I have bought Max Life Fast Track Super ULIP in 2016. I was supposed to pay 5 premiums per annum of 75000 and after 10 year I would have received Rs 7.5 lakhs. If I surrender now, they will deduct Rs 6000 and I will receive the amount only after completion of 5 year. Could you please suggest what would be the best thing to do?
Though you will incur losses, we'll advise you to surrender your policy and take back the fund value after the expiry of the lock-in period. Further, buy a good term insurance plan with an adequate insurance cover and invest the remaining money in a couple of good diversified equity mutual funds. This combination (term insurance and equity funds) will cover your insurance and investment needs in a far better way than a ULIP could.
Cancellation of the policy would have been possible in the free-look period, which is generally 15 days. After that the only option to cancel the plan is to surrender it.