Surrender / Cancel of LIC policy ?

I was searching the web to find how worth is to cancel an existing LIC policy. But canceling a LIC policy seems to be major loss as discussed below in one of the forum.

We should never suggest surrendering an insurance plan as the surrender options always deduct the first year premium you've paid, and statutorily an insurance company need to only return 30% of your balance premiums paid plus all bonus accrued till that date, back to you, hence it would turn out to be a major loss as far as the investment you've done in that plan is concerned.
A more viable alternative is for you to check the rate of bonus that have been accrued into your insurance plan over the last 3-4 years and decide on whether you are satisfied with the returns. If not, always go for an option to make your policy "Paid Up".
When you make a policy paid up, it means you just ask the insurance company to reduce your existing life cover to a value corresponding to whatever premiums you have already paid. You will not be payin further premiums into that plan anymore, but your insurance cover will run the entire term of the plan, albeit at a lower sum assured, while at the same time freeing up your 15,000 bucks you have been investing every year, so that you can re invest that money into a more financially rewarding money instrument.

References:
http://www.xboard.us/showthread.php?t=144822&page=2