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POSTED BY ON December 8, 2010 6:22 pm COMMENTS (12)
Hi All,
I am Mohan regular reader of jagoinverstor Forum.
I took the below ULIP on Feb 2010 from ICICI
“ICICI Pru Assure Wealth-Super UIN 105L098V01”
I am paying 25000 on yearly basis,
Recently i called to ICICI Customer care to know about the fund value of mine…
But They said that they will take this entire first year premium (25000) as policy charges and they will invest in market only from second year onwards, but my agent didn\’t tell me all these things intially when i took my policy.
They told that after 3 years i can withdraw the 100% of my fund value that means what ever i paid 2nd year and 3rd year(25000 + 25000) they will be investing in market and at the end of 3rd year i can withdraw it i.e (50000 + interest appreciated), but actually I am paying 75000 to them at the end of 3rd year.
They told me that I have to pay premiums at least for 5 years and after wards I can stop the payment and policy will be inforce till 15th year and after 15 years they will be giving guaranteed addition of 100 – 120% of first annual premium + fun value.
They have informed that they will deduct 4% as policy charges from second year onwards till 5th year.
Incase if I want to cancel this policy now then they told me they will not pay anything.
Could anyone please help me shall I continue this policy… really I am looted by agent.
Please find my policy information below for your information:
ICICI Pru Assure Wealth-Super
Name of the Proposer : Mr. Mohan Kodavali
Policy No : 13381538
Policy Term (Years): Whole Life/ Open ended
Date of Commencement of Policy : 04/02/2010
Category : Non-Medical
Particulars SUM ASSURED ( Rs. ) 150,000.00
Premium Amount(Rs): 25000
Periodicity of premium payment shall be : Yearly
Service Tax and Education Cess extra, as applicable.
Benefits payable and charges applicable: As specified in the Policy document
“The policy shall be subject to and be governed by this schedule and the terms and conditions of the policy
document enclosed herewith including every endorsement by the Company and shall together forma single
contract.”
The Policy shall stand cancelled in the event of non-realisation of the First Premium Deposit by the Company.
Signed for and on behalf of the ICICI Prudential Life Insurance Company Limited, at Head Office, Mumbaion 09
February 2010(the issuance date).
Version U73: 1
2021 © Jagoinvestor.com All Right Reserved
I have invested 15000 per year in this plan from Feburary 2010. My total fund value is 216075/-
Is it good to surrender this policy in 2025 ( after 15 years from purchase) . What all benifit I will get then and if I surrender before 15 Year what I may miss.
Better continue right now till maturity
Yes, Agents are cheaters especially ICICI ones. Even I was cheated.ICICI agent did not tell all these. I told I was looking for short term investment, my agent recommended saying I can withdraw after 3years.
Thanks for sharing that Ashwin
Hi,
I have been contacted by ICICI representative and he resolved my concerns.
Thank you very much for Jagoinvestor forum aswell as for ICICI Prudential officials.
Hi
We understand our representative has contacted you and resolved your concerns to your satisfaction. If you have any further queries, feel free to contact us at grievance@iciciprulife.com
– ICICI Prudential
Why have you asked again? When everything has been explained above!!
Your agent told you correctly. The first premium is invested in debt which is returned to you after 15 years.
Do not think a Ulip as a MF, whose values you can ponder daily. A long term product means a long term product, in this case more than 5 years, but preferably 15 years!!
Jump to another plan? Pay charges again and then probably again jump…
DIY is a serious problem when you do not know the basics. Get a decent financial planner (like shashank) and trust him. No all FPs and agents are bad. From what information you have told till now, this agent of yours gave you correct information.
In my humble opinion, this plan of yours is a very reasonable plan for you. period.
Ramesh
Hi All,
Thanks for all of your suggestions.
Eventhough i am regular reader of this forum i did mistake yah… i am accepting.
I am not actually Greedy, but Agent has told me that first year they will not invest my first year premium in Equity market instead they will invest in Dept market and from second year onwards they will invest in Equity market.
Now i came to know whatever he told me is wrong.
