I have accumulated about four traditional life insurance policies. I want to reduce these so that the sum assured from these policies is about Rs50 lakh. How should I decide which policies to do away with?
—Girish Nair
Traditional life insurance policies typically have low surrender value. If a policy is about to mature in a couple of years, then it would make sense to continue with it to minimize your loss. If you have recently started with a long-term traditional product, then it would make sense to discontinue this first. Some of the insurances also have the option of partial surrender. If your insurances allow this, you can withdraw some cash and lower the sum assured.
