I regularly read your articles. Further, my query is that :-
I have 1 LIC “JEEVAN SATHI” T. NO. 89. (for me & My wife)
Start date Sep 2010
Policy Term: 21 year
Premium amt 26311/- PA and I have paid 5 instalments and next will be due in Sep 15.
I seek your guidance shall I continue the same or surrender and start investment in any good SIP/ELSS SIP.
I have long term vision say 10 to 15 year.
How much I loose if I surrender and which will be better option..?
Thanx in advance.
Ashutosh-In my view it is better to surrender. Because you have to continue for another 15 years. Instead of that, if you continue the same investment in PPF then it will fetch you more return. Hence, if you feel the return from this policy of around 5% to 6% is GOOD, then continue. Otherwise, try to come out immediately. I know it may hurt you to get either less return or less than what you paid. However, it is best option to come out. Contact LIC branch regarding the surrender value.
At the same time, don’t forget the importance of Life Insurance. Hence, immediately buy a term insruance to the tune of around 15-20 times of yearly income. Then start investing in equity mutual funds (If your time horizon is more than 10 years or so).