विशेषज्ञ की सलाह चाहिए?हमारे गुरु मदद कर सकते हैं
Ahalya
Ramalingam Kalirajan9374 Answers |Ask - Follow
Mutual Funds, Financial Planning Expert - Answered on May 21, 2025
Asked on - May 20, 2025
I have a LIC Tarang Policy of 7 lakhs which I purchased in 2008 at the age of 30 and it will mature in 2028 March. Since it is a pension policy, I am not sure will so low pension will be of nay use? should I continue the policy to get regular pension, or should I surrender it before pension starts or should I surrender it now. Please guide.
Ans: You have shown good awareness by questioning its future benefit.
Let us now evaluate it in a detailed and practical way.
We will assess all aspects for a full 360-degree view.
Understanding the Nature of Your Policy
This is a traditional LIC pension plan.
It is not a market-linked policy. Returns are low and fixed.
It offers guaranteed benefits but lacks flexibility and growth.
It was purchased in 2008 for Rs. 7 lakhs sum assured.
It matures in March 2028. That’s just 3 years away.
After maturity, it offers annuity or pension.
Monthly pension is based on annuity rates, which are very low today.
The actual value from such pension might disappoint you.
Even if you get pension till lifetime, the amount will stay the same.
It will not beat inflation over time.
This makes the policy less useful in your retirement years.
Current Scenario: What You Might Receive
Once policy matures in 2028, you’ll get a lump sum or pension.
If you choose annuity, the monthly income may be very small.
The pension from Rs. 7 lakhs maturity value can be less than Rs. 3,000/month.
This is too low to be useful for long-term needs.
It also lacks growth or tax efficiency.
You may pay tax on the pension amount also, if applicable.
Assessing the Continuation Option
You are just 3 years away from maturity.
Surrendering now will give you a lower amount.
LIC pays a surrender value, not full maturity value.
After paying premiums for over 15 years, surrender now is not smart.
The loss on surrender at this late stage is not justifiable.
Better to wait till maturity in 2028.
What Should You Do at Maturity in 2028?
Do not choose pension or annuity from LIC.
The returns will not support inflation-adjusted expenses.
Take the entire maturity amount as lump sum.
Reinvest it in better instruments after that.
Avoid reinvesting in traditional insurance plans again.
Prefer mutual funds or hybrid instruments based on your age, risk, and goals.
What If You Need Money Now?
If you urgently need money, you can consider surrender now.
But you may lose substantial benefits by doing this.
Surrender value depends on tenure, premium paid, and bonus.
For policies this old, surrender may still fetch 50%-60% of expected value.
But maturity is so close now that waiting is more practical.
Better Alternatives to LIC Pension
Mutual funds offer better growth and flexibility.
They can beat inflation in the long run.
You can choose from different fund types based on your risk level.
Actively managed funds have potential to outperform average returns.
Regular funds through a Certified Financial Planner provide guidance and review.
They help in keeping your portfolio aligned with goals.
You also get hand-holding during market cycles.
Why Not Go for Direct Funds?
Direct funds don’t give personal advice or guidance.
You have to select, monitor, and switch funds by yourself.
There is no accountability or rebalancing support.
One wrong move can harm long-term returns.
With regular funds via a CFP-backed Mutual Fund Distributor, advice is included.
Portfolio planning, annual reviews, and switching strategies are provided.
Emotional discipline and goal planning are included.
Taxation Impact
The maturity amount from LIC is usually tax-free under Section 10(10D).
But if you opt for pension, the monthly income may be taxable.
Tax laws may change in future, affecting annuity more.
Mutual funds offer better tax-adjusted post-retirement income options.
After maturity, equity mutual funds have new tax rules.
Long-term gains above Rs. 1.25 lakh are taxed at 12.5%.
Short-term gains are taxed at 20%.
Debt funds are taxed as per your income slab.
Retirement Planning Insights
You should not depend on this LIC policy for retirement.
The expected pension is too low to cover expenses.
Retirement needs inflation-adjusted and growing income.
One-time payout from LIC in 2028 can be a bonus.
But long-term monthly income needs investment in growth-oriented tools.
Mutual funds with SWP (Systematic Withdrawal Plan) give better options.
You can decide how much to withdraw and when.
This gives more control than fixed pension.
Assessing Overall Financial Planning
Do you have enough health insurance for retirement?
Is there an emergency fund in place already?
Have you created a will or nomination for all assets?
Are you invested in PPF, EPF, or NPS for retirement?
Are your mutual fund SIPs aligned with retirement and other goals?
Do you and your spouse both have term insurance?
Is there a proper review of existing insurance-linked products?
If You Hold Other LIC or Insurance-Investment Plans
Do a full review of all policies.
If you hold ULIP, endowment, or money back plans, assess their usefulness.
Most of these policies offer low returns.
After maturity of LIC Tarang, avoid reinvesting in similar plans.
