Life Insurance: V Philip

I have paid two annual premiums of Rs 40,000 each for a unit-linked insurance plan (Ulip) which is currently in loss. I also recently came to know of the high charges levied, which weren’t explained to me by my agent. I want to cancel the policy. Can I do so and get my money back? If yes, how do I go about it?
You can cancel a policy within the freelook period — usually 15 days of receiving of the policy bond — in accordance with the mandated guidelines. If you wish to cancel after this period, you can only surrender it according to the conditions mentioned in the policy document. As you have bought the policy prior to the new guidelines on Ulips, you can surrender it only after the payment of three annual premiums. For surrendering, you would need to inform your insurer in writing, through a form available on the website of most insurers and on payment of the respective surrender charges. These charges would vary across different products.

Coming to your concerns about returns from a Ulip, you have to realize that it is a long-term investment product and the charges during the initial years get compensated in the longer run. So, it is advisable to stay invested and carry on with your policy. Also, two years is a very short time to judge the returns of any Ulip product. I would request you to check the company’s website and track how different Ulips and respective funds have performed over the years. Though past performance is not necessarily an indication of the future performance of any of these funds, it would at least give you a trend of how they have performed over the years.

I am working as an insurance agent. If I leave the company after five years, will I still receive the renewal commission on the policies sold by me earlier?
According to the Insurance Act, 1938, renewal commission is payable to an agent who has served a life insurance company for at least five years and has generated a minimum business of Rs 50,000 for the insurer, as of a year before he ceases to be an agent. The renewal commission payout will be a maximum of four per cent in all cases. However, if the agent has served for at least 10 years, there is no limit on the same. Remember, the commission is not payable if the agent has been terminated on grounds of fraud.

The writer is the CEO of Bajaj Allianz Life Insurance. The views expressed are personal. You can send your queries to yourmoney@bsmail.in