Most important questions you should ask a ULIP agent

POSTED BY manish ON May 28, 2009 COMMENTS (273)

When an agent approaches you with ULIP product; before filling up forms, he should be explaining you What is a ULIP and how it works! You should ask him the following 6 questions to make sure you know what you are about to buy!

ULIP

1. What are the returns offered by this ULIP?

As per the rules of IRDA, an agent should explain you the workings of ULIP with an assumptive illustration earning 6-10% returns. However, if he claims that in the long term the policy is expected to give more than 10% then this information is not misleading.

But if he claims that the policy ‘WILL’ earn 18-20% or even Million% returns, you need to stay away from such agents!

2. What are the Charges applicable in this ULIP?

He should give you detailed Information on all the charges that are/will be applicable to ULIP. The important charge you need to know is Premium Allocation Charges.

If he doesn’t disclose any Charge that is applicable  then I am sure its not because of his dishonesty and no other reason. Ask him the company brochure mentioning the exact charges where all the charges are listed and explained in detail.

3. How does it suit my Risk Profile and fit in my requirement?

Before suggesting you the ULIP the agent should have asked you all the details about your Cash flow (Salary, Expenses) and your future goals with ULIP investment should be addressed.

He should also try to understand if you can take the risks associated with the ULIP. If he does not ask you these things then you ask him back why he has not asked you these questions. Get the word out of his throat!

4. How is it better than other ULIPS?

Ask him what is unique with the ULIPs he is recommending to you and make sure he does start all non-sense of Sec 80C benefit and high returns and all… Every ULIP has it! Ask him what are the special features with ULIP and how do they address your requirements.

If he claims that his company ULIP is the best and no other ULIP can match it then ask him for references if any states that. Just a plain claim from agents will not do. An agent must have enough knowledge to make you understand how to make best use of your ULIPS.

5. How does it score over Term Insurance + Mutual funds combination?

ULIPS are combination of Insurance and Investment produce, There is no point in taking it, if it cant perform better than Term Insurance + Mutual funds SIP. Switch benefits in ULIPS are the main benefit in ULIPS.

He must put pressure on that point, If not he is him self not aware of it. Refrain from taking the policy if he starts claiming that returns from ULIPS will be much higher than Mutual funds.

6. What was the performance during Market Crash?

Agents generally try to put up rosy picture and hence refrain from disclosing the funds performance in bad markets. If the fund has done bad, that is acceptable. Its investor responsibility to take care of switching and asset allocation.

So there is nothing wrong in performing bad in bad markets. Agents will first try to avoid the confrontation, but finally may tell you that they did bad and returns are very low. Ask him for exact number in return and try to find out how other ULIPS performed.

My personal Experiences

I have never come across any ULIP agent who has tried to sell the product in a professional manner. This has its own reasons like meeting Sales Target pressure or poor training to Agents. Anyways ,its not acceptable and can not be accepted . For so many years, Mis-selling is happening in India.

Conclusion :

Your hard earned money should go in proper investments. There should not be hurry in taking action. So don’t feel shy in asking questions once or twice or thrice, understand the product and its suitability with your requirement.

No product is good or bad, its only bad or good depending on your requirements. So be informed Investor and don’t fall prey to Idiotic agents.

Don’t do mistakes that are already done by tons of investors who took ULIPs for 3 years.

– To save tax
– Make exceptional returns from Stock markets
– Make them self believe its a happening product because it looks so complex

Please share with me if you have taken ULIP for wrong reasons
– Do you think that ULIPS will have any success in future… I feel yes

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273 replies on this article “Most important questions you should ask a ULIP agent”

  1. Sanjay says:

    Hi Manish Ji,
    I had taken a ulip ‘New Unit Gain Plus’ from Bajaj Allianze with 15,000/- as annual premium for 10 years and I had deposited 6 times i.e. Rs. 90,000/- against this, then stopped to deposit balance premium as advised by the Agent. Now Policy has been matured in last month (28th Aug’16), but fund value shown is zero, but while I watched one week before from the maturity it shows approx. 1.69 L, why suddenly, it become zero. I couldn’t understand the meaning of ‘Withdrawal charges RP’ , Against this caption – ve value has been shown (-1.69 L). You are requested to kindly suggest me what can I do further to receive money from the company or it may not be possible to get any returns.
    Thanks

    1. You might want to check with them only on this.

  2. CHETAN says:

    Hi manish is bajaj future gain plan good

  3. Prasanta says:

    Hi Manish,

    I have taken a Bajaj Allianz Future gain ULIP policy for 20 years, currently I am 31 years pld & monthly I will be paying 3500. Policy is having 5 years lock in period & allocation charge 1.5% for 5 years apart from other charges as usual. I have 30 days of time to confirm. But after reading all the reviews & all I am not completely convinced. Below are the fund details. Please suggest.

    ACCELERATOR MID CAP FUND – 2
    BLUE CHIP EQUITY FUND
    BOND FUND
    EQUITY GROWTH FUND – 2
    LIQUID FUND
    PURE STOCK FUND

    Thanks
    Prasanta

    1. Prasanta says:

      Can anyone please suggest on my above query?

    2. Better not go with this

  4. Swapnil says:

    Is it better than a Fixed deposit? Will it get me more interest than that for 5 years. I do not have an option now. I just read about it after taking it. Thanks for your advice

    1. It might give you if the markets perform well. But you should ask if it will give you more than the best option you could have got ! . If FD is your benchmark, then you might be happy , but thats not the right way !

  5. Swapnil says:

    Hi Manish,
    I have opted for HDFC Life ProGrowth Plus plan with annual payment of 60k. Currently my age is 27. I am planning to stay invested for 5years. What is your recommendation on this? Actually I had gone to make a tax saving FD but this was suggested to me. But after reading here now I am worried. Please share your valuable advice.
    Thanks

    1. Its not a great option ! … Why have you invested first and then researching now ?

  6. Shalini says:

    hi Manish,

    I am interested in investing in SBI elite Gold single premium Bond Fund insurance with an annual single annual premium of Rs 2,00,000 for 5 years. Is that a good investment and what are the expected returns after 10 years.

    1. I dont think its a good idea. Mutual funds would be a much better choice.

      Please fill in your details here if you want support of our team – http://www.jagoinvestor.com/solutions/invest-in-mutual-funds

      Manish

  7. Abhishek says:

    Hii,
    Manish , I have already taken ELSS plan of 3.5k/month in Axis long term equity and now want to take ULIP plan for more tax saving as well as insurance so please suggest me either should i invest more money in ELSS or ULIP plan for best return??? plz suggest

    1. You should invest in ELSS only, not ULIP

  8. Mahesh says:

    Hi Manish,

    Today I have invested 30k in HDFC Life Click2Invest ULIP. I have no idea about investments before. As the agent from policy bazaar suggest this ULIP plan is best compared to MF with 20% returns. But after reading all the articles from internet I’m in confusion now, I have chance to cancel that as it is not completed fully. So please suggest me weather it is best to invest or should I go for other like ELSS. And please suggest me some best investment plans

    1. Better cancel that policy and start your mutual funds investments.

      My team can help you full on this, if you can fill up this form https://www.jagoinvestor.com/solutions/invest-in-mutual-funds

      Manish

  9. pathanjali says:

    HI Manish,

    I started invested in SBI wealth builder for 1lakh per annum. Policy period is 20 years and premium payment term is 5 years. I want to get good returns. money is invested in 50 % bond fund. and 50% equities. Is this a good idea?

  10. Sakthi says:

    Hi,
    KINDLY PROVIDE UR COMMENTS QUICKLY.ITS URGENT.

    Dear Manish, j
    I have bought Hdfc click2invest plan , almost month ago(single premium of INR 40000). I have paid the premium But IT IS NOT YET ISSUED, due to some pending formalities. After reading all the above review, now I’m confused about my decision. I choose to invest for tax benefit, (as advised by agent). But after research I have realised, tax benefit is extremely low for single premium (jus10% of sum assured). KINDLY suggest, what should I do”? 1) Shall I continue with it? 2) Or may I cancel it? (3) If I cancel, what will be the charges ? as my policy is not yet started and it does not have any fund value. Will they give me my full premium amount.? Or they will apply heavy cancellation charges.? Any idea how much cancellation will cost to me? Thanks in advance. Kindly provide UR reply soon, as Hdfc is chasing me for pending formalities.

    1. HDFC Click2invest is ULIP, but its a good ulip as its a lower cost one. Still if you want to cancel it , you can do so without charges as you have not got it issued till now

  11. Mayank says:

    Hi Manish,

    Is there any portal which gives a ranking of these ULIPs such as HDFC Click2Invest, ICICI Wealth builder, etc

    1. Not known to me atleast !

  12. Onkurananda says:

    Hi Manish,

    Currently I am planning to buy HDFC Click2Invest ULIP plan for 5 years with INR 3000 monthly investment. I am currently 33 years old. Is ULIP related to age? Shall I go ahead and buy it or go for some other option? Or will go for higher period like 10years or more?

    1. Hi Onkurananda

      If you have made up your mind, you can surely go for it. We have a tieup with HDFC for that for our readers. Do you want us to connect you with them?

      Manish

      1. Onkurananda says:

        Still I haven’t setup my mind. I am still thinking. I have given my contact details to the HDFC team already. Is it a good choice to go with ULIP?
        Also can you tell me little bit about Tax saver ELSS fund. Which is the best?

        1. You can go with Axis long term equity funds for ELSS

          1. Onkurananda says:

            Thanks Manish. Is it good to invest in the below funds?? atleast minimum 1000 PM

            1. BNP Paribas Midcap Fund – Direct Plan
            2. Franklin India Prima Fund – Direct Plan
            3. Mirae Asset Emerging Bluechip Fund – Direct Plan
            4. UTI Mid Cap Fund – Direct Plan
            5. Reliance Small Cap Fund
            6. Axis LT Equity Fund(G)
            7. BNP Paribas LT Equity Fund(G)

            1. Yes these funds are good enough , Go ahead !

  13. Subhasree says:

    In addition to Deepak’s message, I would like to add that I just recently bought ICICI Pru Eite Life II and I feel it is not a better investment than a 5 years FD. Can you tell me if I surrender within 1 month of the purchase of the fund, how much I will lose and will it be a wise decision or not. Thanks so much.

