My father bought some LIC policies from an agent. These policies are on my name and he is paying the premium amount. 2 years are left in his retirement and I came to know about these policies recently. The details are given below.
Rs.18315 per annum, LIC The Money Back Policy, ,Maturity 2024
Rs.16140 per annum, LIC Bima Gold (Plan-174), per annum,Maturity 2025
Rs.12010 per annum, LIC Jeevan Saral (Plan-165), , Maturity 2034
Rs.4690 per annum, LIC The Endowment Assurance Policy(Plan-14), , Maturity 2034
Rs.6378 per annum, LIC The Money Back Policy (Plan-75), Maturity 2033
Rs.5369 per annum, LIC Jeevan Chhaya (Plan-103), Maturity 2033
Rs.7050 per annum, LIC New Bima Gold (Plan-179), Maturity 2033
Are these policies of any worth?
Another agent sold me some mutual funds and life insurances.
Rs.50000, LIC MF UNIT LINKED INSURANCE SCHEME
Rs.50162 per annum , RELIANCE INSURANCE CASH FLOW PLAN, Maturity 2020
Rs.5000 per month SIP, RELIANCE RETIREMENT FUND – WEALTH CREATION SCHEME
Rs.5000 per month SIP, RELIANCE TAX SAVER (ELSS) FUND
Rs.50000 lump sum, SBI Long Term Advantage Fund – Series II
Rs.100000 lump sum, UTI-MNC FUND
Rs.50000 lump sum, UTI-TOP 100 FUND
I didn’t know about these products when I was giving money to the agent. Never asked him where he
is going to invest the money. My ignorance and negligence is now affecting my financial planning.
Please suggest what to do with such investments.
Regarding Insurance policies, continue them if you feel the return of 5% to 6% for investing for around 15+ years is the BEST return on your money. Continue them if you feel the insurance coverage these policies cover are enough to take care of your financial dependents in case of your untimely death. Remember, the ideal Life Insurance coverage should be around 15-20 times of your yearly income.
Regarding Mutual Funds, without knowing your financial goals, understanding when and how much you need, if you started investment, then you are allowing your agent to build is financial life but not YOUR’s.
BLIND FOLLOWING anyone is the most dangerous act especially when it comes to MONEY.