I have invested in Bajaj Allianz Unit Gain Plus Gold ULIP plan around eight years ago. Now, there is news that Bajaj and Allianz are splitting. I want to know whether it is better to withdraw the money or keep on investing?
- Nagaraj
We won't be able to comment on the news of these companies parting ways, as we haven't got any official statements regarding this. However, you shouldn't make impulsive decisions based on such news. Wait for more time for clarity.
Bajaj Allianz UnitGain Plus Gold is a ULIP plan. It is a hybrid products that mix life insurance and investments. We do not recommend insurance plans with investments for investment. These policies are generally costly and you may not be able to get an adequate life insurance cover with them. They are also not really an ideal investment option. If you want to buy an adequate life insurance cover, you should opt for a term insurance plan. It is better to invest in equity mutual funds to achieve long-term financial goals.
After the lock-in period of five years, you can surrender the policy. The surrender value would be the fund value of the regular premiums paid plus the fund value of top-up premium paid, if any.
This article was originally published on March 18, 2016.
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