I started my ICICIprulife stage pension policy in 2008,with a premium of 200k, till now it shows very less appreciation say arouns 6-7% over all, so if I keep on paying premium for next 20 years as per term is it beneficial, or should i discontinue at 5th or 6th year for better options and surrender the policy, what life cover they are offering if I maintain the policy by discontinueing the premium and keeping the said amount with icici. pl help me with a solution.ASAP
1 Answers
First of all, looks like you also have been duped by some of the insurance agent. Its not a good product for retirement investment. Rather you could have invested into mix of equities and debt based mutual funds.
There is no point continuing with this policy after Direct tax code comes into play, as there won't be any tax exemption on this (assuming sum assured is less than 20 times annual premium). Tax deduction will be available till FY 2011-12 on this policy, so you may pay premium this year only. If you surrender next year, you may get only some 90-95% of fund value.
Plus, In case you had taken income tax benefit under section 80CCC, whole surrender value will be added to your taxable income and will be taxed as per your slab rates. But if you did not claim deduction, then only bonus/interest shall be added to your total income as income from other source and income tax will be applicable.
As per policy document (http://www.iciciprulife.com/public/Brochures/Lifestage_Pension_Broucher.pdf), If full premium has been paid for 3 policy years and if any subsequent premium is not paid, the policyholder will have option to continue the cover without paying premium.
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