Total coverage on Jeevan TARANG is Rs.30 lacs PPT 6 and 12 years; all ppt over and survival benefit @ Rs.70K per lac received. apart from this 5.5% of survival benefit till life time plus coverage upto 100 years. Now all premium paid and premium amount is received and getting every year 5.5% as Survival Benefit. Since PPT is over no comitment on payment of premium.

Ans: You have done a very disciplined job by completing the premium payment term and reaching the stage where the policy is giving survival benefit without any further commitment. This puts you in a strong decision position now. Because the premium obligation is already over, you can calmly decide whether to continue for lifetime income and cover or exit and redeploy for better growth.

» Understanding your present policy position
– Total coverage is Rs.30 lakhs
– Premium payment term is already completed
– You already received survival benefit earlier at Rs.70,000 per lakh
– Now you are receiving about 5.5% of sum assured as yearly survival benefit
– Policy continues up to age 100 with life cover
– No further premium commitment

This means the policy has entered its income phase with insurance protection continuing.

» Strengths of continuing the policy
– You are getting yearly survival benefit without paying anything now
– Life cover continues up to age 100
– Income is predictable and stable
– No market risk
– Useful if you want assured yearly cash flow for regular expenses
– Works like a pension-style support (but not an annuity product)

If your priority is steady income and safety, continuing this policy is comfortable.

» Limitations you should clearly understand
– Return from such policies is usually low compared to other long-term investment options
– The yearly survival benefit does not increase with inflation
– Over time, purchasing power of this income reduces
– Opportunity cost is high because the same money elsewhere may grow faster

So the real question is whether you need income stability or wealth growth at this stage.

» When surrender becomes a practical option
Since this is an investment-cum-insurance policy and premium term is already over, surrender can be considered if:

– You do not depend on this yearly survival benefit for expenses
– You already have sufficient life insurance elsewhere
– Your retirement planning needs higher growth
– You want to improve inflation protection for long-term goals

In such cases, surrender value can be reinvested into suitable mutual fund allocation aligned with your retirement horizon and income needs.

» When continuing the policy makes better sense
Continuing is suitable if:

– You want assured yearly income
– You prefer safety over growth
– You want lifetime insurance cover continuation
– You do not want market-linked fluctuations
– This income supports retirement lifestyle expenses

» A balanced strategy many investors follow
Instead of taking an extreme decision, some investors:

– Continue policy for stable yearly survival benefit
– Build additional growth investments separately
– Use mutual funds for inflation-beating returns
– Keep insurance policy as safety layer in portfolio

This creates stability plus growth together.

» Insurance adequacy check is important now
Before surrender decision, confirm:

– Whether your current life cover is sufficient for family protection
– Whether retirement income sources are already secured
– Whether emergency fund is available
– Whether health insurance coverage is adequate

These checks help avoid emotional decisions later.

» Finally
Your policy is already in a strong stage because premiums are over and income has started. Now the decision depends mainly on whether you need guaranteed income stability or higher long-term growth potential. If income stability is not essential, surrender and reinvestment into mutual funds can improve retirement strength meaningfully. If stability matters more, continuing the policy is perfectly reasonable.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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