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Recovering old LIC policies: Is it possible?

Milind

Milind Vadjikar  | Answer  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Oct 21, 2024

Milind Vadjikar is an independent MF distributor registered with Association of Mutual Funds in India (AMFI) and a retirement financial planning advisor registered with Pension Fund Regulatory and Development Authority (PFRDA).
He has a mechanical engineering degree from Government Engineering College, Sambhajinagar, and an MBA in international business from the Symbiosis Institute of Business Management, Pune.
With over 16 years of experience in stock investments, and over six year experience in investment guidance and support, he believes that balanced asset allocation and goal-focused disciplined investing is the key to achieving investor goals.... more
KP Question by KP on Oct 21, 2024Hindi
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I had a few LIC policies more than 15 years ago. I initially invested some money, but due to a financial crisis, I was unable to contribute to those policies. Over time, I lost track of them. Could you please let me know if it's possible to recover that money? Alternatively, can I pay the accumulated premiums from the missed years and continue the policies? Which option would be feasible and beneficial? Thanks

Ans: Hello;

You should check with LIC branch office through which the policies were issued to you however it is unlikely that you can revive them now.

The policies might have lapsed and converted into paid-up policy.

You are entitled to receive maturity proceeds of such paid up policies after tenure.

Best wishes;
Asked on - Oct 22, 2024 | Answered on Oct 23, 2024
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Thanks for your response Sir.
Ans: You are most welcome!!
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |10881 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 18, 2024

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Sir I have invested Rs 50000.00 in LIC Policy in the year 2009 in my wife's name. Now that my wife left me 10 yrs back and am unable to trace her. I don't whether she is alive or not. Now I am 53yrs old(with no job) and want to encash the amount. kindly suggest me
Ans: If you are unable to trace your wife and she has left you, you may face challenges in accessing or encashing the LIC policy that is in her name. Here are some steps you can take:

Contact LIC: Reach out to LIC (Life Insurance Corporation of India) with all the details of the policy. Explain your situation and request guidance on how to proceed in the absence of your wife.
Legal Assistance: Consult with a lawyer to understand the legal options available to you. They can guide you through the process of claiming or transferring the policy if your wife is not reachable or if there are legal grounds to do so.
Family and Friends: Try to gather any information or documents related to the policy that might help in claiming or transferring the policy. If your wife has any close family members or friends who may have information about her, try reaching out to them as well.
Policy Details: Ensure you have all the policy details, including the policy number, date of commencement, and premium payment receipts, as these will be required for any further actions or claims.
LIC Branch: Visit the nearest LIC branch office and explain your situation. They may be able to assist you in identifying the policy status and guiding you on the next steps.
Declare Her Missing: If you have made efforts to locate your wife without success, you may need to take legal steps to declare her as missing or absent. This can be a lengthy process and may require court intervention.
Nomination and Assignment: Check if you are named as a nominee or assignee in the policy. If you are, you may have a better chance of claiming or transferring the policy. If not, you may need to explore legal options to gain access to the policy.
It's important to act promptly and seek professional guidance to navigate this complex situation. A lawyer specializing in insurance or family law can provide valuable advice and assistance in resolving this issue.

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Ramalingam

Ramalingam Kalirajan  |10881 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 02, 2024

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Hello. I have an LIC Policy - Jeevan Asha II that was started in 2003. I have been paying yearly premiums, and it matured in 2023. The premiums were ~30k yearly paid till 2022(i.e 20 years), and the Table & Term was 131 - 20. Now in 2023 I have received maturity amount of ~12lc and LIC deducted TDS of ~45k. Does this mean the interest income added to my income from this would be 4.5Lc? Or are there any tax rebates for LIC policies that were started that long ago?
Ans: Policy Overview

Your LIC policy matured in 2023.
You received a maturity amount of around Rs. 12 lakhs.
LIC deducted a TDS of Rs. 45,000.
Interest Income and Tax Implications
TDS indicates interest income is added to your income.
In this case, the interest income appears to be Rs. 4.5 lakhs.
Interest income from such policies is taxable.
Tax Rebates for Old LIC Policies
Policies started before 2012 might have different tax rules.
Check if your policy qualifies for any old tax exemptions.

Assessing the Financial Outcome
Your premiums were about Rs. 30,000 yearly.
You paid premiums for 20 years.
Evaluate if the maturity amount meets your financial goals.

Evaluating Investment Options
Consider reinvesting the maturity amount.
Actively managed funds can offer better returns.
Engage a Certified Financial Planner for personalized advice.
Avoiding Index Funds and Direct Funds
Index funds have limited potential in volatile markets.
Actively managed funds provide better risk management.
Regular funds through an MFD with CFP offer professional guidance.

Final Insights
Analyze your overall investment strategy.
Ensure your investments align with your financial goals.
Regularly review and adjust your portfolio for optimal performance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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Dr Dipankar

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Dear Sir/Madam, I am currently a 1st year UG student studying engineering in Sairam Engineering College, But there the lack of exposure and strict academics feels so rigid and I don't like it that. It's like they don't gaf about skills but just wants us to memorize things and score a good CGPA, the only skill they want is you to memorize things and pass, there's even special class for students who don't perform well in academics and it is compulsory for them to attend or else the student and his/her parents needs to face authorities who lashes out. My question is when did engineering became something that requires good academics instead of actual learning and skill set. In sairam they provides us a coding platform in which we need to gain the required points for each semester which is ridiculous cuz most of the students here just look at the solution to code instead of actual debugging. I am passionate about engineering so I want to learn and experiment things instead of just memorizing, so I actually consider dropping out and I want to give jee a try and maybe viteee , srmjeee But i heard some people say SRM may provide exposure but not that good in placements. I may not be excellent at studies but my marks are decent. So gimme some insights about SRM and recommend me other colleges/universities which are good at exposure
Ans: First — your frustration is valid

What you are experiencing at Sairam is not engineering, it is rote-based credential production.

“When did engineering become memorizing instead of learning?”

Sadly, this shift happened decades ago in most Tier-3 private colleges in India.

About “coding platforms & points” – your observation is sharp

You are absolutely right:

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Reduce emotional investment in college rules

Use:

GitHub

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Hackathons

Internships (remote)

Hardware / software self-projects

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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