I have made a huge mistake of buying Click2Invest ULIP. I have invested ₹10 lakh in March 2015 as a lump sum. At the time of investing, Nifty was at 8,600 and after that it has taken a significant beating. Now my money is worth ₹9.89 lakh. I am okay with that. I don't want to pay for remaining four years. How can I take the money out? I don t want to keep this money locked for five years. I am ready to bear penalties and tax implications. Is there any way out? Now, I am actively investing in MFs via SIP and lump sum investments. I am very convinced that SIP is the way to invest. Please help me to get out of this ULIP mess.
- Sachin D
HDFC Click2Invest is a Unit Linked Insurance Plan (ULIP). It is a combination of insurance and investment. Linked policies do not allow withdrawals during first five policy years, as they have a lock-in period of five years. If you surrender now, your fund value will be transferred to Discontinued Policy Fund. This fund will earn a minimum guaranteed interest rate of 4 per cent per year. The policy will continue to deduct fund management charges, and you will receive the money after the completion of five policy years. Best part of the surrender here is the absence of surrender charge.
This article was originally published on November 20, 2015.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
