Can I stop ULIP after paying one premium for ICICI Pru Assure Life

POSTED BY MadhuBolli ON September 27, 2010 8:29 pm COMMENTS (11)


  Thanks for great inputs and educating us on financial. I regularly browse JagoInvestor and I started SIP’s and took LIC Term Policy.


I was forced to take an ULIP policy ‘ICICI Pru Assure Life’ If I want to decrease home loan interest rate for 2 years(with 1.1% fee on outstanding loan Amount).  So I took this ULIP on my spouse’s name and paid first year premium as 40,000/- when the policy started in December, 2009.    And I think, they could have made huge cut as first year fees from 40k. 

1. Is it beneficiary to discontinue this ULIP policy, as I paid up only one year premium? So that I can invest in MutualFunds?

2. Does the new IRDA rules – to take only minimal fee(Divide the fee across 5 years) – applies to the existed policy and (for me) from secondPremium onwards. Can I get information on this new IRDA rules(which mentions the rules to the existed ULIP policies).

11 replies on this article “Can I stop ULIP after paying one premium for ICICI Pru Assure Life”

  1. Newbee Investor says:

    Hi Experts,

    I am talking regarding my mother’s ULIP policy.

    First Year : Paid 50 K
    Second Year : 50 K

    After 1 month of second installment, my mother expired. Now, ICICI gave us 48 K.

    Is it normal ???
    Full 50 k , they enjoyed for one year.

    I agree with all technical rules and conditions about PAC and bla blaw. But in our case, we did not close the ULIP by our own wish.

    My mom left us because of natural medical & clinical reasons. At this moment, i strongly recommend people to not to go for ICICI and never ever take a telecalling call.

    Is it not being “oversmart”//

    Why why why … i am asking , why do we need to be so dodgy in all fields.

    1. Ramesh says:

      I think you will get the Sum Assured in that policy and not anything related to the fund value. Unless, there is a clear-cut statement that you will receive your premiums @ x rate of interest.

      Whatever, you need to see the documents of the policy. Contact the ICICI Pru helpline, they will tell you the details?

    2. Investor says:

      I got pulled into it. One of the Stupid Stupid decision i made as well. Very high charges, less than 1.8% return on yearly 2L investment, brokers make huge money. India is very corruptive known mkt.

      1st yr my net amt is 1.84L 16k is charges.. after 4th yr these fees got reduced to 7K.

      Bunch of idiots we have to avoid in our life, this is one of them.
      Please do not invest in ULIP, Especially prudential.

      Good luck.

      1. Thanks for your comment Investor

  2. This policy looks similar to Bharti Axa Aspire life where there is a First year deduction of 100% premium & this is given back to policy holder at the maturity with some guarantee may be 60%. So this turns out to be 2.5% return in 20 years, is it worth to pay more premium for such amount – take your own call.

    Click on the illustration in the end of the article.

  3. Madhu

    There is no need to intimate insurance company – there is no process to convert this policy. If you ask some agent he will again take you for a ride.

    Even a mistake may turn out to be the one thing necessary to a worthwhile achievement. So have you learned something from this financial mistake?

  4. MadhuBolli says:

    Really, I’m stupid. I checked the PAC(Preimum Allocation Charges) for my policy now .. And I shocked !!! For first year, the PAC is 100%. Nothing is invested from my first premium…

    The policy is – ICICI Pru Assure Life.

    When I approached first time, the agent given details of another policy like ‘ICICI Life Stage….’… ANd second time, when I approach agent to sign it, he might have inConfusion/intentionally gave this policy document to sign and I didn’t read it second time.. Something messy happened and I lost it.

    Anyway, I want to stop this policy b’coz instead of paying the other premiums(for 2nd and 3rd year, the PAC is 10%) , I can invest in Mutual funds where there are no charges.

    To stop this, Do I need to intimate them (with an closing application) or just leave it without paying any premiums?? And can I do any extra benefit with this policy like – converting this to ICICI term policy OR anything I can get money after 15 years.

    Thanks for all who suggested with your replies..

    1. It can’t be 100% PAC in 1st year. The company might returns your full first year premium with interest on maturity, but ONLY when if continue your policy. Still, check out with customer care department. They have all details.

      Hope it will help you.

  5. Hemant B says:

    One of the most mis-sold policy is ULIP:

    * After First Year premium: ULIPs are very expensive product and bit tricky in its calculation. The expense varies anywhere from 20% to 70% of first years premium. Do check the same and if you find those heavy expenses, say thanks to your Agent & get your insurance bond laminated so that not only you but others also don’t make such financial blunders in life.

    How to exit insurance policies

  6. prabeesh says:

    First thing you should do is to make complaint against who ever sold you this product by force,send a mail to manager or his senior and if you dont receive any reply you can contact Banking Ombudsman.

    If you dont understand the ULIP its better to stop the premium.The surrender only can be done after 3 years in most cases. And you might get nothing back… again if you dont understand ULIP dont pay any more premiums

  7. Can’t comment on plan as I could not get its brochure. The company has already closed the plan.

    The new rules does not apply to existing policies / customers. Insurance is a legal bond between the company & the insurance company.

    Just check with the company, in written, that if you stop your premium now, & you do not surrender your policy, what will you get after 3 years.

    As such there were no specific guidelines by IRDA previously.

    Hope it will help you.

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