Dear All 

I have following ULIPs which are done purely for investment purpose.

1. HDFC SL Crest – Rs 50000/- per annum – premium paid for 2 yrs

2. ICICI Pru Life Stage Wealth II – Rs 50000/- per annum – premium paid for 2 years

Current market value of both of them is around 90-95% of what I’ve paid.

3rd premiums of both are due in Feb’13 which I’ve not paid coz I dont want to invest anymore. (My insurance part is taken care of by term insurance). But while contacting customer service, both of them said the same thing regarding surrender.

1. If I dont continue for 5 yrs, current fund value will go to discontinuation fund after deducting discontinuation charge.

2. I can revive the policy anytime within 5 yrs by paying balance premium

3. For the next 2 years, my fund will remain with them and I’ll get simple interest compared to that of a SB account. But I’ll get my money back only after completing 5 yrs, i.e. 2 yrs from now.

Now my querries are

1. Is there any other way to get the money now, so that I can invest elsewhere

2. If not, then for the next 2 yrs, I’ll get only 3-4% interest on my investment of around 2 Lakh. Now I’ve 2 choices

a. I can continue with the ULIPs by paying premiums which can give me atleast higher return than SB account, and also give the benifit of compounding.

b. Let the amount be with them with 3-4% interest and invest my surplus money in MF thru SIP (which i’m already doing)

Kindly suggest me the better option. Thanks.