Surrender Charges for Old ULIP

POSTED BY Mahendra Rathod ON December 14, 2012 5:34 pm COMMENTS (6)


I had bought an ULIP from Metlife in 2007. This was before new IRDA guidelines on Surrender Charges.

So, should the old (exorbitent) surrender charges still apply to my policy?

Please advise.

6 replies on this article “Surrender Charges for Old ULIP”

  1. Yes old rates will apply , the new changes are only for those policies which came into effect after the rule !

  2. I think you should stop worrying about it and get out of the ULIP. Its been 5 years so you wont lose as much. Everybody makes mistakes, loses money, lives and learns. Its part of life.

  3. Mahendra Rathod says:

    Thank you for answering my question

    I contacted the Metlife customer care, they said, since my policy is before the IRDA guidelines , the old rates will apply to. That would mean, surrender charges for me would be

    100% – year 1
    90% – year 2
    80% – year 3

    What i dont understand is that why would IRDA create such unbalanced regulation.

    The regulations were created to safeguard interests of common investors like me, who were being charged exorbitant amounts by ULIP companies. So these regulations should apply to old as well as new ULIPs.

    So, please advise, if there is better way to salvage my “Mis-investment”.

  4. If you referring the 2010 guidelines the govt gazette says it will apply only to policies cleared by the IRDA after the date of issue of the guideline

    search for
    “Treatment of Discontinued Linked Insurance Policies Regulations, 2010”
    and see the govt gazette copy in the IRDA website

  5. Anand says:

    Please check the ‘SCHEDULE OF CHARGES’ in your policy document.

  6. albertmorison says:

    Yes surrender charges still apply to your policy

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