I have an LIC insurance plan invested 20 years ago. Premium was Rs. 2216 per year. This was a money back policy.
It matures this month. I have to go PERSONALLY visit the LIC office and give documents. Nothing online works.
I will get back Rs. 97,000. That's 6.3% post tax.
It matures this month. I have to go PERSONALLY visit the LIC office and give documents. Nothing online works.
I will get back Rs. 97,000. That's 6.3% post tax.
Why did I stick with this so long? Insane surrender charges. All past premiums are sunk cost, so ignore that. At any point since 2004 (when I realized how crappy this was), and now, surrendering was a worse choice than just paying up and waiting. Because of high surrender fees.
I thank my stars I didn't take a policy bigger than that. The agent was known to the family, and I was charmed by some calculation at a time when Rs. 97,000 was perhaps a big amount.
Engineer who didn't know the excel RATE function.
Engineer who didn't know the excel RATE function.
One thing in favour is: I didn't notice the tiny little premiums going away each year mostly (the first five were rough though, I was in bad financial shape).
Point is: Just saving can be more important than returns. If you can't save, even buying stupid policies is good.
Point is: Just saving can be more important than returns. If you can't save, even buying stupid policies is good.
