LIC Money Plus policy : Advice future of this policy or should I exit?

[Vinay Kumar]

I have purchased LIC Money Plus policy in 2007. The term of this policy is 20 years, I am paying Rs. 10000 p.a.. Please advice future of this policy or should I exit?

[Expert]

In LIC money plus - for Rs.10,000 premium for the first 3 years - Rs.4850 is deducted as the charges. Remaining Rs.26150, is invested in stock market.

There are four types of fund - Bond Fund, Secured Fund, Balanced Fund & Growth Fund. In which fund your money is invested in?

The Policyholder’s Fund Value at the date of surrender will be paid in case of surrender.

[Expert]

Current NAV of the Policy is 15.4434 (http://www.licindia.in/plannav/newplannav.htm) and Absolute Returns : 8.05% (http://www.moneycontrol.com/insurance/ulip/life-insurance-corporation-of-india-LI/lic-money-plus-bond-fund-ILI088.html).