I had bought LIC’s Market Plus policy in 2007, which had an annual premium of Rs 10,000. I had paid the premium for 3 years. Today, the value of my policy is around Rs 25,000 only. Why is that?
LIC Market Plus is an equity market-related vehicle, and its value is down right now because the markets haven’t delivered anything in the past 3-4 years. Generally, people tend to believe that when they put in their money in any LIC policy, they will get some kind of a positive return. But that is not always the case. You should carefully understand the policy before you purchase it because such ULIPs don’t give you any meaningful insurance and are not the best investment vehicle.