    1. Thanks for your comment Subhasree

  14. Deepak says:

    People from icici bank are trying hard to sell icici maximizer v product to me. The plan involves paying premium of 2.5 l per year (for 5 years) out of which around 15k would go as fees. So they invest only 2.35 l of our investment. They have loyalty bonus of around 6k per year from 6th year and if we stick to longer period, the fee more or less comes back in this form. In a year, they invest in this fashion.. 90% debt market and 10% equity for first month, 80% in debt 20% in equity on second month and so on. They reach 90% in equity on last month of the year. The agent says since the investment is balanced this way, risk is relatively less at the same time return prospects are good. I really can’t make any decision and I have just kept them on hold. Is it a good plan? My intent is to grow the money at a better rate than FD and l have low risk appetite. The plan has 25lacs life insurance too.

    I read this blog and few other blogs that don’t recommend ulip with life insurance. I mentioned that to my agent and asked for some mutual fund products. He said mutual funds carry higher risk and don’t offer this kind of split investment.

    I really don’t know how to proceed in this case. Any suggestions? Please do suggest any other good products that you are aware.

    1. You agent is misguiding you . On the name of “risk” they are discouraging you to invest in a wonderful thing called Mutual funds.

      LEarn more about it on net and you will figure out . Or you can also talk to my team on this – https://www.jagoinvestor.com/start-sip

  15. Asif says:

    I am investing in Birla sun life vision life secure plan. Is this a good plan to invest or there are better option than this.

      1. Asif says:

        Thank you Manish can u please tell me top 3 SIP plan I should invest in.

        1. We can suggest you that, Are you new to this ? Do you need our assistance in investing also ?

  16. Himanshu says:

    Hi Manish,
    I have just now taken SBI Life – eWealth Insurance Plan for 15 years with monthly 6000 contribution in ULIP plan.
    Sum Assured Multiplier Factor(SAMF) is 10
    Sum Assured (Rs.) 7,20,000
    Plan Option Growth
    Applicable rate of Tax* – 14.50%
    Growth – Equity Fund 70 % allocation
    Growth – Bond Fund 30 % allocation
    How much return I can expect from this policy after 15 years.

      1. Himanshu says:

        HI Manish,
        I have surrendered this policy within Free Look Cancellation period.
        I have started SIP of 30,000 per month in Axis Long Term Equity Fund – Direct Growth ELSS Plan.
        How much return I can expect from this after 15 years?

        1. Around 12% on average per year !

  17. Manikandan says:

    Hi Manish,

    I took ICICI Wealth Builder ULIP 2 years back with yearly premium on Rs.50,000. 5 years premium frequency and maturity at 10 years. Paid 3 premiums till now.
    I am having a very basic question. Whether the premium paid will get any interest towards my capital invested and gets compounded until my maturity. If the maturity amount depends only on the NAV during the maturity date, what will happen to the capital i have invested & locked for 10 years. Please correct me if my understanding is wrong.

    1. There is no capital protection .. I mean the NAV can rise and fall and your overall wealth can be up and down .

      1. Manikandan says:

        Thanks for the clarification

  18. Saheer says:

    Hi Manish
    Have invested in future Generalli
    Dhan vridhi plan
    2lac premium for 5yrs & 10yrs policy term
    They assured me of min11-14%return after 15 yrs can u plz give ur comment

    1. IS it written in your document ?

  19. Swarup says:

    Hi Manish,

    I am currently 25 and was looking for ULIP plans. I found a ulip plan by max where premium has to be pain for 5 years , 1lakh per year…. It has 50% in debt and 50% is equity.

    I do not have financial burden or family burden.

    Is this good place to invest? I was comparing how good or bad is this plan when compared to FDs

    Thanks

    1. Generally its not suggested, but HDFC has a good ULIP with lowest charges now . You can consider that if you want.

      Let us know if you want us to connect to them . We have a special tie up with them for our readers.

  20. Sam says:

    Hello Manish,

    I am a NRI and looking forward to invest in ULIP,s from Kotak Mahindra group i.e. kotak platinum or kotak invest maxima along with the 10 times cover they offer for insurance.

    Can you please suggest if it is worth investing in these plans or do we have any other good plans wherein I can invest ?

    Thanks

    1. No , its not suggested. Its better to invest in mutual funds . The only ULIP I can suggest is HDFC click2Invest, which is a low cost one ..

      Incaes you want to do that or in mutual funds , my team can help you incase you are ok.

      Manish

      1. Sam says:

        Hi Manish,
        I have the same Dilemma. I am a NRI based in US and as per latest regulations US NRIs cannot invest directly in Mutual Funds. ICICI is trying hard to sell me ICICI Wealth Insignia Product . (It is a combination of ICICI Elite Wealth II and ICIC Pru Ipotect SMART). They claim an avg return of 15 % return which are all tax free for NRI individuals. Charges seem high + the fine print. Please advice if there are other funds for NRIs based on the above background

        Thanks,
        Sam

  21. Aashish says:

    Hi Manish,

    I have got MAX life insurance ULIP, with 1L as annual premium (50% in debt and 50% in equity), actually for 15 years, but Bank (MAX has tie-up with AXIS bank) said that I can stop paying premium after 5 years, following which even surrendering the policy is free.
    The policy is having its usual charges and the insurance coverage is 10 times the premium amount.
    I know i have already onoe for it, but do you think it is a wise decision?
    Thanks.

    1. You need to check what are the charges in the policy per year. Is it above 2-2.5% , Then its not that great !

  22. Bharat says:

    If I have to go for life insurance cover, should I go ahead with ICICI elite life or do you suggest any other policy/ any other brand. My objective is to have a life insurance but at the same time also growth in money.

    1. Hi Bharat

      We do not recommend policies which have investment element along with insurance. because they dont serve both the purpose. I suggest a term plan only. If you need our support, we can help you with this, Just fill up this form https://www.jagoinvestor.com/services/life-insurance

  23. RC says:

    I had some disposable income a few years back and I made some bad investments, as follows:

    1) HDFC Savings Assurance Plan, which thankfully matures next year.

    2) LIC Endowment with Profit

    3) LIC Jeevan Tarang

    Based on my own research and other’s feedback online, there seems to be universal consensus that the first investment is one of the worst possible to make. But I was gullible then and fell victim to the highly misleading advice given by HDFC staff.

    How about the other two? Do you think it makes sense for me to exit these at the earliest? It has been around 4 years since I have commenced investment in these plans. My investment adviser has been suggesting that I do not withdraw, but he has a vested interest since he receives a commission on the premium. The long-term interest, though not great at this point, might not be too bad given the long-term horizon of the plan. Interest rates are bound to reduce in the long run. I am receiving mixed feedback regd. this.

    I would be very grateful to have a third, expert viewpoint on this. Thanks in advance for your advice.

    1. The problem with the other 2 is that you will get lower than inflation returns from it , but with assurity . In true sense, its a bad thing because you are losing money.

      Manish

  24. Bibhu says:

    Took icici elite wealth last year. Not willing to pay the premium now. Please suggest a way ahead. I Am not in a position to pay the premium of 2.25 lacs this year. Can I stop paying the premium?

    1. Hi Bibhu

      Yes you can stop the premium payment, thats totally ok .

  25. JIm says:

    Hi Manish- Thanks a lot for this post. I have started a ULIP Policy with AEGOM Religare imaximaize for a monthly payment of 12500 and for 25 years. 2 months are over now.
    I have selected option 2 in the plan that can act as Child Plan. The agent has suggected around 11 to 13% compunded interest.
    Do you recommend this? would you be able to suggest the most recomded child plan?

    JIm

    1. The return might be in that range in long run, but will you get it ? I mean check the costs and other payments you have to do under this plan.

      1. JIm says:

        Hi Manish- I really value your opinion and would like to get your recommendation here as this is my hard earned money for my child.
        The plan says NO Premium allocation charge. However there is a fund management charge of 1.35% pa and policy administration charge of 100 rs per month.
        Does all ULIPS have similar charge?
        Thanks again manish.

        1. Then find out how much % it turns out to be . Rs 100 per month means 1200 per year. If you are planning to invest 1 lac, that means additional 1.2% apart from the fund management . More than charges, the fund management part is also important. WHy dont you go with some good mutual funds ?

  26. Sandeep says:

    Hi Manish,

    Currently i have invested in ICICI wealth builder 2 ULIP plan with premium of 1.5 lacs p.a. for 5 years and policy term is 10 years. It has now free look up period till 14 Nov ’15. They will refund 1.37 lacs out of 1.5 lacs with some allocation charges and stamp duty charges. They are saying that i will give good return about 18-20%. Should i continue or cancel/surrender the policy. Otherwise after free look up period, it can not be surrendered because it has locking period of 5 years. Kindly advise immediately

    1. Better surrender it . The return of 18-20% is just an illustration and not confirmed !

  27. Sadish says:

    Hi Manish,

    Congrats for doing a good service with free of cost. I always go through your review before doing some investment.

    I plan to have yearly investment of 3 Lakhs for the next 5 years in a long term perspective. ICICI representative is suggesting Maximiser V series fund. Basically I am not interested to invest in ULIP series due to high maintainence cost but the ICICI person is convincing me with 18-19% returns which is not guaranteed. Is it advisable to invest on that or better suggest me some fund which gives high returns in long term perspective.

    Regards,
    Sadish

    1. If you are getting convinced , then you can go ahead !

  28. Sahil says:

    Hello Manish,

    I am planning to invest in ‘UTI- Unit Linked Insurance plan’ (one time Rs.150,000 in one year) and heard the it has good returns over long term (10 Years), though it is market linked.

    Would you recommend it else which one is the best ??

    Regards,
    Sahil

    1. If you understand how to make use of ULIP, then you can continue it

  29. Anand J says:

    Hi Manish,

    What is your recommendation on ICICI Pru Elite Wealth or Elite Life schemes?

