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I was lured by an agent to invest in an HDFC ULIP of Rs 60,000 per annum in February 2007. Although I am paying the premium this year, I want to know how I can stop paying the premiums at the earliest and eventually get rid of this entire plan without any loss.
-Sachin Tyagi
Most unit linked insurance plans (ULIPs) that are offered by insurance companies come with a compulsion to pay the premium for the first three years. If one does not pay these, there is a chance that the premiums already paid would get forfeited.
Now that you have already invested in an ULIP, it is advisable that you pay your remaining two premiums before taking a call. As ULIPs have high associated charges in the initial years, you can now only wait to see when are your charges recovered. Even after three years, the insurance company may levy some policy surrender charges if you wish to opt out. Best would be to contact your company and seek further details about the procedure for surrender.
This article was originally published on May 06, 2008.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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