I have Jeevan arogiya LIC policy. Paying premium RS15909 per year for my wife and for me. Can I surrender . Will I get any back?
Ans: Firstly, I commend your proactive approach in evaluating your financial decisions, especially regarding insurance policies like LIC Jeevan Arogya. It's essential to understand the implications of surrendering such policies.
Understanding LIC Jeevan Arogya
LIC Jeevan Arogya is a health insurance policy that provides coverage against hospitalization expenses. It offers benefits such as hospital cash benefits and surgical benefits, aiming to support your healthcare costs.
Considering Surrendering Your Policy
Surrender Value
Before surrendering your LIC Jeevan Arogya policy, it's crucial to check its surrender value. The surrender value is the amount you will receive if you decide to terminate the policy before its maturity.
Calculation Factors
The surrender value depends on various factors, including the premium paid, the policy's tenure, and any bonuses accrued. Typically, health insurance policies like LIC Jeevan Arogya do not accumulate cash value like traditional life insurance policies.
Potential Outcomes
Partial Surrender
Some insurance policies allow for partial surrender, where you can withdraw a portion of the accumulated value while keeping the policy active.
Policy Lapse
If you stop paying premiums without surrendering, the policy may lapse, and you may lose all benefits and the premiums paid.
Considerations Before Surrendering
Alternative Options
Before surrendering, consider if there are alternative options such as reducing coverage or modifying the policy to better suit your needs.
Financial Impact
Evaluate the financial impact of surrendering. Calculate the surrender value and compare it with the benefits received and future premium payments.
Health Coverage
Ensure you have adequate health coverage in place before surrendering. Health insurance is crucial for unexpected medical expenses.
Consulting a Certified Financial Planner
Expert Advice
A Certified Financial Planner (CFP) can provide personalized advice based on your specific situation. They can help you understand the surrender value and explore alternatives.
Long-Term Financial Goals
Consider how surrendering the policy aligns with your long-term financial goals. Redirecting funds to investments that offer better growth potential might be beneficial.
Final Insights
Surrendering an insurance policy like LIC Jeevan Arogya should be a well-thought-out decision. Assess the surrender value, understand the financial implications, and consider consulting a Certified Financial Planner to guide you through the process.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
