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Should I surrender my ULIP?

Always buy a term insurance plan for life insurance and invest in equity mutual funds to achieve your long-term goals

I started investing in ICICI Pru Life-Maximiser V last year. I pay an annual premium of ₹50,000. This was my first investment and I didn't know about all the hidden charges. I have already paid my second-year premium. The current fund value is just ₹92,000. I am confused whether to continue with this policy or surrender it. Please help me with this.
- Kalyan

You have not mentioned the name of the policy. Maximiser V is a fund option available in the policy. ULIPs are a mix of insurance and investment. These policies provide very little insurance cover. They also fail to generate decent returns due to their high charges. Your policy must be deducting high charges. That is why your fund value is lower than the actual premiums paid.

It is always better to get rid of a bad investment. You should check the discontinuation or surrender charges in the policy document. Once discontinued, you will receive your fund value after completion of a lock-in period of five years.

Do not mix insurance and investment. These two have completely different objectives. Buy a plain term insurance plan for life insurance and invest in equity mutual funds to achieve your long-term goals.

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