About Surredering LIC policy?

Take the term cover first before surrendering the older policies. You do not have to take only from LIC . Private players offer cheaper policies. Visit www.aegonreligare.com Their rates are one of the lowest. You can calculate the premium yourself on the website. Have a look at the increasing cover policy and the critical illness riders. LIC offers critical illness riders only with endowment and moneyback policies. It does not come with term policies. You will be doing a wise thing by shifting to term policies. Insurance is an expense, not an investment. For investment go for a combination of PPF/ SIP IN MUTUAL FUNDS / DIRECT EQUITY .