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Should I surrender or make it paid-up?

LIC Jeevan Anand is a combination of endowment and whole life plan

Is it better to surrender LIC Jeevan Anand policy after three years or making it a paid-up policy? I pay an annual premium of ₹29,796.
- Rahul

LIC Jeevan Anand is a combination of endowment and whole life plan. It covers you against death throughout the lifetime with a provision of paying a lump sum amount on survival and at the end of the chosen term. You can consider surrendering this policy. You will incur a loss, but it will save further losses. After three years, Jeevan Anand offers a surrender value of 30% of the premiums paid minus the first year's premium.

Converting the policy into a paid up policy will lock your money for the term of the policy. You can contact the insurance company to find out about the paid up amount. Compare it with the surrender value to arrive at an informed decision. Compare the returns with a bank savings account interest for further clarity.

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