Quries in my policies : LIC's Money back policy and Jeevan Tarang

Hi Guys,

hope you guys are doing fine, i have some queries in my existing policy and please suggest for my future investment plans.

i joined 2 LIC policy as soon as i got the job[ 5 year back] , that time with out even reading or listening much about the benefits i just joined , now am thinking of stopping the policies.

1. The Money back policy 20 years

yearly payment : 25820
sum assured : 400000

and will get the money back in every 5,10 and 15 yrs.

here my doubt is i am paying 25820 for 20 years and in total it will be 516400 . but why the sum assured is only 4 lac?

but still am ok with the above policy , since at least i am getting my money back at 5,10 and 15 yrs.

2: Jeevan tarang 15 years

yearly payment : 28460
sum assured : 400000

here am totally not understanding the benefits , i have no idea when i will be getting the benefits.

here also i don't understanding the assured sum.

so in 5 year for the jeevan tarang , i had invested 142300 , but when i check with LIC if i surrender i will only get 1 Lac , so is it good to go for surrender?

thanks in advance

Insurance products are not designed to give good returns. The main purpose of insurance product is to cover you from unforeseen life risk. They normally give moderate returns (6 to 8 percentage), so don't compare them with the other pure investment products (as investment products won't give you life insurance coverage). Investment option is just an add-on and returns very from product to product (e.g. moneyback, ulip, pension, endowment) and based on the purpose you bought the product for.

So first you need to understand - the types of life insurance products (Check This Thread). And then decide - what you want?
On the light of this review you insurance plans - continue/or surrender existing/or buy new products.

Quote:

---

Originally Posted by jimmy_moh

Hi Guys,

hope you guys are doing fine, i have some queries in my existing policy and please suggest for my future investment plans.

i joined 2 LIC policy as soon as i got the job[ 5 year back] , that time with out even reading or listening much about the benefits i just joined , now am thinking of stopping the policies.

1. The Money back policy 20 years

yearly payment : 25820
sum assured : 400000

and will get the money back in every 5,10 and 15 yrs.

here my doubt is i am paying 25820 for 20 years and in total it will be 516400 . but why the sum assured is only 4 lac?

but still am ok with the above policy , since at least i am getting my money back at 5,10 and 15 yrs.

---

Why sum insured of this policy is only this much? Or Why not more? Or Why not less?
If you want answer to this question than the actuary or product designer or product manager of the life insurer (i.e. LIC in this case) would be the best/right person to answer this.

Quote:

---

2: Jeevan tarang 15 years

yearly payment : 28460
sum assured : 400000

here am totally not understanding the benefits , i have no idea when i will be getting the benefits.

here also i don't understanding the assured sum.

so in 5 year for the jeevan tarang , i had invested 142300 , but when i check with LIC if i surrender i will only get 1 Lac , so is it good to go for surrender?

thanks in advance

---

Surrendering an insurance product is not a right decision, even the insurer won't recommend it.

As per LIC India website -
"Surrender of policy is not recommended since the surrender value would always be proportionately low.
Should you decide to go in for another insurance at this stage further insurance would be available to you at a much higher premium because your age would have advanced since taking out the earlier policy."

If you still want to surrender your policy, than first buy adequate term life insurance for yourself. And use this calculator (Link) to calculate surrender value of your policy.