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How can I convince my parents to surrender the policies?

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28 Aug, 2021 by  Shubham Aggarwal

Hi 👋🏻

I hope you're doing well and everyone is safe in your family!


Recently, I checked my parent's insurance portfolio and I was shocked to know that we have 21 life insurance policies and out of which only 2 policies are term insurance (taken by my father and uncle, SA - 1cr each) and remaining policies are Endowment plans. Even my sister (13 years old) have Endowment plans.


I have tried every method to convince my parents to stop the policies, but they're not willing to do it.


Methods I choose - Show them the returns of the policies, understand the concept of insurance and term insurance, showed them some insurance videos, and even I have arranged few calls with financial advisors but they're not willing to have a conversation with them.


Please help me, I really want to surrender my new 7 LIC Endowment plans which was sold on 28th January 2020 by an agent.

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28 Aug, 2021

Dear Shubham

Do not see number of endowment policies , but check the total premium involved . If is within 30 % of portfolio then your parents have done a prudent decision .

Bfnefits of endowment

1. Compulsory saving each year

2. Tax free maturity ant rebate under section 80 c

3.guaranteed fulfilment of purpose .

Do not expect more than 3-4% of annual return .


These plans has been regular saving instrument for old generation because of relationship of LIC agents who served families .

Now , if you want to cancel 7 plans sold in 2020 then check the following

1. Who is Proposer and who is life insured in policies .

2. Did adult above age 18 sign on the proposal form .

3. If your father is proposer and insured is your children without your consent then you have all right to challenge these policies which has been bought without your consent .


In case you terminate the plan then you will loose all paid money but if you challenge the contract then parent can get money.

So check the contract and demnd cancellation . .

Thankibg you


Shailesh

Insurance samadhan




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28 Aug, 2021
Shubham Aggarwal
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29 Aug, 2021
Shubham Aggarwal
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29 Aug, 2021

Dear Shubham


Saw your input .


Take one case :

  1. Who is the Proposer
  2. Who is insured , if insured is above age 18 then they need to sign as insured . Did you check signature of insured .
  3. If insured is Grand child , then parent of child need to give consent . Did they give consent ?
  4. Check age , premium term and income of your parent . If age is 60 and premium term is 10 year and income is Rs 5 lakh then will your parent continue to earn for next 10 year .
  5. What is the premium and is it within the financial capacity


Ask these questions and try to look for questions , these questions should be asked by underwriters of Insurance .

Check and revert


Shailesh


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30 Aug, 2021
Shubham Aggarwal
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