If you have other LIC or investment insurance policies, they must be evaluated.
Consider surrendering such policies if they are not near maturity.
Reinvest surrender value into mutual funds through a CFP-backed MFD.
Final Insights
Continue the LIC Tarang policy till maturity in 2028.
Do not opt for pension from it. Take lump sum instead.
Reinvest that amount in mutual funds via a CFP-guided strategy.
Pension from LIC annuity is not useful in real-life inflation scenario.
Do a complete financial check-up covering insurance, emergency fund, and investments.
Align all future investments to your retirement and other life goals.
Work with a Certified Financial Planner for a customised strategy.
Review your portfolio every year with proper advice and changes.
Build long-term wealth using disciplined and goal-oriented investment plans.
Avoid emotional decisions. Be consistent and practical.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
(more)
Let us now evaluate it in a detailed and practical way.
We will assess all aspects for a full 360-degree view.
Understanding the Nature of Your Policy
This is a traditional LIC pension plan.
It is not a market-linked policy. Returns are low and fixed.
It offers guaranteed benefits but lacks flexibility and growth.
It was purchased in 2008 for Rs. 7 lakhs sum assured.
It matures in March 2028. That’s just 3 years away.
After maturity, it offers annuity or pension.
Monthly pension is based on annuity rates, which are very low today.
The actual value from such pension might disappoint you.
Even if you get pension till lifetime, the amount will stay the same.
It will not beat inflation over time.
This makes the policy less useful in your retirement years.
Current Scenario: What You Might Receive
Once policy matures in 2028, you’ll get a lump sum or pension.
If you choose annuity, the monthly income may be very small.
The pension from Rs. 7 lakhs maturity value can be less than Rs. 3,000/month.
This is too low to be useful for long-term needs.
It also lacks growth or tax efficiency.
You may pay tax on the pension amount also, if applicable.
Assessing the Continuation Option
You are just 3 years away from maturity.
Surrendering now will give you a lower amount.
LIC pays a surrender value, not full maturity value.
After paying premiums for over 15 years, surrender now is not smart.
The loss on surrender at this late stage is not justifiable.
Better to wait till maturity in 2028.
What Should You Do at Maturity in 2028?
Do not choose pension or annuity from LIC.
The returns will not support inflation-adjusted expenses.
Take the entire maturity amount as lump sum.
Reinvest it in better instruments after that.
Avoid reinvesting in traditional insurance plans again.
Prefer mutual funds or hybrid instruments based on your age, risk, and goals.
What If You Need Money Now?
If you urgently need money, you can consider surrender now.
But you may lose substantial benefits by doing this.
Surrender value depends on tenure, premium paid, and bonus.
For policies this old, surrender may still fetch 50%-60% of expected value.
But maturity is so close now that waiting is more practical.
Better Alternatives to LIC Pension
Mutual funds offer better growth and flexibility.
They can beat inflation in the long run.
You can choose from different fund types based on your risk level.
Actively managed funds have potential to outperform average returns.
Regular funds through a Certified Financial Planner provide guidance and review.
They help in keeping your portfolio aligned with goals.
You also get hand-holding during market cycles.
Why Not Go for Direct Funds?
Direct funds don’t give personal advice or guidance.
You have to select, monitor, and switch funds by yourself.
There is no accountability or rebalancing support.
One wrong move can harm long-term returns.
With regular funds via a CFP-backed Mutual Fund Distributor, advice is included.
Portfolio planning, annual reviews, and switching strategies are provided.
Emotional discipline and goal planning are included.
Taxation Impact
The maturity amount from LIC is usually tax-free under Section 10(10D).
But if you opt for pension, the monthly income may be taxable.
Tax laws may change in future, affecting annuity more.
Mutual funds offer better tax-adjusted post-retirement income options.
After maturity, equity mutual funds have new tax rules.
Long-term gains above Rs. 1.25 lakh are taxed at 12.5%.
Short-term gains are taxed at 20%.
Debt funds are taxed as per your income slab.
Retirement Planning Insights
You should not depend on this LIC policy for retirement.
The expected pension is too low to cover expenses.
Retirement needs inflation-adjusted and growing income.
One-time payout from LIC in 2028 can be a bonus.
But long-term monthly income needs investment in growth-oriented tools.
Mutual funds with SWP (Systematic Withdrawal Plan) give better options.
You can decide how much to withdraw and when.
This gives more control than fixed pension.
Assessing Overall Financial Planning
Do you have enough health insurance for retirement?
Is there an emergency fund in place already?
Have you created a will or nomination for all assets?
Are you invested in PPF, EPF, or NPS for retirement?
Are your mutual fund SIPs aligned with retirement and other goals?
Do you and your spouse both have term insurance?
Is there a proper review of existing insurance-linked products?
If You Hold Other LIC or Insurance-Investment Plans
Do a full review of all policies.
If you hold ULIP, endowment, or money back plans, assess their usefulness.
Most of these policies offer low returns.
