What should I do? Having Aviva freedom life insurance policy from 6 years

[Sameer Khan]

I am also having this policy and getting no result from it . I am getting 2500/- hike in total investment of Rs. 162500/- in a six years. If I invested in post office or FD than I will get much more benefit. I suggest that don't buy these fake policy as selling by their agents and company not taking any responsibilities. My policy number APF3021295. If I request for surrender than it become loss in principal. What should I do? Please suggest.

[Matrix]

This plan is a Unit Linked Insurance Plan and has 9 investment fund options and 2 investment strategy options.

If the policy holder stops paying the premium after 5 years, then the accumulated policy fund amount till the date of discontinuance shall be paid to the policy holder and the policy will terminate immediately.

901
Source - moneycontrol (http://www.moneycontrol.com/insurance/ulip/aviva-life-insurance-AV.html)

Can you please tell in which fund you have invested in and what is the return as per above website?

[Sameer Khan]

This is the fund value
1. Enhancer fund : 50% investment of premium / current NAV 16.78
2. Growth fund : 50% investment of premium / current NAV 15.01
The premium amount Rs. 12500 half yearly. Total policy term 10 year, policy start date August 2010.
total invested Rs. 150000 in six year and now return value Rs. 16066.
should I switch the fund or withdraw the policy?

[Sameer Khan]

Thanks for reply
please find the revised fund
1. Unit linked Enhancer fund - II
2. Unit linked growth fund - II

[Matrix]

902

My observation:
1- The premium allocation charge for this plan is high in the initial years but it falls to 2% from the sixth year. So as per your query now you get more out of your investment.

2- If you have critical illness rider, it covers 18 critical illnesses under it. Which is good

3- Life enhancer fund is best fund but please note it's positioned for high-risk appetite investors, due to its high equity exposure.

4- Equity Market is now down that also has an impact on your NAV.

5- ULIPs give return in long term but they are not substitute of MFs because they also provide life insurance and critical illness in this policy.

[Lucifer656]

Thanks for you