I now have a Term Plan. What to do with policies that I think I incorrectly purchased earlier?

POSTED BY Prabhu Sugumaran ON November 13, 2012 4:13 pm COMMENTS (4)


I neeed some advise on what to do with my ULIP and endowment policies.


I recently took a term policy for 1C from two insurance companies : Kotak and AVIVA 


Prior to this I had taken the following policies which are still in force


  • Enahanced AVIVA save guard : yearly Premium 12,000 | Sum Assured : 1,20,000 | Total Premiums paid : 84,000 | Current Surrender Value : 83,000| Fund Value : 87,000
  • AVIVA Save Guard: : yearly Premium 30,000 | Sum Assured : 2,25,000 | Total Premiums paid : 1,50,000 | Current Surrender Value : 1,26,000| Fund Value : 1,26,000
  • Tata AIA Life Mahalife: Yearly Premium : 34,000 | Sum Assured : 5,00,000

I  purchased TATA AIA Mahalife in the year Jan 2007. I have to be paying this premium for 12 years in total. I was told by the Agent that after the maturity the yearly payment of 28,000 till maturity date – year 2082 or till any eventuality.I have already payed six premiums.


I would like to hear from the JI community whether it is sensible to continue with the above policies as I have now a term policy. Reading articles on JI, I feel that I made a mistake in opting for the above as I started my career and the Agent used my ignorance to sell me those alluding to Tax saving aspect of it. Particularly the TATA AIG policy, is it worth shelling out 34K for 5L insurured amount and a 28K yearly payout(with inflation this would amount to nothing down the years)


Please advise.





4 replies on this article “I now have a Term Plan. What to do with policies that I think I incorrectly purchased earlier?”

  1. Dear Prabhu, what’s the update on the matter from you?



  2. Dominic Prakash says:

    If your TATA policy was taken in 2007 then you might have crossed the lock-in period. You come out as you wish. If you have already paid the premium for the current year you can wait for slight market up swing.

  3. Your policies are not new , means that they have good enough surrender value now . You are not like other investors whose money is stuck in ULIP under lock in period etc etc . So you can surrender these plans .


  4. Dhinesh Kumar says:


    Since you want to come out of the ULIP , you can surrender the policy by checking out the Fund value and the surrender charges in the Plans.As for as TATA plan make sure what you will get if you surrender, otherwise still you have paid at least half the term , do continue that policy.

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