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Should I stick to a mis-sold ULIP?

You should consider the premium as a loss and cancel the policy at a loss

I have an account with SBI. I asked the bank manager to get me an insurance policy that isn't linked to equity. I asked him three times and he assured me that the policy he chose for me isn't equity linked. Later on receiving the brochure I found that it was indeed an ULIP. I pleaded with the manager to get it cancelled. But he didn't give me proper guidance and kept it hanging. In the proces, the free look period of 15 days got over. The manager has been mis-selling unsolicited products to helpless people for his own commissions. My policy is of ₹3 lakhs and tenure is 10 years. I have already paid first years' premium of ₹30000. Kindly tell me what would be my loss if I cancel the policy now. (translated from Hindi)
-Sharad

Unit Linked Insurance Plans (ULIPs) are sold hard due to attractive commissions. Since the free look in period is already passed, you cannot cancel the plan. You can surrender the plan however, you'll get the money (after all the charges for the first 5 years) only after 5 years, as these plans have a five-year lock-in. You should consider the premium as a loss and cancel the policy even if it is at a loss. The future premiums can be saved.
If you want to buy insurance why should you buy it from a bank? You should contact the insurance company directly and not go through any intermediary like bank or agents in your close vicinity. You should thoroughly research about the product before you give away your hard earned money. In future whenever you buy any insurance make sure you do not go merely by your agent's oral promise. If you have skipped scrutinising the terms and conditions at the time of signing the agreement, use the mandatory 15-day free-look period that is at your disposal once you receive the policy document.
Do not mix your insurance and investment needs in future. Any insurance which claims to give back you money at the end of a term, should be avoided. Keep it simple and buy pure term insurance to cover your financial dependents. You can buy a very large cover with a low premium in pure term insurance. For your investments needs, you should buy a pure investment product like a PPF, mutual funds etc.

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