Home |Term Insurance | I just took an endowment plan for myself. I was not aware of the term insurance plans. It was recommended by both the LIC agents who are close to my relatives. What would be the suggestion for me? Should I take another term insurance or go on with what I have already taken?

I just took an endowment plan for myself. I was not aware of the term insurance plans. It was recommended by both the LIC agents who are close to my relatives. What would be the suggestion for me? Should I take another term insurance or go on with what I have already taken?

Kalyani Narayanan

Kalyani Narayanan
Answered on December 17,2022

Anyone who is NOT in insurance business will tell you Endowment plans are NOT the best way to save money. You definitely need term insurance plan. You need term insurance for, at least, 20 times your annual earnings. This plan, you should have until such time you are likely to retire. For example, if you earn Rs 10 lakhs per year and you are 40 years old and likely to retire by 60, you should have at least Rs 2 Crores of Term life cover till you are 60 years old. In all likelyhood, your endowment plans will not cover 20 times your annual earnings….

I dont know how much money you have paid on your endowment policy. If you are still within the Look Up period, it would be wise to surrender and ask for full refund.

If the look up period is over, then you need to decide if you want to continue to pay for this policy until maturity or just discontinue and lose all the money. LIC is the most expensive no matter which policy you take.

You can consider other reputed companies. Whatever you do, you must have a term life policy.

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