IDBI Federal Wealthsurance Foundation Plan - should I continue or surrender?

[Sonali]

I have taken “IDBI Federal Wealthsurance Foundation Plan” on 11/05/2010 for 20 yrs with 50k as premium per year but the sum assured is only Rs. 250000 and more than 3000 has been charged as miscellaneous charges.

Please guide me on this, should I continue or surrender.

Thanks,
Sonali

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[Expert]

Minimum Policy Term is 3 Years for the above plan. So you have to pay premium for one more year before you can surrender it. All the ULIP plans are for long term, so checking the return in 1-2 years is not proper to judge the plan. I would say make it fully paidup plan after three years if paid up option is present in the plan.

[Sonali]

I had bought this policy for investment, as the name of the policy suggests -"Wealthsurance". But most of my investment is going into various changes. Should I continue or surrender after three years?

[Expert]

I had bought this policy for investment, as the name of the policy suggests -"Wealthsurance". But most of my investment is going into various changes. Should I continue or surrender after three years?

Investment is not done or bought on the basis of name. Insurance is not for investment, it's main purpose is to provide you protection from unseen events. The surrender decision will only be taken after 3 years (in year 2013, as per above data).

[Sonali]

Thanks for your inputs !
Should you recommend above plan for long term, say 10-15 years?