Is taking LIC policy good?

What is the rate of return in LIC policy?

The average return on investment for LIC over a period of ten years between 2005-2006 and 2014-2015 has been 6.7%. The average return on a ten-year bond has been 7.9%. The difference between the two returns is 120 basis points. In fact, the average rate of inflation between 2005-2006 and 2014-2015 was 8.85%.

Can we withdraw money from LIC policy?

You are allowed to partially withdraw money only after the completion of 5 policy years and also only if all due premiums have been paid on time and the policy is in force." Let us assume you bought a unit linked life insurance plan whose fund value is Rs 2 lakh after five years into the policy term.

How many years FD will double in LIC?

So it will take a little more than 14 years for one's investment to get doubled in LIC Housing Finance.

How LIC maturity is calculated?

How is Maturity Calculated? The exact Maturity Value cannot be calculated but one can calculate a close estimate of the value to get an idea of the benefit at the end of the term. The basic format is Sum Assured + Bonuses + Final Additional Bonus (if declared).

Does LIC accept fixed deposit?

LIC Housing Finance FD Sanchay Scheme

The minimum amount of you can invest is Rs. 10,000. You can open the FD for duration of 1 year, 18 months, 2 years, 3 years and 5 years. The deposit can be placed under Cumulative and Non-Cumulative options.

How can I double my money in 5 years?

If you want to double your money in 5 years, then you can apply the thumb rule in a reverse way. Divide the 72 by the number of years in which you want to double your money. So to double your money in 5 years you will have to invest money at the rate of 72/5 = 14.40% p.a. to achieve your target.

Can we stop LIC policy in middle?

Under the guaranteed surrender value, the policyholder can surrender their policy only after the completion of 3 years which means that the premium has to be paid for a minimum period of 3 years. ... So, the later the policy surrendered, the higher will be the LIC surrender value.

Can I surrender LIC policy after 2 years?

The policy can be surrendered after it has been in force for at least 3 full years. The Guaranteed Surrender value will be equal to 30% of the total amount of premiums paid excluding the premiums for the first year and all the extra premiums and premiums for accident benefit / term rider.

Why LIC premium is high?

Life insurers are regulated by the IRDA and have strict capital norms. ... Claim settlement ratio is definitely helping LIC price its premiums much higher than private sector insurers. However the difference in premium is too large to be ignored and it's not as if private insurers do not settle claims at all.

What is reduced paid up in LIC?

Meaning of Reduced Paid-Up in LIC

When the policyholder cannot further pay premiums for the life insurance policy for any reason, the sum assured for the policy is reduced by the insurer (LIC in this case). ... It can be paid up if the future premiums are not paid by the policyholder.

How much commission does a LIC agent get?

Though, Agents earn the commission for the policies they sale. LIC offers 25% to 35% commission on the policy premium for the first year, then 7.5% for 2nd & 3rd Year + 5% till the policy maturity.

What happens if I stop paying LIC premium after 3 years?

So if you have already paid 3 years' premium, not paying any future premiums will convert the policy into a paid-up policy. You won't get any money back in the year you turn it into a paid-up policy but will have to wait till the policy's original maturity.

How can I double my LIC policy?

How can I get FD in LIC?