Bajaj Allianz ULIP plans offer the flexibility of market linked returns on your investments and life insurance cover for you and your family. https://www.bajajallianzlife.com/ulip/ulip.jsp
2. If you were miss-sold Ulips, exit
when surrender cost is zero
3. Unfortunately the plan you bought is a high cost unit-
linked insurance plan (Ulip). These have now been
phased out. There is a rational as well as an emotional
response to your predicament. First, the rational view:
Pull together three bits of information—current surrender
charge, the year when surrender charges get to zero and
future annual charges.
If future annual charges work out to less than 2% of the
fund value per annum, then you are probably better off
continuing it until maturity. Alternate investments you
make may not be significantly cheaper or have the tax
advantages of this policy.
If the charges are over 2%, then you should close the
plan and invest elsewhere. The important question,
however, is when? If surrender charges are zero, exit
immediately otherwise stop paying premiums and exit as
soon as policy surrender charges become minimal.
Now for the emotional response: I would not want to
continue with a product that has destroyed so much
value and would exit the policy when surrender costs are
zero, even if the annual charges or returns are
4. You have already lost considerable value in this Ulip and will
lose an additional Rs.34,000, or about 15%, of the fund value
if you surrender your policy now. Do not throw good money
after bad. I suggest that you stop paying future premiums and
let the policy deduct charges from the existing fund. Surrender
the policy in the year the surrender charges reduce to zero or
a minimal value.
You must definitely buy a term plan. This is the most cost-
effective way of purchasing life insurance and securing your
family’s financial future.
