Hi,
I have a MetSmartPlus ULIP that was started in 2008 with an annual premium of 20k/year. Now, I want to get rid of this as soon as possible after taking into consideration the below points. Please have a look at those points I have thought of and share your views and advice on them
1. The policy has a surrender charge of 60% of the annual premium now and this charge gets reduced by 10% every year. So its Nil only after 10th year.
2. Unlike most of the ULIPs the initial charges are evenly distributed over 10 years(6% per year) instead of heavy charge on the first year
3. The surrender value will be taxable now as the policy has not yet completed 5 years(Not sure about this, so any help will be appreciated).
4. I intend to invest the entire corpus in equity mutual funds
Now, I guess I have just 2 options (as I can think of):
1. Surrender the policy after paying one more premium and get the tax benefit. Surrender charges would be 50% of the annual premium however.
2. Surrender the policy after 10th anniversary
Can there be any other better options like making the policy paid-up (I don’t care about the insurance as I have already taken a term insurance) or continuing with policy for long term (20-25 years is fine with me)
Thanks in advance for your precious time.
Best Regards,
Bibhu