SBI Life Retirement Plan: Can I get my money back after 3 years?

Ans: It's understandable to reassess your financial commitments, especially as you near retirement age. Your decision to review your SBI Life policy is a wise one.

Considering scheme performance and charges, surrendering the policy and reinvesting in mutual funds could align better with your goals. Mutual funds offer flexibility, diverse investment options, and potentially higher returns.

Reflecting on this transition, it's essential to appreciate the lessons learned from your previous investment choices. Life is a journey of growth and learning, and adjusting our financial plans is a natural part of that process.

Consulting with a Certified Financial Planner can provide valuable guidance tailored to your specific needs and aspirations. Remember, it's never too late to realign your financial strategy to better suit your circumstances and goals.

Ans: Evaluating LIC Jeevan Saral Policy Surrender
Policy Overview
The LIC Jeevan Saral policy offers a sum assured with flexibility in premium payments and attractive features.

Surrender Considerations
1. Current Financial Situation
Assess your current financial situation to determine if the surrender value of the policy aligns with your immediate needs or long-term financial goals.

2. Surrender Value Calculation
Understand the surrender value of the policy, which may vary based on the duration of the policy, premiums paid, and applicable charges.

3. Investment Alternatives
Explore alternative investment options that may offer better returns or align more closely with your financial objectives.

4. Future Premium Commitments
Consider the impact of surrendering the policy on future premium commitments and the potential loss of insurance coverage.

Recommendation: Surrendering the Policy
Given the duration of the policy since 2009 and your current age, surrendering the LIC Jeevan Saral policy may be a prudent decision for the following reasons:

Limited Growth Potential: The policy's surrender value may not have grown substantially over the years, and continuing it may not offer significant benefits compared to alternative investment avenues.

Enhanced Flexibility: Surrendering the policy provides access to the accumulated cash value, offering flexibility to invest in more lucrative options or address immediate financial needs.

Cost-Benefit Analysis: Evaluate the surrender value against the premiums paid and potential returns from alternative investments to make an informed decision.

Next Steps
Contact LIC to obtain the surrender value and understand the surrender process in detail.
Consult with a certified financial planner to assess the impact of surrendering the policy on your overall financial plan and explore suitable investment alternatives.
Conclusion
Based on the assessment of your financial situation and the features of the LIC Jeevan Saral policy, surrendering the policy may be a viable option to consider. However, it's essential to conduct a thorough analysis and seek professional advice to make an informed decision aligned with your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: You're approaching your policy's maturity date in March 2026, and here are some options to consider for your SBI Life Retire Smart LP policy:

Understanding the Policy:

• Guaranteed Benefit: This policy guarantees 101% of your total paid premium on maturity. In your case, that's Rs 5,05,000 (1.01*Rs 5 lakh).
• Market Performance: The current fund value of Rs 5.70 lakh reflects how the units you invested in have performed in the market.

Decision Points at Maturity (March 2026):

• Surrender the Policy: You can receive the fund value (Rs 5.70 lakh) along with any guaranteed additions or terminal bonuses offered by SBI Life. However, check the policy documents for any surrender charges that might apply.
• Annuitise the Corpus: This option allows you to convert the total corpus (fund value + guaranteed additions) into a regular income stream through an annuity plan from SBI Life. This provides a guaranteed income but limits access to the principal amount.
• Continue the Policy (if allowed): Check with SBI Life if you have the option to extend the policy term. This allows the fund value to potentially grow further through market gains, but you'll continue paying premiums.

Choosing the Right Option:

Since I cannot give financial advice, here's how to make an informed decision:

• Review Policy Documents: Look for details on surrender charges, guaranteed additions, and the option to extend the policy.
• Contact SBI Life: Talk to your SBI Life advisor or customer care to understand the specific benefits and charges associated with each option.

Consider Your Needs:

• Retirement Income Needs: Do you need a guaranteed income stream (Annuity) or are you comfortable with some market risk for potentially higher returns (Continuing the Policy)?
• Other Retirement Savings: Do you have other sources of retirement income, like a pension or investments?
• Medical Needs: Factor in any potential medical expenses that might require a larger corpus.

Additional Tips:

• Market Performance: Consider the current market conditions. If the market is expected to perform well, continuing the policy might be beneficial.
• Risk Tolerance: How comfortable are you with market fluctuations? Annuities offer stability, while continuing the policy exposes you to market risks.

By carefully evaluating these factors and talking with SBI Life, you can make the best decision to secure your financial future in retirement.

Ans: If you surrender the policy now then assuming that by now your corpus might have grown to around 14 Lacs(approx) then you have two options:
1. Take monthly pension of around 6K per month for the tenure of your policy annuity period
2. Take 60% of your net fund value i.e. 60% of 14 Lac, so a sum of 8.4 Lac as lumpsum payout. And on the balance 5.6 Lacs you may receive pension of around 2.4K per month for the tenure of your policy annuity period.

Ans: Hello;

It is not advisable to surrender the policy now.

Hold it till maturity. After that you have the option to decide whether you want entire fund value to be used for buying annuity or commute 60% and use balance 40% to buy annuity.

Best wishes!!