Today, Nirmala smiles when we discuss her annual goal review and herself updates her cash and liquid balances. The need for liquid cash has become all the more important. There are many unlike Nirmala who don’t have a financial adviser or who had planned for contingencies. By surrendering the policy, cash flows become better, inflation-adjusted returns on other investment options are achieved and portfolios are consolidated. The decision to surrender a policy or make it paid-up depends on the time horizon to maturity, maturity date, premium amount and internal rate of return on the investment.

Source: Mint June 03, 2021 19:17 UTC