I am sorry to use these words in the Title but at age 48 after paying 4 premiums of Rs 50000 each I am told that I have to pay for another 37 years (till age 85). When the agents (abn amro) visited in 2006 when Sensex was at 10000, they showed a table which showed a good earning based on 10 % returns and told me that we can stop paying after 3 years. Now it turns out that we have a redemption charge of about 40 percent of value of units accumulated at due date when we stop paying the premium.
The funds not only perform badly but switching every time costs around 1% of switch value and very cleverly every year when we make the premium payment the distribution is done as per the first years mandate ( 60 % balanced and 40 % growth in my case)
I really feel cheated to have been a policy of this long premium term at this age. interestingly the policy document does not mention any % redemtion charges (or surrender charges) when I enquired I am told this is decided by company. The abn amro fellows have dissappeared and no longer support you on ths policy.