ICICI Prudential LifeTime ULIP - Keep or Surrender?

[anurag]

I had bought ICICI Prudential LifeTime ULIP with 55000 annual premium.The sum assured is 400000. I was not aware about the premium allocation charges, got to know later on when my fund NAV tanked in year 2008 -
Premium allocation charges -
1- For 1st year: 18 %
2- 2nd Year: 7.5 %
3- 3rd Year onwards: 4%

Just now, I have checked that after paying 6 premiums (3.3Lakh) till 2010, total market value of my Policy is close to 3.5 Lakh.
Now I am confused whether to continue this policy or surrender it. As per the policy, even in case of death, we would get Sum Insured 4 Lakh or the market value. My question is - should I keep paying the 55 K as premium or Surrender it and invest 55 K into ELSS MF?

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[PolicyWala]

You can take following riders with the above plan -

1. Critical Illness Rider
2. Major Surgical Ride
3. Accident and Disability Benefit

I would suggest to keep the policy because the charges you have paid in 1st, 2nd are on high end and 4th onwards it's less. And it's always suggested to see the performance after 10 years for a ULIP plan.

[CONFUSED]

As you have mentioned that the ULIP plan current return is 3.5 lakh, I would say its good. Because as per your post 30% of your premium, you have lost in charges. Now your premium is be invested completely. If you are comparing with stock market, it's not good because the imsurance company is also providing life cover. I would recommand you hold.