URGENT: Don't want to continue LIC policy.

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Like Magnet
DooMLoRD
Hi all,

My dad got into an agent's words and he purchased LIC Jeevan Anand policy 915 on behalf of me , with half yearly payment of 32K. He paid the first premium, now for the rest of my life I should pay the premiums, the policy maturity is 25 yrs long. After seeing various discussions regarding LIC , I don't want to carry on with this policy, I wanted to know what are my best options? Also, today is the last date to pay the 2nd premium of this policy, please advise urgently.
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Like Magnet Like Magnet
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Sum assured is 14L

Deal Cadet Deal Cadet
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One of my friend's real uncle, who spent most of his adult life doing MLM type scams or got removed from companies like Reliance for not being sincere/focussed on work, finally took to mutual funds distribution and even Birla Sunlife (insurance) agency.

Coerced/ begged/ manipulated my friend and his mother (her own real sister) to sell some chappy ULIP type product.

But my friend totally went ballistic on her (his mother) for accepting to feed her brother's family like this.
He was like, if you have to help uncle, directly give uncle (his sister's brother) hard cash.

He refused to pay a paise and told his mother and father that you can do whatever with the policy. But unfortunately the policy was in his name so his father convinced him to initially himself fund the premiums to take tax breaks.
Once the guy was financially more settled, then his father took over or rather the mother said okay now you are going out of India so so forget these things. The parents of my friend, paid the premiums for few years, till withdrawal amount was somewhat equal to what Term Deposit returns would have been. Then the mother told the guy to go to Birla Sunlife to surrender the policy.

Overall his agent uncle might have made more from his policy than what the policyholder made.

Ask the agent to help now or let your father do some of the (on phone call) work.
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Deal Cadet Deal Cadet
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LOL :-(β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€too late now.

Discontinue payments and loose most of the 32K paid, even if something is given back 'eventually'

β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž ‏‏or

to continue for at-least 5 years and then stop, for hopefully some positive IRR (internal rate of return)

β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž β€β€β€Ž β€β€β€Žβ€β€β€Ž ‏‏look like the only two options.

Like Magnet Like Magnet
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If I don't pay this premium then I'll lose the 32k paid in the last one?

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Finance Mentor Finance Mentor
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Free look period is over, so much to loose if you discontinue now, wait for some years as suggested if you are sure to stop this policy...

Like Magnet Like Magnet
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For the next 5 yrs I should keep paying the premium? And after 5 yrs , can I get all my money back?

Benevolent Benevolent
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cut one finger now or cut a hand later

Helpful Helpful
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First step is to definitely not pay this. The rate of return that it will offer will not be worth continuing the policy just to save on the 1st premium.

Their own sales brochure mentions assumptions of 4 or 8 percent returns, so that's very concerning. Their surrender value is quite low after 2 years as well (30% of total premium). It might feel sad or counter intuitive, but your best bet is to just stop and forget the loss.

Commentator Commentator
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Exit without paying.

Deal Subedar Deal Subedar
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You need to pay for 2 years and close it via lic , if need more info I can help I am an loc agent

Like Magnet Like Magnet
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But I'll only get 30% right as suggested by others.

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Deal Subedar Deal Subedar
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Visit LIC office branch near you and ask the process of how to stop AND withdraw policy and they will guide you based on T&C of the policy you have

each policy has different T&C so read it on their website for actual T&C respect to it,Β regarding this policy you have or SIMPLY VISIT NEARBY LIC BRANCH OFFICE and say you want to stop paying premium because of personal reasons of unable to continue due to money constrain and they will guide you with possible less loss way to get out of it

remember if you continue YOU WILL LOOSE MORE regret later,Β THAN YOU WHAT YOU LOSE NOW on penalty

Deal Cadet Deal Cadet
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Tell your dad that you don't want this policy. Tell him you will pay him the Rs. 32k that he put in for the first premium from your next salary. Take the 32k loss today and don't lose out on 25 years of compounding.

Like Magnet Like Magnet
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Editing
Like Magnet Like Magnet
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.

Like Magnet Like Magnet
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Hi all, I calculated that I'll be getting this amount on the maturity using the below calculator:

Screenshot20240529103620

Then I used SIP calculator to check the expected return by approximating the return based on half yearly SIP:

Screenshot20240529113143

So I'm getting 3750000 after 25 yrs, when matched with this SIP calculator, my returns will be somewhere near 6.2- 6.5 % , so as a non risky investment, what do you guys feel, is it worth to continue this.

Finance Mentor Finance Mentor
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If you consider bank fd than it is quite ok. But if you consider mf or stocks it is pretty low.Β 

Now it's your call based on your risk tolerance levels. You need to take decision based on your own investment habbits.Β 

Are you mostly invest in bank fds Or mf/stocks.??

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Deal Newbie Deal Newbie
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Don't ever think to close lic policy.It is considered as a sin and anti holistic among elders in India.Dont carry their curse .

Deal Subedar Deal Subedar
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Ya if you close LIC Policy you are cursed xDD right? and becomeΒ woodoo doll to toy with by elders ah?

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Deal Subedar Deal Subedar
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Find out the surrender value for your policy. Every policy document has the surrender value mentioned.

Decide what is the acceptable loss to you, invest until you reach that point. Then the surrender the policy.

Deal Newbie Deal Newbie
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I think even though the surrender value is mentioned in the document, IRDAI has authority to impose rules on these insurance companies who were giving only 30% if surrendered. But recently I've seen an article that IRDAI brought a new framework for these insurance companies to give 82% if surrendered. Please Google about this.

Screenshot20240531013023YouTube

Like Magnet Like Magnet
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Thanks everyone for your valuable advice, I told my dad I don't wanna continue, we had an argument, mom also supported me, after a week , yesterday, he went to LIC and paid on my behalf, now 65K is trapped in this shitty Lic Policy. Surrender value is only 30% of original amount after 3 yrs, total waste of money.

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