Should I Terminate My ULIP?

I bought a ULIP in 2006 where the insurance sum assured is Rs 10 lakh. I pay an annual premium of Rs 37,840. The objective behind taking this was to meet the Rs 1 lakh investment exemption from my salary. Now, since I know how they work, I would like to discontinue the scheme. Is it a good time to do so? And is it a wise decision? — Ravindra Varma A wise decision would have been never buying into a ULIP in the first place. We at Value Research have been crying ourselves hoarse that investments in Unit Linked Insurance Plans (ULIPs) are bad financial decisions. They are packaged as the most convenient products that combine investment, insurance and tax savings (under Section 80C). But investors must understand that insurance and

This article was originally published on June 08, 2010.