ULIP surrender

POSTED BY Ramprasad ON August 7, 2012 12:03 pm COMMENTS (5)

Hi all,
I had misbought AVIVA ULIP in 2007 for yearly premium of Rs.75000.
so far I have paid 5 premiums. This is 6th premium year and I don’t want to continue this.
Current surrnder value is 295000(loss of 80k).

Should I surrender this now or do I need to wait till market goes up and my surrender value goes up to reduce the loss?

I have taken a term insurance now.


5 replies on this article “ULIP surrender”

  1. Ramprasad says:

    Hi all,
    Thanks for the replies.
    I am already investing in 4 MFs(18k per month). So is it good way to surrender and invest in FDs?


  2. BRSINGH says:

    If you strongly think that you have misbought the policy then its better to surrender and invest in equity mutual fund.

  3. Ramesh says:

    How have the underlying funds performed? check their performance against others and their respective benchmarks.

    There are no black or white answers.

  4. BRSINGH says:

    Better surrender it and do a fixed deposit for few years to recover that amount. Otherwise invest it in mutual fund.

  5. While you can surrender this because you want to get rid of this now , but the other way of looking at it is that you need to be in Equity now and markets are in good position from long term view as they are down from last 5 yr , so one option is to stay with it in 100% equity option , but you can also sell it and transfer money to pure equity mutual funds.


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