Hi Sir / Madam,
I need your advice for Postal Life Insurance (PLI) Endowment Policy. Below are the details:
Plan : Santosh
Sum Assured : 5 Lacs
Installment Premium : Rs.1375/Monthly (Rs.1401 with Service tax)
Issue Date : 30/10/2012
Maturity Date : 30/10/2039
Last Premium Paid Till : 31/08/2016
Paid up Value (as per PLI Website) : 72530.86
Current Surrender Amount (as per PLI Website) : 24515.00
As per IRDA Guidelines, Guaranteed Surrender Value (for regular premium policies) will be as below.
A) 30% of premium paid less any survival benefit already paid, if surrendered within 2nd Or 3rd Year.
B) 50% of premium paid less any survival benefit already paid, if surrendered within 4th To 7th Year……….
My Payments:
30/10/2012 to 30/09/2013 >> 1st year
30/10/2013 to 30/09/2014 >> 2ndt year
30/10/2014 to 30/09/2015 >> 3rd year
30/10/2015 to 30/09/2016 >> 4th year
My query is:
1) Am I getting 30% or 50% Surrender value.?
2) If I am getting 30% then is it beneficial to pay 1 or 2 premiums and get back 50% of Surrender value.?
3) Does PLI comes under or follow IRDA Guidelines?
My other queries are,
4) Should I make this “Paid Up” or surrender the policy.?
5) If I make it paid up, can I claim Tax Benefit under 80C for the premium paid in this FY.?
6A) If I surrender this policy, do I need to show Surrender Amount received as Income in this FY.? (As per your article, I guess NO)
6B) And can I claim under 80C for the premiums paid in this FY even if policy is surrendered.?
6C) *** As I have paid only for 4 years (less than 5 years), does the tax relief granted earlier under 80C will be revoked.? In such case, what do you suggest? Shall I continue the policy for 1 more year and make sure that I don't have to face tax complications. More over, there will be Bonus after 5 years.
Sir, kindly answer my queries and suggest me. I am in a complete dilemma.
CAclubindia