After maturity of LIC Tarang, avoid reinvesting in similar plans.
If you have other LIC or investment insurance policies, they must be evaluated.
Consider surrendering such policies if they are not near maturity.
Reinvest surrender value into mutual funds through a CFP-backed MFD.
Final Insights
Continue the LIC Tarang policy till maturity in 2028.
Do not opt for pension from it. Take lump sum instead.
Reinvest that amount in mutual funds via a CFP-guided strategy.
Pension from LIC annuity is not useful in real-life inflation scenario.
Do a complete financial check-up covering insurance, emergency fund, and investments.
Align all future investments to your retirement and other life goals.
Work with a Certified Financial Planner for a customised strategy.
Review your portfolio every year with proper advice and changes.
Build long-term wealth using disciplined and goal-oriented investment plans.
Avoid emotional decisions. Be consistent and practical.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
Archana Deshpande Answer |Ask - Follow
Image Coach, Soft Skills Trainer - Answered on Dec 07, 2024
Asked on - Nov 07, 2024English
Listen
मेरे एक सहकर्मी ने 2 साल पहले हमारे ऑफिस से नौकरी छोड़ दी थी क्योंकि हमारे ऑफिस की स्थिति खराब हो रही थी। वह कम वेतन वाली नौकरी में शामिल हो गया जिसे उसे 6 महीने के भीतर छोड़ना पड़ा। हमारी कंपनी भारत में अपनी तरह की एक अनूठी कंपनी है और 20 साल के इस अनुभव और 45 साल से अधिक के अनुभव के साथ, वह दूसरी नौकरी पाने के लिए संघर्ष कर रहा है। हालाँकि मैं अभी भी इस कार्यालय में हूँ लेकिन मुझे पता है कि मुझे भी इसी स्थिति का सामना करना पड़ेगा। मैं बायोलॉजी बैकग्राउंड से हूँ लेकिन मुझे वेट लैब या टीचिंग का अनुभव नहीं है। हमारी नौकरी पूरी तरह से ऑनलाइन है। क्या 45 साल की उम्र में फिर से शुरुआत करना संभव है? यदि हाँ, तो कृपया मार्गदर्शन करें कि मैं अभी क्या कर सकता हूँ ताकि मैं इस नौकरी को छोड़ने से पहले आत्मनिर्भर हो जाऊँ।
Ans: प्रिय अहल्या,
भारत में उद्यमी बनने का यह सबसे अच्छा समय है!! इस ग्रह पर हल करने के लिए बहुत सी समस्याएँ हैं, इन पर बारीकी से नज़र डालें, देखें कि आप कहाँ मदद कर सकते हैं और समाधान का हिस्सा बन सकते हैं। अपने अनुभव और विशेषज्ञता के क्षेत्र के साथ, देखें कि आप कहाँ अंतर को पाट सकते हैं, यहीं आप स्वरोजगार और आत्मनिर्भर बन सकते हैं!
चारों ओर देखें, अपने रास्ते में आने वाले अवसरों को पकड़ें और साहस के साथ आगे बढ़ें....कोई भी उम्र अच्छी उम्र होती है, उम्र सिर्फ़ एक संख्या है, मेरा विश्वास करें।
अगर आपको पढ़ाने में रुचि है, तो कृपया आगे बढ़ें और पढ़ाएँ, अच्छे शिक्षकों की बहुत कमी है जो युवा दिमाग को आकार दे सकें!!
डर को अपने निर्णय पर हावी न होने दें...भाग्य बहादुरों का साथ देता है!! अच्छी तरह से तैयारी करें और आगे बढ़ें!! आपको शुभकामनाएँ..
(more)
भारत में उद्यमी बनने का यह सबसे अच्छा समय है!! इस ग्रह पर हल करने के लिए बहुत सी समस्याएँ हैं, इन पर बारीकी से नज़र डालें, देखें कि आप कहाँ मदद कर सकते हैं और समाधान का हिस्सा बन सकते हैं। अपने अनुभव और विशेषज्ञता के क्षेत्र के साथ, देखें कि आप कहाँ अंतर को पाट सकते हैं, यहीं आप स्वरोजगार और आत्मनिर्भर बन सकते हैं!
चारों ओर देखें, अपने रास्ते में आने वाले अवसरों को पकड़ें और साहस के साथ आगे बढ़ें....कोई भी उम्र अच्छी उम्र होती है, उम्र सिर्फ़ एक संख्या है, मेरा विश्वास करें।
अगर आपको पढ़ाने में रुचि है, तो कृपया आगे बढ़ें और पढ़ाएँ, अच्छे शिक्षकों की बहुत कमी है जो युवा दिमाग को आकार दे सकें!!
डर को अपने निर्णय पर हावी न होने दें...भाग्य बहादुरों का साथ देता है!! अच्छी तरह से तैयारी करें और आगे बढ़ें!! आपको शुभकामनाएँ..