When should I exit the ULIP?

POSTED BY Mayank Bangia ON February 4, 2011 5:40 pm COMMENTS (3)

 

I have 3 ULIPs:

1. ICICI Pru LifeTime – 5 premiums of 18000 paid

2. ICICI Pru LifeTIme Super – 5 premiums of 18000 paid

3. HDFC Young Star – 4 premiums of 10000 paid

All of them were bought in FY 05-06.

More details:

I have the following insurance policies:

1. ING Vysya Money Back Plan – Date of issue: 21/09/05. Policy term – 16 years. Sum Insured: Rs.81,970. Annual Premium – Rs.6000. I have paid the premium for 5 years i.e. till Sep-2009. The policy has acquired paid-up status. Should I remain invested or withdraw? What is the amount I will get if I withdraw now?

2. HDFC Unit Linked Young Star Plan – Date of issue: 31/03/06. Term – 10 years. Death Benefit: Rs.1,00,000. Annual Premium – Rs.10,000. I have paid the premium for 4 years i.e. till Mar-2009. The policy has acquired paid-up status. Should I remain invested or withdraw? If I remain invested how much will be deducted every year for charges? Should I go for partial withdrawal? Can I withdraw the full unit value?

3. ICICI Prudential LifeTime Maximiser – Date of issue: 31/03/06. Term – 10 years. Death Benefit: Rs.2,00,000. Annual Premium – Rs.18,000. I have paid the premium for 5 years i.e. till Mar-2010. Should I remain invested or withdraw? If I remain invested how much will be deducted every year for charges? Should I go for partial withdrawal? Can I withdraw the full unit value?

Your advice will be really appreciated. Thanks!

 

Should I remain invested or exit?

Mayank

3 replies on this article “When should I exit the ULIP?”

  1. Mayank

    I will raise some points .

    1. All 3 policies have premium more than 5% of sum assured , which means that once DTC comes next year , you will not be able to claim any tax deductions on the premiums paid

    2. After 5 yrs of completion , you can withdraw all the money , almost all ULIPs have surrender value as full 100% , but still check the brochure

    3. YOu should find out what is the IRR you have got till now from these funds , use IRR tool as explained in this artile : https://www.jagoinvestor.com/2011/02/calculate-insurance-policies-returns-video.html

    Manish

  2. Mayank Bangia says:

    Still waiting for some advice on this

  3. Mayank Bangia says:

    No one??

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