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Surrendering ULIP Pension Plan

For life insurance cover, you should always buy a plain online term insurance

I am a 32-year-old male investing ₹2,500 per month in HDFC ULIP Pension Plan II in Balance and Growth fund both since January 2009. Lately I have been contemplating about taking out the amount accumulated in both Growth and Balance fund and investing the same in my existing mutual funds. Is it practical?
- Mayuresh Joshi

We do not recommend insurance plans with savings or investment elements in them. Such plans offer very little insurance cover. They are also not a great investment option. You have completed six years with the policy and have already borne major expenses. However, the policy is still charging you around 4% p.a or even more. It would be better idea to surrender this policy. You will not have to pay any surrender charge. Investing in well-rated mutual funds is obviously a better decision. For life insurance cover, you should always buy a plain online term insurance.

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