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Will I get the whole premium paid?

Endowment plans will not give back the entire premiums paid if you surrender

I bought Jeevan Anand in 2006 for a sum assured of ₹1.5 lakh. I realized it is a bad investment. I have already bought a term plan. Now I am 32 years old. Should I surrender this policy? If I surrender it, will I get the whole premium paid?
- Sai Prasad

LIC Jeevan Anand policy is an endowment plan that has both insurance and investment element in it. Endowment plans will not give back the entire premiums paid if you surrender. There will be a guaranteed surrender value of 30% of the premiums paid minus the first year's premium.

Though you will make losses upon surrender, it is not wise to continue investing in a bad product. Such insurance-cum-investment plans typically offer a very small insurance cover and they also offer very modest returns. Do not mix your insurance and investment needs in future.

You should go for equity mutual funds to fund their long-term goals of five years and above. Equity has the potential to offer better returns than other assets over a long period.

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