I have been paying an annual premium of ₹24,000 for LIC Jeevan Saral plan since last seven years. The premium paying term is 20 years. I see that my similar investments in Reliance Regular Savings Fund is giving me good returns for the last five years. Should I continue with Jeevan Saral?
- Nisha
LIC Jeevan Saral is an endowment policy and Reliance Regular Savings Fund is a mutual fund scheme. You can't strictly compare their performance. Insurance products with savings or investment element in them fail on two counts: they offer very little life insurance cover and they are also mostly a bad investment option. That is why we only recommend term insurance plans for buying life insurance cover. One can buy a large life insurance cover by paying a small premium in a pure term insurance plan. Always invest in equity mutual funds to meet your long-term financial goals like child's education, retirement, etc.
You may consider surrendering the policy. However, you must buy an adequate life insurance cover before surrendering the policy, as you will lose your life cover once you discontinue the policy. For more details on the policy, read: Surrender LIC Jeevan Saral Policies.
This article was originally published on December 04, 2015.
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