I hold a Bajaj Allianz New UnitGain policy with issue date 19-Aug-2009. It has an assured value of Rs. 4,08,000 with a policy term of 20 years and Rs. 12,000 annual premium. I have already payed 3 premiums (Total Rs. 36,000). The next premium paymen date is 19-Aug-2012. Since 3 yrs are not completed yet, the policy cannot be surrendered. Seeing the pathetic fund value of around Rs. 23,000 (I was ignorant when the policy was bought), I want to surrender it. I have following questions,
1. Since 3 yrs are not completed yet (will complete on 19-Aug-2012), there is no option to surrender. Should I pay another premiuum of Rs. 12,000 and then surrender? or
2. Do not pay the 4th premium and surrender after 3 yrs are completed. In this case what happens since I have not paid one premium?
I am pretty sure the surrender value wont be much, but I dont want to keep putting money in this black hole anymore. Please Advise