ULIP Insurance Details and its worth........?

Which is better insurance company for ULIP type of insurance?
1. State Bank of India
2. Max New York
3. ICICI
4. Any others please specify...

Kindly give comparison details for ur suggestion...

Why do you wish to go for ULIPs. As per investment experts view, do not merge your investments with insurance.
get a better term assurance at much cheaper premium for guaranteed sum assured to protect your family from financial crisis. And invest the balance amount in 5 star rated mutual funds and see your money grows faster. You can try SIP for monthly investment which is a proven way for better investment.

For any insurance policy or investment
P N KRISHNA MURTHY
CHENNAI,INDIA
pnkmurthy@yahoo.com
I

I entered in ulip mar07 and started with State Bank of India's New Horizon II. Now its return is arround 10.85%

ICICI

4 ULIP ‘sales pitches’ to beware of

At Personalfn, we have always maintained that buying life insurance should not be treated as a year-end ‘tax-saving’ event. Insurance has a vital role to play in just about every investor’s financial planning. Hence, investors would do well to put in an adequate amount of time and effort while buying insurance. The same would entail comparing products from various insurers; also, interactions with insurance advisors would be integral to the process.

Given the trend in recent times, there is a fair chance that the advisor would recommend an unit linked insurance plan (ULIP). In this article, we present 4 ULIP ‘sales pitches’ that insurance advisors are most likely to use and investors must beware of.

1. Premium has to be paid only for the first 3 years

Often insurance advisors pitch ULIPs claiming that premium payments need to be made only for the first 3 years. The policy will be in force even if premium payments are discontinued thereafter. That’s only part of the picture. The other relevant bit is that, though the policy will continue to be in force, mortality charges will be deducted from the ULIP’s corpus in the future as well.

Put simply, the insurance company will continue to make necessary deductions from the policy’s total accumulated money. Hence, the accumulated amount will continue to erode with each unpaid premium. Only the balance amount (net of mortality charges) will continue to be invested in the markets. Furthermore, when the ULIP’s corpus is insufficient to service the mortality charges, the policy will cease, thereby depriving the investor of an insurance cover.

2. New ULIPs make cheaper buys

Mutual fund distributors have been known to mis-sell new fund offers (NFOs), i.e. new mutual fund schemes by using the Rs 10 net asset value (NAV) pitch. Investors are convinced that buying into an NFO makes a cheaper buy on account of the lower (Rs 10) NAV. Investors tend to draw parallels between stock investing and mutual fund investing and fall for the bait. In fact, this is one of the most common fallacies in the mutual funds segment.

Now insurance advisors have ‘borrowed’ the same sales pitch from mutual fund distributors for selling new ULIP offerings. Investors are conned into believing that buying into new ULIPs (which are market-linked investments like mutual funds) translates into a cost-effective purchase.

ULIPs are popular because…

3. ULIP investors are provided with dedicated fund managers

Like mutual funds, ULIP monies are also managed by fund managers. Fund managers are responsible for making investment decisions for the entire ULIP corpus i.e. for the monies invested by all unit holders in the given ULIP.

However, insurance advisors often claim that ULIP investments will be managed by dedicated fund managers. In other words, ULIPs are likened with investments under a Portfolio Management Service (PMS). In the latter, the investor has access to a dedicated fund manager who manages the portfolio in line with the mandate provided by the investor.

4. ULIPs offer guaranteed returns

ULIPs are market-linked investment avenues and are susceptible to the same risks that any market-linked investment avenue would. Broadly speaking, a downturn in equity and debt markets would adversely affect the performance of an ULIP. Of course, the fund manager’s skill sets, the ULIP’s portfolio structure and the investments will play a part in determining how it eventually fares.

Thanks to the upsurge in equity markets over the last few years, insurance advisors have begun pitching ULIPs as products offering guaranteed returns. Nothing could be farther from the truth. Investors should be wary of such fraudulent claims.

hi,

I see that you would like to invest in the best ULIP which could give good returns and also make profit.

The one mentioned by you: SBI has two good ULIP plans which are giving good returns. Abt Max and ICICI not much returns are provided. My suggestion will HDFC,Reliance and still there are

If you would like more suggestion related to the ULIP you can email me or contact me through IM on sarika.forexveda@gmail.com or sarika.forexveda@yahoo.com

dear vivek,
in customer view of point,
definitely - bajajs Capital Unit gain policy is the big boss of all ulips.
its having only 5% allocation charges. (while similar policy of other corporates charges between 20% to 50% which will eaten up your capital considerably)
and bajaj allianz is doing good in terms of returns. The business magazine – ‘Out look money’ quoted Bajaj as the best performing fund in last year comparison. upto 48.16%.
and now a days ULIPS available through some corporate agents there we can have some referral bonuses also , if we the customers refer somebody. it s a added advantage for the customers. its not an illegal debate. what the traditional commission agents enjoyed are now shared among the customers now. that means we earn more than the return from funds .

contact me for more detailed files and the comparision chart
Devaraj0910@yahoo.com

wish you a happy investing

my personel view is not to manage investment with an insurance products. if u want a life coverage then consider taking a term policy which is the best form of insurance. in ULIP's the charges are high and as well as the brokerage also high for the agents. pure term policy and mutual fund ELSS is the right combination for wealth creation and tax savings.

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. 0.034
Copyright (c) 2011 Financial Crisis Sunday, May 27, 2012 - Terms of use - Privacy Policy