@ Annapoorani – ULIPs typically should be seen as a long-term investment. So, either you can hold on to your ULIP plan (based upon your planned financial needs) or ditch it to buy a term cover and a mutual fund. Also, consider the charges that are currently applicable under your plan, performance of your ULIP, sum assured, etc. and then decide upon your course of action.
Shalin Tejpal Jain also commented
- Yes… You can buy term plan from the same insurance co. If it’s a term plan, also check online term insurance plans. They’re relatively cheaper. Also ensure to compare the term plans of a few insurers before buying one.
- @ Kedar – When did you buy this ULIP plan? If it’s after Sep. 2010, there will be a minimum premium payment term of 5 years, otherwise 3 years. If you stop your premium payment prior to that, your policy will go in to lapsation stage and after 2 years, surrender value will be provided or paid premium will be shifted to insurer’s policy discontinuance fund.
- Most of the general insurance policies including health insurance policies have a “deductibles” clause like the one you have mentioned above… If not, the premium will be relatively higher and a few more T&Cs will be included. Insurers typically do these to avoid fraudulent claims…