LIC: New Money Back Plan-25yrs

I am not an expert in LIC Policy 

but one thing is sure... you are safe now, as you just paid only for 1 year it seems, just run away from it as quick as possible by closing the policy

and invest the remaining amount in something else that will yield better than LIC policy MONEY BACK PLANS (this applies to any insurance company selling money back or investment plans lol just run away from insurance companies if you are not using it for PURE insurance purpose)

because LIC system is designed in such a way that their LIC agent life is always the brightest using the policy holders COMMISSION money and at the end of 25 years your invested money return will be less than FD  

do calculate this and you will know:) its hard calculation to do , but do calculate and realize this before it becomes too late

just run away from LIC and invest in something else

(dont forget inflation 7% in your calculation)

yeah for some initial years, surrender value is negligible.

I think, if you are a conservative person (who prefers FD over other investments: MF, stocks) then you can continue paying the policy, and the return will be somewhat equal to 5-6% XIRR. 

On the other hand, if you want to grow the money then you have 2 options:

1. Surrender the policy: you will get 20-30% probably in the initial surrender years and forget about the policy. Invest this money in MF and assume the same historical return of 12% IRR & X as your paid amount till now, after 25 year you will get 5X money back.
2. Make this policy as paid up i.e. you don't pay the next premiums, and on maturity, you will get the 5-6% return on already paid premiums. It will be ~ 3.5X money back

So, I believe surrender makes more sense in this case, but you can also analyse the calculation and decide accordingly, which one you want.

For someone who already had paid the premium for a couple of years, for them making a paid-up policy makes more sense because the return will be almost similar in that case.