I had invested in LIC’s ULIP plans – Money Plus, Market Plus and Fortune Plus – in 2007. But their performance hasn’t been up to expectations. I don’t have any monetary problem as of now. So should I continue in these plans or withdraw from them?
Vinay
First and foremost, before you go about taking your money out, closely evaluate your insurance requirements and buy a term plan. Be liberal in estimating your insurance requirement and don’t err on the side of caution. For most people, 8 to 10 years of your annual income could be a reasonable insurance amount. If investment is your perspective, these ULIPs are not a good option. However, most of the expenses that you would have had to incur in these ULIPs would have been deducted in the first 2-3 years. This is why you should not liquidate your ULIP investments before 3-5 years, because the surrender charges during this period is very high. Since you have invested in 2007, you should wait till your policies complete 5 years in 2012 and then consider taking your money out.
This article was originally published on January 31, 2012.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
