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Jeevan Anand 149 Surrender or Continue?

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29 Apr, 2022 by  naveen

I have a Jeevan Anand 149 policy. Sum assured is 15,00,000 Rupees, however this is planned as 15 policies of 1,00,000 rupees each. First policy premium paying term is 23 years for first policy, 24 years for second, 25 years for third, 26 years for fourth and so on and so forth upto 37 years for the last policy.

Policy start date is September 2012 for all the 15 policies. The policy term is 77 years for all the policies.

I have been paying premium for 10 years now. I want to surrender the policies now because

  1. I was not aware that the premium paying term is so long (Agent promised that it is a 23 year policy, but he planned it as 15 policies and premium paying term as per his wish)
  2. I do not see a value in paying this because I won't get a lumpsum amount at once, as each policy premium paying term is different.

I have also requested for a change it term for these policies, but LIC is saying I need to pay the pending premium for the reduced term + interest amount on the change of premium + GST etc.

Either case is not helping me. Kindly suggest what should be done?


2 Answer

13 May, 2022
CEO, Insurance Samadhan

Dear Naveen ji

As a third party , I shall recommend you to continue with Jeevan Anand .

Your agent has not explained you full benefits of Jeevan Anand , let us assume you are age 40 and sold 15 policies with 15 to 30 year payment term .let us say Premium of each policy is rs 10000 per policy . So how Jeevan Anand would work :

1. First policy will mature at age 55 . You will get approx Rs 2.50 lakh . And you will cover rs 1.40 lakh for life . From Rs 2.50 lakh , you fund Rs 1.40 lalh for premium of 14 policies .

2. Second policy will mature at age 56 , giving you approx rs 2.80 lakh . Pay Rs 1.30 lakh in 13 then you leave policies and keep rs 1.50 lakh. You will also get cover of Rs 1.50 lakh for life .

3. Third policy will mature at age 57 , giving you approx Rs 3 lakh. Pay premium and get incremental cover for life .

Thus each year , you will get a maturity value each year with free life cover for life . Let us say , you die at age 75 then your nominee receive approx rs 35 lakh whereas you have paid in 15 year approx rs 22.50 lakh .

So good planning and you should continue . Please write in case you need any clarification.

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14 May, 2022
Chartered Accountant, Personal Finance Advisor

Hi Naveen,

I can understand your concern about having multiple policies with different policy term and premium paying term. If I have to advise purely based on personal finance angle let us understand that When it comes to life insurance the best plan one needs to have is protection plan also known as term plan. It is advisable to buy a term plan with sum assured of atleast 10 times of your annual income.

In case you don't have one you should probably buy one. Once you have an issued policy with adequate term cover you can approach the base branch from which the policy was issued and surrender the policy.

In case you already have adequate term cover you can go ahead and surrender these policies.

Please feel free to write here if you need any further clarification

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