Hi Manish,

I have started BSLI Saral Jeevan ULIP (Magnifier) during Oct 2008 with 50K annual premium – 20 years term and 5.5 L SA. First year the mode of payment was annual and I got 3184 units as the NAV was low at that time. Later payment mode has been changed to monthly.

I was a newbie regarding the investment that time (now also) and didn’t investigate much about the plan. Later i have noticed that 30-40 % my premium was going to the company in the form of charges. Now in the 4th year it has reduced to 8%. When I had checked the policy 2 months back the total paid premium was 1.92L and the total fund value was 1.48L (difference of -44 K) and now the Fund value is 1.70L and total paid premium  is 2.01L (with a difference of -31 K)

Please suggest to me if I should surrender the policy now when the market is up and minimize further loss or continue the payment as already they have taken the major chunk of my hard earned money and now reduction is 8%, also considering the tax free return of this plan.

Recently I have taken a Term policy for 50L to protect my family, so if I am planning to surrender the policy what is the best option to invest the money (50K yearly)

Thanks in Advance,

Kutty