Re-evaluate your insurance and improve returns in the process!

I am one of those millions who have taken ULIP Life insurance and other traditional life insurance policies. We are lured by the amount we receive at the maturity.

Rule: With times, we have to re-evaluate our options and choose wisely. I know you all are ready to ask me what has changed...Its the Govt with development as their core agenda. Next 10 years will be roller-coaster ride for all of us. Dont miss the fun (of course take enough precautions)

So, here it goes:

1. According to experts, term insurance is the best option. 
2. For health conscious people, add health insurance.
3. For people with returns in mind, spend the surplus in mutual funds (direct investment to save some more money)
4. For active investors, invest remaining amount in good stocks..
5. Investing in realty is a good option provided you can take enough care (especially open plots...)
6. If your assets (excluding your investments planned for future expenses) is more than your insurance needs, better not take any insurance. Instead invest that amount to increase your net worth.

Note: Review performance of your stocks/Mutual funds periodically to avoid losses (remember above rule)

I have already taken health insurance and in the process of taking term insurance. My wife wont allow me to surrender my LIC and Birla sunLife policies without taking term and health insurance policies :)

Update on 20-Jun-15: I took term insurance from Aegon Religaire and planning to increase the coverage by taking another policy from the same company OR thinking of MAXLIFE insurance. General suggestion is to NOT to take policies from multiple companies to avoid the hassle of running around multiple companies during claim processing.