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.
Regards,
Ravi