Ulip child plans give higher returns॥

Will the new Ulip guidelines be applicable for policies bought in 2007-2008, for surrender charges, surrender value, premium allocation charges, fund management charges etc?

-VK Jain

New Ulip guidelines are applicable for all fresh (new) policies purchased on or after September 1, 2010, after the new norms came into effect. Policies purchased before this will continue to be governed by the contractual terms agreed at the time of purchase.

Should I continue paying premium for the Ulip that I bought three years ago?

-Pooja Sharma

Yes. Ulips maximise benefits over the long term and you must continue for the maximum tenure subscribed in your plan. Key differences between old Ulips and new ones are spread of charges, which can now be done via the policy term, reduction in surrender penalty and increase in lock-in period from 3 to 5 years. After three years, a greater part of the premium is invested, to the policyholder’s greater.