Hi

I have a Birla Child plan that I was suggested by Citibank in 2006. The plan was to get a bulk amount when my child reaches 18 yrs of age. I was made to believe that the design of the child plan is such that if the “premium payer” is no more, then the insurance company will pay the remaining premium and give the required funds to the child at the age of 18. But seems like the agent has conned me and just last month I found that the life insured is actually my child and not me – this has been confirmed by Birla Sunlife and Citibank. The reason given was that they wanted to reduce the insurance premium amount!

I am not sure if I should really continue with this policy now, but the loss of surrendering the policy is very high. I heard there is something called a paid-up option. How beneficial is this? What are my other options?

The policy details are as follows,

Policy start date : May 2006
Plan    : Flexi Lifeline 2003 – Pay 15
Premium paid til date   : Rs. 4.1L
Cash Surrender Value : Rs. 4.0L

Thanks in advance,
Vijay