I am much better off having lost the 1 year premium compared to if I continued payments in hopes of break even.

Feel free to correct me if I am wrong.

According to my calculations, the CAGR that I would get if I held the policy till maturity would be approx 1.8%

My savings account gives me atleast 2.7%

totally agree but among all the LIC ones, Labh is the decent or would say the highest returns which yes however is not more than a FD -- it gives 5-6% based on the bonus and loyalty given by LIC (say 2018-2020 had 50Rs per 1000 and after wards its 47 for 25yrs term) and the term of your policy, the only positives were 1) 1.5L 80c which anyways is useless now as new regime saves more taxes for you 2) no tax to be paid on the final maturity amount - section 10(10d) and also there was not GST on the policy before 2017

 

[sunit123]

Surrender value will be very less...stay away from relatives who are insurance agents