back arrow Back

Term vs LIC comparison

reply Share
26 Aug, 2022 by  rohit sharma

I have Term insurance worth 1.5 cr & also paying LIC Jeevan anand for last 12 yrs. I am thinking of discontinuing LIC policy due. Pls advise

like like
Term Life Insurance
Basics of Insurance

3 Answer

26 Aug, 2022
CEO, Insurance Samadhan

Dear Rohit

Insurance is an asset which appreciates with time . Jeevan Anand is an asset with you, it should be continued till maturity.

On maturity ypu will get guaranteed sum assured plus accrued bonuses .

After maturity , you will be insured and your nominee will get sum assured .

You are paying premium only till maturity.

You have a right combo and you should continue. If terminated then you will receive surrender value of policy alongwith surrender value of accrued bonuses .

I recommend you to continue with combo .

Best wishes

Shailesh Kumar

Insurance Samadhan

like like
icon-comment 1 Comments
icon-reply Reply
27 Aug, 2022
connect with advisor
like like
icon-reply Reply connect with advisor
31 Aug, 2022

Hi Rohit, I have a different point of view. Insurance and investment should be kept separate, never mix them together. If you do an XIRR calculation of your LIC policy then it may come around 5%. It won't even beat the inflation. My suggestion is if the premium paying tenure is 3 years or less then only continue or else just surrender the policy with a loss and invest that in a good mutual fund where your money will be compounded at a higher rate. In mutual fund time is money, the longer you spent the more your money will grow. So don't waste your time on endowment policies. If you need bigger insurance coverage you can take another term insurance with fraction of that premium. Hope it helps.

Disclaimer: Mutual fund investments are subject to market risks, read all scheme related documents carefully.

like like
icon-comment 0 Comments
icon-reply Reply
19 Sep, 2022
connect with advisor

Contrary to other advisors, I find LIC Jeevan Anand and such endowment plans a very slow rate of wealth compounder. It doesn't even beat inflation, effectively you get lesser than your money's worth on maturity. Most endowment plans struggle to reach 6% returns. If that works for you, then please continue. If it doesn't, You may consider a surrender or a paid up option.

like like
icon-comment 0 Comments
icon-reply Reply
connect with advisor

Tired of dealing with call centers!

Get a professional advisor for life!


Rs. 1799


Discover the best tips for insurance every week!

Beshak is not regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and does not have any alliance or association with any Insurance business.
© Copyright 2022 Beshak Solutions Pvt. Ltd. All Rights Reserved.

Disclaimer: The content on the website is purely for information purposes for the public at large, and does not constitute personal financial advice for a specific individual reader.
If you are reading this, it means you love reading the fine print. Why not get paid for what you love doing - Join us by writing to now 🙂