3. Surrender Charges

The surrender charge is another aspect which an advisor never mentions during the buy. The agent usually promises that the total NAV of the plan will be paid to the investor in case the policy is surrendered before its maturity. Though, this is not the case in majority of occasions. All companies do impose a fixed surrender charge if the policy does not reach its maturity. This charge can be a quantitative amount, considering the fact that the plan is held for 10 years or more and surrendered before maturity. Thus while buying a plan one must carefully check the maturity period specified for that plan.