Query corner: Insurance

By: Pankaj Mathpal, Managing Director, Optima Money Managers

Ulip & Returns

I had invested Rs 15 lakh in a Birla Sun Life policy and the present value is Rs 12 lakh. The value of my money is continuously eroding, which should not be the case. Kindly advise. - Deepak Bhatia

Performance of market-linked policies depends on the performance of underlying assets in the fund. In such policies, returns are not assured and the investment risk in investment portfolio is borne by the policyholder. There are multiple fund options available in Ulip and policy holders can choose the fund based on their risk appetite. Updated NAVs of all funds are available on the website of the respective insurer.

HIV & New Policy

During medical tests before buying a new policy if a person is tested HIV positive, what will be the impact on earlier policies taken from the same company? Are there any term plans available for HIV positives? - SK

The insurer will not issue a fresh life insurance policy to an individual who is diagnosed with HIV during pre-insurance medical test or otherwise, but it will have no impact on the earlier policies issued by the same or any other insurer, if the earlier policies were not acquired by suppressing any material fact or by providing any incorrect information.

Transfer of Policy

I had invested in one LIC policy in 2004 and I have been paying my premium regularly until this year. I had taken this policy from Ahmedabad and now I reside in Mumbai. I wish to withdraw this policy now and wish to know if I can do it from Mumbai itself and the procedure. - Prashant

If you want to surrender your LIC policy in Mumbai then you can request your present LIC branch in Ahmedabad to transfer your policy to your nearest branch or any other branch of your choice in Mumbai. Once policy is transferred to Mumbai then you can surrender it by submitting the surrender application form along with original policy document to the servicing branch.
(Our expert guides you in matters relating to insurance. Email to etqueryins@indiatimes.com)