    The ICICI folks are trying to sell it really hard, however my calculations show me that around 8 to 10% of my money gets deducted against some charges or other.

    The ICICI folks are saying that I can target annualized yield of 12 – 15% easily, however I am not convinced as I loose 10% upfront against their charges.

    Please advise!

    Regards,
    Anand

    1. Dont buy it .. its waste

  30. Kumar says:

    Hello Sir
    I have Met Adavtage plus Policy (term 10) paying Premium of Rs 450,000/- per annum and has paid last 7 years. current fund value is approx 37 lakhs, Should i continue or close the same. It does not have insurance component.

    1. Hi Kumar

      I think you should make it paid up or surrender the policy.

      Manish

  31. BHUSHAN KOMPELLI says:

    Hi Manish,

    I have recently bought HDFC Click2Invest – ULIP Plan with 12000/- yearly premium, for 20 years period,
    As i am seeking long term plan with good return expectation, & agent also said the fund will definetly grow more than 13% PA.
    Should I continue with this policy, My goal is just hign returns in 20 years?

    1. Yes, as its a online ULIP the charges are really less and hence you can continue it !

  32. Saurabh says:

    Hi Manish,
    I am just 22 yrs. old,I have taken BAJAJ ALLIANZ ULIP fund for 10 years.
    But,I am seeing ULIP returns are not good, Should I surrender it or continue..?

    1. Hi Saurabh

      The best answer you can get only from the agent you invested through or just contact the company. The thing is your case is a bit personalised and other than company, no one can give accurate information

      Manish

  33. Uthama says:

    I had taken the Birla Sun Life Dream plan ULIP in March 2009 with a premium of 10000 per month. The plan was sold to be 5 years term but then I was told it was for 20 years. It always had the fund value less than the amount I paid. Onle now it has gone positive. I have paid 7.6 L till now and the fund value is 9L now. Do you suggest that I withdraw? Will I still have surrender charges? Will the amount I receive be taxed?

    1. Check out the documents , it will have the rules and numbers.

  34. MohitK says:

    Hi Manish
    I need guidance for portfolio management for spending in MF by SIP for long duration.
    Do you give advise for yearly/quarterly basis .
    Do you charge for this guidance? If yes, let me know the cost to my e-mail
    Thanks
    Mohit

    1. Hi MohitK

      You can look at our services here – http://www.jagoinvestor.com/services/financial-planning

      Manish

  35. Prasanna says:

    Hi Manish,
    I have invested 60000 P.A on Max New York Life (Max Life Life Maker Premium Unit Linked Investment Plan) started in Dec 2009 and have made payment continuously for 5 Years i.e (60000*5=3,00,000). The policy was for 10 Years but seeing the performance i stopped after 5 years as that was the mandatory period.
    If i see it currently it shows 3.5L as Fund Value. Do you suggest keeping the fund as it is for another 3-5 Years. Will it give Good returns or better to close it.
    If you suggest closing it, what’s the other good option(Secured Returns + Tax Benefit) to invest.
    Please advise.

    1. I suggest you close the policy

  36. Deepak says:

    Hi,

    I am investing in SBI pernsion plan an ULIP policy, my premium is Rs 37000 quarterly, vesting period is 10 years and maturity is after 20 yrs, after paying 3 premium, i am thing weather to continue or to withdraw.
    First of all i am not sure if i made a right choice to have the aforesaid policy, and then to continue, please advise.

    1. You didnt choose the best thing .. I suggest withdraw if possible

  37. himanshu says:

    hi manish

    Is ICICI smart life ulip is right choice to invest from a point of saving tax and better interest rate for a period of 10 years
    i would be thankful if u can advise something better

    1. Hi himanshu

      I would suggest more simple options like ELSS funds

  38. brijesh says:

    recently i hve purchsd wealth assure plan of birla sun life insurance which is nothing but ULIP, and here i hv to pay 1 lac as yearly premium.and this are the charges they laid ..
    remium Allocation Charge – This charge is deducted from the Premium Paid by you

    Policy Year

    Premium Allocation Charge
    1st

    5% of the Basic Premium
    2nd year onwards

    4% of the Basic Premium
    Top Up

    2% of Top Up Premium

    Policy Administration Charge— This is the charge for the administrative working of the policy and is deducted on a monthly basis.

    Policy Year

    Premium Allocation Charge
    Each Year

    Rs 3000 p.a.

    so shall i get benefit if i invest my fund 70%in debt fund and 30% in equty and i withdrawn my amount in 6 yrs

    1. Yes, that would be a good choice

  39. Tanweer says:

    Hi Manish,
    Thanks a lot. I was just about to complete the formalities. I have not got the document yet.

    1. If you have not yet made the payment, I suggest read more on it. If you need to invest in ULIP only, then better go with HDFC Click2Invest, which is a no cost ulip . Let me know if you need further help from our side on this ?

      Manish

  40. Tanweer says:

    Hi Manish,
    I am 37 now and was looking for retirement plan and checked with policy bazaar guy. He suggested Bajaj Allianz’s Future gain. I have booked 7.5k x 12 for 20 years. Your advice/suggestion will be highly appreciated.
    NB i have no knowledge of market/ULIP etc.

    1. Hi Tanweer

      ULIPs are not the suggested products especially if they are of high cost. I think if you have not yet got the documents, please cancel it and better invest in either SIP in mutual funds, or no cost ULIP like HDFC click2invest. We can help you in these !

  41. Som says:

    Hi,
    I started a SIP in UTI ULIP for a 15 year term.However after paying 25 monthly instalments I see that my money hasnt grown much.What is d procedure to exit out of it and how much do I stand to lose if I do so now? Is it advisable to have some losses and move out and park the money elsewhere or shud I wait?

    1. Just stop payment premium . Thats all .. and after the lock in period . sell it off !

  42. Shukun says:

    Hi Manish,
    I am an NRI and invested in ICICI PRU ULIP Scheme in 2009 from NRE account.
    My dad who is based in india does all these thing. He surrendered the policy in 2015.

    What would be the tax implications for me in US?
    Will ICICI issue any statement line we have 1099 or so in US?
    Is it considered as long term capital gain or interest income or dividend income?

    – shukun

    1. Hi Shukun

      The question asked by you is beyond our scope. Its suggested that you hire an expert on the issue and pay them for the advice.

      Manish

  43. Himanshu Singh Rana says:

    Hi Manish

    My age is 19 years, this year only i got a job. So I decided to invest. Since working in govt sector no issues for life insurance and health benefits.
    I have started a ulip plan bajaj allainz future gain.
    As I am coming with 8,00,000 money per annum, decided to pay 1.20 lakh of annual premium.
    My goal is only investment for a long term and also a bit less risk since I can choose between debt and equity.
    Have I made a good decision regarding my situation

    1. Hi Himanshu Singh Rana

      U are going very well as of now 🙂

  44. Jasmine says:

    Hi Manish,

    Need your guidance here

    1) For tax purposes my husband had to take Max Life insuarance policy , policy name is Max Life Life Gain Plus 20 Participating Plan premium payment , started in Sept – 2011

    i.e.for 6 years lock in period , annual premium Rs.20,000 term is 20 years (1 Lac paid till date)

    2) Also started in Jan-2011 was HDFC SL ProGrowth Super II plan ( again for tax purpose , 1 Lac paid till now i.e 20K premium annually) lockin 6 year

    Now my question is should he contiue paying premiums for above ( MAX LIFE & HDFC ) or what next

    Please share your valuable inputs to proceed further with both the plans.

    Jasmine

    1. Hi Jasmine

      These are regular plans people invest in mainly for tax saving, But they are not the best thing you should have. I think if there are no surrender charges, you can come out of it !

      Manish

  45. Sam says:

    Hi Manish,

    Iam planning to take a ULIP from ICICI. My advisor told me that the NFO is yet to be launched in the market and the present NAV is 10. Once its in market it will surely increase. Is it worth to take to the risk for 10 to 25 year(long term). My investment wud be 1 lakh/pa and she says after 25 yrs it will give be 60lakhs(@8%).

    Iam bit skeptic…Kindly advise.

    Your blog is good..

    1. Hi Sam

      Your Advisor is not guiding you properly. NAV does not matter when you invest in mutual funds . If its 10 or 1000 , it makes no different . What matters if how much your investments return came .

      Also NFO investments comes with very very high charges. Please be a bit skeptical with it .

      If you wish and if your SIP’s are more than Rs 10,000 per month. We can help you in making investments for long term perspective. Let us know if you want to build your mutual funds portfolio from long term perspective !

      Manish

  46. jay says:

    Hi ,
    I have recently invested in aegon religare ULIP for the period of 20 years.Can you please guide me if it is the right decision to continue with this..coz im sure of the returns of this policy in specific??

    1. Hi jay

      What is the kind of return you are getting in that ?

  47. sonali says:

    hello sir , i have a question regarding hdfc life progrowth plus policy this monday i opted for this policy by being convinced by the agent that the return will be 16-17%
    and now after searching more for this ulip plans i am not able to decide whether i should continue with the policy or drop it..

    i wanted to invest in something in which returns are assured so is it a good policy i am opting for?

    1. You can always take it if its written ! … But no company will give that in written !

  48. Ravi says:

    A good read, and like a lot of people, I invested in these ULIPs for the wrong reasons, and now I am trying to pull out all my so called “investments”. One policy has been discontinued and the other I have stopped the premiums, but cover is in effect.
    When I went in, I was told I need to pay a certain surrender charge of 2.5% for one instrument, and about 5% for another one. I vaguely remember that as per IRDA, a mandate in 2009, these companies aren’t supposed to charge any penalty amounts if the term is 3 years or more.
    Could you add your comments regarding the same? thanks…

    1. I dont think if that was true .. 3 yrs term is about lock in .. The company can still put surrender charges later .

      Manish

      1. Ravi says:

        Thanks Manish, I was reading this article, which stated slightly differently, although it says after 5 years.
        http://www.dnaindia.com/money/report-no-surrender-charge-for-ulips-after-5-years-1284102.
        Also, seems like the charges can get really insane 🙁

        1. Ok , I might have missed that .. better is to look at your policy documents which you got, Its the source of truth !

          1. Ravi says:

            but shouldn’t IRDA guidelines trump those of any ToC present in the insurance company’s contract?
            The insurance companies wants to make the most money, like I recently got to know to withdraw funds, you’d need the original policy, else, would have to make an affidavit and cough up a good amount to “update their records”, is that even allowed?

