Hi Anil,
I have idea about Money Back plans of LIC but no idea about HDFC plans which you have taken. The three year funda which most of the agent give is also not good.
I have One example for you - ICICI Life Time Gold - which deducts high allocation charge of 20% of premium amount in first year, 7.5% in second year and 4% for the rest of the term.
For annual premium of Rs. 10,000 following amount gets invested.
1st year: Rs. 8,000.
2nd Year: Rs. 9750.
3rd Year+: Rs. 9600.
Overall in the first 2 years out of Rs. 20,000 only Rs. 17750 get invested.
(This excludes various other ULIP charge like insurance charge, fund management. charge etc).
However from 3rd years onwards charges gradually come down to 4%.
In order to enjoy actual benefit (or to compensate the loss of your capital in initial years) of ULIP one need to continue with the premium payment at lest 7 to 10 years.
Similar to each policy you have to check with the insurance company how much they are charging and what you will get after paying premium for three years.
One more thing to point out. If you pay Annual Premium you will save total premium cost ex- in monthly premium you pay 60000 (12*5) the same premium in annual mode would be 58000.
So please take some time out and go to insurance company and meet the Sales manager and discuss and understand the product.