Skip to main content

Surrender Jeevan Anand

Do not choose complicated insurance plans that hide costs and lack transparency... 

 

LIC Jeevan Anand is a combination of Endowment Assurance and Whole Life plan which cover you against death throughout lifetime with a provision of paying a lump sum amount on survival, at the end of chosen term. This means either your nominee will receive death benefit in the event of your death during policy term or you will receive maturity benefit on survival. If the policyholder dies after the term, nominees will still get death benefit.

LIC Jeevan Anand is not a recommended policy and the returns on it are quite low. As a long-term investment, it is unlikely to beat inflation.

 

If you surrender now, the insurance company will pay a guaranteed surrender value equal to 30% of all premiums paid after deducting the first year's premium. In practice, the Corporation will pay a Special Surrender Value - which is either equal to or more than the Guaranteed Surrender Value. The benefit payable on surrender reflects the discounted value of the reduced claim amount that would be payable on death or at maturity. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances, in case of early termination of the policy, the surrender value payable may be less than the total premium paid.

Surrender the policy and start investing in mutual funds based on your objectives. To start with, you may invest in balanced funds or ELSS.

To know exact amount that you will get on surrender, you need to talk to insurance company.

 

This policy can be surrendered at any time. However, if you surrender it before completion of three years, you will not get any sum in return. On surrendering after three policy years, the insurance company will pay a guaranteed surrender value equal to 30% of all premiums paid after deducting the first year's premium. Let us calculate your loss in both the cases.

Case 1: If you surrender now, you will incur a loss of R52,000.

Case 2: If you surrender after third year you will incur a loss equal to R62,400.

You made a wrong choice while selecting this policy for tax saving purposes. The only choices you have now are to either compromise on returns or forget about premiums already paid to surrender the policy. We think it would be better to surrender your policy and limit your losses now itself. In some cases, the insurance company may also pay a special surrender value which will depend on the duration for which premiums have been paid. However, no quantitative details of this are available in the policy documents. Nowhere do the policy documents say that the entire money will be refunded if you pay premiums for five years. The agent seems to be making misleading claims, to earn his commission.

 

LIC Jeevan Anand is a combination of Endowment Assurance and Whole Life plan which cover you against death throughout lifetime with a provision of paying a lump sum amount on survival, at the end of chosen term. This means either your nominee will receive death benefit in the event of death during policy term or you will receive maturity benefit on survival. If the policyholder dies after the term, nominees will still get death benefit.

Looking at your case, you are paying nearly Rs 50,000 annually for a Sum Assured of Rs 15 lakh and an annual bonus. This bonus has ranged between 4 and 4.3 for a period from 2004-05 to 2010-11. On an average LIC Jeevan Anand has declared an annual bonus of 4.1 per cent per annum. LIC may also add a Final (Additional) bonus if you hold your policy for a certain period.

This policy is costly and lacks transparency as well. Looking at the annual bonus rates, even a bank fixed deposit will give you better guaranteed returns. If you buy the Amulya Jeevan term plan, it will cost you one-third of what you pay for your current policy. In Rs 15,000 per annum you can nearly triple your Sum Assured to Rs 50 lakhs with a policy term of 35 years.

Buy term insurance plan without any delay to protect your family against financial distress in case of any mishap. As far as switching from this policy to LIC Amulya Jeevan Plan is concerned, it is not possible. You cannot even surrender your policy before completion of three policy years. However we recommend you to stop paying premiums from now. Though it will put you into immediate losses but will simultaneously save your losses to grow further. Make sure you buy a Sum Assured sufficient enough to take care of your dependents at least till their lifetime or till someone else in the family can replace you as bread earner.

-----------------------------------------------
Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016

Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

-----------------------------------------------

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

What is Financial Freedom?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     There were many things common between our Freedom fighters. All had the Single vision (Free India), common goal (independence) and had a disciplined and focused approach. They were ready to do anything and everything and had made so many sacrifices to see India free . But the road to freedom was not easy .They had faced lot many hardships, went to jail so many times and even confronted physical and mental torture from the British. There was one more thing which proved to be an advantage to our fighters that most of them were professional lawyers. The knowledge of legal issues and its impact on our country at large has helped them counter various bills and proposed new laws by the then government. It is due to their continuous effort that we are able to achieve the goal of Independent Indi...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now