ULIP discontinuation

As I understand under ULIP money paid as premium is invetsted in funds. What happens when we stop paying premium? does the same investment remains active till the time finally we withdraw from the scheme. In short is it advisable to stop paying premium and withdraw when market is up? Thanx

asked Mar 28 '12 at 13:08 by rajendra_n 1246

It all depends on your policy wordings. Most of the ULIP can be continued just by paying 3-5 years premium. After these mandatory payment years, you may stop making payments and it will still continue. Some units would be deducted every month towards mortality charges (paying up for the small insurance component).

Fund value in future would depend on market performance and type of fund investment chosen (equity/balanced/debt).

It would be better to withdraw as early as possible and invest same amount into a good equity mutual fund. It would generate better value in long term than a ULIP.

answered Mar 28 '12 at 15:49 by Pankaj Batra 5.2k320


Know someone who can answer? Share a link to this question via Email, Twitter, or Facebook

Your answer
toggle preview

Follow this question

Once you sign in you will be able to subscribe for any updates here

Markdown Basics

  • *italic* or __italic__
  • **bold** or __bold__
  • link:[text](http://url.com/ "title")
  • image?![alt text](/path/img.jpg "title")
  • numbered list: 1. Foo 2. Bar
  • to add a line break simply add two spaces to where you would like the new line to be.
  • basic HTML tags are also supported



Asked: Mar 28 '12 at 13:08

Seen: 1,596 times

Last updated: Mar 28 '12 at 15:49