How can I convince my parents to surrender the policies?
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.
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 . .