📢📢❌❌Need help in home loan and LIC policy trap🙏🙏.

[Mallikarjun Barika]

Hello everyone, I need your assistance regarding an investment issue involving a plot of land sold to me by an LIC agent. I previously discussed this situation with an chatgpt, which provided some suggestions. I would greatly appreciate your review and guidance on how to proceed. Thank you.

Home Loan​

• Outstanding Principal: ₹14,65,124 (as of Nov 22, 2025)
• Lender: LIC Housing Finance (LIC HFL)
• Product Type: Plot + Construction (₹15L disbursed, ₹6L undisbursed)
• ROI: 8.8%
• EMI: ₹12,559
• Tenure: 25 years (goal: close ASAP)

LIC Policy (Mis-sold)​

• Plan: LIC Jeevan Umang 945
• Premium: ~₹50,000 per year
• Term: 15 years
• Paid so far: ₹1.5 lakh
• Return: negative (3–4% IRR)
• Loan against policy: Not eligible, no surrender value yet

• Cash Flow Ability​

  • Monthly surplus for prepayment: ₹10,641
  • After stopping LIC: +₹4,100 monthly equivalent
  • Total prepayment power from Jan 2026: ₹23,200/month (including EMI)

• Main Goal​

  Close the loan by Dec 2029 or mid-2030 and escape the debt trap early.

• Final Optimised Strategy​

  Step 1 — Immediately​

  ✔ Stop LIC premium
  ✔ Cancel auto-debit if any
  ✔ Cancel unused ₹6 lakh construction loan limit
  ✔ Request LIC HFL ROI conversion (8.8 → ~8.5 temporarily)
  

  Step 2 — From January 2026​

  ✔ Pay a total of ₹23,200 every month
  (₹12,559 EMI + ₹10,641 principal prepayment through velocity approach)
  

  Step 3 — Balance Transfer​

  ✔ April–July 2026
  ✔ Target ROI: 8.20–8.30%
  ✔ Best banks for your plot case:
  • Union Bank of India (best choice)
  • IDFC First Bank
  • HDFC

• Step 4 — Windfall Injection To finish by Dec 2029, you need ₹2–2.4 lakh total extra, spread across 2026–2029:​

 

[AlertsByVivek]

LIC’s traditional policies usually give very low returns, so they’re not very useful for wealth creation.

First, check whether you have a pure term insurance plan.
If not, make sure to get a good term insurance policy with adequate coverage—your family’s financial security should always come first.

Next, try to make part-payments on your loan or pay an extra EMI each year. This helps reduce the principal faster and saves you a lot in interest.

Also, negotiate with LIC for a lower interest rate. Ask them for the documents required to transfer the loan to another lender. When they realize you’re ready to move, they usually match the market rate or reduce the ROI to retain you. Use this as leverage to get a better deal.