Not able to pay loan on LIC Policy?

[PolicyWala]

I have a policy from LIC taken in year 2000 of four lakhs. But due to some personal circumstances, I have had to take loan of Rs.152,000/- on the same policy. The above policy is going to mature in 2020. Please suggest if I would surrender this policy or try to repay the loan amount which I will do with in a year’s time (2010-11). I have taken this loan around two years back, but was not able to pay any principal till date. Rate of Interest is 9.5%. Please advice.

You have not mentioned the policy name. Please provide complete details about the policy. Otherwise read the terms and conditions of the policy, it would explain everything.