Pension planning?

Since you are only 27 now it is wise to go for a term of 20 to 30 years depending upon the nature of your job and your present and future financial conditions. In that case this is not at all attractive. as in the case of traditional policy you have to pay more than the sum assured. for example for a one lakh policy that you select 20 year term at an age of 20 you will be paying 5245 yearly for 20 years making it 104900. and what is guaranteed ? only five thousand for the first five years which means 125000. then you may get bonus or profit if they declare or share. So it is not at all attractive. Further in case you make a lapse you will lose a huge part of your investment too. you can check it yourself with the benefit illustration given at the lic website. Take a pure term life insurance policy from lic with maximum term and sum assured and invest the balance in a mix of bank fixed deposits, good mutual funds, performing ulip policies with minimum charges.