Please give me a simple solution

POSTED BY Sourabh Das ON September 6, 2011 9:13 pm COMMENTS (4)

 

Hello Everyone, I am creating this post in a depressed situation. I am novice with all these ULIP concepts and ideas. So, asking for your valuable advice to get rid of my present problem.

My father did a unit linked pension plan from HDFC in the year 2008. He was promised by the agent (my neighborhood uncle) to go with this plan for its effectively. My father was not much knowledgeable about this thing, he was vaguely told that his investment will be doubled in 5 years if he completes 3 years terms at least at the rate of 1lac per year. He can continue with this even after 3 years up to 10 years, but he could easily with draw it any time after 3 years, but if he would get almost double of his investment if he keep the money for 5 years. So, my father thinks it like as simple as that pay 1lac every year continuously 3 years and get around 6 lacs after 5 years.

 

Now, my family is need of some urgent fund and so he wants to break this investment, as 3 years of terms are completed, he can easily do this.

 

But, the agent says  due to the market down condition, even if he surrenders the policy he will get may be lesser then his total investment of 3 lacs, so it will not be a wise thing to break it now.

 

Now, we have come to know that these kinds of plans are in fact beneficial for long term savings. But, my father was not guided properly so he took the wrong decision.

 

Now, my question is, if we want to stop investing any more amount to this policy, then when should we surrender this policy to get at least some profits, say at least around Rs. 4 lac or so for the investment of his hard earned 3 lac since 2008. We know that it all depends on market up down, but can any one tell me how to calculate the fund value of the policy any point of time with out asking the agent or any one?

 

There might be some ways to know the fund amount at any point of time and so that we can take right decision to surrender it. We are not at all interested to go with this plan for next 2 years.

 

So, please let me know the solution. Some are saying the fund will go up may be in next March, and we can surrender the policy at that time and ger much more return.

 

Some are saying to pay at least Rs. 25000 and surrender the policy after 4 years to get much more return?

 

But, I am really confused and just want to know the ways to speculate the growth rate. I think I can do it with proper guidance.

 

So, Please reply your valuable feedback..

Regards.

 

 

 

 

4 replies on this article “Please give me a simple solution”

  1. Sourabh

    I will add to Ashal reply ..

    The only way to know the current worth of your investment at any point of time is by multiplying the unit number (which you know already) X unit price (which you can get from the HDFC website or by logging in) .

    Now its an equity investments and hence the funds value will totally depend on market , if markets are down from now and dont recover in next 3 yrs , then your fund value will not rise amd thats the risk you guys have taken by investing in these policy.

    Did you get your answer ?

    Manish

    1. Sourabh Das says:

      Yes, I can understand the risk involved with these kinds of pension policy now.

      But, would you please tell me if I surrender this policy with in next 6months or so, what would be the most viable option for my father to invest this money.

      He does not want that high % of profit, he wants his money to be safe and secured with assured return.

      He is a senior citizen now, so he can go for short term FD I guess with any bank.

      Then, are there short term plans say for 1 year or 2 years to invest the amount?

      He just wants flexibility to break the amount when he is in need of, but at the same time what some profit at least, not like the present policy where he will get lesser amount then the invested amount if he surrender the policy now.

      Thanks.

  2. ashal jauhari says:

    Dear Sourabh, I can understand the pain & anger you & your father are coping with. You can check the current value of your money from the HDFC Life site. In all probability the account statements should be with you & from these account statements, you may calculate the current value. Please read the policy documents for the surrender charges if applicable at all.

    If possible to you, please post in this discussion how much units of which fund your father has in this policy.

    Without knowing such details, any one of us can’t help.

    Thanks

    Ashal

    1. Sourabh Das says:

      Thanks both of your for prompt reply.

      Would you please tell me the website URL?
      and what do you mean by logging in? I am not a member with the HDFC site. So, please clarify.

      Many thanks,

      SD

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