Don't surrender your insurance policy at a loss

If your Ulip was bought before 2010, it would make sense to continue

Ganesh Shankar, 68, was coaxed into buying a unit-linked insurance plan (Ulip) by his relationship manager. The 10-year plan has an annual premium of Rs 1 lakh. When Shankar received the policy statement in the third year, he realised that the value of the Rs 2 lakh premium he had already paid was down to Rs 92,000. The policy had a sum assured of a mere Rs 1 lakh. Now he wants to stop paying further premiums and surrender the policy.

Like Shankar, many don’t realise that with higher age, the premium for life cover also increases and eats into the