LIC Money Plus : should I keep this policy or quit?

[Medhu]

I had bought a LIC Money Plus Policy for myself, my wife, sister and brother-in-law. I am paying premium of Rs. 15,000 for each of the above policy. I wanted to know, how good this policy is doing at the moment.

Please also suggest, should I keep this policy or quit?

[>take]

You had bought policies for yourself, your wife, sister and brother-in-law. It looks like you are big fan of LIC.

LIC's Money Plus (http://www.licindia.in/money_plus1_features.htm) is a unit-linked endowment plan. In it you can choose the level of cover within the limits, which will depend on whether the policy is a single premium or a regular premium contract, term chosen and on the level of premium. The minimum policy term is five years and the maximum is 20 years.

You havn't mentioned term of your policy, but as it's (this plan) already closed in year 2007, so I assumed, you have already completed 5 years.

If you are not happy with the plan, you can either do surrender or partial withdrawal -

Surrender (including Compulsory surrender): Policyholder's Fund Value / monetary value as the case may be, shall be payable after the completion of the third policy anniversary. No amount shall be payable within 3 years from the date of commencement of policy.

Partial withdrawal: Partial Withdrawals shall not be allowed under such a policy even after completion of 3 years period.

Please Note - LIC's Money Plus policy once surrendered cannot be reinstated.

[>take]

Please also suggest, should I keep this policy or quit?
This policy has given an Absolute Returns : 0.50% (http://www.moneycontrol.com/insurance/ulip/life-insurance-corporation-of-india-LI/lic-money-plus-growth-fund-ILI091.html) (No info in your query about invested funds, so assumed invested in Growth Fund), so I would suggest you to surrender this plan without second thought (but buy term plan first).