Timing The Market

When you decide to exit your unit linked insurance plan (ULIP), your policy would be redeemed at the current Net Asset Value (NAV) of your units. Before exiting ULIP, do not forget to check market sentiments and behaviour. It is not advisable to exit your unit linked plan, when the market is low, as it will bring you lesser returns.

When You Should Hold On To The Policy?

Insurance policies, particularly unit linked plans, will provide you better returns in the long run.

By the time your policy matures, more and more benefits gets attracted to it. So when you are approaching the maturity of your policy with around 3 to 5 years remaining, it is advisable to hold the policy.

Whenever you plan to exit an insurance policy and wish to reinvest the proceedings in other investment options; be wise enough to choose those options which not only provides superior returns but also will compensate for the losses that you incurred while exiting the insurance policy.

Also remember, not to exit your life insurance policy when you don't have any other life insurance cover. Your life must be covered at all times.

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