My Name : Sreenath, aged 40 Years
Exide New Fulfilling Life Plan 16 years Term
Premium Paying Term = 16 Years
premium for 16 Years = 51256/Year for 16 years
Policy maturity = 85 Years of Policy Holder or 50 Years as Policy Term.
Total Premium = 8.2 Lacs total
Sum Assured = 5 Lacs
Accidental Death Benefit = 5 Lacs
Money back Intervals(in Years) = 4th (20%) = 1 Lac
8th(20%) = 1 Lac
12th(20%) = 1 Lac
16th(40%) = 2 Lacs
Total Premium paid = 820000 – 500000 (Money back in 16 years at 4 year intervals) = 320000
Effectively premium paid by you is = 3.2 Lacs for 16 Years.
As my age is 40 years now, the Sum Assured is paid on me attaining 85 Years of age. I have realized now that this plan is useless for my needs.
Please note i am considering buying term insurance before opting out of this Insurance Plan.
Please educate me what is the best option available for me whether to surrender this policy or make it Paid up policy or is there any other option ?
Highly appreciate your suggestion on this.
Thanks in advance.
Sreenath
6 Answers
Dear Sreenath,
Exide New Fulfilling Life Plan is a traditional Endowment plan with Money-back (Survival benefit) facility.
Generally the returns from these kind of plans can be in the range of 4 to 6%.
As mentioned, you can buy a term insurance plan and then can discontinue this plan.
If you have paid 10 policy premiums, you may make it a PAID-UP one.
Kindly read :
https://www.relakhs.com/traditional-life-insurance-plan/
https://www.relakhs.com/how-to-get-rid-off-bad-life-insurance/
https://www.relakhs.com/insurance-importance-life-health-accident-covers/
https://www.relakhs.com/best-online-term-insurance-plans-india/
Dear Sreekanth,
Thanks a lot for your response.
I have paid premium for 5 years till now(5 * 51256= Rs256280 ). I have received 1 Lac as money back in 2016.My Premium for this year is due in October. I want to stop paying my premiums from now.
Can this plan be converted into a Paid Up Plan now (5 premiums paid: ) if yes what is the Sum Assured on maturity of this Policy ?
Thanks in advance.
Sreenath
Hi,
In case, you have paid only 5 out of 16 policy premiums, you may consider surrendering the policy.
Kindly buy a term plan and then discontinue this policy. You may contact your insurer to know the exact surrender amount.
Hi,
Is there a possibility of Paid Up option ?, If yes i want to go for Paid Up option only rather than surrendering it. Please advice.
BR,
Sreenath
Sreenath
Hi,
You can turn a policy into a paid up one if you had paid the premiums for three years.
So, its your choice!
The Life cover on endowment or money back policies will be reduced proportionately to the number of years for which the policy was in force.
For example: If you have an endowment policy with a cover of Rs 10 Lakh for 20 years and convert it into a paid up policy after 5 years then the reduced sum assured will be Rs 2.5 Lakh.
So, you will have a life cover for Rs 2.5 Lakh for the next 15 years. There is no need to pay any premiums during this tenure. The future bonuses will not be accrued. The reduced sum assured along with the accrued bonuses (if any for 5 years) will be paid on maturity or on death of the insured.
For example: If you have an endowment policy with a cover of Rs 10 Lakh for 20 years and convert it into a paid up policy after 5 years then the reduced sum assured will be Rs 2.5 Lakh.
So, you will have a life cover for Rs 2.5 Lakh for the next 15 years. There is no need to pay any premiums during this tenure. The future bonuses will not be accrued. The reduced sum assured along with the accrued bonuses (if any for 5 years) will be paid on maturity or on death of the insured.Please login or Register to submit your answer
Dear Sreekanth,
Thanks a lot for your response.
I have paid premium for 5 years till now(5 * 51256= Rs256280 ). I have received 1 Lac as money back in 2016.My Premium for this year is due in October. I want to stop paying my premiums from now.
Can this plan be converted into a Paid Up Plan now (5 premiums paid: ) if yes what is the Sum Assured on maturity of this Policy ?
Thanks in advance.
Sreenath