I have 2 LIC Jeevan Anand Policies for which I am paying 26,000 /- p.a. (they are just 1 year old)
Assured security = 5 lakh, returns on maturity = 10-15 lakh (as per my knowledge)
Recently I heard of HDFC SLI which can give you security shield of > 15 lakh for only 5000/- p.a. (but no returns on maturity).
I am recently married and my age is 27 yrs.
So I have 2 priorities-
(1) secirity shiled to family
(2) investment in market (e.g. mutual fund) a.s.a.p. to get more benefit of compounding.
so I was wondering to close my LIC policies and distrucute my money as-
(1) 5000/- in policy liek HDFC SLI, so that my family will get security of > 15 lakh
(2) 21,000/- in mutual funds which after 20 years will give me returns far better than LIC (as per my knowledge)
I know that MF is riskier than LIC, and I will have to keep regular watch on it, so that I can divert / withdraw money when market goes down.
Am I thinking of right option ? or I am putting my money in risky way ?