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Surrender ULIP, Opt for Term Cover

Aviva Save Guard is a unit-linked endowment plan that doesn't serve as adequate insurance or good investment

This is regarding Aviva Save Guard policy. I own this policy which was stared in 2007. So far I have paid ₹192000 and fund value is only ₹180000. I have used switches to imprive this value over the years. However Aviva is providing me only two free switches for a policy year. So far I have paid 8 premiums over 8 years . Initially while taking the policy Aviva executives told me that if policy is not doing well we can surrender it after 5 years but recently when I checked with Aviva customer care they are saying at any point of time if I surrender there will be surrender charges. So please tell me what to do now. How must I deal with this?
- Dinakar Nerusu

Aviva Save Guard is a unit linked endowment policy. Needless to say, such policies aren't ideal either for insurance or for investments. As mentioned in the brochure, if you surrender now, you will be charged @1% of fund value as surrender penalty. Your policy document will have these details. Please check them. You may directly approach Aviva's office with following documents to surrender this policy.

  • Policy bond
  • A copy of your ID proof (carry original alongwith for verification)
  • Cancelled cheque of bank account where you wish to receive surrender proceeds

The insurer would provide you a surrender form. Fill it and submit to obtain acknowledgement. They will tell you the number of days within which your surrender proceeds would be credited to your bank account.

Make sure to buy an adequate term cover as you will lose your insurance cover once you surrender this plan.

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