Life Insurance Scenario?

Question

Hi All,

I have New Jeevan Shree Policy type 151/25 of SA Rs. 500,000

I have paid premiums of Rs. 31249/- p.a. + Interest since January 2003

I have paid Rs. 187494/- till date which is due of 31249/-

My Loan Status is only

DOC 28/01/2003

Plan 151

Term 25

Paid Up Value 1,25, 000.00

Accrued Bonus 0.00

Surrender Value 91400

Accrued Bonus : 210,000

I request you to send me the scenarios in which

If I continue with the Policy How Much will I get??

If I surrender How Much will I get????,If I invest in PPF? + term Insurance of 500,000

I am not sure about the Maturity Numbers of this and I pay only 16 Premiums of this Policy rather 25 premiums.

I would be highly obliged if u can send me the worksheet of the numbers u calculate based on scenarios.

Thanking You,

Murtaza Tarwadi

Answer 1

You should have approached the office itself or a financial consultant or the agent himself.

The clear answer to you is:

Your policy is for 25 years and premium for 16 years you are seeking a benefit in the 5th year. So the value of your policy is 5/16 if not 5/25.

This value is also payable after 25 years if you decide to stop the premium now. Your loan is nothing but the value of 1.25 lakhs payable after 25 years demanded in 5th year. Again it is 5/25. Bonus will be added after 5 years of payment.

Suggestions:

1) continue the policy for the sake of risk coverage and long term returns.

2) If you look for short term gains, go for Unit linked policies

3) Even if you want to surrender, try after more than half the duration or 3/4th of the term and see the difference.