Sir, I have taken a Baaj Life Allianz POS Goal surksha of annual premium of 2 lakh .I have completed 2 annual premium. Now I don't want to continue further this policy as I came to know that this policy has approx 4 % return. Initial the agent said to me you can at any time discontinue this policy and refund your full money but now he refused and saying that you only get 30 % of your paid money. Suggest some solution to this problem.

Ans: Hello;

Request you to elaborate policy term, payback(regular and final), annual premium and your age.

Traditional insurance policies never provide return higher then 5.5-6% and you seem to be claiming 8% return.

Any which way coupling insurance with investment is a blunder of mammoth proportions.

People get carried away with words like guaranteed, profit sharing, bonus rather then rationally trying to estimate the rate of return from such undesirable investments.

I reserve my final comment on this until you furnish me with the above requested details.

Thanks;

Ans: Hi Premal,

Sorry to hear about your situation.
TATA AIA Sampoorna Rakshak is a term plan. And no term plan refunds your money after 30 days of policy issuance as cover already starts from the day 1. Hence you will not get 1.35 lakhs back at any cost.
However, your overall premium looks quite high considering cover of only 50 lakhs. You can have this checked from an insurance advisor and can approach Insurance Ombudsman for mis-selling of insurance policy. Usually a policy like yours shall not have more than 50-60k premium.

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/

Ans: You have taken a good step by reviewing this early. Many investors realise this only much later. Your awareness now can still help reduce the loss and improve future returns.

» Understanding What Has Happened

You invested about Rs.48,000 per year from 2022
You paid for around 3 years and then stopped
These policies usually have high initial charges in first few years
When you stop paying, the policy becomes “paid-up” or “reduced”
The future value reduces sharply because insurance cost and policy charges continue
That is why they are now quoting around Rs.70,000 at maturity

This is common in investment-cum-insurance policies. They are not efficient for wealth creation.

» Why The Value Looks Very Low

Heavy allocation charges in early years
Mortality charges deducted every year
Policy administration charges
Fund management expenses
Stopping premium reduces benefit structure
Compounding impact becomes weak

So even though you invested more, the remaining value looks much smaller.

» Immediate Options Available
You generally have three choices:

Continue the policy
You restart premiums and continue till completion
This avoids further reduction
But future returns may still remain modest
Keep it as paid-up (current status)
No further payment required
Amount remains low and grows slowly
You get money only at maturity
Surrender (if allowed now)
You exit and take surrender value
Then reinvest in better instruments
This is often more practical for long-term growth

» Practical Assessment

You already completed minimum payment period
Charges in future years are lower but returns still limited
Insurance + investment combined product rarely gives optimal outcome
Pure investment approach is usually more efficient
Continuing only for recovery may not give meaningful growth

» Suggested Direction (360 Degree View)

Check current surrender value immediately
Compare surrender value vs maturity value
If difference is not very large, surrender may be sensible
Redirect future yearly Rs.48,000 into diversified actively managed mutual funds
Keep insurance separate through pure term insurance
This improves transparency, flexibility and growth potential

» Important Learning For Future

Avoid mixing insurance and investment
Keep protection and wealth creation separate
Always read surrender rules before investing
Review policy charges before signing
Avoid long lock-in without clarity

» Finally
You have already taken the most important step — reviewing and questioning. Even if there is a loss, correcting early prevents a bigger opportunity loss. The focus now should be on stopping inefficient allocation and moving towards better structured investments for long-term wealth creation.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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