  49. Nishanth says:

    Hi Manish,

    Your suggestion helps us a lot. I have a question- You have advised one person above as following “We generally suggest that you close these policies and clean your portfolio .. i can see that most of the policies were started recently .. If you are above 50 , let it continue .” May i know the reason why have you asked that person to close the policies ? Is it just because it is new? Is it risk or less guaranteed returns if we invest in newly introduced policies?

    1. The damage is least to close the policy if its either new (because you have many years in hand) or its almost close to maturity (damage is already done) . Note that this advice is applicable only to someone who is looking for fabulous ROI on his investment and not for someone who is fine with 5-6% return .

  50. saitks99 says:

    my dad been investing in the UTI ULIPS since some 2000 i.e about 15 years and also he invested in varied mutual funds. But at present the CAGR for all the mutual funds(12 different are atmost @8% some are around @3%) and whereas the ULIPS CAGR @12 %. Now my dad wants to invest huge amount in the ULIP’s rather than mutual funds. I don’t know what to say to him whether No or Yes….please help me sir.

  51. rahul singh says:

    hiee,
    manishji
    saw all your suggestions.i liked it.manishji i am working in merchant navy as a sailor,i stay almost 9 months at sea,and from sea it will not be possible for me to manage my funds.my annual income is around 7 lacs.i am planning to invest in ulip plans but have got no idea about it and cannot trust agents blindly.every individual is saying his product is better than others.i want my hard earned money to grow.please advice manishji, waiting for your reply
    thanks
    Rahul singh

    1. You should keep it simple , if you get monthly salary then please do a SIP and RD for each month and let it grow !

  52. Pingback: Type of Health Insurance | www.aapkeinvestments.com
  53. Hazel says:

    Hi Manish,

    Thank you so much for the wonderful post and all the information that it is partaking to naïve investors who are taken for a ride by agents in the name of so called investments. All the information that you have shared is extremely knowledgeable and covers most areas of investment, baking , credit cards etc. Thank you once again for all the efforts put in.

    Regards,

    Hazel

  54. Hazel says:

    Thank you for your time to reply back. I have stop paying premiums on the top 3 ULIP’s but the last one is a monthly SIP for 5 years and I will be completing 3 years in March 2014, on paying the monthly premiums(My agent is suggesting that I continue paying and complete the 5 years SIP. Also, I am using the same for my 80C Tax exemption which is the primary reason I invested in this ULIP’s)
    What are the repercussions if I stop paying the premium beginning April 2014(btw it is a auto debit from my bank account). I am okay with the policy not being is effect but I guess I would have to still wait till another 2 years till the lock-in period is over to withdraw the money. All of the above ULIP’ s are currently lower than the principal amount I had invested in them.
    Should I be immediately withdrawing the amounts once the lock-in period is over or wait for few months or a year.

    On the ICICI PruLife Pension Multi Cap – 25,000/-ULIP I have completed the lock-in period but my agent is suggesting that I wait for 5 years, since investment, before I withdraw.
    Regards,

    1. You can stop paying ahead, but you can take out the money when the lock in period is over.

  55. Hazel says:

    Hi Manish,

    I have invested in the following ULIP plans,

    ICICI PruLife Pension Multi Cap – 25,000/- annual premium since Feb 2010
    HDFCSL- 50,000/- one time premium -April 2011
    TATA AIG Life Ins Policy -50,000/- one time premium -April 2011
    ICICI Pru Life Stage Wealth II- 2,500 SIP monthly since April 2011

    Please provide your suggestions on the above. All of them have a lock-in of 5 years.

    1. Better close them all when they are free from lock in . Stop paying their premiums !

  56. Chetan Ambi says:

    It’s always big no no to ULIP’s from me. Agents never tell about charges involved in ULIP’s so people fall prey. Forums like jagoinvestor helping us to be informed investor. Thanks Manish !!

  57. harsh sharma says:

    Hi Manish

    As the market is down at present, would it be a good idea to invest in ULIP for over-the-period of 7 years?

    Thanks

    1. Over 7 yrs , yes it can give good returns, are you not comfortable with Mutual Funds ?

  58. harish says:

    Hi Manish

    I am Planning to Take UTI Ulip for 15 years @Rs 3000/month. I have gone through its Brochure & Website & Quite Internet Search. Got the following Details.
    1. Group Life Insurance from LIC- 1500000/- Insurance Cover
    2. 50000/- Additional Accidental Insurance cover
    3.Its working since 1971.
    4. Has Corpus of approx 2300 Cr as on 31 march 2013.
    5.Average NAV since inception is 10.3%.
    6.I am Planning to take it for 15years.
    7.Additional 7.5% Bonus at the time of maturity if I continued to pay all my monthly amount for 15 years.
    8.it is more than 60% debt & less than 40 % equity.
    I have gone through the details. but still confused.
    I have PPF a/c also. I am 24 years old. Till this last year I will take 1 Term Insurance for rs 50 Lacs but I dont have any financial Liability till date but still i am planing for the same. should i go for ppf, mtual f , uti ulip.

    1. Hi Harish

      If you need review about a lot of things you hold, forum is the right place to discuss it – http://www.jagoinvestor.com/forum/

  59. harish v. says:

    hello mr manish

    by coincidence i’ve come onto your blog, which i’ve found quite informative. i’ve a few questions regarding certain policies that i’ve taken of MAX LIFE INSURANCE, which are :-

    2 ULIP
    2 life gain participating 25yr
    2 whole life participating
    1 life gain participating 20yr endowment

    i’ve heard and read alot of negative comments from many investors as well as the advisors not to go for such plans.

    but in my case, no proper advice given by the agent and not having much knowledge of such investments, i fell prey.

    i’ve completed the lock period of 3yrs & upon checking with MAX about surrender, i was informed that against ULIP the value of the policy based on the NAV of that day or the next day, will be the settlement value

    however, the bal policies, if surrender during the term, whether now or 5years later or whenever, they will deduct 30% of the funds invested and bal amt will be the surrender value.

    i also asked the MAX advisor, based at their DEL office, whether i’m allowed to switch the above life gain and whole life plans to ULIP & i was told YES!

    can u pls advice me if i should go for such a switch cause i cant wait for all my life for the funds to be returned back to me.

    secondly, i also expressed my concern about the agent who sold these policies to me, who i suppose, does not have much knowledge himself about the plans.

    i was told by the advisor that the agent has actually sold the wrong plans to me. moreover the 30% of the premiums that i pay, goes to the agt as his commission thats the reason i dont get much profits out of all the above plans.

    i asked the advisor if i can remove the agent from my policies and he said i can do that too which would secure my funds and give me more benefits.

    can u pls advice me if i should go ahead for the foll 2 positive response given to me by MAX advisor :-

    1. switch the life gain and whole life plans to ULIPS
    2. remove the agents code and change it to self code.

    thanks for your advice.

    brgds
    harish

    1. 1. I think should should just end your relationship with these policies now . You are just into that messy situation which you are trying to imporve . Better come out of this now and start your investments with a fresh start.

      2. I am not aware how to do this.

  60. rakesh says:

    Dear ,
    I want to like to invest in ULIp of UTI for 10/15 years. I have an PPF a/c. Please suggest whach one will be the best option for investment. The agent told me that it is wise to invst in ULIP. Please tell what the performance of UTI ULIPs.

    1. JUst do not get into ULIP if you do not understand how it works !

  61. shree says:

    Hi,
    When i have started my career i took Bharati Axa Aspire life .Its a Rs2000/month for 20 years policy.After 3.8 years i checked that the fund value is Rs60000.Till now i have invested Rs88000(Rs 2000 for 44 months).N0w found that if i will surrender then they will keep Rs24000(i year amount)and return 96% of fund value.please advice what to do ?whether to continue or surrender.

    1. Thats how the policy runs , the terms and conditions must be very clear on this .

  62. Rohit Varma says:

    Hi Manish,

    I was being approached by Citibank to go for Birla Life Insurance Wealth Secure Plan ( ULIP ).

    I have read quite a lot of information on net regarding this plan and ULIP in general and i get an inclination that ULIPs are not the right product due to heavy charges.

    I was thinking to go for Long Term (5-7 years). In this plan the premium paying is till 5 years and policy is whole life.

    Premium Monthly : 5000 pm
    Sum Assured : 13 lac.

    I have opted for the CREATOR fund in Self Managed Option.

    It would be great if you can provide some pointers to me.

    1. What is the IRR for the policy , can you calcualte it using this article – https://www.jagoinvestor.com/2011/02/calculate-insurance-policies-returns-video.html

      1. Rohit Varma says:

        Hi Manish,

        The IRR is somewhere around 8 %.

        1. Rohit

          Did you calculate this on your own with the numbers provided to you , or was it given by an agent to you ?

          I would recommend , look at the realistic numbers expected and then calculate it . If the IRR is 8% , then are you ok getting 8% with a complex product when you can get 8.8% from PPF or 10-11% from equity funds in long term anyways !

          1. Rohit Varma says:

            Hi Manish,

            Thanks for the prompt replies. Appreciate it.

            1) The IRR somewhere around 8% was quoted by the agent.
            2) If i understand correctly then IRR is kind of final return which you get (net) after subtracting the premium a llocation charges,policy admin charges,fund admin charges etc from the gross charges.

            3) Now in my case, i would be giving a premium of 60,000 pa for 5 years. The premium paying term is 5 years and policy is whole life.Since i have started with 50:50 (equity:debt), i am not sure how would i be able to calculate IRR on my own ? Doesnt it depends on the final values which i would be getting.

