Tax on withdrawals from ULIP for NRI

Dear Ashal,Thanks for the reply.Some hope.Details are as follows.Would like to know best path forward.Policy: ICICI LIFETIME. Started on 24th Aug-2004,premium 20000 per month. Sum assured to begin with was 1 lakh. 100% in maximiser fund.Within a year, of the policy the insuranse coverage was increased to 11 Lakh. In Nov 2007, I shifted the whole amount to PROTECTOR fund, (Approx. 13.20 Lakhs). However monthly premiums were continued to go into maximiser fund.As on date,Maximiser fund: Units= 3431.26 @ NAV of 51.11 & Protector fund: Units= 83015.91@ NAV of 16.46.I'm NRI, premiums paid thr NRE A/C. Request tax and insurance experts to suggest best path forward. I want to withdraw the amount and have written to stop further premiums.Best regards,Prahlad.

Dear Pralhad, For ur monthly prem. of 20K (annual prem. of 2.4L) the minimum sum assured should be 12L Rs. as i mentioned earlier. Now as u have stopped ur future prem. it `ll be nice on ur part if u increase ur cover from 11L to 12L. If it is not possible, don`t worry. Here is ur calculation,
A. Sum assured = 11L (as u increased it in the 1st year itself)
B. annual prem. @ 20% of A = 2.2L
C. Excess prem. paid = 20K
D. Total annual prem. paid = 2.4L
E. %age excess prem. of annual prem. = 20/240*100 = 8.33%F. Total fund value as on date (arrived from the data posted by u) = 15.42L appx.
G. Taxable surrender value = 8.33% of F = 128450 appx.
H. Hence Tax free surrender value = F-G = 1413550 appx.In the current year, if ur resident indian income from all other sources is almost nil, u may even sat off ur taxable surrender value against basic exemption limit of 1.5L for under 65 age male tax payee. I hope above info `ll be useful to u. Feel free to ask if u need more help.

Thanks

Ashal...