When to exit expensive policies

You can exit Ulips after five years. For traditional plans, check the surrender value

In the tax filing season, many people go ahead and buy insurance policies just to save some tax. And it is only after a couple of years that they realise that the policy is too expensive to maintain. Worse still, there are situations when you realise that a market-linked product is giving extremely low returns vis a vis your equity fund, simply because of the high costs. Many financial planners would advise you to immediately exit such policies and invest the premium in equity funds.

Yes, in some cases, there would be a loss. But it’s better cut your losses sometimes