Endowment life insurance policy

Q & A Forum › Category: Insurance › Endowment life insurance policy

Munchiran asked 8 years ago

Hello Srikanth, I am started paying 2 of the Old Jeevan Anand policies for sum assured 1 Lac each since 2011 (About INR 10,400 premium per annum together) and a New Jeevan Anand policy for sum assured of 5 Lac since 2015 (Around INR 27,000 premium per annum). Wanted to opt to term insurance by closing down above mentioned regular life insurance policies to create room for other useful investments. Please let me know your opinion and also personally suggest me which service provider to opt for term insurance. Bit confused after seeing your blog on top 9 e-term insurance. Thanks Chiranjeevi R

4 Answers

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Sreekanth Staff answered 8 years ago

Hi, May I know the Policy tenures for the two existing policies? Actually, a basic term plan from any Insurer is fine, kindly just disclose all the required details in the Proposal form honestly and accurately, that's it! Once you get the Term insurance policy bond, you may discontinue the existing policies.

Munchiran replied 8 years ago

Hi Sree,

Am I eligible to claim tax benefit for Insurance premium paid for parents?

Also, please let me know is this right time to start investing in mutual funds and other market dependent investment options as the market hit record high?

Many Thanks
Chiranjeevi R

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Munchiran answered 8 years ago

Hi Sreekanth, All three existing policy tenure are 21 years. Please let me know which is the most beneficial way to close these policies (i.e. Paid up or surrender). Chiranjeevi R

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Sreekanth Staff answered 8 years ago

Dear Chiranjeevi, You can surrender the policy if you had paid the premium for three years. You can let the policy lapse, if you had paid premiums for 1 or 2 years only. Buy a term insurance plan and then divert the saved premiums to better investment alternatives based on your financial goals. Kindly read : https://www.relakhs.com/how-to-get-rid-off-bad-life-insurance/ https://www.relakhs.com/traditional-life-insurance-plan/ https://www.relakhs.com/8-ways-you-could-lose-your-income-tax-benefits/

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Sreekanth Staff answered 8 years ago

Dear Chiranjeevi, 1 - Am I eligible to claim tax benefit for Insurance premium paid for parents? My Ans : Are you referring to life insurance premium or health insurance premium? 2 - Is this the right time to invest? May I know your financial goals, investment objectives and time-frame??