Which insurance co. has given highest return in unit link insurance plan in the year 2007. Thank you?

Question

Now a days all most all insurance co. are coming with unit link insurance policies, which are very famous with clients, so it would be better with investors if they know which co. has given how much return,so i want to know all the companys returns in year 2007

Answer 1

ULIP are not famous with clients, but there is large scale marketing of ULIP by these Insurance Companies. There are various companies having both Mutual Fund and ULIP but they are insisting on ULIP only as These give very high initial profits & ensures that policy holder is stuck with them for atleast 3-5 years for giving other charges.

Now come to camparision of ULIP.You can not compare ULIPs only on the basis of 1 year or 3 year return like Mutual Funds. ULIP has various charges like Fund allocation charge, Policy admin Charge, Fund Management Charge, Mortality charge etc, those are charged in different manner & every company have its own value of different charges(even these are different between different policies of same company).

These charges should be considered before purchasing the policy as these charges eat 10-15% of your return in long term (20-70 % in first year & 10-25% in second year).

Also different charging structure of these charges make it impossible to represent exact model of charges. Like premium allocation charge is taken before allocation of fund in your corpus. Policy admin charge is a per month charge increasing annually by 2-10 %. Fund Management charge varies from 0.5-5% annually & charged in NAV on daily basis. Mortallity charge is charged on monthly basis & increases with your age but total of this value decrease with increase of your fund value. Number of units in your portfolio are deducted to pay these various charges on monthly basis.

Now come to Mutual funds. There is entry & exit load that do not varies too much between AMCs (Entry load Ranging from 0-2.5 % & Exit load ranging from 0-1% depending on early exit). A fund management charge of 1-2.5% is charged annually is adjusted in NAV(so you need not consider this charge if you are comparing NAV as NAV is already declared after this charge is adjusted). So it is  very easy to compare Mutual fund based on their short term & long term returns. Various sites are available to compare mutual funds.

Due to these reason, I like Mutual funds+ Term Insurance more & oppose the mis-selling drive of ULIP by insurance companies.

My point in your question is just that when you buy a ULIP, study its charges carefully as they impact the return. Alway take a informed decision.

Answer 2

Just visit any site on ulips like the one below.

http://www.moneycontrol.com/insurance/la...

But one year is very little to fathom the returns. These instruments have periodic loyality bonuses which come in the long run.

If you are looking at single pay policies. they give the best returns. as the commissions for the agents are lowest. one of the company pays lower than 1 % as commission on it. This company's single pay product has exceeded its initial value post all charges in the first year itself. Just imagine!!

But single pay policies are meant for those who do not have regular income like artists, businessmen etc.

Answer 3

dont look at 1 years return, u need to check always what their average return given for a minimum of 3 years

hdfc has given 37%