surrender of jeevan anand

hi ,
I took the policy of jeevan anand for rs 5,00,00 and the prmeum amt is 24,459.i paid the premium for one yr n nw would like to withdraw the policy. so plz let me know the procedure

Veena, I don't know much of various policies of LIC. but trying to reply based on my experience with other Insurance policies.

Most likely, you will loose your payment of first premium (24k). If you are sure about your decision to discountinue with this policy, then it is still better to let 24k go instead of putting more money on something that u don't trust or like.

But if your decision is due to other near term financial committments then u can skip the payment of this year.. There is always option to pay some extra penalty (for 24k it might less then 1000 or so) and revive your policy in future. (but check this with your agent or any other LIC agent).

Hope this helps. all the best.

For any policy in which less than 3 years premium is paid, You may not get the surrender value accrued in the policy. So if you stop paying premium after one year, you may not get any kind of refund from the premiums paid by you.

Even if you pay premium for three full years and approach for surrender, you may be getting an approximate surrender value of 30% of the total premiums paid by you.

So IMO, there are two choices left to you.

1) You should continue remitting premium as you do now.
2) Secondly if you find that the total annual premium that you remit now is on higher side, you can go for sum assured reduction. You can excise your option to reduce the present sum assured to lower sum assured.

For example, If you have been insured for 3 lac,and you can go for dropping of 2 lacs, and can choose sum assured to be one lac only, and can continue paying premium for the revised sum assured for one lac only, till the end of the policy term.

Since the Risk under this policy continues even after the premium paying term is over, i would suggest you to continue the policy, at a reduced sum assured.

The benefits under the policy are:

MATURTIY BENEFIT: : At the end of the premium paying term, Sum assured+ Bonus is paid, along with final additional bonus

DEATH BENEFIT : a) If death occurs after the premium paying term, an additional amount equal to the Sum assured is payable,and no bonus is payable

b) If death occurs before the premium paying term, Sum assured,+ full bonus accumulated till the date of death is payable.

P.S : I think you have mentioned the sum assured wrongly as 50,000. Because the Minimum Sum assured under that policy is ONE LAC.


Regards
Saivenkat.