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Surrendering Jeevan Anand

LIC Jeevan Anand is an insurance policy but you have chosen it for generating returns

I am 28 years old and married, I have an LIC Insurance plan (Jeevan Anand), with a sum assured of ₹3 lakh for 20 years.
I have paid annual premium for three years and I am already investing ₹7,500 per month in an ELSS. Looking back at the duration and returns of my LIC plan, I don t see it as good returns. Would you suggest me to close the policy or convert it into paid-up policy? I can choose a term insurance and increase my contribution to ELSS.

- Rakhesh

LIC Jeevan Anand is an insurance policy but you have chosen it for generating returns. Your objective of buying LIC Jeevan was incorrect . However, this policy does not even provide an adequate insurance. Read more about this policy here: Costly Life Insurance Policy.

There is no disclosure of charges and expenses under this policy. So, surrendering the plan would be better. You are covered for a 3 lakh sum as of now. Policies cover for a reduced sum assured if continued as paid up. This much sum would not provide financial stability to your family after you, so there is no point in continuing with this policy.

You have taken the correct option of buying a term insurance and increase your investments in ELSS. You may also invest in well-rated multi cap funds if you wish to invest for a long term.

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