Advice on ICICI Pru - Life Time Super Plan?

[rsharma]

I have bought ICICI Pru - Life Time Super (Maximiser) Plan in 2008. Now it's reaching to its locking Period of 3 years now. Please advice me - what to do with this plan? Should I continue or surrender it after completion of three years. At present my fund value is 1,20,000/- On an Investment of 1,50,000/-.

[PolicyWala]

I would advice you against surrendering this pension plan. Better maximise the return by using various Fund options available with ICICI Pru LifeTime Super Pension Plan. You will get 96% of the fund value if you are surrendering it with in three years. Also read - http://www.policywala.com/content.php/206-Surrendering-your-insurance-policy-check-income-tax-provisions!

[Madhura]

Pension is not for short term.. it's long term wealth creation. Your ulip has invested in shares for long term, in three years you won't be able to judge the return. Please wait and use fund switch options.

[v.r.s.nathan]

I have bought ICICI Pru - Life Time Super (Maximiser) Plan in 2008. Now it's reaching to its locking Period of 3 years now. Please advice me - what to do with this plan? Should I continue or surrender it after completion of three years. At present my fund value is 1,20,000/- On an Investment of 1,50,000/-.

Please remember that ULIPs are structured in such a way that they are beneficial ONLY if invested for more than 8-10 years.
You will be exiting from your ULIP after just 3 years..right. This would make it very costly as you have already paid high front-end charges to the insurer. Post 3 years the charges are less and therefore you build up units at a lower cost. If you don’t want to keep paying premium, check with customer care of the insurer, if you can continue policy in 'premium holiday' mode. The policy will continue in ‘Premium Holiday’ mode for a maximum period of five years. If you want to continue the same policy within five years, you may recommence by paying regular premiums from the date of the first unpaid regular premium. Upon such recommencement the Premium Holiday Charges will cease. If you are not in a position to recommence paying Regular Premiums within five years from the date of the first unpaid Regular premium, you may write to the company to continue the Policy on Premium Holiday subject to their approval and if they (insurer) won’t approve it, surrender the policy.