I am holding this LIC Jeevan Saral policy for more than 5 yrs now.
I pay Half yearly premium of about 50 K.
The objective of starting this policy was – Family finance cover in case of misfortune and Retirement investment.
Also, this has a money back, which I can use if require at timely intervals.
Sachin-First of all I suggest you to read my earlier post about Jeevan Saral. Once you read this post and going by comments, you understand about your wrong belief.
When you said this you bought to cover your life risk then first of all think for how long your family survive this the death claim amount from this policy. The ideal insurance cover must be around 15-20 times of your yearly income. Whether this plan providing that much of life insurance? If no, then it is of no use for life insurance.
Second, you planned to buy this product for your retirement corpus build up. But sadly the return from this plan is around 5%. Whether you can sustain in your retirement age with the investment made by you which is giving you NEGATIVE REAL RETURN (Return on investment-Inflation)? It is hard to survive by investing in this plan for your retirement.
Third, who said that this is money back plan? It is typical endowment plan where the only option is, you can come out of it after 5 years at any point of time. Please check your policy bond for the truth. I think your agent misguided you.
Now decide on your own whether you have to continue this policy or not.
Thanks for the reply and valuable information.
This will guide me to decide on the faith of this policy.
Appreciate your feed back.
How can we surrender the LIC Policy.Is there any procedure to be follwed or we simply default the payement of the premium.
Especially in Jeevan Saral policy,if i default paying the next premium will the policy be stopped or still be active as i have already paid for more than 5yrs.
In either case ie default paying the premium and keeping the policy active or surrendering the policy all together and getting the amount invested out ,does in either cases the surrender value which i get in return be affected or deducted etc
Sachin-If you default the premium paying leads to lapsation. Now the question is, whether to surrender or convert to paid up. If you want to surrender then visit the branch, complete the formalities and get cash. Otherwise, the policy will be in paid up mode.