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Withdraw ULIP, Invest in Funds

Since your ULIP has completed 7 years, you won't face any surrender charges if you withdraw your money

I am 45 years old and hold a ULIP - Kotak Headstart Future Protect started in August 2007 (Term 10 years). The invested amount is ₹ 1,50,000 and the fund value is ₹ 2,02,000. I wanted it for my child's education. But now that goal is taken care of by other mutual funds. Do suggest if I should surrender this policy or continue till maturity.
- N.K. Rao

Good to see that your ULIP policy is in profits, which isn't the usual case. However, the returns for a 7 year period have been quite low. You have already completed seven years with the policy. If you surrender now, there will be no charges and you will receive 100 percent of the fund value. As you said you have mutual fund investments to take care of your child's education. Therefore you may withdraw this sum and channelize it into your existing mutual funds. Make sure you have selected your mutual fund investments correctly based on their long term track record. Please use the Fund Selector tool in the Value Research website to help you. If you need the funds, you may surrender the policy and utilize the money too.

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