ULIP - Surrender or hold or continue?

[abdriver2000]

I have been putting in 10000 in LIC Money plus for past 3 yrs. Presently I have about 2450 units allocated. I can continue holding this policy without further premiums since premiums would be adjusted from the present units. Alternately, I can surrender the policy, in which case, i will barely break even on the premiums paid.

My agent says I should invest for 2 more years. By that time I should have made a decent profit to exit.

This is the only ULIP policy I ever bought. I have no statements from LIC which tell me how the units are adjusted. :annoyed:

 

[abdriver2000]

:sos: I have to decide on it this week.

 

[alroyraj]

Most ULIPs need to be invested for minimum period of 3 years depending on the duration and the same can be carried till 5 years.
Also a recent rule by IRDA says that if investment duration is 5 years ,no charges can be deducted.

 

[gotoumesh]

I have been putting in 10000 in LIC Money plus for past 3 yrs. Presently I have about 2450 units allocated. I can continue holding this policy without further premiums since premiums would be adjusted from the present units. Alternately, I can surrender the policy, in which case, i will barely break even on the premiums paid.

My agent says I should invest for 2 more years. By that time I should have made a decent profit to exit.

This is the only ULIP policy I ever bought. I have no statements from LIC which tell me how the units are adjusted. :annoyed:

1. If you are not happy with ULIP performance... don't pay any more premiums, as minimum 3 yr installments are over.

2. If you have invested for only tax purpose,better surrender it and invest in another ULIP of any other ELSS or .. any tax saving instrument.So that you can use that amount for getting tax exemptions this year.

3. If you have invested for good returns in longterm, then wait for atleast 1 economic cycle (6 to 7 yrs), so that the proportion of higher units allocation charges other one time charges becomes negligible proportion and you can expect decent returns.

4. For knowing number of uints holding just call 1251-LIC tollfree, and tell your policy number... they will tell you.

 

[abdriver2000]

Thanks for the responses. I have already paid my installment for this year, since withdrawal would have meant a sure shot loss. I will come out of it in another year or two.

 

[p_rajivadekar]

I think the best ULIP available in the market is UTI ULIP.
No entry load, No exit Load. Assured Maturity Bonus, Free accident Insurance. No lapsesion of policy. No compulsion to pay for minimum three years etc

 

[San Yad]

I think the best ULIP available in the market is UTI ULIP.
No entry load, No exit Load. Assured Maturity Bonus, Free accident Insurance. No lapsesion of policy. No compulsion to pay for minimum three years etc

But I see 2 % exit load in each statement if you withdraw before maturity date.

There is 3 years lock in time period for UTI ULIP too.

I am sure you have not read it properly when you sign up for UTI ULIP.

Happy Investing

 

[p_rajivadekar]

No exit load is on Maturity . Please note. and there is no lockin . I think you need to update your knowledge. And ven if you consider 2% exit load ULIP is far superior than existing ULIps in Market

 

[praveen taneja]

Most ULIPs need to be invested for minimum period of 3 years depending on the duration and the same can be carried till 5 years.
Also a recent rule by IRDA says that if investment duration is 5 years ,no charges can be deducted.

I remember James Bond dialogue here
If you want to shoot just shoot dont talk:clap:
If a person want to withdraw better withdraw after paying surrender charges as most of charges are deducted in first five years so what is use of paying charges when he want to exit
max surrender charges in most cases is 50-55% and that is never more then the charges he would pay in 4th and fifth year and there is always a chance of mkt crash so exit that take a term policy with a SIP that would work more better then ULIP if that is not an ECS paid monthly ULIP:clap:

 

[alroyraj]

I remember James Bond dialogue here
If you want to shoot just shoot dont talk
If a person want to withdraw better withdraw after paying surrender charges as most of charges are deducted in first five years so what is use of paying charges when he want to exit
max surrender charges in most cases is 50-55% and that is never more then the charges he would pay in 4th and fifth year and there is always a chance of mkt crash so exit that take a term policy with a SIP that would work more better then ULIP if that is not an ECS paid monthly ULIP:clap:

Firstly ULIPs are front loaded so the biggest chunk of charges are taken out in the first year in the name of premium allocation charges.
This is true for life insurance type of ULIP as compared to child plans which you seem to be talking about (only one here ). Usually the ULIP gives returns equal to net premium paid by the 5th year. Of course for those investors who invested in ULIP because of inability to invest directly in markets better to wait till 5th year to recover the amount.Of course time value of money is lost here.
Praveen bhai you could make up any loss from any wrong decision you make,I am sure,but to recover 55% of the premium seems a little difficult for others.(Assumed premium is like 1 lakh)