            1. But the question is , are you ok with 8% in a product , when you can get 8.8% in PPF and even 10-11% kind of returns in euqiyt mutual funds in long run, why to pay the charges and take low returns ? If you cant be super active , then whats the use of ULIP , better go for mutual funds.

            2. Rohit Varma says:

              Got it… Thanks Manish..

  63. Krishna says:

    Thanks Manish..for such insight.

    I just need clarification for question where you answered ‘Yes’.
    does these ULIPs have chances of giving good returns in future..?

    1. Yes .. but you need to handle them properly , have more money in equity part of ULIP

  64. Aamir Ashraf says:

    Hi manish
    i got a call from riliance company that they have started a guarenteed money back plan in which if i invest 30000 per annum i will get 240000 after 5 years which i can withdraw or i may continue with the policy for 15 years and i will start getting back money after 11 years. while in this policy broucher it is writen that i will get only 30 percent of the premiums paid minus first year premium if i surrender after 3 years. please suggest me as i want the policy for maximum returns in 5 years only and not more then that. is this policy right option for me or not.

    1. Dont go with policies like these .. just ignore it and stay with balanced mutual funds for 5 yrs through SIP !

  65. Makul Mahajan says:

    Thanks Manish,
    So it means there are chances that after five year i will loose my all the money? means should i surrender the policy immediately.
    I am very confused please help me..my agent is saying after three years we will perform fund switch which will increase your investment..

    1. No No , i am not saying you will loose everything . I am just saying that you will get your fund value , now this fund value will be based on the fund performance. If you have invested 1,00,000 in 5 yrs, but due to fund performance , its value is just 80,000 , then you get 80,000 , if its value is 3,00,000 , then you get 3,00,000 .

      Its not a fixed deposit, that you know in advance how much it would be

      Manish

      1. Makul Mahajan says:

        Thnx manish For your reply.

  66. Mahendran says:

    Hi Manish,

    Could please suggest on the following ulip plan from Birla Sun Life “Classic Life 2010 BSA Pay20 SD 55”

    Waiting for the response.

    Thanks and Regards,
    S.Mahendran

    1. Mahendran

      We dont recommend ULIP at all .. any ulip is a no

  67. Makul mahjan says:

    Hi,
    I have taken ULIP of tata aig life . and i am paying 50000 per annum. the lock in period is 5 year i just want to ask you that after five year when i withdraw my money whether i get my full money invested back.

    1. Makul

      There is no guarantee like that .. ULIP’s invest in stocks mostly , so it will be as per the fund value

  68. s.Adhiakri says:

    Thanks Manish,
    Please suggest which is the best investment plan for 10~15 years.
    Mutual Fund(pls specify), FD, PPF or NSC

    1. You can never pick one mutual fund like that for 10 yurs .. you can start with 2-3 funds and review them along the way … Start with HDFC Top 200 and DSPBR top 100

      Manish

  69. s.Adhiakri says:

    Dear Manish,
    Yesterday, an agent from Max Newyork Came for policy.
    He suggested Life Gain Plus, College Plan and Life partner policy from Max new YOrk,.How are these policies?

  70. Tarun says:

    Manish,

    I am planning to start some investment…came across Birla sun life forsight…can u put some light on it…

  71. jothy says:

    hai sir
    am living in kochi(am 25year old m).i need a pension plan(at present i can invest 6000 per year) .i have 4 options for that

    1,nps(i dont know how much return[profit] it will give)

    2,lic jeevan nidhi or hdfc personal pension plan(profit return 5-10%)

    3,mf plans(uti retirement plan,temptaion india pension plan) profit retunrn 8-12%

    4,mf balanced funds(hdfc prudence or balanced fund)profit return 10-15%

    kindly advice me which is good for me

    also i need one more advice .i would like to invest in LIC market plus (ulip 6000 per year for 10 years) OR uti dividend yield mf (g)[monthly 500 for next 10 years]
    kindly advice me which is good LIC or UTI for me

    regards
    jothy

  72. Premjith says:

    Hii Manish

    I have been going through the entire discussions above; let me tell you it was so informative. I realize how ignorant/illiterate am on investment/financial stuffs

    To be very frank I had no idea on PAC OR NAV until I read this blog. I Took ICICI Life Stage wealth II ULIP policy in Dec’11. (It’s a 15 Yr policy with a sum assured of Rs. 6 L, premium term is 10 yrs with annual premium of 60000K.
    When I took this policy I simply wanted to secure Rs.5000/ month as an investment plus to get some relief while I file my Tax returns. I simply took the policy as suggested by an agent who happened to be my friends’ dad. Though I did not understand much about the policy, I’ve left everything on him

    When I checked online, I fund value as Rs.41442 where as I’ve paid Rs.50000 already so far. What does it mean?? What do you suggest, should I go ahead with policy, Is the Sum assured value guaranteed at the end of 15 yr term

    1. Premjith

      Nothing is assured in ULIP’s , its totally dependent on market perfrmance .. but as ULIP’s primarily invest in equities .. you can expect good return in long ter, .. but now the problem is costs .. there are high charges in ULIPs 🙂 . .you have already got a taste !

      Manish

  73. Deepak Prasad Landigi says:

    Hi

    Recently i applied for Jeevan Anand policy from LIC, for 20 years plan. yearly i need to pay approximately 56,000 premium. Now i am looking for Investment plan, where i can get guaranteed return, recently i got a call from ICICI agent regarding Pinnacle Super plan. i just want to know more about it. please provide more details on this plan. agent is telling there is 110% Highest NAV is there in this plan, but my question is if in case again recession happen, what about this plan

    Regards
    Deepak

  74. Vishal More says:

    Hi Manish,
    I m new to this forum and a fledgeling in investing. At present I m at a loss of ideas whether to go for ULIPS or invest individually in long term investments (mutual funds) and life insurance.
    I have before me two options for ULIPS, ICICI Prudential Pinnacle II and Bajaj Allianz Max Gain Advantage. Both look promising, at least on paper, but after going through all the above discussions and comments, I m beginning to have second thoughts.
    I have formed the opinion that MFs and LIC would be a better option. Kindly suggest.
    Thanks and regards,
    Vishal

    1. Vishal

      Yes ,you are on right thinking , better go for Mutual funds and term insurance seperately

      Manish

      1. NIKUNJ PATEL says:

        hi manish,

        i have been following up to your comment on ulip plant & all are very informative.

        i need you suggetion about my ULIP.

        i have Aviva growth fund ULIP & premium is 13k per annum. it has already been 3.5 years. should i be continue with this or should i get out of it.
        how is the performance of aviva in this ulip.
        thanks
        NIKUNJ

        1. Nikunj

          What are the allocation charges given in the brochure you have got from the company , last 3 yrs performance might not be great , but its same for all the equity related schemes

          Manish

  75. Gary Shah says:

    SBI smart performer looks great currently as the current NAV as of today for daily protect fund is 9.31 and the highest NAV is 10.73 which was back in November. If I enter today, I am already getting around 15% of return as my NAV will be locked at 10.73 though I enter at 9.32.
    In there benefit illustration chart, I am already getting my money at least 4 times in 10 years at 15% after deducting all the charges.
    Am I missing anything here?

    1. Gary

      I am not sure if you will get highest NAV before you entered into this .. You should be getting only highest NAV after you entered . I am not sure on this , but thats the common sense way of designing the product i am sure

      Manish

  76. Parvesh Sharma says:

    Hey Manish

    I read your home page which seems quite interesting (Studying Ant and Vedic mathematics …gr8 )
    Though I have also done bit of Vedic mathematics 20 years back, but now am more dependent over softwares doing it. Like horoscope creation etc.

    As a humble return of favor (Like you suggest people, the same I do in a different way :), if you would like to consult for any astrologic area(for yourself or any person who is in problem and needs bit of suggestions) you can have a discussion with me

    Thank you very much for your time.
    Would wait for your reply.

    Parvesh

    1. Parvesh

      thanks for the offer ,I will let you know if any one needs it . I actually dont beleive in astrology myself 🙂 . Which city are you in ?

      1. Parvesh Sharma says:

        I live in New Delhi but am often outside country. Also, for your above post, will the ULIP be fine if I continue that for next say 15-16 years?

        For astrology, even I didn’t use to believe it, but once you delve in and see the complex logic you will enjoy it like anything. :). It will give you so many surprises of how things are controlled in such a brilliant fashion by somebody else(say God).

        Parvesh

        1. Parvesh

          Yes . ULIP can be good incase you are able to continue till 15 yrs and rebalance your portfolio once in 2 yrs

  77. Parvesh Sharma says:

    Hi Manish

    The articles and discussions done on this page is highly informative. I am very ignorant to any investment stuff, so need a guidance from you side please.

    My adjacent neighbor is NCR head of TATA AIG, so I went to him last year to suggest a plan for my daughter who is 2 years old. He suggested me to buy TATA InvestSure Superstar(50,000 per annum) for 20 years and forget for at least 5-7 years. Though I went on his words but after seeing the discussions above it seems ULIP are not good enough to put money in. He gave me 7000 Rs discount and put this money with 12,000 more in another policy TATA AIG sampatti of 19,000 P.A.

    Now I dont know if what ever I have done is right or wrong. As for now I just saw the NAV on AIG site and it shows fund value of 36,000 and 15,000 resp for 50K and 19K policies.

    Please suggest me how shall i go. Shall I keep paying the remaining 3 years money or I should keep going for next 15-20 years.

    Thank you very much.

    Parvesh

    1. Parvesh

      ULIP’s can be bad if you do not use them properly , which is your case . Without much idea you should have not put your money in it . I am not sure what was the allocation charges and what are other charges in those policies , you should look at those first and give more info here

      Manish

      1. Parvesh Sharma says:

        Yes Manish

        You are correct, I should have checked before investing, but was misled. Better late than never, I should follow a rescue path now and see what best could be done.

        As questioned, below are the charges for the Policy purchased.

