Khushi
1
Hi, I have 2 insurance policies. 1) Jeevan Surabhi,Policy Term – 20, Started 2004, SA - 1.5 lac, Premium - Rs 13k apx, Premium payment term - 15yrs 2) New Bima Gold, Policy Term – 20, Started 2008, SA - 5 lac, Premium - Rs 17.5 apx, Premium payment term - 20 yrs
My age is 29, unmarried female. Please tell me whether I should continue paying premium for these policies or opt for something else?
Both these policies are money back plans and were not suitable for your profile.
If you can get back premium paid in last years, it would be advisable to discontinue these policies. But if there is a substantial loss, it is not advisable.
Its a mistake to buy insurance policies for investment needs. Insurance and investment are two altogether different aspects and should not be mixed.
One must have atleast sum assured of 10 times annual income. You should get a term insurance like LIC Amulya Jeevan or ICICI iCare.
Thanks Pankaj. I wasnt much informed when I invested in these policies, but now I have started analyzing my investments carefully. I also took "Birla Sun life - Dream Enhancer Plan -Term 25" in 2009 at NAV of 24.5. This one is ULIP. I pay Rs 15000 annually. The current NAV is 33.6. As per their terms & conditions, if I surrender after 3 yrs I'll receive the Fund Value at that time. The fund value in 2009 was Rs 14600 and now Rs 37400. Given that I have invested Rs 45000 (15k * 3) until now, should I surrender this policy & get a pure term insurance?
As market conditions have been bad since last one year, your fund value may be showing a low value at this time. You can surrender ULIP policy and invest amount into equity diversified mutual funds for long term investment.
Also, please don't buy insurance policies for investment purposes in future.
