1. Though it is being advocated to surrender the Unit linked investment plan (ULIP) but each coin has two sides and we must have the other side of story before making a decision in haste and same is listed below:

2. Each surrendered ULIP policy gets a surrender charge levied.

3. ULIP helps to achieve the goal planning like child marriage or education ets.

4. It makes saving a cumpolsory habit.

5. One has the option to determine the risk profile and choose between balanced, liquid and debt funds.

6. Debt oriented ULIP take greater time to break even the cost.

7. Equity fund can be flavour of the year as stock prices are down.

8. One has the option to switch between equity and debt and vice versa and one has the option to make use of this option as and when market goes up or goes down.

9. ULIP has to be considered for minmum 13 years as historically it has been proved that ULIP gives better returns than mutual funds but if kept for greater than 13 years (excluding mortality charges).

10. Thus you now know both plusses and minuses of ULIPs and thus consider before closing a ULIP. However it is advised not to open new ULIP accounts.