I was misled into buying a ULIP. I have paid the first-year premium of Rs 30,000 and the free look period is over. What would be my loss if I cancel the policy now?
Unit Linked Insurance Plans (ULIPs) are hard-sold due to attractive commissions. Since the free look period has already passed, you cannot cancel the plan. You can surrender the plan now but you'll get the money only after 5 years, whatever remains after deducting all the charges for the first 5 years. In our opinion, you should consider surrendering it even if it entails writing your entire first year premium off.
Going forward, make sure you understand a financial product well before you buy it. Do not blindly rely on the advice of an agent or a distributor. In fact, you can consider buying a cheaper online term insurance plan directly from the insurer's website, without having to go through a distributor.