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

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Four Ways You Can Determine Surrender Value of Your ULIP’s Fund
January 12, 2024

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In this policy, the investment risks in the investment portfolio is borne by the policyholder  

Unit-Linked Insurance Plans (ULIPs) offer the dual benefits of life coverage with investment opportunities. These plans have become a popular financial tool since they empower you to build a corpus for the future while protecting your family’s finances in the present. However, evolving financial circumstances could mean you have to surrender your ULIP earlier than anticipated. Determining the fund’s value helps you plan your finances. Let’s explore four ways to calculate the surrender value of your ULIP fund.

How to Check the Surrender Value of Your ULIP Fund

Check your ULIP Policy Documents

The most straightforward way to determine the surrender value of your ULIP is by referring to your policy documents. Your policy documents contain detailed information about the surrender value calculation method, including any charges or deductions that may apply. Always read and understand the information provided before investing or purchasing a plan. Your policy documents also outline your life insurance coverage. The sum assured will offer your loved ones financial assistance in your absence.

Contact Your Insurance Provider

You can contact your insurance company for information about your policy and the surrender value. Call the company’s customer service helpline or contact your insurance agency to understand the policy’s surrender value. The company can provide updated and accurate information based on your policy’s terms and conditions.

Online ULIP Calculators

Many insurance companies offer online ULIP calculators on their websites. These calculators are user-friendly tools that allow you to estimate the surrender value of your ULIP. It uses the policy term, premium amount, and investment tenure to calculate the amount. Online ULIP calculators provide a quick and convenient way to get an approximate surrender value. However, the value may not be entirely accurate. The calculator cannot account for all policy-specific variables and charges. Always verify the results with your ULIP provider.

Consult a Financial Advisor

Surrendering a ULIP could have a significant impact on your finances. Seeking the guidance of a qualified financial advisor can help you make an informed decision. A financial advisor will evaluate your goals, risk tolerance, and other investments and assess the impact of surrendering the plan accordingly. Working with a financial advisor ensures you receive personalised advice. They can help you weigh the pros and cons and explore alternative investment options that align with your financial objectives.

Identifying the Best ULIP Plans for Your Needs

Every investor aims to maximise the benefits of their ULIP. You can evaluate the following factors to identify the ideal policy for your needs:

Investment Goals

List your future financial goals and determine how much you require to meet them.

Assess Your Risk Appetite

Consider the level of risk you are comfortable taking. Identify ULIP fund options that help you meet your goals while staying within your risk profile.

Compare Plans

Compare the fund options of various ULIP plans and identify the one that suits your goals and risk appetite. 

Assess the Life Cover

ULIPs also offer life insurance coverage. Assess your family’s financial needs and determine the life coverage required. Look for ULIPs that offer a sum assured that meets your needs.

Determining the surrender value of your ULIP helps you make informed decisions about your investments. Understanding the financial ramifications of surrendering the policy empowers you to take control of your finances.

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ARN - ED/10/23/5852

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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Disclaimer

The Unit Linked Insurance products do not offer any liquidity during the first five years of the contract. The policyholders will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of fifth year  

For more details on risk factors, associated terms and conditions and exclusions please read sales brochure carefully before concluding a sale. Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the 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. HDFC Life Insurance Company Limited is only the name of the Insurance Company, The name of the company, name of the contract 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 of the insurer. 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.

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