SBI Unit Plus 2 after 5 premiums paid

POSTED BY Kundana ON October 24, 2011 3:02 pm COMMENTS (4)

Hi,
My mother has been paying rs 50000 per annum in Sbi Unit Plus 2 Regular from 2007 onwards. She has now paid the 5 premiums. Now we do not want to continue in this scheme. What will be the best option? To withdraw completely or to stop paying and leave the amount in the fund till the maturity date.

Please advice as we do not have much insight in this area.
Thanks,
KK

4 replies on this article “SBI Unit Plus 2 after 5 premiums paid”

  1. TheZionView says:

    @Kundana

    As you rightly said “We are pretty ignorant on this” . Many people are and now asking a way out from people is another ignorant thing to do.

    What i would suggest is to read the policy document give to you clearly and understand what are the charges and benefits that are available in this policy. Also what have been the returns so for ,for the invested amount and compare it with index returns to see how your fund has performed. Then determine how bad is it or how you can manage.

    There are many option people here can suggest like

    1.Surrender the policy and accept the loss( which is good as you don’t understand what you are doing)
    2. Leave the amount and let it grow for the policy term and get back what you paid.
    3.Continue the policy for 15 years and you will get better returns.

    But any of this suggestion will only get you of this mess and you will again be illiterate in investment making or financial planning. So start learning about financial planning stuff…start from your ULIP policy document

  2. Kundana says:

    Hi Nandish,
    Thanks for your reply.
    The fund is SBI Unit Plus 2 Regular – 100% in Equity.
    The premium amount is 50000 per annum.
    The policy holder’s age is already near 50 and the policy is for 15 yrs.

    The agent from whom we bought this policy was saying we have to pay 6 premiums if we like to stop paing and he is trying to convince us to leave the amount there without paying further premiums citing we will have insurance benefit and we can withdraw the amount at the end of the policy which is for 15 yrs.

    We are pretty ignorant on this and need guidance on saving our money.
    Thanks in advance,
    Kundana.

    1. Kundana

      What your agent didnt tell you is that there will be still charges cut from your ULIP money in forms of units and your units will go down , your insurance mortality charges are also cut from that and one day when your UNITS vanish because of all this ,. you have nothing in ULIP , so nothing is FREE ..

      Go take out the money , dont think a lot or dont regret , take a term cover and just investing via SIP in long term

      Manish

  3. Hi KK,

    You have not mentioned type of fund in your question. If the policy holder does not understand how the ULIP’s work it should be discontinued.

    It can be surrendered any time after paying 3 years of premium. You will get the fund value after paying 1% surrender charge to it.

    You can go ahead ans surrender this policy. The premiums you can divert in some MIP say hdfc MIP. This will give you better returns and will make things simple

    All the best

    nandish

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