Surrendering ULIP policies after paying premium for three years

My name is RAMESHA VARNA B., aged 39 years from Bangalore

I have taken four ULIP policies in 2007-2009. The details are as follows 1. HDFC standard life Unit Linked pension plan II with Yearly premium of Rs 15,000/- 2. Birla Sun life Flexi life line 2006 with Accidental death & dismemberment rider with yearly premium of Rs. 10,288/- 3. AVIVA Young scholar with annual premium of Rs.20,000/- 4 LIC moneyplus with yearly premium of Rs 10,000/- paid only for 3 years & stopped now.

After taking these policies & invested for more than three years, I realized that the fund growth is not much & maximum charges were taken in the initial years. Now I have invested in LIC term insurance(without profit) for 25 Lakh cover & taken Jeevan Anand policy for coverage of 15 lakh(15 policies with one lakh each sum assured) in my name & 17lakh in my spouse name(17 policies with one lakh each sum assured). Now I couldn't continue paying ULIP policies. Suggest me a way to continue with the coverage & getting maximum benefit from the above ULIP policies by withdrawing money or surrendering the policies is the best option ?

Please reply

Ramesha Varna.B Bangalore

asked Oct 15 '12 at 20:31 by prajval 1222


First of all, please don't treat insurance policies as investment products. Insurance is not for generating returns but for providing protection against any unforeseen situation. Stop buying any insurance policy other than pure term plans.

If the mandatory premium paying period of ULIPs have ended, please stop paying more premiums. Just surrender these policies and invest the amount into mix of diversified mutual funds and PPF/Debt funds for growth.

I would also advise you to read this question page as well: Term Insurance

answered Oct 16 '12 at 10:46 by Pankaj Batra 5.2k320

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Asked: Oct 15 '12 at 20:31

Seen: 2,214 times

Last updated: Oct 16 '12 at 10:46