        Policy TATA AIG Superstar –

        Allocation charges –
        1-2 year -> 25%
        3-5 year -> 3%
        6+ year -> 1%
        (For the first year my neighbour gave me 22% discount on 1st premium so I had to pay 38,000 Rs for the premium of 50,000 )

        Fund management charge –
        Flat 1.20% of fund value per annum.

        Also, policy can be surrendered without any charge after 5th year.

        For second policy 19,000 Rs/per annum-
        TATA AIG Sampatti

        There is no premium allocation charge. They say that Tata AIG Life Invest Assure Sampatti is a non participating unit linked endowment plan. ( I dont understand what does that mean 🙁 )

        Please suggest me how should I should I go now.

        Thanks a lot for your suggestions and consideration.
        Parvesh

        1. Parvesh

          You should understand whats happening here . Allocation charge is 25% , which means that out of your premium , 25% will go as CHARGES . so as premium is 50k , the charges would be 12.5k for the 1st and 2nd year both . Why your friend was able to give you a discount ? because he gets huge commission in ULIPs especially in initial years , it can be 35% of premium . so he might have got 17.5k as his commissions .

          So he was able to pay 12k along with your 38k and complete that to make 50k . So still he makes 5.5k in his commission + for 2nd year he makes 17.5k and after that every year he gets 5% commission which is 2.5k

          Also note that in second year your charges will be 12.5k and only 37.5k out of your 50k will be invested .

          Getting into ULIPs is bad if you want to get out of it soon .

          Manish

  78. sweete says:

    sir, i am planning to invest in SBI SMART PERFORMER ulip. i need to pay 50000 per year upto 5years . The product is of 10years. they offered gurentee of highest NAV of first 7years or maturity year.totally i come to know from sbi employee that if i pay 2.5lakhs(50000 per year till 5 years) they give 5.5lakhs at 10 year it seems that means 3.5 lakhs is my gain . is it true ? do i get this amount after the deductions like charges or will they deduct in this amount. ?? i m new to invest in this kind of product. plss give idea regarding charges and abt dis plan. i will so kind of u sir.thanks

  79. Sumit Utreja says:

    Hi,

    I wanted to ask a question regarding a ULIP I had bought 7 years back. The ULIP is Birla Sun Life Flexi Life Line 2004 – To Age 70 pay 15.

    The current value of the ULIP is not even the amount I have invested in the last 7 years. Should I take partial with drawl from the ULIP and invest the money somewhere else? Or should I let the money invested in this ULIP. The ulip hasn’t performed well at all i think. Kindly advice.

    email : sumitutreja80@gmail.com

    Regards,
    Sumit

    1. Sumit

      as 5 yrs are over , you can now get out of it will all your money (no surrender charges , i suppose , check your docs) , so better get out of it and see new fund (no ulip) .

      If a marriage was not successful for 7 yrs, probably there is something wrong , doesnt take so long to figure out . get out of it, fixing it will be tough .

      Manish

  80. Amit says:

    Hi Manish,
    i have been following your articles for some time now as they r really informative.I have been in job for about an year but have invested only in PPF till date. I am looking for investing in short term period of 2-3 years .
    can u pls guide me in this regard and tell me the suitable options for me.
    Thanx in advance

    1. Amit

      For short term it depends on how much risk you are comfortable with and how much loss of capital you can take if there is any for the sake of high returns . If you dont want risk , then the best thing I can say is to invest in Debt funds or at best debt oriented funds which have minor equity component also . No Pure equity funds if you dont want to take risk .

      Manish

  81. Siddharth says:

    Conclusion: For a novice with no idea of market, a long term ULIP can fetch more than FD, but if you are a Graduate (i mean a bit smart) then better invest in Mutual funds and Term plans.

    I tool ICICI Pru “Life Term” in 2004.
    Though 3 yr was the locking period, but I am continuing it. Every year I am paying 25K since 2004. Life Insurance is meagre Rs1.25 Lac but than it is giving me returns better than FD or PPF can give.
    Current Value = Rs 2.50 Lac for my total investment of 1.75 Lac made over 7 yrs i.e more than 10%

    Formula for Calculation :
    Future Value of present Annuity = A((1+R/m)^N*m-1)/(R/m)
    Symbol Desm= no. of times interest is counted in a year
    P= Value of Money Investes
    Q=Value of Money
    R=rate of interest
    N=No. of Years
    m=Bsis for interst calculation(for monthly basis m=12,for quarterly basis m=4 and so on)

    1. Siddharth

      You might want to do a IRR analysis and see what is your Return .

      Manish

  82. kumar says:

    Dear Manish, I am 35 and married. I get lic cover of 20L. I am saving 50k per month after pay my insurence and expenses. Pls. suggest me where I can put thie money. I don’t know about ULIP or MF but thinking to put in NSP. What u suggest. My e-mail:- biltu2004_das@yahoo.co.in

    1. Kumar

      You should be using Mutual funds and invest in it for long term , dont get into NPS right now , you can do better with mutual funds

      Manish

      1. kumar says:

        Thanks Manish, Can u suggest some good MF?

  83. hitesh says:

    Manish / Akhil

    I have a max new york’s ulip since last five years. Premium is 15000 p.a. At present the current value is @ 72000 . Total invested is 75000. Also i enquired with the company if i can stop the policy ? they told me that since its old ulip there will be a deduction of 40% of annual target premium at 6th year , 30% at 7th year and so on . Zero deduction is only after 9th year.
    Can u advice me what should i do with the policy ?

    Hitesh

    1. Hitesh

      What is the exact policy name, please see the policy document on net and verify if they are correct . Unfortunately , they might be correct , if thats what is written in the document .

      The fact that you signed it means you agree to terms and conditions 🙁

      Manish

  84. Religare Enterprises says:

    Hi,
    ELSS offers tax benefit and a pure equity exposure, hence may be considered a riskier product. ULIP on the other hand offers insurance and investment in equity and debt funds that underlie the plan. Those of you who are looking for additional insurance may opt for ULIP. To know which product could suit you better, please write to us at customer.feedback@religare.in. To keep updated with the latest news, views and tips on ELSS, ULIP’s and other financial products, please join us at http://www.facebook.com/Religare.Enterprises and http://twitter.com/religare_rel
    Regards,
    The Religare Customer Care Team

    1. Religare Enterprises

      Would it be possible for you guys to give a full explaination on why iTerm has so high claim rejection ratio to the readers here ?

      Manish

  85. Fazeel says:

    Manish, 1 question.
    I have a term insurance.
    I invest in ELSS MF’s regularly for investment cum tax saving.

    For religious reasons, I cannot invest in any interest paying investment, leaving only ELSS MF and Equity ULIP for tax saving. (Perhaps you can research and let me know if you think there is any other Shariah complaint tax saving option.)

    I was thinking that is there any reason I should switch some amount from ELSS MF to ULIP? (Say out of 1 Lakh that I invest in ELSS every year, now I take a ULIP of 30K for 20 years)
    Is there any reason you would recommend doing it?

  86. V says:

    Manish, I need suggestion from you.
    I have bought a ICICI ULIP 3 years back. Permium of 30,000 per year with 2Lakh coverage. Based on current NAV, I see annual return of 11% .

    I have also got a LIC Jeevan Anand (Premium 24,000 annually with 3 Lakhs coverage) which is bought 4.5 year before.

    Please suggest whether to continue these policies or should I stop them and go for Term plan.

    1. Vishal

      Term plans has no relation to what policies you have, if you are underinsured , then what you have and what you dont have does not matter .the main thing is to get term insurance and get your self covered.I would say stop your endowment policy atleast .

      Manish

  87. aditya says:

    superb articles….and very informative as well. keep it up (looking forward to new ones)

    1. aditya

      Thanks .. its coming in .. in the mean while please go through the https://www.jagoinvestor.com/archives to find more articles .

      manish

  88. Ali says:

    I want to invest in Lic’s Wealth Plus Rs.25000/-p.a(3yr),but i am not sure how much return after 8 yr.

  89. Hitesh Sharma says:

    Hi,
    Nice informative article.
    I am a doctor by profession and therefore didnt know much aout investing when i passed out of college in 2007.
    When i was about to file my first income Tax, i was “Guided” by a friend (innocently ofcourse” to an agent selling ULIPS for tax saving.
    He touted so many terms and abbreviations with the biggest being SAFE.
    I was taken in and signed up for a KOTAK safe investment plan.
    thats is when i started reading about investment and modes of investiong, Dos and DOnts.
    To my utter horror, i was shocked to know about the charges, especially PAC.
    43 percent of my installement went to the PAC charges.
    I was of the belief that i cannot opt out,(thanks to you , now i know i can).
    Now i have finally paid three installments, now i am in a dilemma.. what should i do?
    I have paid most of their charges as ULIPS charge max in first three years, but i am not happy with whole thing.
    Please advice if i should discontinue ULIP and invest in MF.(insurance is not a requirement as i am only 27 and am suitably covered for that with LIC).
    Thank you

    Hitesh

    1. Hitesh

      Mostly you have paid the charges in ULIP m, so optiong out from cost point does not make sense,. however from operability point it might make sense as ULIP’s are complicated products and does not suit people like you .

      Would like to know about your Insurance cover and How is it “Suitably covered” . I think your insurance cover should be around 1 crore .

      manish

      1. Hitesh says:

        Thanks for your reply Manish,
        The reason i wanted to discontinue the ULIP is that if i invest that money in MF, i am quite confident i will be able to offset the relative loss i have had by investing in this ULIP.
        PLus even though the charges now on will be less, they wont be negligible, i will still have to pay all those weird sounding charges.
        Wouldnt it be better to stop spending more money on ULIP to recover the loss i have had by these charges and invest fresh in MF-equity.
        Regarding the Insurance, i am 27, single with no responsibility or debt, therefore i aws of the opinion that i do not need much insurance now.
        I have a LIC of 5 L which i thought woould be sufficient as of now. I plan to get married late next year and would go for a term insurance of a crore from then.
        Please advise if i am correct in my approach and what changes would you advice in my planning?
        Thank you for your reply.
        Hitesh

        1. Hitesh

          You are on the right path .. good going 🙂

          Manish

    2. Rad says:

      Take my suggestion.
      Every person sholud be allergic to word POLICY when it comes to investments. Never invest in any POLICY in the world. Policy is only for risk cover like vehicle insurence.

