I am facing a problem for which I don’t find any comment and hence writing. I have Aviva Lifelong Growth Unit Linked policy from Oct-2005 and I have paid a total of 4 annual premiums. When I talked to customer service asking them as to what would happen if I don’t pay this year’s premium, I was told that I have time for two years to pay (for both the years together) and until then the policy would be treated as . Also the fund value would be that of the surrender value. But I have not surrendered the policy; why would the fund value become the surrender value? Anyone?
Also, I was told that I need to make at least 5 annual payments and only then I can be availed of the holiday facility of premium, which in effect is nothing but postponing your premium payment by 6 months. But that is really not my concern. My concern now is why the fund value would drop down to surrender value if I stop paying premium now (after having paid for 4 continuous years; lockin period is only 2 years).
Thanks in advance.
Murali