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

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.

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.