I have a LIC money back policy for Rs.4,00,000 sum assured for which I am paying Rs.8500 quarterly. There is a money back of about Rs.85,000 every five years. I started this in October 2014. I now feel that this was not a very good decision and want to invest this elsewhere. My question:
- Do you think I should withdraw this policy?
- What are my potential losses?
- If yes, where else can I invest this amount?
Rajithaxpradeep-While buying, what was your motive? You can continue, if you feel that return of this product around 5% to 6% is good or surrendering will be a loss of money of what you paid. Otherwise, serious come out of this plan. You can easily compensate the current loss even by investing the same amount in PPF.
You have not completed the minimum 3 years also. Hence, if you close the policy now, then you will not get any amount from LIC. If you felt bad and continue for 3 years, then too the loss is there. Where to invest the saved premium amount depends on your goals. But the same time, never under-estimate the power of life insurance. Hence, immediately buy an online term insurance to cover your life risk.