Dear Sir,
My wife has following LIC policies going on
New Bima Gold (T.No. 179) - SA 500000
Jeevan Anand (T.No. 149) - SA 250000
The Money Back Policy - 20 Years (T.No. 75) - SA 250000
Jeevan Chhaya (T.No. 103) - SA 250000
She is paying 30K premium half yearly (60K annually). Running from April 2013 - Completed 5 yrs (Premium in Apr&Oct)
- I was planning to continue only Jeevan Anand (T.No. 149) & stop paying premium for others. Just wanted to know whether other 3 would be converted into Paid up automatically? Had doubt on New Bima Gold (T.No. 179).
- Also received the 10% of SA from New Bima Gold this year as its money back as well. So just wanted to know what will happen with money back scheme if this & The Money Back Policy - 20 Years (T.No. 75) wil be converted into paid up.
3 Answers
Dear Anchit,
May I know if your spouse is an earning member of your family?
All these are traditional life insurance plans.
Yes, if you stop paying premiums, these can be converted into PAID-UP policies, including BIMA GOLD policy.
Related articles :
https://www.relakhs.com/traditional-life-insurance-plan/
https://www.relakhs.com/how-to-get-rid-off-bad-life-insurance/
https://www.relakhs.com/term-insurance-plan-a-waste-of-money/
Yes, she is the earning member as well.
BIMA Gold policy will be paying 50K next year in april as its SA is 5L & after 5 yrs it gives 20% back. Now if i stops here after 5 yrs. SA will be converted into 1.25 L (5L*5/20). In that case after 10 yrs of bima gold in 2022 payout will be 20% of 1.25 L. (25K) Pls let me know whether my understanding is correct?
Dear Anchit,
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.
As per LIC portal ;
If after at least three full years’ premiums have been paid in respect of this policy, any subsequent premium be not duly paid, this policy shall not be wholly void after the expiry of two years Auto Cover Period from the due date of First Unpaid Premium, but shall subsist as a paid up policy for an amount equal to the total premiums paid (excluding any extra/optional premium) less the survival benefits paid earlier, if any.
This amount shall be called as Paid Up Value. This paid up value shall be payable on the date of expiry of policy term or at Life Assured’s prior death. No survival benefit (money-back) shall be payable under paid up policies.
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