whether-to-surrender-my-LIC-moneyback-policy-or-make-it-paid-up?

Q & A Forum › Category: Insurance › whether-to-surrender-my-LIC-moneyback-policy-or-make-it-paid-up?

anupam asked 10 years ago

I have a LIC money-back policy ( 20 years ) for a sum assured of 1 lakh which i had bought in 2007 for which i pay an annual premium of Rs 6480. Recently i have purchased a term plan from HDFC for a cover of 50 lakhs. I want to surrender my LIC policy and invest the proceeds in mutual funds. Should i surrender my policy or make it paid up? Please suggest.

3 Answers

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Sreekanth Staff answered 10 years ago

Hi, You may consider SURRENDERING your policy. Kindly read: Term insurance + PPF Vs Traditional plans. How to get rid off unwanted Life insurance policies?

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anupam answered 10 years ago

I have read your article.There it was written that if i surrender my policy i will get 30% of the premiums paid excluding the first year. What about the vested bonus ? I have checked in that my vested bonus till now is Rs 31200. Will i not get that or a part of that ?

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Sreekanth Staff answered 10 years ago

Hi..You will get Vested bonus but it will be a certain percentage of it only, based on the year in which you have surrendered the value. "generally it is equal to the vested bonuses multiplied by the Lic Surrender Value. The percentage applicable to vested bonuses will be from 16% to 35% based on the policy year (the year in which you have surrendered the value)." Kindly also contact your agent/LIC to get accurate information.