Paying Yearly versus monthly for SBI Life smart Performer plan.

POSTED BY mahesh vasant shirodkar ON February 2, 2011 8:40 am COMMENTS (4)

I have a SBI Life Smart performer unit linked plan and have paid the first premium of 50000/- for this year (yearly premium).

I want to know weather paying on monthly basis will be of any advantage to me, or should i continue paying yearly.

Thanking you.

4 replies on this article “Paying Yearly versus monthly for SBI Life smart Performer plan.”

  1. mahesh vasant shirodkar says:

    My wrong.
    I meant i will be paying 3 premiums in 3 years and wait for maturity period., i.e. 10 yrs.

  2. Ramesh says:

    why would you want to stop using it, after “already” paying the high front-loading charges? If you are in for charity to the company, then its ok! 🙂

    Otherwise, use the ULIP as a long-term ‘compulsory’ investment option (after taking due care regarding the DTC aspect of the particular policy, which will be more clear after some time).

    Also, get a proper and adequate life cover for yourselves.

    The point is ‘if you are not disciplined’, then you would never be able to make good amount of money/purchasing power. There is no guarantee for any MF, be it a SBI Ulip fund or a top performing MF to continue giving superior returns.

    also, go through this.

    http://www.subramoney.com/2010/12/create-your-financial-plan-like-this/

    So very simple and brilliant thing to learn. (<--you can always modify).

  3. mahesh vasant shirodkar says:

    Thanks Ramesh, for a quick reply.
    I would want to stop SBI LIFE SMART PERFORMER after paying 3 yearly premiums as i would like to divert my funds in one of the top mutual funds in sip mode, from now.
    Will the above be a better option ?
    Thanks in advance.

  4. Ramesh says:

    Over long period of time, there is no significant difference between a yearly and a monthly SIP.
    so you can continue doing this.

    Ramesh

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