Someone sold your parents an LIC endowment plan as an investment. It isn’t one. LIC endowment plans generally deliver returns of around 5–6% annually over the long term and that’s before factoring in lock-in periods of 15–20 years, surrender penalties if you exit early, and the mortality cost embedded in the premium. A bank FD right now gives 6.4–6.9% with full liquidity. A Nifty 50 index fund has delivered roughly 12–13% CAGR over 15 years. Even a detailed XIRR analysis of one of LIC’s more popular newer plans worked out to under 6% and that assumed you held until age 100 to maximize income. The product isn’t fraud. The problem is it was sold as the investment component of a financial plan, when it’s actually the insurance component with very poor investment returns. Buy term for protection. Invest separately for growth. Never mix the two. #LIC #Insurance #IndianInvestor
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