Advice needed – ULIP Surrender or Continue….

POSTED BY Yogesh Thite ON October 20, 2011 11:07 am COMMENTS (2)

Hello members,

I was late to follow action month, but its good to be little late than never. Already I got rid of one useless LIC policy, arranged documents at one place in folders, opened one RD account etc etc.

This is my old thread where I asked about my illiteracy in financial terms:


Now here is the calculation as on date:

Policy ‘bought-in-haste-and-without-study’ (and *not* mis-sold) : May 2008
SA: 4 lacs
Total premium paid: 1,02,500/-
Current policy status: In Force
Current Value: ~63,000/-
Currently in debt(70%)+equity(30%) fund.

[Note that, as per the charges applied in this plan, 30k Rs are paid towards charges.] So 30k as charges + 10k as loss = 40k difference. No matter how much calculations I do, I feel that loss of 40k is not recoverable. To recover this money, I feel my money should grow beyond what is expected. Mathematically, my 63k investment should give me additional 40k returns.

I am thinking of surrendering this policy and invest it in NSC/+SIP to make sure I will at-least recover the loss over period of time.

Can you please provide me valuable suggestions?



2 replies on this article “Advice needed – ULIP Surrender or Continue….”

  1. Yogi

    I must congratulate you that you accept that it would more of your fault and less of system . You will empower your financial life for sure in coming days ..

    I would like to say to you that the loss which has happened is final loss .and its not recoverable . Even if your 63k cant bring it back .. dont confuse it .. Even if 63k becomes 2 lacs , dont feel that your loss is recoveered , just that your investment has done good from “this point of time” .. It would be more of a psychological feeling that you recovered things .. but in reality , that loss part is gone .. It will never be part of the success story which will happen from now onwards .

    Forget that and move on ..

    Better invest in mutual funds from long term point of view .. keep it simple .


  2. TheZionView says:


    Once you realize that it was a mistake you should also try to accept the loss. First check whether you will get current fund value when withdrawing or is there surrender charges.

    Dont think of putting this money in some other investment vehicle thinking of recovering the loss instead think of investment for future needs.

    Also make sure you have clear goal before you invest any instrument(MF/NSC or whatever)

    If you dont understand ULIP get out of it and think of loss as payment for the lesson you learnt.

    Thing you might want to do, it SHOULD be in below order

    Term Insurance
    Medical Insurance
    Emergency fund
    Retirement Planning Investment
    Tax saving

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