I had taken a Birla Sun Life ULIP plan 3 years back. Now I want to switch to term insurance. Should I continue with the ULIP policy or should I redeem it?
You should consider getting out of the ULIP because you shouldn’t be mixing investment and insurance. Our general guideline for redeeming your older ULIPs is that you must continue for the first 3 years, otherwise your money will be forfeited. Generally in the older ULIPs, the surrender charges for redemptions between 3 to 5 years are very high, so you should stop paying the premium after completing the 3rd year but don’t pull out before the 5th year. The most important thing to do is read at your policy document carefully, because there could be minor variance in all the older ULIPs. So redeem your ULIPs after the 5th year, and approach your insurance and investment separately.