New Delhi, July 11 -- Q. I am 35 years old and have invested in one LIC Jeevan Anand life insurance policy which has an annual premium of around 16000 annually for a sum assured of 3 lakhs. The term of the policy is 20 years. I have already paid the premium for 8 years. I also have a term plan for 25 years for 50 lakhs sum assured bought eight years back. I wish to stop the existing term plan and buy a new one for Rs. 1 crore for 40 years. Should I also surrender my LIC Policy?

As a basic financial planning rule one should not mix your insurance and investment needs. Investing in a life insurance policy is injurious to your financial health. If you do so, you neither get adequate life insurance cover nor adequate returns on your investme...