  90. Akhil says:

    One more tip! I know it’s not documented or anybody tasted it but I only observe… Always invest in ULIP with mid term point of view that’s 10 year and you can choose any available plan in the market which offer you 10 year term. either short pay or regular pay option… You will notice the IRR worked out better compare to long term plan. :)… Manish can you please validate this point, I think its true…

  91. Akhil says:

    One more thing… its not related with this link anyhow.. but thought I ll ask you :)…. I ve read somewhere indian market is the only market where FDI can expect 20% ROI…. Do you think 20% is possible??

  92. Deepak Pandey says:

    thanks Manish and Akhil for your valuable advice…………will keep in mind before any final decision:)

    1. Sure .. Keep commenting

    2. Akhil says:

      Cheers deepak 🙂

  93. Deepak Pandey says:

    Hello Maninsh,

    i am a fresher who just started earning and invested in BIRLA SUNLIFE PLATINUM-III ULIP Plan. I am investing 50k per year with 2.5 lakh Sum assured but i am not getting much of resturn as expected. Could you please suggest as i am planning to move out with this.
    Since my agent never told me about charges that i need to pay for policy.

    please reply @dpandey86@gmail.com

    Thanks.

    1. Deepak

      If you do not think you should be present in the ULIP , i would say get out . Consider it as lesson and start fresh . No issues with making mistakes 🙂

      Manish

      1. Sobha says:

        I have been keeping away from ULIPS. Recently reliance people said they are launching a new ULIP which will give the highest NAV. I also asked them abt other charges… The first year charges are 20% and in ten years it will be around 2-3% is what they told …They said u can go for higher or lower mortlaity charges dependeing on the coverage i want …

        can u throw some light into this so that i know the pros and cons …

        1. Sobha

          Highest NAV ulip is discussed here : http://www.indianexpress.com/news/no-free-lunches-in-financial-markets/568433/0

          Dont fall in trap of fancy strategies diuscussed . there is nothing called “best policy” .

          Manish

          1. Akhil says:

            Sure don’t fall in fancy trap… But use your brain.. are you risk averse, you wan’t capital guarantee with decent return, all that with tax benefits… If your answer’s is yes.. this product is for… well manish for you or people who are expert in field of investment its very easy to manipulate things but for simple investor its not that easy… they don’t have anything to do with fixed income instrument or equity participation… they simply want to know what I ll going to get after said period… well telling them market performance can’t be predictable but if you remain invested for 10 years you surely make out… It won’t dig in investor throat easily…. Yes companies who offer such plan simply invest reverse balanced scenario where debt exposer normally remain higher then equity… But tell me if you try to maintain same portfolio for your self individually would you make out decent return??

            Answer is no.. because FD returns are taxable you cannot match the performance of fund.

            Well everything which shine, not always gold…but Critics are not always true… 🙂

            1. Akhil

              the first point is to know that these Highest NAV plans are not even better than normal plans in ULIP . the point is that customers are cheated by showing them fancy policies and names , why dont they disclose the working of the plan before hand instead of putting in fine prints with smaller fonts .

              manish

            2. Akhil says:

              Manish

              Yes it is better then normal ulip one way.. Its true this plan not offer self manage option in the hand of investor (the real number of investor who exercise switching option is minimal). But fund manager take control of corpus and tweak the ratio of equity and debt…. Company is taking calculated risk here its very clear and they just can’t let things go out of their hand… well they come with short pay option short term and less at charges what else you want :)…. In mf’s you can not ask question or make fund manager change his strategy no matter whether fund perform or not. all you can do is get out of it. Here also the same thing…

        2. Akhil says:

          Sobha, I know manish won’t agree with me on this and his suggestion would be go invest in mutual fund plus take term plan for cover :)….. But if you made up your mind for ULIP or want to give chance ULIP against all odd.. check few other available option before go with reliance… I would not personally suggest reliance, check out LIC wealth plus if you looking for some mid term plan with short pay option…. If you can remain invested longer means 10-20 year, and comfortable paying regularly then choose any plan from birla or bajaj allianz….

          Bajaj allianz igain check this particular plan… its low on cost because its sold directly without any advisor or agent… you can purchase this plan only through website of bajajallianz….

          lol you can increase and decrease mortality charges anywhere… what’s new in it, its nothing but sales jargon… just avoid it 🙂

          1. Akhil

            Can you give more review on bajaj Allianz igain policy ? We can do a cost return comparision and then find out which one is better ? What is the IRR of it ?

            manish

    2. Akhil says:

      You didn’t make any mistake… since plan you enters is really decent plan charges are not much compare to any regular ulip plan.. beside only come with short pay option of three years… Just pay three year and don’t touch your money after that for at least 5 years… You won’t regret, mark my word :))

      1. Akhil

        Why do you suggest for paying only for 3 yrs and then wait for 5 yrs ? Is it not a good option to keep investing in ULIP regularly , how about the consistency part of investing ?

        What is your justification ?

        Manish

        1. Akhil says:

          Yap surely its not good advice for normal ulip.. Manish this plan is LPP ( Limited Premium Paying) plan.. Mean by default it come with 3 pay option.. you can’t pay more in it… Beside this plan is low of charges…. check out icici pinnacle or LIC wealth plus… really decent plan its a copy of Birla platinum plus series…. If you want documented proof the benefits of PP return.. I recently check out the fund value of investor who invested 2 lac in this plan.. first year anniversary his fund value 2.87 lac (after adjusting charges) of course 🙂 so buddy every time ulip is not bad…

          1. Akhil

            Lets not talk about 1-3 yrs return , what is the 10-15 yrs return expectations of this policy and how much work is required to be done what if a person invests in PPF + Term + MF ?

            The long term comparision makes sense .

            Manish

            1. Akhil says:

              Yes Manish, absolutely agree annualize return is not a point to discuss about.. since every equity fund perform well above decent last one year thanks to share market… but you can not generalize it… still with ulip plan you can expect bare minimum return of 14% yoy over a long run…. since ULIP started only 10 year back.. and I didn’t come across anybody who completed the 10 year in this type of plan. I can’t talk on real return. But still the 14%- 15% ROI you can expect without any doubt. what you say manish have you done any projection base study on ULIP return.

            2. Akhil says:

              Actually if you ask me… Term + MF sound good.. but practically in my sense it not worth it… this is my take, I don’t know how you see this combination.

              Point on which I doubt this combination…

              1) If risk cover is your priorities (In case of Home loan, Personal loan or family protection). The amount you paid would justify for decent coverage only, if you taken it early stage of your life… because 33 onward decent coverage of 40 lac would work around 12k premium. which is costly and utter waste of money…. you paying only charges for coverage. ULIP after charges worked better for same coverage.

              2) MF’s is good but growth fund exposure toward equity is upto 90 % and plus in longer run its not offer you option to lock your capital appreciation at regular interval…. I missed big time reading your artical (how to look beyond short term return in mutual fund) 🙂

              3) PPF is really decent mean to do long term saving with all the protection and slightly higher return over SB Ac…. But looking period of 15 year and cap of 70 K sound unfavourable to me… I think cap should increase in PPF so ppl can do additional saving with clear goal in mind… If you know some outstanding expenses which is going to come in your near future… you can make provision for that by doing additional saving…

  94. Rameshwari says:

    Hi Manish,

    Should I invest in any ICICI Ulip because one of my freinds says ICICI Ulip plans gives best returns around 30% annualy.

    After reading your blog I need you suggestion wheather she is right or wrong

    1. Rameshwari

      The point is not that how much return it gave , there are other issue .. if you invest 100 and then they take 40 as their expenses , and then invest your 60 and it earns 30% , what is the point in that .. its better than you invest the same in mutual funds and take 25% return . thats much better.

      We have already disucussed on ULIps on this blog and final conclusion is that ULIP’s are enough complicated that general investors should stay away from that .

      Manish

  95. Raghaw Shukla says:

    Hi ,
    I have a query.I took reliance super investmen tassure plan.Is it a guud plan or i should stop this plan .I pay 20,000 PA.till now i have paid 15k.Is it worth investing plan.

    1. Raghaw

      you have bought an ULIP and it has the same issues we discuss on this blog . Its a costly plan and may not suit your profile . have your asked your company what is the IRR of this plan ? What are the costs ? Ask them what is Premium allocation charge of this plan ?

      I think it would be wise to get out of it and settle with something simple

      Manish

  96. Akhil says:

    Well in case of MF vs ULIP….

    1) MF’s yes- if my risk apatite is higher then average investor
    2) Mf’s yes- if my goal is around 5-6 year.
    3)Ulip yes- if I want to invest for 10 year plus
    4)Ulip yes- if my risk apatite doesn’t allowed me to exposed 100% on equity side.
    5)Ulip yes- if capital protection is my prime concern. most of the ulip plan come with downside gurantee. MF doesn’t come with any such gurantee.

    Well if you ask me which one is better… I would say mf’s with combination of term plan and Ulip both can be better if you know how to manage it out. because investing blindly and close your eyes afterword, would not work in any case.

    1. manish says:

      Akhil

      I agree with your point on “Anything can be better , just that one has to know what he is doing ” .. good point . Looking forward to connect with you 🙂 . You seem to be a interesting person 🙂

      Manish

  97. Akhil says:

    Bravo! lol manish you making my work more hard… by spreading awareness, joke apart I am 110% agree.. Yes after all you putting your hard earned money in stake and you have all right to ask all this above question to person who is there to give you advice…

    1. Akhil

      Nice to get a comment from your for the first time. One has to definately ask more and more questions before one takes a product . the main idea is to know it well for the simple reason of its your money 🙂 .

      Looks like you bought a ULIP ? 🙂 just kidding . did you ?

      Manish

  98. Moga says:

    I am planning to invest in SBI Smart ULIP,Just I need your suggestion can I go for 3 or 5 Yrs plan.Which one is best for ROI.

