old LIC TERM insurance policy

[deepa]

i took a policy in 2000 for 20 year term with annual premium 6500 with lic The PLAN type is 75
I am now 40 yrs
i have got some accrued reversionary bonus & interim bonus at different point in time
both put together will get back the 65000 that i have paid till now

I would like to know the best way forward without any more loss to me

i feel there is no point in going ahead with this any more

if i want to terminate the policy I think they will consider it fully paid & recover all the future premium
from the REVERSIONARY BONUS
This means i am totally loosing even the premium that i have paid

Pls suggest

[PolicyWala]

The Policy you took is a Money Back Plan - 75, a 20 year plan and as per your query, you have already paid for 10 years (6500 * 10 = 65000); Imporatant part in your query, you are missing is the life cover, you will get in case of death -
1- Death Cover (Plan 75) -
Sum Assured + Vested Bonuses + Final Additional Bonus, if any, is payable in a lump sum on death of the life assured during the policy term.
2- Plus Critical Illness or term rider (if you took above rider with the policy)
3- Maturity Benefit under the above policy if survived the complete term -
40% of the Sum Assured + Vested Bonuses + Final Additional Bonus, if any, is payable in a lump sum on survival to the end of the policy term

In the above Money-Back Policy (Table 75), 20% of the sum assured becomes payable each after 5, 10, 15 years, and the balance of 40% plus the accrued bonus become payable at the 20th year. So you have recieved 20+20 of Sum Insured.

As per your query terminate means surrender the policy,then all the above benefits are gone. In this case you will get surrender value as per below calculation
Surrender Value -
The policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first years premium and all survival benefits paid earlier.

Moneyback policies are costly policy, but as you are in the middle of the policy plus I feel you are in mid 30s, I would recommand to continue the policy.

[smartcat]

I would suggest keep this policy intact and buy another term policy. Do some research yourself before buying any insurance. As per your wording its looks like agent sold you moneyback policy, saying its term policy.

[deepa]

Thanks a lot Things are a bit more clear
I have some more doubt ...
Like if i die with in the 20 years i will get a sum assured of 1L or whenever i die i.e even beyound 20 years the nominee will get the sum assured
Pls let me know

[PolicyWala]

Thanks a lot Things are a bit more clear
I have some more doubt ...
Like if i die with in the 20 years i will get a sum assured of 1L or whenever i die i.e even beyound 20 years the nominee will get the sum assured
Pls let me know
1- Death Cover - (If you die with in the policy term period of 20 years)
Sum Assured + Vested Bonuses + Final Additional Bonus
2- Maturity Benefit - (if you survived the complete term i.e. 20 years)
40% of the Sum Assured + Vested Bonuses + Final Additional Bonus

[PolicyWala]

i.e even beyound 20 years the nominee will get the sum assured
Maturity Benefit is already paid at maturity of policy and nothing will be paid after that.