ICICI Pru Smart Kid RP policy – Continue or Surrender?

POSTED BY Ravi ON December 20, 2013 2:48 pm COMMENTS (6)

Hi Friends,

Back in 2007 when I was not aware about the pitfalls of ULIP policies, I was lured into buying two policies for my kids (Smart Kid Regular Premium) with annual premium of Rs. 25000 each and total cover of Rs 2,50,000 each for  a period of 20 years.

It has been 6 years since I have been regularly paying premiums for these. I fall in 30% bracket and have to invest 1,00,000 to avail 80C deduction.

My question is :

1. Since now the policy charges are only 1% of premium, will it be advisable to surrender just because it is a ULIP policy?

2. If I stop these policies what options do I have for tax saving where I can invest these Rs. 50000.

Just FYI, I have started investing in Mutual funds to fund kids education.



6 replies on this article “ICICI Pru Smart Kid RP policy – Continue or Surrender?”

  1. ICICI Prudential says:

    Dear Sir(Ravi),

    We regret the inconvenience caused. We request you to help us with your contact and policy details to assist you .

    Alternatively, you may also post your concern along with your policy details on https://onlinelifeinsurance.iciciprulife.com/digital/ipru/GrievanceRedStep.htm?execution=e2s1
    Request you to quote the reference number 102489 whilst sharing the details. Post receipt of the requirement, our representative will get in touch with you within 48 hours.

    ICICI Prudential Life Insurance

  2. ashalanshu says:

    Dear Ravi, are you happy with the performance of your fund? If answer is yes, continue, else redeem.



  3. Ravi says:

    Thanks Ashal, I got your point.

    Here are the returns for the fund:

    Fund Name 1yr return 3 yr return Since inception (in 2004)

    ULIF 012 17/05/04 LMaximis2 105 12.45% 5.09% 17.27%

  4. ashalanshu says:

    Dear Ravi, you misunderstood my question. Not all the money paid by you has been invested. I’m asking the performance of fund for you as well as against it’s benchmark. Are you happy with this performance? If you are happy, continue. Else think to redeem.



  5. Ravi says:

    Thanks Ashal for your response.

    In last 7 years I have paid 3,50,000 as premium and current total fund value for both policies is 4,65,300.

  6. ashalanshu says:

    Dear Ravi, what’s the performance of the funds for you in the said ULIPs?



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