I have purchased LIC Jeevan Anand policy in 2009 with a 25-year premium paying term. The sum assured is ₹5 lakh. The quarterly premium is ₹5,225. I have paid around ₹1.2 lakh as total premium. I have now realized that the policy is very costly and the returns are very poor. I want to surrender the policy, but the LIC agent told me that I will lose almost 50% of the premium paid. What should I do? Should I surrender the Policy and suffer the loss or should I continue with the policy?
Note: I have already purchased a term insurance plan for ₹50 lakh from Agegon Religare.
- Chinmay Joshi
LIC Jeevan Anand is a combination of an endowment plan and a whole life plan. You can surrender the plan anytime after the completion of three years, but the surrender penalty is very high. You don't have an easy way out of this policy, but it would be better to limit your losses as early as possible. For more details on this policy, read our earlier posts here:
Costly Life Insurance Policy
Consider Surrendering your LIC Jeevan Anand Policy
Always remember that term plans are the best and cheapest option to buy a life insurance cover for you. And always invest in equity mutual fund schemes to meet your long-term financial goals.
This article was originally published on October 23, 2015.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
