I had invested in ICICI Pru Elite Life II in 2014 and have paid 2 installments of ₹. 2 lakh each. I have recently figured out that this is not a correct investment and it is better to stop paying any further installments. I had not got any tax advantage as I had already exceeded the limit. Kindly advise whether I should discontinue paying and cancel the policy.
- Pradeep Ahuja
ICICI Pru Elite Life II is a unit linked policy which is a blend of insurance and investment. This policy is not recommended as it is quite expensive. For details refer the link: Go for a Term Cover instead of a ULIP.
High charges tend to eat into the returns generated by the investments. We recommend you to surrender your policy now. On surrendering, your funds will be transferred to discontinued policy fund. You will be charged a fund management charge of 0.50% p.a on the discontinued policy fund. Your money in DP fund will earn a minimum guaranteed interest rate of 4% p.a for the time it lies there. Once lock-in period of five years is over, you will receive your fund value.
This article was originally published on January 14, 2016.
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