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Ulips Are Inadequate

Most often, a Ulip offers inadequate insurance cover & not the best investment options…

I have been paying a premium of Rs 31,750 per annum for a life insurance policy since 2003 and my sum assured is Rs5 lakh. I now realize that a term policy is better. Should I surrender the existing policy at this stage?- Sandeep Khanna

From your description, it appears that you have an Ulip plan which combines insurance and investment. This most often results in inadequate insurance cover and not the best of investment options. Since you have been paying the premium for eight years now, we suggest you continue for the entire premium-paying term rather than surrender at this stage. However, if you still wish to surrender, before making any decision, contact the agent or the insurance company and determine what the surrender value of the policy is at this stage to weigh the pros and cons.

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