I have 14 LIC policies--4 ULIPS, 1term policy (s.a.100000),9 endowment & moneyback. Total premium 1,40,000 /yr

Question

What should I do? Surrender all or part of them? What about the loss incurred by surrendering them? Shall I be able to recover the loss ? If yes, how?

Answer 1

Thats a tough one...something that is difficult for others to take a call without spending time getting to know all the details. Individual policies may have specific terms that will cause them to provide you very different surrender values. Probably that's why you haven't got many responses...as its difficult to provide a generic answer...reason why I too initially skipped answering. Perhaps its better to do some homework yourself and then ask the question in parts...e.g surrender value of my ULIPs, etc.. I hope you understand what I mean.

Having said that, how do you actually try to make sense of the whole thing. Fortunately there places you can read up more on typical insurance related queries...that will give you some clues to do further homework. Consider this set of excellent articles at http://www.personalfn.com/s-detail.asp?s...

And there is a specific article about discontinuing Insurance policies & how Surrender values are calculated at http://www.personalfn.com/detail.asp?dat...

You should find these highly relevant and will help you come closer to the answers for your specific policies. Once you have done your homework, go visit the respective offices of LIC and the ULIP fund house or call the Agent, and ask the right questions.

Good Luck!