Unable to pay LIC Premium. What are the options available?
I hold 12 LIC policies, with net preminum of 10,500 per month. I'm unable to pay the premiums for all the policies due to financial problems and hence discontinue few of them. In LIC website, except surrender of policy, no other options are listed and it is mentioned that surrender value is less than the actual premiums paid.
Please help me to understand more in this regard. What is the procedure for discontinueing the policies? Is there only one option of surrendering or is there any other options? Can I stop paying the premium and avail the premium benefits after the maturity period for the premium already paid?
you can get the policies paid up in which case you need not pay the future premia and on maturity you will get the paid up amount of the policies. Alternate you can pay the premia for a lesser number of policies and get the others paid up
Hi,
You must have made an analysis before you took 12 policies.
Anyway now the solutions finding is most important. Its your hard earned money..may be. Please do not surrender all the policies. Keep the policies with minimum premium and maximum coverage(if you have a Term Insurance Policy)..
try to pay premium for the best among the other policies .
I do not know what kind of work or business you do. If you are qualified you may take up an individual insurance agency
( Life and no-life insurance business) to earn some money during your spare time and pay for the policies little by little.
Its a double advantage... You need not let your 12 policies lapse and you will have regular income also from your insurance business also. May God bless you. When there is a will there, always, is a way. Keep trying for the best.
Answers:
IN AMERICA, THERE IS A RECENT DEVELOPMENT THAT HELPS SOME PEOPLE IN YOUR POSITION. THERE ARE COMPANIES THAT EVALUATE YOUR POSITION, YOUR HEALTH, AND THE POLICY, AND MIGHT MAKE AN OFFER MORE THAN THE CASH VALUE OF THE POLICY. IT IS A RAPIDLY GROWING FIELD; THEY MAY NOT BE ACTIVE IN LIC POLICIES YET, BUT MY ASSOCIATES WERE ABLE TO SELL A $3,000,000 DOLLAR (USA) POLICY WITH ZERO CASH VALUE FOR $930,000 CASH IN ONE EXTREME SITUATION. CAN YOU CALL ME AT 1-888-686-4734 OR EMAIL AT GREGSLEMP@COMCAST.NET? WE COULD SEE IF THOSE COMPANIES ARE WILLING TO LOOK AT YOUR MARKET YET.
I HATE TO SEE YOU JUST GIVE UP WITHOUT AN ATTEMPT TO SALVAGE ALL YOU CAN; YOU HAVE PREPAID FOR A LOT OF COVERAGE.
Dear Mr. Rajesh
May God bless you with prosperity soon.
Please write to me full details of all policies (plan-term,SA,No.years premium paid,date of commencement of policy) so that I can suggest you the maximum beneficial way.
You may get loan from lic on your policies, and pay the premium. Once you take the policy(s), it is not advisable to surrender. Because, you will loose the risk cover and also if you take a policy again, the premium will go up.
HAVE A NICE DAY AND MAKE IT A GREAT DAY !
GOOD LUCK !
PNK
CHENNAI
pnkmurthy@yahoo.com
Dear sir
I am an Insurance Advisor with LIC
Firstly, it is not possible to terminate your policies. If you do so, you will get only 30% of the money back. So, please do not terminate any of them. As insurance is a contract between you and LIC, the Indian Contract Act will apply to you. You will be needed to pay the premium for the agreed period.
Secondly, you can leave paying the premium but you will be under loss. This is because your premium will be pending and interest will keep accruing on it. No doubt, you will get the maturity benefits but you will get very less amount. However, if you have paid premium for at least 70% of the term of policies, you may go for this option
I request you to send me the policy numbers and your concerns to may email ID dr_puneet_ca@yahoo.co.in
I shall put in my best efforts to look in into the problem and find a valid solution
Regards...
Puneet
You can surrender your policies or covert into full paid. Your branch will be best guide in this.
send u r policy no to mrkdas@yahoo.com, and call me on 9440884300 ,
mean while u first ask the nearesr branch for loan come reviwal and decide first which policie u want to continue which to discontinues ..
i will show u the clear and best way to sell out u r policy .but it is best to continue always..
u send u r policy no`s and doa call after sending mail i can do the best.
Friend,
There is no need to panic. Just ask your Insurance Advisor before doing anything. Insurance Companies Divisonal Managers/Sales Manager will also help you. You are not paying small amount, therefore without disturbing your present status of your policies just consult as above. It is also not clear from your question that for how many years you are paying premiums for your policies.My opinion - just contact the Insurance advisor or Insurance Agent through whom you bought the policies.