Publication details: Money Manager – CNBC Bajar – 03-12-2015
Responses, opinion and view from Kartik Jhaveri.
Question sent by Bipin Solanki:-
I am 37 yrs old I have 2 daughters. My monthly income is Rs. 27,000.
Following are the details of my insurance policies:-
- PLI – Sum assured Rs. 2 lakhs.
- Jeevan Anand Policy – Sum assured Rs. 5 lakhs.
- Jeevan Saral Policy – Sum assured Rs. 3.75 lakhs.
- Jeevan Saral Policy – Sum assured Rs. 3.75 lakhs. This policy is for my wife.
- Jeevan Kishor Policy – Sum assured Rs. 2.5 lakhs. This policy is for my daughter.
I had purchased these policies from savings point of view. Now I feel it was a wrong decision to invest in this type of insurance. Is it better for me to surrender these policies?
Advice given:
- Considering the fact that you will pay a high premium for a small life cover with policies like Jivan Saral, you should consider a term insurance plan. It is better to opt for cheap online term plans. Cheaper the better!
- Ideally insurance is for people who are the sole earning members in their families, so that the cover can take care of their dependents in case of an eventuality. Your daughter may not need a life insurance policy.
- For surrendering these insurance policies, you have to wait for minimum 3 years.