I have invested in LIC's Fortune plus policy for 3 years.I would like to know if it is a good policy?

Question

Will I be able to get decent returns from it in future or i have wasted my money?

Answer 1

Yes. You have invested in a good plan. Stay invested for minimum 10 years from date of investment for good returns.

Answer 2

Friend,

This is a ULIP and I will tell you the method to identify whether a policy is good or not.

1. Identify the funds where your money allocated. Ask for the performace of this fund and the bench mark of this funds. Compare and find whether it is outperforming or under performing.

2. Compare Premium allocation Charges, Fund Management Costs and policy administration charges with its peers, for next 10 year.

this will give you good idea.

Remembr, ULIP is long term investment and keep invested for at least 12 to 15 years. Don't stop paying premium after three years because, there is charges in each year and once if you stop after three years, these charges will reduct from your existing money. So keep paying premium for entire term.

Always, switch funds to equity when market is low and switch back to debt when market is high. You can have double return with intelligent switching.

Does this make sense.

Answer 3

I imagine insurance works pretty much the same in India as it does in the US and if that's the case if you bought it for an 'investment' it probably wasn't wise since you're paying for insurance in there.

Think of it this way.  Put money in two CDs that pay the same rate.  Now take the cost of term insurance out of one over 5 years.  Which has more money?  Which is better?  Buying the term insurance is naturally better if you need insurance, but naturally you'll have less money because you bought insurance.  If you have no need for insurance then don't buy it.  

The exception would be if the tax benefits far outway the additonal layer of cost.

Answer 4

HI,According to me it was not a good decision because as compared to other private companies, LICs ULIP have not performed well. LICs NAV as compared to other companies have not appreciated much. Even if you keep it for a long time, u wont be impressed.

http://www.investorcamp.blogspot.com

Answer 5

Its a very good policy.... Keep it for atleast 5 years and you'll be a happy man....          :)