Four Ways You Can Determine Surrender Value of Your ULIP’s Fund

IndiaFirst Life
• 03 Jul, 2024

A critical aspect to understand about ULIPs, which offer investment as well as insurance, is surrender value. This is the amount you receive if you decide to surrender the policy before its maturity.

As a policyholder, it is important for you to know how to get the surrender value for your policies. Here are four common ways that you can find out the surrender value of your ULIP.

1. Review your Policy Document

The policy document contains detailed information on how the surrender value is calculated, including the charges and penalties applicable. It mentions details about the lock-in period (which is usually five years), surrender charges, and fund value. The surrender value will be determined after the deduction of the surrender charges, whereas the fund value refers to the current value of your investment.

2. Consult Your Insurance Provider

Another effective way to determine the surrender value of your ULIP is by directly reaching out to your insurance provider. Most insurance companies have dedicated customer service teams to assist with policy-related queries. Provide them with your policy details and request the current surrender value.

3. Using a ULIP Calculator

Online calculators can help you determine the surrender value of your ULIP. These plan calculators require inputs such as policy term, premium amount, fund value, and surrender charges.

A regular ULIP calculator usually provides estimates for returns earned from the plan. You may look for calculators that provide estimates for surrender value.

4. Evaluating Fund Performance

The performance of the funds within your ULIP significantly impacts the surrender value. Regularly evaluating the fund performance gives you an idea of the potential returns and the current fund value. This evaluation can be done through fund statements and your online portfolio.

Understanding the growth and returns of your funds can help you better estimate the surrender value, especially when considering the impact of market fluctuations.

Determining the surrender value of your ULIP plan involves understanding the various aspects of the policy. A detailed assessment can help you can make an informed decision about whether to continue with your ULIP or exit early, ensuring that you maximise the ULIP benefits while minimising potential losses.

Disclaimers:

Unit Linked Insurance Products are different from the traditional insurance products and are subject to risk factors. The Premium paid in unit-linked life insurance policies are subject to investment risks associated with capital markets and NAVs of the units may go up or down, based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. IndiaFirst Life Insurance Company Limited is only name of the Insurance & does not in any way indicate the quality of the contract, its future prospects, or returns. Please know the associated risks and the applicable charges from your Insurance Agent or the Intermediary or policy document issued by the Insurance Company. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. For more details on risk factors and terms and conditions, please read the sales brochure carefully before concluding the sale.

IndiaFirst Life Insurance Company Limited, IRDAI Regn No.143, CIN: U66010MH2008PLC183679, Address: 12th & 13th floor, North [C] Wing, Tower 4, Nesco IT Park, Nesco Center, Western Express Highway, Goregaon (East), Mumbai – 400 063. Toll free No – 1800 209 8700. Email Id:customer.first@indiafirstlife.com, Website :www.indiafirstlife.com, Fax No. +91226570600. Trade logo displayed above belongs to our promoter M/s Bank of Baroda and is used by IndiaFirst Life Insurance Co. Ltd. under license.

by IndiaFirst Life
Headquartered in Mumbai, IndiaFirst Life Insurance Company Limited (IndiaFirst Life), with a paid-up share capital of INR 754.37 crore, is one of the fastest growing private life insurers in India in terms of New Business IRP in Fiscal 2023. Our key differentiators are our simple, easy-to-understand products that are optimally priced. As of Sept 30, 2023, we offered 30 retail products, 13 group products along with six riders (across retail and group portfolios), along with policies under the PMJJBY scheme, catering to protection, savings, health and retirement needs of our customers, leveraging multiple distribution capabilities and augmenting various investment options. In all propositions under the categories of Participating Plans, Non-Participating Savings Plans, Non-Participating Protection Plans, Unit Linked Insurance Plans, Group Protection Plans, Corporate Funds Plans, Riders & PMJJBY form a complete suite of offerings that help our customers prepare for the certainties of life. Our products are easy to understand and optimally priced with a developed comprehensive risk management framework/policy.