Hi Sreekanth,
I wanted to know about this plan (Sarva Shakti Suraksha Plan) which is from bajaj alianz in which i have been investing for more than 6 years. I invest Rs 1500 every month and the policy maturity is in July 2020. But I dont know what it is and very less information is found online (which i could not understand).
Below is what I found:
https://goo.gl/On5I0C
Please let me know if what I'm investing in is beneficial or not.
Regards,
Rohit
3 Answers
Dear Rohit,
Bajaj Allianz's Sarve Shakti Suraksha Plan is a Traditional Life insurance policy, a combination of Term insurance (group cover) and Endowment kind of plan.
The premium is divided in two parts - i) A portion of the premium paid is for providing you with LIFE COVER & ii) Remaining portion of the premium is invested in a Fund which is managed by the company as per IRDA regulations. The returns generated by this fund (after deducting administration fee) is distributed to all Policyholders of the plan annually.
If you have paid premiums for more than 4 years then no surrender penalty is levied. You can get back the total Fund value which is there in your account.
You may consider surrendering this policy and buy a Term insurance plan (if you do not have one).
Hi Sreekanth,
is it feasible to surrender it now after having paid 72 installments of Rs 1500. or should i just wait till the policy matures in 2020. I dont have a term plan. i have another life insurance policy (HDFCSL Classic Assure) for which i pay Rs 12000 every year. I have been paying for 4 years and have to pay for 3 more years. The policy matures in 15 years since its start. other than this i only put my money in PPF and have no other investments. my annual salary is 5 laks. Kindly advise what should i invest in.
Hi,
As there is no Surrender penalty I have suggested you to surrender. Now, it is up to you to take final decision.
Advisable to avoid these kind of insurance plans. You may re-invest the surrender amount in a better investment alternative.
HDFC Classic Assure is also a Traditional insurance plan which can be ignored.
Suggest you to first take a Term insurance cover and then you may discontinue the above two plans.
Kindly read below articles;
http://www.relakhs.com/traditional-life-insurance-plan/
http://www.relakhs.com/term-insurance-plan-a-waste-of-money/
http://www.relakhs.com/how-to-get-rid-off-bad-life-insurance/
http://www.relakhs.com/best-online-term-insurance-plans-india/
http://www.relakhs.com/personal-financial-planning-articles-list/
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