should surrender unit linked insurance plans?



I am 33 year married male blessed with a baby daughter 2 year old and expecting another in next few months, wife is a house wife, getting 25 k working with BHEL (PSU),I have few ULIP plans and few traditional plan and do saving as below , the most I am worried is three ULIP PLANS I have,as I have read a lot negative about ulip plans,please guide me what should i do,should i retain these ulips or should surrender.
LIC Jeevan Aadhar(money back) from Feb 2002 @for 20yrs with premium of rs 7000/yr,
LIC Jeevan saral from Nov [email protected] 20yrs premium of rs [email protected]/month,
Birla Sun life Dream Plan-Enhancer fund 100 % fromNov [email protected] 20yrs premium of rs 12024/yr ,
Birla Sun life Saral Jeevan –Creator fund 100 % from [email protected] 20yrs premium of rs 12258/yr ,
HDFC Young Star Plan-Balanced Fund from Nov [email protected] 15yrs premium of rs 20000/yr,
Beside above I have PPf A/C with SBI and keep investing on an average 1000 Rs /month and also welfares with our company-Free Medical Unlimited, Death Relief Fund ,gratuity etc.I do SIP of 4000/month in UTI opportunity fund, reliance regular saving,HDFC TOP200,ICICI Discovery fund-all growth option.

One Reply to “should surrender unit linked insurance plans?”

  1. INSURANCE IS NOT AN AVENUE FOR INVESTMENT.

    It is only a loss reducing avenue for your nominees.

    Ideally you should buy ONLY PURE TERM PLANS.

    For INVESTMENT , go for a combination of PPF / SIP IN MUTUAL FUNDS / DIRECT EQUITY.

    First visit the following websites of AVIVA / KOTAK / AEGON / HDFC LIFE.

    Go for an ONLINE POLICY with 1 or 2 of them. These are cheaper because no agent is involved.

    Calculate the premium yourself. Have a look at the riders like critical illness and accident insurance along with their term plans. Also look at the increasing cover policies.

    Go for a cover which is approximately 8-10 times your annual income. You can split the cover between 2 insurance companies.

    After taking these policies , look for surrendering the older policies.

    The total premium you are now paying is around Rs 57000 per year.

    Your term insurance will cost you around Rs 10,000 – 15000

    Balance over Rs 42,000 you can divert to a combination of PPF and SIP in mutual funds.

    Also take a mediclaim policy for self and family from a PSU like the New India Assurance Co.

    You can claim deduction up to Rs 15000 under section 80 D.

    Take this policy even if you have GROUP COVER in your office.

    For understanding mutual funds visit http://www.valueresearchonline.com

    Invest only in the top rated funds on this website.

    Do not invest in more than 4 to 5 funds.

    Invest 60 -75% in large cap or balanced fund.

    Balance can be invested in mid cap

    Avoid SECTOR FUNDS.





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