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LIC is good or bad

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Topic starter

Hello Sreekanth,
Good Evening
I need your suggestion as I have one query
I bought 3 LIC policies for 25 years and already paid 10 years premium and 15 years premium is still pending.
Shall I surrender the policy or continue to pay the premium?
My LIC policy is endowment and I checked the surrender value of one policy which is 1.4lakh and I paid the premium till this year is 1.9 lakh.
So pls share your view on this.
Thanks in advance

8 Answers


May I know few details about these Polices.

1 - Kindly share the Plan names 

2 - Are you the breadwinner of your family, married and have financial obligations?

3 - If so, besides these policies, do you have an adequate life cover through a Term Life Insurance Plan?

enikhgo Topic starter July 26, 2023 6:54 pm

1. LIC endowment (814-25-25 term). Opened in 2014 and maturity date is 2039. I paid the premium regularly till 2023
2. I opened this LIC policy for my wife and she is housemaker.
So pls suggest, shall I surrender it or continue to pay premium?


I understand that you have three Endowment policies, all in your spouse's name?

Suggest you surrender them and re-invest the proceeds towards your financial goals.


Related articles : 

1.Life insurance : How to get rid off bad insurance?

2. Life Insurance Endowment Plan Return Calculation | Do-it-yourself guide!


This post was modified 2 months ago by Sreekanth Reddy
enikhgo Topic starter July 29, 2023 6:45 pm
This post was modified 2 months ago by enikhgo

@sreekanth Thanks Sreekanth for your valuable suggestion. I have submitted the LIC policy for surrender and they suggested, you would get the amount in 10 working days. So I have few days to think where to invest that amount. I need your suggestion as that amount is for my future money i.e retirement and so which investment would I prefer to build the corpus.
Addition on this, I deposited Rs 38000 premium annually of those surrender policy so I have a money every year to deposit the same amount in my new investment so pls suggest in both way.



May I know, do you have an adequate life cover through a Term Life for self &  Health Insurance Plan for self and/or family?

enikhgo Topic starter July 29, 2023 9:07 pm

Yes, I have term life and health insurance too.


Thats awesome!

Suggest you to super-top-up your health insurance

Related article : Top Up Health Insurance Plans – Super Top Up Health Insurance Plans – Details & Benefits


If you have been investing in mutual funds, you may kindly share the scheme names?

enikhgo Topic starter July 29, 2023 9:25 pm

Yes, I have invested in the mutual fund and below is the name and goal against each fund
1. Tata flexi cap and canara small cap fund---> Kids education
2. Invesco Mid cap and uti nifty 50----> Kids marriage


May I know the number of years left to reach these goals?


enikhgo Topic starter July 29, 2023 9:36 pm

Kids education 10 years left and for marriage approx 15-17 years.


You may continue with your investments in these schemes.
Can add an hybrid equity fund like Mirae hybrid equity or HDFC hybrid equity to your kid's education goal (can divert a portion of your surrender lic policies premiums to this fund)
Invest for your retirement plan as well!

enikhgo Topic starter July 29, 2023 10:17 pm

Actually, I am thinking of using one of the below funds for my retirement.

1. HDFC Retirement saving equity fund (Only issue is 5 year lock-in period)

2. Quant small cap

3. Nippon Small cap

What is your view regarding which fund is suitable for retirement purpose


Good morning!

Dont just go by the name of a Mutual Fund scheme.

Any mutual fund scheme can be mapped for a retirement goal.

You may pick a multi-cap or index fund (nifty 50 or nifty next 50), mid-cap and equity hybrid fund for your long-term goal.

Suggested reading : HDFC Retirement Savings Fund – Tax Saving cum Pension Scheme – Details & Review

enikhgo Topic starter July 30, 2023 4:20 pm

I agree and much thanks for your suggestion.
I have already invested in midcap and index fund so pls suggest best multi-cap fund to start investing it.

Sreekanth Reddy July 30, 2023 7:20 pm

You may consider Parag Parikh Flexi cap fund

Plese note that this fund has an exposure to foreign equity as well (around 18% as of june 2023).

enikhgo Topic starter July 30, 2023 10:05 pm

Thanks for the suggestion but I don't like the below points for Parag Parikh fund i.e

1. Fund size is 38K+

2. Exit load criteria i.e 2% for 1 yrs and 1% for 2 yrs

Due to above points, I am thinking to invest in Quant Small cap fund.

I would appreciate your feedback and suggestions.


Good morning!

Plz dont think you are bothering me! not at all dear!

Kindly dont worry too much about the fund size and exit load (as your investments are for long term).

You already have exposure to quant fund..

enikhgo Topic starter August 1, 2023 10:10 am

Thanks and Noted

Sreekanth Reddy August 1, 2023 5:16 pm

@enikhgo Keep visiting relakhs and kindly spread the word about our work among your friends and well-wishers, thank you!

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