Query on surrender – LIC Endowment (Jeevan Shree) and ICICI ULIP (LifeTime)

POSTED BY Vikas ON February 27, 2011 1:14 pm COMMENTS (4)


Hello All,

I have two policies which I want to surrender – LIC Endowment, ICICI Prudential ULIP. Before taking the decision, I want to have some inputs from the expert investors here.
Request you to help me.
01 Policy: Jeevan Shree (16 yrs Premium and 25 years policy)
 Premium : Rs. 25476 per annum
Sum Assured: Rs. 5,00,000
Start Date: 20-Jan-2002
End of Payment: 20-Jan-2018
Maturity : 20-Jan-2027
Paid till date:Rs. 2,35,653
To be paid :Rs. 1,97,439
Total payment:Rs. 4,33,092
Today’s Surrender Value: Rs. 1,68,000
Maturity Value: Rs. 16,00,000
Will it make sense for me to surrender policy and take the money. If yes, what are my investment options.
My reason – to get better returns on 20-Jan-2027 or utilize the money today in a better way. I am willing to put all this money in some good Equity MF like Reliance Growth / HDFC Top 200 / Quantum Long Term Equity, etc. 
Rs. 1,68,000 for 16 years (from today to policy maturity) @ 16% CAGR gives me Rs. 18,05,665. So, to surrender and invest in Equity MF, I should assume the CAGR to be more than 16%, only then it makes sens. Does this make sense ?
02 ICICI Pru LifeTime (the older version). 
I made a payment of Rs. 20,000 for 3 years and then stopped paying. Pulled some money out of the policy and now the policy stands as:
Sum assured Rs. 1,40,000 (from original Rs. 2,00,000) and the current unit balance gives me Rs. 40,000.
Shall I take all my money out of this policy?
This policy, I am more keen and comfortable in surrendering rather than LIC (because of the complex nature of the endowment plan); taking the decision for endowment plan is more confusing.
If I have to put this money in Equity MF, how do I proceed (scared of lumpsum)?
Also, I am thinking of buying a car in near future (another 6-8 months). Shall I use all this money to fund my car 6 months later and park this money (lumpsum) in some ultra shortum MF or FD till then ?
Thanks in advance.


4 replies on this article “Query on surrender – LIC Endowment (Jeevan Shree) and ICICI ULIP (LifeTime)”

  1. Goyal says:

    Jeewan shree maturity value is 2062500/- instead of 1600000/- so it shouldn’t be surrendered at the cost of assumed CAGR return

  2. Sanjay Kumar Sharma says:

    Want to withdraw my jeevan shree plan from lic …I have already paid all the premiumsisters but maturity date is 2026..please suggest. .

  3. sundar says:

    Sir I am having the following policy with given details. Policy no 719013794, policy name: licks jeeven shrew I, date of commencement of policy 7.7.2009. Date of maturity ( 16 years + 9 yrs.). 7.7.2034. So far 6 years premium paid. Premium amt per year is rs. 53488. Balance amount premium to be paid Rs. 5 lakhs. Now I want to close this policy. Can you please advise can I close this. Whatnus the maturity amount I village get. I feel its too long tenure to continue. If I close and put the money into equity. Really I’m very confused. Place reply n mention the maturity amount also. Regards sundar

  4. Arudra Kumar says:

    Hi Vikas,

    I also had the same policy from LIC (Jeeven Sree 1) which I surrendered and invested the amount in 3 different MFs.

    Even if you continue your LIC policy, at the end of the term ur returns will never cross 10% (U may calculate this using IRR). Donno how you arrived at Maturity Value as Rs. 16,00,000. Also, remember that you would be getting the money only after another 10 years after ur done paying ur premiums (another 16 years from today). And the Sum assured is never enough in these days. Hope U are covered adequately by a term insurance.

    I thot I shud take loses early so that i can cover those in the long run and hence surrendered the policy. (I lost around 75k in this LIC circus). I am OK with it coz I am sure I’ll cover this in a few years.

    Regarding ur ICICI Pru Life time: You can expect good returns from any ULIP only if you are continuing your premiums for a long term and also doing the switching effectively. But as you have already stopped paying the premiums, it makes sense to surrender it and use that money for the downpayment part for your car.


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