My existing insurance plan seems to be giving poor premium to coverage ratio, should i consider surrendering the policy to encash and get another policy of better value?

Hmmm, first question, is this a life policy? If it is a life policy with a limited pay option, I personally think it would be better to keep that current coverage as you you are halfway to complete the payment term.

A recommended guideline for life policy is;

Death Coverage up to 10x of your annual income

Critical Illness Coverage up to 5x of your annual income

Early Critical Illness Coverage up to 2 or 3x of your annual income

Just to highlight that insurance policies premiums tend to tie in with age, so you might not be able to get a similar policy with the same premium rate, but of course it would be good to look around to see what possible options you have.

Are you looking at a life policy with better ROI? If you are looking for returns, it might be better to look into a wealth accumulation focused policy instead.

Do reach out if you have further queries, or you can reach me at [email protected] as well for more private discussions​​​

The reason why you feel you're getting low premium to cover is because you're paying for both Cost Of Insurance till 100 and cash value of the policy that is meant to adjust your base cover for inflation.

Of course you can buy a shorter term policy that will cover you for the next 5 years only and that will be the absolute cheapest policy, but is that what you want to cover?

Make sure you understand the risk you're transferring to the insurer by holding on to this policy.

And if you need more coverage now, buy another policy instead of letting this go, until you are extremely sure it doesn't fit your needs.