I am investing in LICJeevanSaralPolicy since December 2008 with a purpose of insurance, while expecting a return of about 8% after 10 years.It has been about 5.5 years.I recently discovered that this policy is returning a low interest of about 6% as in form of loyalty addition, which depends on company performance.Also,its addition starts after the completion of 10 years, thus,there is no return or addition in the portfolio till then. What should I do?
I want to exit from the policy while incurring least money loss or at a stage when there is proper return, but not more than 10 years. I think I should exit because there can be no loyalty addition till the completion of 10 years,thus, there shall be no returns.If I transfer it into an FD then also it will give good return.I can go for a life cover of any term plan. I started investing Rs. 5,104 per month since I was 22 years old.Please guide me if I should continue.
Life insurance is meant for accumulation of corpus for a long-term goal and it is not appropriate to compare it with liquid instruments like FD.Apart from getting loyalty additions at 10th year, the maturity proceeds are tax free; however, maturity proceeds of FD are taxable. Disciplined savings ensure accumulation of corpus for the desired goal without the fear of being utilized before your goal. Also, it ensures that the money is not churned and used elsewhere but for the desired goal, builds an asset right from day one and protects your dreams from an untoward event.
Death Benefit:
In case of death of the Life Insured, the nominee receives
- Sum Assured (i.e. 250 times the Monthly Premium)
- Return of premiums excluding extra/rider premium and first year premium
- Loyalty Addition(if any)
Maturity benefits of LIC Jeevan Saral:
- At the maturity of the Jeevan Saral policy, the insured will get the Maturity Sum Assured (depending on the age of entry and policy term) + loyalty additions (if any)
- Even if you stop paying the Jeevan Saral premium, 100% of the Maturity Sum Assured,given that 5 or more years' premiums have been paid.
- LIC Jeevan Saral guarantees surrender value
Thus, you should continue with this policy.
I want to exit from the policy while incurring least money loss or at a stage when there is proper return, but not more than 10 years. I think I should exit because there can be no loyalty addition till the completion of 10 years,thus, there shall be no returns.If I transfer it into an FD then also it will give good return.I can go for a life cover of any term plan. I started investing Rs. 5,104 per month since I was 22 years old.Please guide me if I should continue.
Life insurance is meant for accumulation of corpus for a long-term goal and it is not appropriate to compare it with liquid instruments like FD.Apart from getting loyalty additions at 10th year, the maturity proceeds are tax free; however, maturity proceeds of FD are taxable. Disciplined savings ensure accumulation of corpus for the desired goal without the fear of being utilized before your goal. Also, it ensures that the money is not churned and used elsewhere but for the desired goal, builds an asset right from day one and protects your dreams from an untoward event.
Death Benefit:
In case of death of the Life Insured, the nominee receives
- Sum Assured (i.e. 250 times the Monthly Premium)
- Return of premiums excluding extra/rider premium and first year premium
- Loyalty Addition(if any)
Maturity benefits of LIC Jeevan Saral:
- At the maturity of the Jeevan Saral policy, the insured will get the Maturity Sum Assured (depending on the age of entry and policy term) + loyalty additions (if any)
- Even if you stop paying the Jeevan Saral premium, 100% of the Maturity Sum Assured,given that 5 or more years' premiums have been paid.
- LIC Jeevan Saral guarantees surrender value
Thus, you should continue with this policy.
0 comments: