Shall I continue or surrender ICICI Prudential (Life stage Assure ). This policy I took in 2009 & sum assured is 1.5 Lakh only. paying monthly 2.5 K as a premium.
Last Year I took SBI Term Policy of 25 lakh .So is it worth to continue the ICICI Prudential (Life stage Assure)? Kindly advise me. So that I can invest the same amount into any MF.
Thanks in advance
Biju-Considering the cost involved (like Fund Management Charges, Premium Allocation Charges, Policy Admin charges and Mortality Charges) in it and illiquid nature of a product, I suggest you to come out of this plan. They claim to be that the first year’s whole amount kept aside to give you a GUARANTEED 100% TO 450%. But of what this 100% to 450% is not mentioned. Also, they claim that they doing this to protect you from a volatility of short term. But the term is more than 5 years or so, then why to worry about market volatility? I feel this as a BIG GIMMICK.
Regarding term insurance, I suggest to match around 15-20 times of your yearly income.
Dear Sir,Thanks for your valuable input. But this amount (2L) where should I invest ?because i need this money after 5 years.So pl’s share how to use of this money to get better returns.Pl’s suggest good Term insurance plans.
Biju-After 5 years means any specific time?
i would like to accumulate money for 5 years ,to purchase land in home town.- WIthdrawn amount (2L) from ICICI Prudential , where should I invest ? So that i will get better returns.- Pl’s suggest good Term insurance plans also .
Biju-If your time horizon is just 5 years then stay away from equity. Use the funds like Short Term Debt Funds and Arbitrage Funds (You may park some amount into FDs too).
Thank u very much.