Is your endowment policy worth keeping?
By Venkatesh TK, Founder, AdviceSahi. 20+ years in banking, wealth management and insurance distribution. Updated 16 October 2026.
Compare what you have paid so far, what the policy is worth today and what it is expected to pay at maturity, then look at the effective yearly return (IRR) across the full term. Bonuses are not guaranteed, so treat projected figures with caution and ask for the insurer official numbers.
What does worth keeping mean?
It means the policy still does what you bought it for. For a savings plan that is usually a mix of life cover and a maturity amount. The question is whether the cover and the expected benefit are reasonable for the premiums you still have to pay.
What is IRR and why does it matter?
IRR, the internal rate of return, converts a stream of premiums and benefits into a single yearly rate so you can compare policies fairly. A policy that pays a large amount at the end can still have a modest IRR because you waited many years for it. Only the guaranteed part is certain. Bonuses declared in the future can change.
What numbers do I need?
- All premiums paid so far and the premiums still due.
- The guaranteed benefits and the bonuses declared to date.
- The surrender value today, in writing from the insurer.
- The expected maturity benefit and the dates it is paid.
- Your life cover during the remaining term.
Should I surrender, make it paid up or continue?
There is no single answer. Surrendering early can lock in a lower value, and continuing means paying more premiums. A paid up option stops premiums but reduces the benefit. Look at each option against your goals and cover needs.
Where can I get help?
AdviceSahi reads your policy and shows what you pay, what you are covered for and what it is worth today. If you want a view, you can choose to share the report with a licensed advisor. The report is informational and is not advice.
Common questions
Are bonuses guaranteed?
Not unless the policy states them as guaranteed additions. Declared bonuses can change from year to year.
Is a low IRR a reason to surrender?
Not by itself. Consider your cover needs, what you would lose and the surrender value today before you decide.
Can I check this myself?
Yes. Gather your premiums, the declared bonuses and the surrender value, or add the policy to AdviceSahi to see them in one report.
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Surrender value in life insurance, explainedWhat is a life insurance policy check?How to choose a life insurance advisorThis article is for general information only. It is not financial, tax or insurance advice. AdviceSahi is a technology platform and is not an IRDAI registered entity.