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I want to know about ULIP investments .?

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i have 3 different ulip investments of which premium need to be paid for only 3 years . i have been told that returns after 15 years will be arround 10,00,000/- is that true. want to know about the good long term investments.

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  1. best option is Bajaj_allinanz Insurance plan ,there is single premium also pay only once  and u get insurence,tax rebate also u can withdarw part of money and growth is far better than any co. or bank deposit , for details contact 9999631811,Delhi


  2. ULIP returns are subject to market value/NAV of the funds/shares in which the fund manager is investing. So none can say how much you will get after maturity. Also even if the policy says 100% allocation of fund, there are insurance fees in every premium you pay, so the fund allocation is about 60% only. It's better you don't mix investment with insurance. Use different instruments for both. Like... for return, invest in good equity mutual funds and for insurance... go for term insurance where the premium is almost 1/3rd of regular insurance premiums. It's your money, so don't go by friends and relatives. It's better to read articles or take advice from financial advicers and institutes.

  3. I am glad that you atleast asking the right questions. Many folks go thru this too far and realise too late the implications of blocking your money in a sub-standard investment like ULIP. Read on why...........

    ULIP is the highest selling financial product in the country. But unfortunately it is also the most mis-sold product. No agent will ever tell you that the upfront costs are as much as 30% in the intial years. So out of your Rs.10,000 Rs.3000 would have gone towards agent comission, fund management charges, admin charges, etc. etc. That implies only Rs. 7000 is getting invested in the market! If you understand the compounding effect of money (if not read this article Power of Compounding at http://www.valueresearchonline.com/story...

    you will realise how big a financial cost is thus hidden from you.

    Next whatever insurance life cover you are getting can be had at approx. 1/10th the cost thru a separate Term Plan cover. Read why Insurance and Investment should not be mixed here at

    Investments? Insurance? Or both?

    http://www.personalfn.com/detail.asp?dat...

    Insurance vs Mutual Funds

    http://www.valueresearchonline.com/story...

    Now that you are more educated on how there are far better financial instruments to multiply your money (and separate Term Plan covers to take care of Insurance needs), you know that ULIP is not what you want to continue with, certainly not for next 15 years. Continuing with high premiums is even more unwise (than losing some money by surrendering) and over the long-term this could hurt your finances a lot more.

    It is evident that surrendering a ULIP Policy after having paid the premiums for the first 3 years may be considered by many an unwise option, as you stand to lose some money. But then, continuing with high premiums only at the behest of your agent is even more unwise and over the long-term this could hurt your finances a lot more.

    There is a surrender value applicable, if you have paid premiums regularly for atleast 3 years. So you will not lose all your money or premiums paid. There are interesting options offered by LIC too. Read on more...the following excerpt from an article at personalfn.com

    The trouble begins when you decide to discontinue the policy like many ULIP & Insurance investors have done in the recent past, after realising that the policy doesn’t quite fit into their scheme of things.

    In such a scenario, the policy is considered to have lapsed and all the premiums paid are forfeited. More importantly, the insurer doesn’t entertain any claims once the policy lapses. However, it should be understood that the policy is not necessarily forfeited i.e. the policy’s value doesn’t become nil. The Insurance Act does not allow for forfeiture as every policy acquires a reserve based on the premiums already paid.

    The Insurance Act provides for a return to the policy holder of an amount that is representative of the reserve and this is referred to as the ‘Surrender Value’ or the ‘Cash Value’. The Insurance Act stipulates that every insurance policy shall have a guaranteed Surrender Value, if at least 3 years’ premiums have been paid. This reserve arises due to the following:

    1. Premiums in the early years of the policy being more than what is justified.

    2. Savings element in the premium.

    Apart from the option of surrendering your policy, insurers like LIC also provide other options like making a policy ‘paid-up’, whereby the policy remains in force with a reduced sum assured, depending upon the number of premiums paid. Another option is to keep the policy in force by deducting future premiums, from the Surrender Value. A third option is to provide term insurance subject to the condition that the Surrender Value is more than the sum assured.

    Surrender Value is usually calculated as a percentage of the portfolio returns. Portfolio returns are calculated assuming a nominal something like 15% annual growth of the invested amounts (Premiums minus expenses, which as you now know are quite high in the initial years)

    Read the complete article at

    http://www.personalfn.com/detail.asp?dat...

    Hope this has enough information for you to take a considered decision. And if convinced, please spread the knowledge about ULIP product and how it is mis-sold in this country. Cheers!

  4. ULIPs give you insurance cover along with capital gains.  So the money will be invested in the higher yielding instruments like Equities etc.  

    The capital gains whatever you get will be entirely based on the performance of this underlying investment. So if the stock markets fare better, then you will get more money as gains.

  5. This "INVESTMENT GUIDE" is more helpful for you to make your money to make money for you,without taking any risk.

    To gain more information ABOUT ULIP & OTHER INVESTMENTS,just gothrough the site

    http://www.savings4future.com .........

    GOOD LUCK

  6. ULIP stands for Unit Linked Insuarance Plans which are essentially insurance plus invesment plans. What you need to realise is that the returns that have been communicated to you are calculated on an assumed annulized rate of return which may or may not be your actual rate of return. So i would suggest instead of going by the benefit illustration shown to you, ask them about the rate of return that has been used in the calculations. Comparing that with the current rate would give you a fair idea about the kind of returns that you can expect.

    Also what you need to ensure is that the charges that they levy on your plan have been deducted form the amount before being shown as investment for a particular year. These plans also have some four or five funds with varying percentages of debt and equity investments according to which the returns can vary. So you also need to ensure that the benefit illustration being provided to you is for the fund that you are opting for.

    Lastly such a plan can give you returns amounting to 10,00,000/- after 15 years but that depends totally on the funds performance and the actual amount (total invested amount - (insurance premium+loads)) that you have invested over the years.

  7. Aditi,

    ULIP is the Unit Linked Insurance Product packed with insurance as well as investment options to subscribers.

    ULIP is a product using for long term investment for more than 12 to 15 years.

    You should select a ULIP carefully suitable to your goals (various types are available in the market)

    The measure to identify a good ULIP product is, comparing its fund performance and costs with all other available product in its group or kind

    It has 3 years lock in period and no money will be returned if you stop paying premium in that time.

    It is advisable to continue the premium till the end of policy term.

    It has the facility to switch between funds depends on investor risk profile as well as market conditions.

    above are the major information required on the product. If you want more, visit my below blog and that can give you all in all and in one window...

    You can also use my contact form to contact me if you required any help on this

  8. i think there is quite a bit onfo that you already hv from others.

    we can still some integrities in detail if need be.

    09322197831

    bhushansheth@gmail.com

  9. hi aditi

    i am ibrar from chennai. i am an investment advisor.

    there is huge possibility for ur datas. but before investing u need to clarify lot of things like

    allocation charges,

    mortality charges,

    fund managment charges.

    why i am tell u is bcoz every insurance agent is making false statment in this area only. when the invester is not financially educated they get investments and leave the investers in worry. you need to know lot other things also before investing in ULIP's. becoz now a days 80% of premium of insurance company comes from ULIP's. so be aware to get fullest information before investing.

    choose a plan which have inflation adjusted return. if uwant more details dont hesitate to contact me.

    when u mail me pls give informations about ur query? ask whatever doubt u have but ask with full details...

    my id is ibrar3@yahoo.co.in

    thank you,

  10. for more detail about ULIP read this article

    http://shaktibanna.blogspot.com/2008/06/...

  11. Ulip is dependant on the market position of the equity on which the company invests. But the companies are howing great returns on investments. You can believe to make the money they promise.

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