Surrendering or making a policy paid-up?

[Rahul]

a) LIC Jeevan Sree - 1 : Commencement Date of this policy is June 2005. I pay a half yearly premium of Rs 12850/- for this. The Sum Assured is 5 Lakhs. The policy term is 25 years with a premium paying term of 16 years. This is a traditional endowment policy. Please advise whether I should continue paying the premium or convert this into a paid up. I thought about surrendering it but the surrender value was around Rs 1 Lakh, which is even less than the amount I have paid so far.

Paid Up -
If you stop paying the premiums after 3 policy years, the policy acquires a Paid Up Value for a Reduced Sum Assured but the policy would be eligible for any future regular additions.

Surrender Value -

If you want to surrender the policy – There is a Guaranteed Surrender Value after 3 policy years
You will get -
Guaranteed Surrender Value = 30% of all premiums paid – 1st year’s premium