Sir, before I write this sir I thank you for the prompt response always. And that has given me courage to ask u solution for this mistake I have done.
My wife is an Lic agent. So I have taken a policy plan 830 limited endowment of 44.5 lakh cover. That is 3.6lakh annual premium. My wife got 10% commission first yr. Now again the same amount is due this year.I don’t want to continue this policy but forgetting thus much amount I cannot afford. So what shall I do.
I have planned to get some 5 lakhs from my provident fund. As I have to pay some amount in registration of my flat around 2 lakh.
So what shall I do to this policy or shall I stop after 3 yrs.and wait for the maturity. And what shall u do to the 5 lakhs that come to my account as there is still adequate time left for payment.
Satyam-This is the biggest mistake. Because even if you plan to surrender after 3 years, you will not be able to get the amount of what you paid. Luckily your wife is agent. So I have a trick here. Continue this plan as usual. Invest the commission of what you get from this plan in PPF kind of product or if you are comfortable, then in equity mutual funds. This may average your return from this plan’s 5% to 6% to around 8% to 9%. However, you have to follow of investing the earned commission back into the products I mentioned. Let me know your views.
Sir, I did it because my wife got 10% as commission and suppose the return is 5 to 6 % total it makes 15% in first yr. And say 7.5 + 6 that is 13% in second yr.I was paying this amount from 30000/month provident fund deduction. So in any way its greater than the other arenaof returns.Sir u didn’t answer the second part of my question. That is the 5 lakh thing where to invest that in for 2 to 3 months
And sir why I would surrender. I will pay for 3 yrs and wait till my term of 16 yrs to complete and get my money then.
Satyan-The hardest but the BEST solution is to FORGET the amount of what you paid. Because we are not sure of whether you get the same amount after 3 years (in fact I am sure it will be less). So paying another two premiums and getting less is worst. Second part, paying for 3 years and withdrawing at maturity, again this will not yield you more. You may feel that you received something in +ve to what you paid. But what if you invested the same in somewhere? Decision is YOUR’s.
Sir, I have got a new idea pls guide me. I was reading the policy bond where it is written if premium paying term is less than 10 then the policy can be paid up after 2 yrs. My ppt is 8 yrs and policy term is 21.
It’s written in rule no33 of the policy bond
Satyan-Is it wise to hold the policy as paid up?Financially not wise. If you surrender and invest the same, then you earn more than what you get after 16 years. Converting paid up is viable when the policy is about to close. In your case it is still loss.