BSLI Dream Endowment Plan – Should I continue or surrender it?

POSTED BY jayamvaa6 ON February 10, 2014 9:33 pm COMMENTS (5)

Hi JI,

I have a policy from BSLI named “BSLI Dream Endowment Plan” started on February 2010. Its term is 30 years with 30 years premium paying with Rs. 11861/year as total premium.

The premium is a sum of two premiums. Rs. 8019 for the plan “BSLI Dream Endowment Plan” with an SA of 3 Lacs + Rs. 3842 for “Enhanced Sum Assured” with an SA of 17 Lacs.

This policy was actually suggested by a Financial Advisor friend of mine at that time, so I took it though I did not understood fully what this two parts of premium means. Does this actually mean, I may get an SA of 17+3=20 Lacs after 30 years?

Should I continue with this policy, could you please advice?

Regards/Jay

5 replies on this article “BSLI Dream Endowment Plan – Should I continue or surrender it?”

  1. ashalanshu says:
    February 11, 2014 at 5:01 pm

    Dear Jay, the answer is simple. For insurance needs opt pure term cover. For investment needs, opt pure investment products like PF, PPF, FD, Bonds, MFs. No combo product can provide you perfect combination of insurance and investment. Should I say more?

    Thanks

    Ashal

    Reply
  2. jayamvaa6 says:
    February 11, 2014 at 7:27 am

    Hi Ashal,

    thanks for the reply. Yes, I had gone through multiple threads in the forum about how we are wasting money in conventional endowment policies and also not having enough cover with those.

    I am in the process of surrendering some of my conventional LIC policies and in the mean time getting a term policy with adequate cover. I need to take before my birthday which is 18th Feb, to save some money in terms of premium. 🙂

    You have still not answered my query about my BSLI policy? is it not worth keeping it, as it seems just not a conventional endowment policy and is market linked? Please advice in this regard or direct me to somebody who can help.

    Regards/Jay.

    Reply
  3. ashalanshu says:
    February 11, 2014 at 12:25 am

    Dear Jay, please purchase a single term cover of at least 15-20 times of your yly income from the insurer of your choice. Once the new policy is active, surrender the old policy.

    Thanks

    Ashal

    Reply
  4. jayamvaa6 says:
    February 10, 2014 at 9:51 pm

    Hi Ashal,

    He had asked me to get rid of it after getting cover with a term insurance policy, either HDFC Life or Aviva iLife as per my convenience.

    Infact, this was the reason why I asked this question. Do you have details on this policy? does it really project an SA of 20Lacs?

    Regards/Jay

    Reply
  5. ashalanshu says:
    February 10, 2014 at 9:46 pm

    Dear Jay, what is the take of your so called financial adviser/friend now on this policy?

    Thanks

    Ashal

    Reply

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