I started investing in a Unit Linked Insurance Plan (ULIP) last year. I realised my mistake later after reading about ULIPs, I do not want to continue with this plan. Please let me know how much my investment would have made already? Will get my money back if i wait for five years or should I surrender it now?
- JP Upadhya
You have not given the name of the policy, so we cannot make any specific comment. You may surrender your policy now. Your fund value after the deduction of surrender charges will be transferred to the discontinued policy fund. Discontinued policy fund earns a minimum interest rate of 4% or a prescribed rate. You will receive your money after the completion of the lock-in period of five years. Surrender charges will be as follows:
Surrender during first policy year:
-For annualised premium up to ₹25,000
Lower of 20% of annualised premium or fund value, subject to maximum of ₹3,000
-For annualised premium above ₹25,000
Lower of 6% of annualised premium or fund value, subject to maximum of ₹6,000
Surrender during second policy year
-For annualised premium up to ₹25,000
Lower of 15% of annualised premium or fund value, subject to maximum of ₹2,000
-For annualised premium above ₹25,000
Lower of 4% of annualised premium or fund value, subject to maximum of ₹5,000
This article was originally published on October 26, 2015.
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