LIC's charges 16.5% as processing fees for the market plus policy?

Question

What are the regulators doing to check such open loot. 16.5% as processing fee! ridiculous!. I made a mistake by buying the market plus policy of LIC without reading the fine prints. Now paying the price. The insurance regulators or the government should pay attention to this.

Answer 1

I totally agree with the previous answers that you have actually paid the price of not reading the terms. You have perhaps been mis-informed by the agent and not LIC. The company has this mentioned clearly on all brochures of market plus. Moreover, it is not in an invisible font size, it is quite clear and big enough for normal visibility.

I have designed certain solutions that can give you returns similar to that of ULIPs without equity investments. These too will be plans from LIC, but I will surely inform you more than what you knew in your previous experiance.

For further queries you can call me on 09322197831 or mail me on [e-mail] and [e-mail]

Answer 2

Yes they do charge a processing fees. There are always charges on ULIP plan offered by pvt insurance as well LIC. You can invest in Mutual funds where the charges are very less and returns are very high. You can visit www.investorcamp.blogspot.com for articles and guidance on mutual funds

Answer 3

I am sorry that you have a feeling of being shortchanged.

It seems from your questions that you are a reasonably educated person. It was, in the first place your responsibility to ask the representative about the details of the policy - such as allocation charges, mortality charges, riders etc.  Because few agents bother to explain these to prospective clients. (Because in most cases, the more he/she explains the more one gets confused).



ULIPs are a mix of Insuracne and Investment.

In my opinion LIC charges the lowest allocation charges.

There are some 15  (+1) insurance companies in India. Some even charge a 30% for first three years.



Now you have become a little more wise.

Next time when you are about to invest please consider some other options. There are other better options.

Keep Insurance and Investment seperately.

There is a clause in LIC's terms and conditions as "COOLING OFF PERIOD" -you can return your policy within 15 days of the receipt of the policy bond.

The fine point is - by the time you receive the bond it could be months.

So Cheer Up !!!

Good luck

Answer 4

u are right. u have paid the price for not reading the terms and conditions carefully. for your information same thing is being done by all mutual fund ( ulip ) companies. The regulator for this is SEBI and they are aware of it. So, we can presume that all this is being done within the knowledge and approval of government of India.