Hello Sreekanth,
I would like some advice on the below scenario please.
I have a Bajaj Allianz Future Secure policy which has been in effect from 2008. I make a monthly payment of 2,500 and has around 4,25,000 in the portfolio.
I also have 3 loans at the moment. I have a personal loan of 1,50,000 and loans on 2 LIC policies amounting to 3,50,000.
I am wondering if it is a good idea to withdraw the Bajaj Allianz policy and repay the loans. I could invest in MF with the monthly EMI that currently pay on these loans.
Please suggest.
3 Answers
Hi,
May I know if you have any family member who is financially dependent on you?
Kindly provide LIC plan names, commencement date and tenure.
My wife and 2 kids are dependent on me. The 2 LIC policies are:
- Jeevan Anand. Started in 2007 and premium paying term is 18 years. I took loan of 2,25,000 on this policy
- WholeLife policy. Started in 1995. All premiums have been paid. I took a loan of 1,25,000 on this policy
Hi,
As you have dependents, suggest you to consider taking Term life insurance cover as your high priority action item.
Read:
https://www.relakhs.com/insurance-importance-life-health-accident-covers/
https://www.relakhs.com/best-online-term-insurance-plans-india/
Bajaj policy is an ULIP plan.
The other two LIC plans are traditional life insurance plans.
Read:
https://www.relakhs.com/term-insurance-plan-a-waste-of-money/
https://www.relakhs.com/traditional-life-insurance-plan/
Once you buy a term life cover, you can surrender Bajaj plan and clear off your loans, especially your Personal loan as it may have very high rate of interest.
Please login or Register to submit your answer