grow, as the NAV grows.
Surrender charge means the fee to be paid by the policy holder if he surrenders the policy before the maturity period. Usually this is not mentioned at the time you buy the policy as the agent conveniently states that you will receive the NAV of the scheme for the number of units in your account. But this is not true in many cases, as you will be required to pay a fixed surrender charge if you do not stay with the policy till the maturity. This can work out to be quite a sizeable amount. It is therefore always important for you to know the maturity period of your policy and what you will have to shell out as surrender charges if you withdraw the amount before the maturity period.
General terms and conditions
Every insurance policy has several terms and conditions attached to it. These terms are generally not given importance by the policy holder and it is not mentioned by the agent as well. However, remember that some of these terms and conditions can actually determine the maturity benefits you receive.
* The writer is CEO, BankBazaar.com