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POSTED BY ON September 6, 2011 3:36 pm COMMENTS (2)
Hi,
i bought a Birla sun life ULIP on Sep 30 2010.And now i want to surrender the plan, i have payed a monthly premium of 3033 for 12 months.Now when i ask them what amount would i get back they are telling i will not get any amount back.Is this true or is there any other way that i can surrender my policy . please help
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Dear Sreekar, there have been some changes in the ULIP guidelines….tried to consolidate a few for you….as per my opinion, your money is safe and can be withdrawn at the completion of 5 years since you bought policy on September 30, 2010. Would further suggest if you share the name of the product, we can get it checked on the same and provide our views for better understanding. I hope below mentioned points will throw some light and provide some clarifications.
Regards,
DP
The new guidelines come into play on 1st Sep 2010 for ULIPs.
1) Extended the minimum LOCK-IN term to five years before which a policy can’t be surrendered. [ Earlier it was 3 years now ]
2) IRDA has proposed draft regulations that cap surrender charges at 15% of fund value on surrender date, down from earlier regulation (till CY2009), which allowed up to 100% surrender charges in the first three years.
3) The company is expected to hold lapsed policies for a period of three years in a ‘lapsed fund’ that earns interest at current savings deposit rate and must disclose provisions against lapsed and surrendered policies.
4) During the 5 years LOCK-IN period, no residuary payments on policies which are lapsed, surrendered or discontinued will be made. The residuary payments for policies arising out of policies which stand lapsed, surrendered or discontinued during the lock-in period shall be payable on the expiry of the lock-in period.
Sreekar
They are partially right .. its not that you will not get any money .. but you will get some money at the end of 3 yrs (as its a locking period) . You will have to look at their policy document and see the rules for surrender before 3 yrs .
Manish