    1. manish says:

      @Moga

      ULIP’s are not a 3 or 5 yrs product . Unless you want to be with it for 10 yrs , does not make sense to go for ULIP at all . Apart from this , do you know when to do switching and take advantage of market movements ? Who suggested you SBI ?

      You should look at Aegon Religare ULIP , its pretty nice one . Recommended , but again more than 10 yrs only .

      Manish

      1. Guna says:

        Hi Manish,

        Can u pls advise what abt Kotak Ulip and Adithya, i m paying more than 1 year for both policies. They said after 3 year u ll get good returns (10-30% PA). Shall i take out the after 3 years or i shld continue bcz i am not able to pay.

        Regards,
        Guna

        1. Guna

          you will not get money before the lock in period of 3 yrs ,also no return is guaranteed, its directly related to market performance

          Manish

          1. Guna says:

            Hi Manish,

            Thanks for your prompt reply,

            Can u pls advise shall i continue it for a period of more than 10 years for good returns or i should move out the Policy.

            Please advise

            regards
            Guna

  99. Manish Chauhan says:

    @Yogi

    Generally , we would like to keep our costs for a product as low as possible , If you invest in mutual funds , they have costs same every time .. so in all the time frame there cost is same (entry load of 2.25% , earliar) ..

    But in ULIPs , the costs for 10+ yrs are recovered in the starting years only , mainly in 1st and 2nd year .. So if you dont stay in ULIPS for more than 10 yrs , yout cost will be very high .. So if your first year PAC is 40% , second has 5% and there after 2% and you quit after 3 yrs , Your cost will be around 14-15% approx .

    Now I am not saying that overall you will be in loss .. it may happen that your ULIP has done great and you made profits .. we are only talking about getting the full value …

    So quiting ULIP before 10 yrs .. makes it very costly products 🙂

    Manish

  100. Yogi says:

    Dont do mistake done by tons of investors who took ULIPS for 3 years

    I didn't unserstand correctly ur above line.

    Do u mean if we purchase any ULIP policy shd. continue for more than 3 years?What r advantages of it?

    I think one advantage could be less charges after 3 years.So more investment.Other thing in long race it could give more profit/returns.

    What else can be the reason?

  101. Anonymous says:

    dear shekhar sawant.
    your term plan is o.k from religare. kindly tell us some info. what you are looking in uti ulip. for long term look for diversified mutual funds.

  102. Anonymous says:

    Manish,

    i have been following up your artcile on ULIPS

    Need your comments on UTI ULIP

    I am 35, With insurance cover upto 5 lakhs from LIC Jeevan anand,lIC PMELT 12.50 Lacs & 1 lakh from SBI LIFE subarshan

    i am an NRI, & Planning to Invest in UTI ULIP with 15 yrs for 15 lacs

    Or Option of term insurance with agaon religare for 25 lacs

    Please throw some light on the options available to increase coverage

    Regards
    Shekhar Sawant

    shekhary2k2000@gmail.com

  103. Anonymous says:

    dear Sir,
    I have [urchased an icici prudential ULIP on 2007 november.I do not understand much but the annual amount is 50000.in 2008 I could not pay the amount & ICICI gave me a letter that it got cancelled.Can I get back some money from it.Pls help.

  104. Manish Chauhan says:

    @Business Pundit

    ooops .. Looks like i missed that line where he said that he dont have financial dependents .

    You are correct that he should have no insurance at all .

    However , taking Life Insurancemay have other reasons too other than having financial dependents . May be you want to leave a good lumpsum to your dependents (even though they are not financially dependent on you) .

    I read your article .It was very nice

    manish

  105. Business Pandit says:

    Manish,
    You have excellent suggestions in general but I disagree with your recommendations to Zindagi. Zindagi has no dependants. Best plan for him is absolutely no insurance. I have listed the full details here:

    http://businesspandit.wordpress.com/2009/07/14/i-dont-need-life-insurance

  106. Manish Chauhan says:

    @zindagi

    So now you are out of lock in period . Now you can do following

    1. See the total fund value . You have made total 60k payment , so calculate what is your return till date . i guess it would be negative only at present . But if you are ready to take money out , take it out and start SIP in mutual funds and take a term insurance .

    2. Continue the plan (after researching it if it suits you) for long term and regulary put money in it , dont forget to increase your life cover through term insurance .

    Manish

  107. Zindagi says:

    Manish, would like some suggestion from you. actually i have bought a ULIP 3 years back. I was paying 20,000 p.a for, The term is 10 years and cover is just 1,50,000. I was so foolish to buy such a plan. But now i don't know what to do? wheather to continue or change or just withdraw.

    I am single and have no such financial dependent.
    Kindly advice

    Zindagi
    gaurkullu@gmail.com

  108. Manish Chauhan says:

    @kris

    I did not understand your commnent. There are some companies which claim that they dont have Premuium allocation charges . Not sure about them .

    Manish

  109. kris says:

    I dont agree with above blogs where there are ULIPS without charges ,only fund management,policy admin,mortality charges and no Premium alocation charges,And there is no charge in first year also….

  110. Manish Chauhan says:

    @Karthik

    Good that you closed the policies which you realised are junk , Continuing with Jeevan Anand may make sense because already 4 yrs have gone . You can also make it a paid up policy , thats one choice .

    Manish

  111. karthik says:

    Hi Manish,

    I agree… I had been been hooked by a insurance agent 4 yearsback into buying Jeevan anand,Money back policy and one another policy.. The reasoning was that we get assured return and also insurance coverage..Sounded good that time..Later I realized that it was a foolish investment to make.. Now I closed one of the insurance policies and taken term ins..But Iam still continuing with Jeevan anand as the loss would be 70% and I cant bring myself to do that.

  112. Manish Chauhan says:

    @Praveen

    the biggest thing is the costs associated . With ULIPS its huge in initial years around 20-40% and over long term it would still be 1-2% per annum .

    With NPS is like free , almost .009% i guess . thats a free lunch .

    Other thing is that with NPS the maturity value is 100% taxable . but with ULIPS its taxfree .

    Note : people are trying to convince govt to make the maturity amount tax free .

    Overall

    NPS is not the best choice to go for right now , this is not a indication that ULIPS is !! .

    Simple Mutual funds SIP is most powerful i beleive .

    What do you think about ULIP vs Mutual fund SIP ?

    Manish

  113. apk says:

    How does ULIP compare with NPS? What kind of growth do you foresee for NPS?

  114. Manish Chauhan says:

    @Swathi

    he he

    your agent was not the worst !! . Atleast he didnt say that he will give it in writing that the company promises 20% per annum .

    If some one does that , ask them to do this and ask him to call his manager and have him confirm this .

    I dont know what kind of training these companies give to agents . I strongly believe that jagoinvestor blog readers are any time superior than any mutual funds or ULIP advisors .

    Manish

    1. Kiran says:

      Hi Manish,
      Nice blog, what about the ICICI’s pru Pinnacle II now, which has 14% charges only for the 1st year 6%, 2nd year 5%, and 3 to 5 % for the rest (these are PAC)

      1. Kiran

        I am not sure about this particular one , but seems like new ULIPs have many hidden charges even if PAC is low http://www.moneylife.in/article/78/11913.html

  115. Swathi says:

    good one manish !
    I came across a similar agent selling ULIPs. The worst part he doesn’t know what is NAV ?!! he says that NAV will never fall and will only keep rising.He kept on telling that this particular ULIP will give me 30% return. When I questioned him what is NAV- he had no words to say.

    1. Swathi

      My god .. which company agent was it ?

  116. Manish Chauhan says:

    devarchit

    i mailed you , my contact is 9886409654

    manish

    1. S.Adhikari says:

      Dear Manish , Pls mail me your email, as i want some major suggestion about my investments what I have done till date.
      Thanks!

      1. You can use our forum to ask your personal questions https://www.jagoinvestor.com/forum/ or opt to go for our services : https://www.jagoinvestor.com/services

        1. S.Adhikari says:

          Dear Manish,
          Please suggest about following Reliance & LIC plan I have, which one I have to continue and which one I have to close:-
          1) Reliance -Guranteed Money Back Policy- Date of Comencement 2011, (15 year Policy),Yearly Instalment 40,001.
          2) RLIC-Highest NAV Advntg Pln-RP-Date of Comencement 2011, (15 year Policy),Yearly Instalment 20,000.
          3)RLIC-Highest NAV Advntg Pln-SP- Date of Comencement 2011, (15 year Policy),Single premium 63,619.
          4) Reliance Money Guarantee Plan-Date of Comencement 2007, (10 year Policy),Yearly Instalment 10,000.
          5) LIC -The Money Back Policy-20 yrs- Started in 2004.
          6) LIC- Jeevan Nidhi – Started in 2005.
          7) LIC- Jeevan Aastha- started in 2009.
          8) LIC-The Endowment Assurance Policy- Started in 2010.
          All this policy was handed over to me by an agent.
          I want your suggestion for all the above policy.

          1. We generally suggest that you close these policies and clean your portfolio .. i can see that most of the policies were started recently .. If you are above 50 , let it continue .

            1. S.Adhikari says:

              Dear Manish,
              My age is 38, Which all plan should I close and waht will be my loss.

            2. My suggestion would be to stop all

    2. Saurabh Tyagi says:

      Manish,

      I can see you answering questions people have on ULIP and other policies, I really appreciate it,

      I have a question, where I want to withdraw my ICICI Pinnacle 5 year policy, and wanted to know, if we have this facility of withdrawal, ( due to financial conditions I will not be able to move on with this one )

      Best Regards
      Saurabh Tyagi

      1. Yes, a ULIP policy has a lock in period only upto 5 yrs , so now you can withdraw the full amount if you want !

  117. Anonymous says:

    I chanced upon your blog and found it very informative. The event blogs are striking enough to have a feel of the event, so, I would like to have a little chit-chat on your blogging interests. And even we are coming up with an event on startups on June 6th. So, can I have your contact details? Looking forward to hear from you.

    Contact me on : devarchit@siliconindia.com

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