Should I surrender Jeevan Tarang?

I have opted for LIC jeevan Tarang policy almost some two years ago. Now I feel its premium is too high: ₹35,000 per year. Also, I researched on VR and found out that LIC policies do not give superior returns. Please guide me whether I should Surrender or close? Also tell me the best way to buy a life insurance cover.
- Pranav Yajurvedi

Jeevan Tarang is a with-profits whole of life plan which provides for annual survival benefit at a rate of 5.5 per cent of the Sum Assured after the chosen Accumulation Period. The vested bonuses in a lump sum are payable on survival on the end of the Accumulation Period or on earlier death. Further, the Sum Assured, along with Loyalty Additions, if any, is payable on survival at 100 years or on earlier death. This policy does not disclose expenses or charges under the policy. Simple reversionary bonus paid during accumulation period and loyalty additions will be paid at discretion of the insurance company. There is no guaranteed return. You may surrender this policy. However, as you have not completed three policy years, you might not get back anything. You may talk top insurance company regarding surrender conditions. There is no point in continuing with this policy.

We ask individuals to keep their finances simple. We ask them to buy a plain term cover for their life insurance needs and invest in equity mutual funds.

This article was originally published on January 08, 2016.