Insurance Policy change

POSTED BY Rekha ON March 15, 2013 5:10 am COMMENTS (4)

We have taken two ICICI prudential policies – life time gold  for the sum assured of 10,00,000. We have also taken smart kid plan from Icici. It was taken years back and after reading the forums, they just look like inappropriate at this time. I have paid for the minimum number of years, so would like to withdraw the policy. I’ll go with pure term insurance but would like to know the best child policies in the market. How is Jeevan Ankur doing. Thanks in advance.

4 replies on this article “Insurance Policy change”

  1. Dear Rekha, instead of answering your direct query, I w’d like you to read this one. –

    https://www.jagoinvestor.com/2013/03/simple-vs-complex-financial-products.html

    Thanks

    Ashal

  2. Reka S says:

    Thank you.. Can someone suggest how ICICI pru is performing on these policies – lifetime gold and smartkid.. when we approach the customer service, they are reiterating that these are meant to be long term plans. We have been for 5 years, not sure whether to continue or not.

    1. ULIPs being market linked would not have performed too well in the past few years. Because of high charges the fund value of a ULIP will always look bad in the first few years except when markets do exceedingly well.

      What to do?

      1. You tell yourself you have complex products and get rid of them once and for all.
      OR
      2. You see how much you need for each goal. For example if you need to invest 10K per month for your child then see how much your monthly premium is. If is half or less than half of 10K then you could continue and treat the policy like a balanced mutual fund. If it close to 10K then you might consider exiting. They are correct in saying ULIPs are long term investments. Please remember that so are MFs.

  3. If your present policies look “inappropriate” so is any ‘child policy’. Stay away from these. Invest using MFs and PPF (if your goal is 15 financial years away) for your child’s education.

    Use this calculator to determine how much to save and how much to get insured for

    http://freefincal.wordpress.com/comprehensive-child-planner/

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