I had purchased Pnb met life policy in 2022 where I had started investing 48000 rs p.a. approx. I was told min investment duration is 3 years and Max is 7 years. After 10 years policy will be matured. After 3 years I have stopped investing in it. Now they are saying as I have stopped investing, I'll get only Rs.70,000 only after maturity. What to do

Ans: You should receive the value of your units multiplied by the NAV at maturity, or the guaranteed minimum return of 115% of your first-year premium. If PNB MetLife is not honoring this, refer to the policy terms and ULIP guidelines. If they still deny your entitlement, consider filing a formal complaint with IRDAI for resolution. It's essential to assert your rights as a policyholder to ensure you receive the correct returns on your investment.

Ans: Assessing Your LIC Jeevan Anand Policy
Understanding Maturity Amount
Your LIC Jeevan Anand policy is nearing the end of its 21-year term. Given a policy sum assured of ?14 lakhs and an annual premium of ?71,000, the maturity amount will include the sum assured along with any applicable bonuses. However, without specific bonus rates, an exact figure is challenging to determine. Generally, LIC policies like Jeevan Anand accrue bonuses over the years, which can significantly enhance the maturity amount.

Life Coverage Post Maturity
One key feature of the LIC Jeevan Anand policy is the continuation of life cover even after the maturity amount is paid out. This means you will still have a life cover equal to the sum assured (?14 lakhs) after the policy matures, providing continued financial security for your beneficiaries.

Investment Recommendations for Maturity Amount
Risk Assessment and Goals
Before deciding where to invest the maturity amount, consider your risk tolerance, financial goals, and investment horizon. Since the maturity amount is likely to be substantial, diversifying across various investment options is prudent.

Investment Options
1. Mutual Funds
Equity Mutual Funds: If you have a high-risk tolerance and a long-term investment horizon, consider equity mutual funds. They offer high growth potential but come with higher volatility.

Balanced or Hybrid Funds: For a moderate risk appetite, balanced funds invest in a mix of equities and debt, providing a balance of growth and stability.

Debt Mutual Funds: If you prefer low risk, debt funds are safer and provide regular income, suitable for short to medium-term goals.

2. Systematic Investment Plan (SIP)
Consider investing a portion of the maturity amount in mutual funds through SIPs. This helps in averaging the purchase cost and reduces the impact of market volatility.

3. Public Provident Fund (PPF)
For long-term, risk-free investments, PPF is a good option. It offers attractive tax-free returns and has a lock-in period of 15 years, making it suitable for retirement planning.

4. National Pension System (NPS)
NPS is another long-term investment option, especially beneficial for retirement planning. It offers a mix of equity, corporate bonds, and government securities with tax benefits.

5. Fixed Deposits (FD)
If you seek safety and assured returns, consider investing a portion in fixed deposits. Although returns are lower compared to equity, FDs provide guaranteed income.

6. Gold
Investing in gold through Gold ETFs or Sovereign Gold Bonds can provide a hedge against inflation and add stability to your portfolio.

Diversified Portfolio Approach
High-Risk Investments: Allocate around 40-50% in equity mutual funds or direct stocks for high growth potential.

Moderate-Risk Investments: Allocate 20-30% in balanced funds or hybrid funds for balanced growth and stability.

Low-Risk Investments: Allocate 20-30% in debt funds, PPF, or FDs for assured returns and safety.

Alternative Investments: Allocate a small portion, around 5-10%, in gold or other alternative assets for diversification.

Conclusion
Upon maturity of your LIC Jeevan Anand policy, you will receive a significant lump sum. Continue benefiting from life coverage even after maturity. To optimize this maturity amount, diversify your investments across equity, debt, and alternative options based on your risk profile and financial goals. Regularly review and adjust your portfolio to stay aligned with your objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Hi,

I am sorry but this is how these policies work. Your money is locked and will not get full amount back.

Every agent make false promises in the start to earn their big commission in first month. These policies give maximum 4% yearly return.

You can ask the customer care if you will get back more % after paying 3 premiums. Generally surrendering after 3 premiums gives back almost 80% of the premium paid. But do not continue for another 8 years.

Let me know what will you get back if you pay your 3rd premium. Will guide you based on that.

In future, go for mutual funds for long term. You will easily get 14% annual return.

Let me know if you need more help.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Ans: Hi Visu,

It is never a good idea to mix insurance and investment. Best would be to discontinue it immediately, take your money and invest in mutualfunds. Net LIC returns are never more than 5% annual, less than even a simple FD.

And for life cover, take a proper term insurance plan with no riders.

Let me know if you need more help.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Ans: You have taken a good step by checking this now. Many people continue such policies without reviewing the impact. Because you reviewed early, you still have options to improve your outcome.

Your situation usually happens in investment-cum-insurance policies when premium payment stops before the required term.

» Why the company is saying only around Rs.70,000 after maturity

– These policies normally need premiums to be paid for the full agreed period
– If premium stops after 3 years, policy becomes paid-up
– In paid-up status, life cover reduces sharply
– Future bonuses or growth also reduces
– Charges already deducted in early years are higher
– So maturity value becomes much lower than expected

That is why they are showing only about Rs.70,000 after maturity.

» Important point you must confirm immediately

Please check these details from your policy document or customer care:

– Premium payment term (exact number of years required)
– Policy term (total duration)
– Whether policy is traditional plan or ULIP
– Paid-up value today
– Surrender value today

Sometimes surrender value available now may be better than waiting till maturity.

» Options available for you now

Option 1: Continue the policy (if allowed)

– Some policies allow revival within limited time
– If revival possible, earlier benefits may come back
– But revival is useful only if policy quality is good
– Many such policies give low long-term return

Option 2: Keep policy as paid-up

– No more premium required
– Policy continues with reduced maturity benefit
– You receive amount only at maturity
– Return usually remains weak

Option 3: Surrender policy and reinvest properly

Since this is an investment-cum-insurance policy, surrender and reinvestment into mutual funds is usually a better strategy.

– You stop further low-return investment
– Money can move to growth-oriented mutual funds
– Long-term wealth creation improves
– Insurance protection can be handled separately using term insurance

This approach normally improves financial efficiency.

» What a practical decision can be in your case

Because you already stopped premiums after 3 years:

– First check surrender value available now
– Compare surrender value vs maturity value Rs.70,000
– If surrender value is reasonable, surrender may be better
– Then reinvest systematically in mutual funds suited to your goals

Waiting till maturity only makes sense if surrender value today is very low.

» One more important learning for future planning

Insurance and investment should ideally be separate

– Insurance protects family
– Investments build wealth
– Mixing both usually reduces performance

Following this structure helps avoid such situations again.

» Finally

Please share:

– Policy name
– Annual premium amount
– Premium payment term
– Policy term
– Current surrender value (if available)

Then I can guide you clearly whether surrender now or continue as paid-up is the better choice in your exact case.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.linkedin.com/in/ramalingamcfp/