I am 37 years old, self employed with an annual income of about 6.00 lac. Right now I have only one dependent to me. In 2010, I had purchased 2 traditional policies of ICICI Prudential- 1) Cash Back & 2) Save & Protect for 15 years each. The annual premium of each policy is INR 15000/-. I have already completed 3 years and have paid 3 installments for each policy.  This year I have also purchased two Term Plans- 1) ICICI Pru iCare RP Option II (SA Rs. 35L for 25 Years) & 2) HDFC Click2Protect (SA Rs. 10L for 15 Years). I purchased them online which did not require any Medical Test. After a long struggle and communication of 3 months, I received the Final Policy Documents in my hand. The payment of 4th Installments of my traditional policies need to be made at the end of this month only (October). I have also received a post dated Cheque from the company as being 1st lot of Cash Back . However, I want to discontinue my traditional policies and want to invest the same amount into my NPS Account (opened this year only).

Now I have two doubts in my mind: 1) Should I stop the traditional plan? If yes, then should I go for paid up or for surrender option;  and 2) I have already given the details of Traditional Plans during purchase of Term plans. If I discontinue my traditional plan, will there be any affect / impact on my Term Plans?

Kindly guide me to take an appropriate decision.

N.B. 1. I am also having a 3L annual cashless Health Insurance Policy (Family Floater) from ICICI Lombard.

2. I have also started monthly SIP of Rs. 1500/- on Reliance Mutual Fund (Banking Sector) for 15 years which provides insurance facilities.

Thanks & regards,

Samir