“LIC” v/s “HDFC SLI + Mutual fund”?

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 ?

“LIC” v/s “HDFC SLI + Mutual fund”?
Rate these answers

One Reply to ““LIC” v/s “HDFC SLI + Mutual fund”?”

  1. I am a financial advisor and my belief is Insurance is not Investment. i repeat, Insurance is not investment.

    My advise to you is You already have insurance policies. why are you still planning to buy more. Insurance is very expensive my friend. Especially in case of Market Linked Insurance Policies it is very very expensive. Also you have to pay the premium for at least 3 years even if you know that it is not performing well.Go for the mutual funds. They give you better return on long term. and you have the option to switch to another fund if the one you have is not performing well. and It is very cheaper.

    Insurance is only benificial to their agents not investor. So think twice.

Leave a Reply

Your email address will not be published. Required fields are marked *