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Whether I should surrender or continue "LIC Endowment Plan (UIN: 512N277V01)"?

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21 Oct, 2022 by  Shubham Kajaria

I took "LIC’s NEW ENDOWMENT PLAN (UIN: 512N277V01)" in 2017 at age 24 for 35 years.

https://licindia.in/getattachment/Products/Withdrawn-Plans/n-endowment/814_NewEndowment_277V01_SL.pdf.aspx 

 

Sum Assured -> 10,50,000

Premium -> 29,000 approx p.a.

The maturity amount is around 50 lakhs after 35 years.

As far as the rate of return is concerned, it is approximately 8%.


If I do the SIP of 2417 per month for 35 years assuming 10% rate of return which is below average, I would receive ₹ 92,52,945.

The difference is approx. 42 lakhs.


Is this plan worth keeping for another 29 years or should I surrender it?

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22 Oct, 2022
MBA | 5 years experience
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Dear Shubham,


You are on the right path. Please convert your policy to paid up and start a SIP every month. 8% from LIC plan is quite optimistic.... my understanding is it will be around 6%.


Regards

Rohit Dhingra

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22 Oct, 2022
Shubham Kajaria
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22 Oct, 2022
CEO, Insurance Samadhan

Dear Shubham

You have made a right decision and continue as per arguments below :

1. Insurance offer unique proposition that purpose of saving is achieved whether you are live or not .

2. In your saving basket , there should be product of all features . Rs 29000 is a very small amount for long term purpose .

3. Buy another term insurance which complete


s your purpose of insurance then allocate most of your saving in mutual fund .

4. As thumbrule , if you are saving Rs 1 lakh per annum then Rs 30000 should be in insurance through a combination of term and new endowment , rest 70000 shpuld be in mutual fund .

Best wishes


Shailesh kumar

Insurance Samadhan

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22 Oct, 2022
Shubham Kajaria
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