Is a ULIP a good investment/insurance tool in India?if so pls explain why?

has anyone hand any experience with max new york life insurance? are they a good company?
Pls refer me to a website where I can do further research if relevant.

Life insurance covers lots of different things. Since I'm from Virginia I'm not familiar with the New York laws and regulations, so I suggest you call a nearby life insurance agent. http://www.usinsuranceadvisor.com/Life-Insurance.html They will be able to assist you.

Life Insurance, of any kind, ARE NOT INVESTMENT TOOLS! They benefit the agent more than the client.

New York Life is a good company, but stick with a term policy (pure insurance) and mutual funds (pure investment). You will get better returns on your money, lower fees, and more coverage for less money.

not at all ULIP is profitable only for the company who sells it instaead go for a mutual fund and standalone insurance seperately as they will benefit you. due to cost of admin in ulip is much higher than mutual fund same with the standalone insurance as well. save urself from fake promises and graphs from the sales peaple

If your investment horizon is of more than 10 years, ideally 15 years, then ULIP is a good option. it will give you good results.

All administrative charges and fees are recovered by the insurance company in the first three years hence if you withdraw within first 3 to 5 years, you would end up a loser.

Compare the administrative charges before you invest in ULIP. As per my knowledge LIC has the lowest charges.

4 resons

1. Insurance cover plus savings

To begin with, ULIPs serve the purpose of providing life insurance combined with savings at market-linked returns.

To that extent, ULIPs can be termed as a two-in-one plan in terms of giving an individual the twin benefits of life insurance plus savings. This is unlike comparable instruments like a mutual fund for instance, which does not offer a life cover.

2. Multiple investment options

ULIPs offer a lot more variety than traditional life insurance plans. So there are multiple options at the individual's disposal. ULIPs generally come in three broad variants:

*

Aggressive ULIPs (which can typically invest 80%-100% in equities, balance in debt)
*

Balanced ULIPs (can typically invest around 40%-60% in equities)
*

Conservative ULIPs (can typically invest up to 20% in equities)

Although this is how the ULIP options are generally designed, the exact debt/equity allocations may vary across insurance companies. Individuals can opt for a variant based on their risk profile.

For example, a 30-year old individual looking at buying a life insurance plan that also helps him build a corpus for retirement can consider investing in the Balanced or even the Aggressive ULIP.

Likewise, a risk-averse individual who is not comfortable with a high equity allocation can opt for the Conservative ULIP.

3. Flexibility

Individuals may well ask how ULIPs are any different from mutual funds. After all, mutual funds also offer hybrid/balanced schemes that allow an individual to select a plan according to his risk profile.

The difference lies in the flexibility that ULIPs afford the individual. Individuals can switch between the ULIP variants outlined above to capitalise on investment opportunities across the equity and debt markets. Some insurance companies allow a certain number of 'free' switches.

This is an important feature that allows the informed individual/investor to benefit from the vagaries of stock/debt markets. For instance, when stock markets were on the brink of 7,000 points (Sensex), the informed investor could have shifted his assets from an Aggressive ULIP to a low-risk Conservative ULIP.

Switching also helps individuals on another front. They can shift from an Aggressive to a Balanced or a Conservative ULIP as they approach retirement. This is a reflection of the change in their risk appetite as they grow older.

4. Works like an SIP

Rupee cost-averaging is another important benefit associated with ULIPs. Individuals have probably already heard of the Systematic Investment Plan (SIP) which is increasingly being advocated by the mutual fund industry.

With an SIP, individuals invest their monies regularly over time intervals of a month/quarter and don't have to worry about 'timing' the stock markets. These are not benefits peculiar to mutual funds.

Not many realise that ULIPs also tend to do the same, albeit on a quarterly/half-yearly basis. As a matter of fact, even the annual premium in a ULIP works on the rupee cost-averaging principle.

An added benefit with ULIPs is that individuals can also invest a one-time amount in the ULIP either to benefit from opportunities in the stock markets or if they have an investible surplus in a particular year that they wish to put aside for the future.

Insurance business is regulated by IRDA. The amount invested in Insurance is allocated to Sovereign bonds and if the investor wishes, in equities.

They are safe and safeguarded by the IRDA. Nearly 80% of the premiums are invested safely in Govt of India Bonds. It is just to safeguard the interests of the common man.

Whereas, even though the ULIP is or might have been an government institution, failed miserably and lost its charm.

Insurance is better, tax benefits are available.
Even, here,take care before you invest. The returns and the conditions of the policies are very UN reasonable. Beware.

if u want to go in for investment in ULIPs purely for insurance , dont. the administrative charges in all ULIP schemes of all insurance comanies are too high. go in for plain insurance from any insurance company. no ULIPs,.

GO FOR LIC JEEVAN ANAND POLICY INSTEAD OF ULIP AS THERE ARE DEDUCTIONS OF ADMN CHARGES IN ULIPS AND POSSIBILITY OF LOSS IN THE PRESENT SCENARIO OF SHARE MARKET

IN JEEVAN ANAND POLICY YOUR RISK IS COVERED EVEN AFTER TAKING THE MATURITY AMOUNT

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.004
Copyright (c) 2011 Financial Crisis Sunday, May 27, 2012 - Terms of use - Privacy Policy