Thursday, April 28, 2016

Surrender Lifetime Pension II

 Lifetime Pension Plan II is a Unit Linked Pension Plan (ULPP)
 

Lifetime Pension Plan II is a Unit Linked Pension Plan (ULPP). It allows you to invest money regularly to build a retirement fund and buy an annuity with it when you want to retire. If you want the money now and you are not keen on buying an annuity with the corpus on maturity, you can consider surrendering the policy. Since you have completed 10 years, there will be no surrender charges. The surrender value will be the same as the fund value at the time of surrender. However, the surrender value would be taxed as per the income tax slab applicable to you.

We do not recommend insurance plans with investment element in them. Such plans are costly, they have many charges, they do not offer adequate life insurance cover and they are also not ideal investment products. That is why we believe that individuals should keep their insurance and investment needs separate. They should buy a pure term plan to get an adequate life insurance cover and invest in equity mutual fund schemes to achieve their long-term financial goals.

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