Hi Sir,
I bought an LIC policy Jeevan anand with payment term for full 16 years and maturity after 25 years. Now after reading your blogs I found that these policies are not good for investment purpose... The sum insured in 9 Lakhs and premium comes around 43K yearly.
Can you please suggest me what is the best option? Should I surrender it or pay the premium for 3 years ?
2 Answers
Hi,
May I know the commencement date of this policy?
Are you an earning member of your family with dependents? Do you have adequate Life cover through a Term plan?
Hi Sreekanth
Thanks for the reply 🙂 the answers are below:
COMMENCEMENT DATE: 15 Aug 2017
No I am not the only earning member. My father is earning as well.
I havent taken term plan yet.
Hi,
You may just discontinue the policy and get it lapsed.Â
Kindly note this point - "As per income tax laws, if the policy is terminated before premiums for two years have been paid, the tax relief granted earlier will be revoked.
In case of non-compliance with the above condition, the tax deductions that you claimed for previous premium payment(s) will be revoked. You need to add them back to your taxable Income of the year in which the policy is terminated. So, the tax deduction so claimed will be treated as the ‘Income of the previous year’ in which deduction was claimed."
Once you have dependents, you can buy a Term insurance plan (or you can buy now itself if you think having adequate life cover is essential based on your financial profile).
Also, you may consider buying a stand-alone Personal Accident cover now.
Kindly go through below articles :
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