ICICI Smart Kid Rich-II unit linked policy purchased in 2008. Premium is Rs.30000/- per year. Total premium paid Rs.150000/- Now total valuation is Rs. 1,34,000/- Shall I continue to pay premium or surrender the policy

POSTED BY Abhay Bhave ON February 21, 2013 11:44 am COMMENTS (2)

2 replies on this article “ICICI Smart Kid Rich-II unit linked policy purchased in 2008. Premium is Rs.30000/- per year. Total premium paid Rs.150000/- Now total valuation is Rs. 1,34,000/- Shall I continue to pay premium or surrender the policy”

  1. Dear Abhay, why did you purchase this policy in 2008 itself? What was the primary reason to purchase this policy?

    Thanks

    Ashal

  2. Your monthly premium is only Rs. 2500.

    Use this child planner to see how much you need to save each month

    http://freefincal.wordpress.com/comprehensive-child-planner/

    Typically this will be about 8000 -10,000 each month. So the sum that goes towards the ULIP is quite small.

    If I am not wrong 80% of premium is invested in equity. Equity has not performed well since 2008. Hence the poor return. All administrative and allocations charges would have decreased now. So it is like a equity oriented mutual fund with reasonably low expense ratio. Since the premium is likely to be quite small comp to how much you need to save, you could stay invested in the ULIP.

    If you want you can switch (if possible) to Flex-Balanced option with 60% equity and 40% debt.

    Just make sure you invest the necessary sum each month for your goal. By choosing good equity and debt mutual funds according to your risk appetite

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