My concern is incase if this plan is not so good then why should i continue in it by paying for at least minimum of 5 years instead shall i select anyother good plan which is better than this plan.
In case if i continue in this plan for long term i.e for atleast 10 – 15 years, will i get benifited from this compared to others available in market ?
Please dont mine, since i am asking again same thing.
Your valuable suggestions will help me.
Mohan,
What you have done is done and don’t regret for that try to get up from that moment and try to move towards profit side ..
I remember I read this from the book of “Retire Rich – Invest Rs.40 A Day” by Subramanyam from http://www.subramoney.com.
Try to make topup as much as you can so the topup charges will be hardly 4% and all other charges will come down when you add this topup.
for example for 25000 suppose they deducted 40% [it will be 10,000] and your investable fund value will be remaining 15000. If you topup on this another 15000, the topup admin charges 4% [it will be around 600] remaining 14400 will be invested.. So total it came to 19400 and now if you consider total value you paid as 35000, then the charges came down to 30% from 40%.
I hope this may confuse, not hope damn sure it will confuse you but I strongly believe this is the solution to get profits from them .. Again these profits are depend upon the market and the time these are not guranteed.
Thanks,
Chakri
If you surrender your policy, your just forget your first year premium minus surrender charges. So, surrender is not recommended.
Your first premium will be given to you after 15 years with some fixed interest. So, these are not charges. The only drawback is that you’ll not get that return which you could have got if that amount invested for 15 years. But it can not be undo now.
There are some positive points also.
You’ll get 2% additional return every year from 6th year onwards.
There will be no premium allocation charges from 6th year onwards.
So, in a summary, the plan is not so bad.
Still, you should consider term insurance to get full risk cover. If you increase your S.A. in this plan, there will be more mortality charges, leading to low return.
For future, read official brochure carefully and discuss with your financial planner or on websites before taking any decision.
Hope it will help you.
InvestmentKit.com
For your information, all this information is provided on the ICICI Pru’s website, with explanation of all charges and options, etc. Everything is completely transparent in that respect.
1. I fail to understand that even after being a “regular” reader of this website, you invested in this plan. You need to examine the reasons for that. Those reasons are very important and you need to correct them, if they are wrong. Was there greed / fear? eg. greed of getting assured lifelong returns, etc. In the long run, this Rs. 25000 may have taught you a far more valuable lesson. 🙂
2. I think you have “Super” version of the plan.
3. The first premium that you have given will be RETURNED to you after 15 years, if you pay regular premiums. The amount varies from 120-170% depending upon the number of premiums paid regularly.
Pros of the plan:
1. multiple funds with different portfolios- opportunities,multicap,bluechip,dynamic PE, balanced,income,moneymarket.
2. 4 free switches every year (more than enough).
3. Policy admin charge is applicable from 2-10 years. Beyond that, no such charge.
4. Topups allowed-probably unlimited amount and unlimited number of times. Min. 2000. (no idea about the premium allocation for the topups).
5. SIP in the form of ATS available.
6. Two major options of Lifecycle based or Fixed-portfolio. quite reasonable flexibility options.
7. Additional allocation of units at 2% of premium per year from 6th year onwards. Not bad at all.
8. Option of free partial withdrawal every 3 years, max of 20% of fund value.
Cons:
1. Low risk cover.
2. Even with topups, your risk cover will increase by 1.25-5x only. So, you have to take a separate insurance policy (preferably a term insurance).
3. with DTC provisions as they now stand, since this is not a pure life insurance, the money withdrawn will be added to your income and then taxed accordingly. When you withdraw is an important decision. The way out of this is do not withdraw at all. Keep your investments in it. After your death, the fund value given will be taxfree for the nominee!! But that is the actual role of an insurance product!!
4. Premium allocation charge of 4% for first 5 years. That is on a higher side, I agree.
Overall, in view of all the above points and since you have already taken this plan, I would not recommend a surrender.
Ramesh
Could any one please suggest me shall i contunue the above plan or shall i drop now wasting 25000 rupees.