I am from India. I have a ULIP(Unit Linked Insurance Plan) which Premium cost me Rs X00000 per year which I started in June 2019. Plan name is ICICI PruSignature.

The plan is for 5 years and I have already paid for 1 year. I am confused about what should I do with it. There is locking period for 5 years.

Should I continue with the plan for 5 years and then discontinue?

Wait for more years and then redeem the investment?

Discontinue the plan and invest in other mutual funds? (Will the bank ask me to surrender the locker?)

I am willing to redeem the amount invested at least 10 years from now.

What are the pros & cons for the above scenarios? I am open to other options as well.

1 Answer 1


With my experience in ULIP, it gives you the benefit of 80C tax saving plus insurance benefit. Apart from this, it gives you a nominal return in 5 years at least more than FD. I would suggest stay invested if you can or atleast for 5 years to break even. If you check the surrender value today, it will be very low in comparison to your invested amount.

  • what I read on internet from various source is that the return is not fix in ULIP at the time of maturity because your money is going to invest into equity market. the available tool online for ULIP return it also calculate your return based on 4% or 8%.
    – N.P
    Feb 5, 2020 at 18:39
  • It is true, the return is variable, and varies from plan to plan. But whatever return it gives, it is over and above of 80C and insurance. Feb 7, 2020 at 12:46

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