ULIP Policy Returns

POSTED BY Jipal Shah ON May 23, 2012 8:54 pm COMMENTS (4)

I have started investment in Tata AIG Life InvestAssure II 5 years ago with yearly 12,000 Rs. I have checked my current value is around 42000 and surrender value is 36000 against the 5 year 60000 invested money. It’s HORRIBLE, loosing hard earn money!

I have taken this policy for 30 yrs premium paying term. I have a premium paying date in every year September, so whenever I pay premium in September, units credited to my account with that day’s NAV. That is too risky compare to monthly SIP.

What should I do ? Can I remain invested for some more year till my surrender value reaches to reasonable amount or surrender this policy right now?

4 replies on this article “ULIP Policy Returns”

  1. TheZionView says:

    For a good ULIP to win the race against the charges built within the premium that your paying should be High and the fund your holding should be Equity.otherwise the charges will eat your money away.

    For 12000/ year is 1000 a month. Most of these policy will have a policy administration charges fixed/month and which increase along the policy years.check your document that alone will be eating away more than 2-3% of your money,add policy allocation charges,Fund Management charges will come to around 7-8%.

    Policy admin charges are usually fixed amount and not a % that is the reason i said your premium should be high

  2. Dear Jipal, in which fund your money is invested? If it’s not in pure Eq. i.e. 100% Eq. move it to that fund right now. To surrender or not ‘ll also depend upon some other factors. What are the surrender charges in this policy? Please read the policy bond in detail & post your findings?



    1. Jipal Shah says:

      Hi Ashal,

      Its pure 100% equity fund “Tata-AIG Equity Fund for Individual Life”. I have paid 5 year premium and came to know there is no penalty surrender charges after 6th year. Currently if I surrender I will get 37000 against paid 60000 Rs.

      I am thinking to pay premium for another 1-2 year so dont have to pay the surrender charges and when the market is good and getting good NAV will sell and close this policy. Please advice.

      1. Dear Jipal, As you have already paid 5 prem. & about to complete the 5th policy year, the surrender charge ‘ll be nil after that. The fund’s performance is also not very interesting. In fact it’s trailing continuously to it’s benchmark (Sensex) for past 5Y or so.

        In my opinion, surrender the policy as & when the 5Y period is over to save on that surrender charge.



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