Rajan Sadhanandam October 16, 2013 Share this interaction Share this Facebook 0 Twitter 0 Dear Sirs, I was duped in to opting for KOTAK Life insurance Second innings policy, with Rs 2 lakhs premium per year, with an oral promise that existing customers were getting 25% returns with aggressive fund etc.paid 2+2+2=6 lakhs in 3 years.sadly fund value was 5.4 lakhs a month back.wanted to exit.they say, they will charge 10% exist charges.is this legal? Thanks-Rajan. Reply to this Response(s) MIC Staff October 18, 2013 : Answered in 1 Day Dear Rajan, If this plan has Surrender Charge, the same would be mentioned on the Policy Document. There can be a charge for surrendering a plan before 5 years. If you have taken the plan, there would be some reason why you had purchased the same. It is a good plan and there is no logic to discontinue your ULIP after 3 years. Read Should You Discontinue Your ULIP after Three Policy Years? Please understand that you should never stop a ULIP before 10-15 years. The entire purpose gets defeated and then you would crib for not good returns. Please understand ULIP investment should be at least for 15-20 years else you would not get good returns. It breaks even over the costs only after the 7th year from the 10th year onwards for sure. Thus, if you need short term 5 years investment, then you must investment in pure investment products like Mutual Funds, etc. ULIPs are very good if it is continued till a very long time. ULIPs are long term plans and most of the policy charges are charged upfront. Even though the charges are usually low in single premium policies, they are relatively higher than traditional insurance policies. But it is always a better deal to continue the plan till the end to get best returns. If you shift from one ULIP to another only because of low Fund Value, let me assure you that you would have the same concern there, irrespective of the plan you opt for. f you had taken the policy from a long-term perspective then you should wait till the end of the policy term because once the markets start performing, your policy fund value will also go up. Do not panic or worry much if the value is not looking good currently.. Submit Reply to this Did you find this useful? 0 0
