Advice needed – ULIP Surrender or Continue….

Hello members,

I was late to follow action month, but its good to be little late than never. Already I got rid of one useless LIC policy, arranged documents at one place in folders, opened one RD account etc etc.

This is my old thread where I asked about my illiteracy in financial terms:

http://localhost/jagoforum2/info-abt-insurance-related-terms-used-by-agentprovider/1755/

Now here is the calculation as on date:

Policy ‘bought-in-haste-and-without-study’ (and *not* mis-sold) : May 2008
SA: 4 lacs
Total premium paid: 1,02,500/-
Current policy status: In Force
Current Value: ~63,000/-
Currently in debt(70%)+equity(30%) fund.

[Note that, as per the charges applied in this plan, 30k Rs are paid towards charges.] So 30k as charges + 10k as loss = 40k difference. No matter how much calculations I do, I feel that loss of 40k is not recoverable. To recover this money, I feel my money should grow beyond what is expected. Mathematically, my 63k investment should give me additional 40k returns.

I am thinking of surrendering this policy and invest it in NSC/+SIP to make sure I will at-least recover the loss over period of time.

Can you please provide me valuable suggestions?

Thanks,

Yogi