Post on 14-Nov-2014
description
UNIT LINKED INSURANCE PRODUCTS
Form Last Five Years all Form Last Five Years all Insurance Companies are in Insurance Companies are in the Market with their ULIP the Market with their ULIP Products.Products.
After imposition of After imposition of Minimum Lock in Period by Minimum Lock in Period by IRDA , all companies IRDA , all companies launched new (ULIP) launched new (ULIP) productsproducts
Unit Linked Products Unit Linked Products are.are.
Flexible.Flexible.
Transparent.Transparent.
Easy to understand.Easy to understand.
Provide Better Provide Better ReturnsReturns
Having More Having More Liquidity.Liquidity.
We will have
a Study of
Endowment type plans
of these companies.
UNIT LINKED INSURANCE PRODUCTS are describe by there Agent as that You can
withdraws Your Money after 3 or 5 Year & You will found Returns @ 15-40% Year Growth. You will Get
the Insurance (free) with ULIP
Weather he/She is Right or
Misleading ???
Yes he/She is Totally Right But
Totally Misleading
Both
Yes He/She is Right You can Withdraw the Money after the 3 or 5 Year, But You will be not have any benefit even You will
be in the Great Loss*
UNIT LINKED INSURANCE PRODUCTS are describe by there Agent as that You can
withdraws Your Money after 3 or 5 Year & You will found Returns @ 15-40% Year Growth. You will Get
the Insurance (free) with ULIP
* Explanation given further (Plz refer Excel Sheet)
As Shown above the Growth of 15 to 40% may be the Right but this is the Growth of NVA (Net Assets Value), But not of Yours
Fund (Because of Diff. Charges) Yours Fund growth will be 8 to 25% only
UNIT LINKED INSURANCE PRODUCTS are describe by there Agent as that You can
withdraws Your Money after 3 or 5 Year & You will found Returns @ 15-40% Year Growth. You will Get
the Insurance (free) with ULIP
Yes You will get the Insurance with that, but not free. You are Paying for that. Amount for this Insurance cover will
increase, as yours age grow up
UNIT LINKED INSURANCE PRODUCTS are describe by there Agent as that You can
withdraws Your Money after 3 or 5 Year & You will found Returns @ 15-40% Year Growth. You will Get
the Insurance (free) with ULIP
Lets Understand the Diff. Changes of
ULIP as per IRDO
* Most parts of Yours Fund/Saving goes for that (Plz refer Excel Sheet) Specially in Starting Years
Summary of Premium Allocation Charges
ULIP Premium Allocation Charges
1st Year 2nd Year 3rd Year 4th Year 5th Year 6th Year 7th Year 8th Year 9th Year 10th Year
ICICI Life time Plus 25.00 25.00 3.00 3.00 1.00 1.00 1.00 1.00 1.00 1.00
HDFE Endowment 30.00 30.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
HDFC Endowment Plus 60.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Bajaj Unit Gain 71.50 7.00 6.00 4.00 3.00 3.00 3.00 3.00 3.00 3.00
Bajaj Family Gain 70.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
SBI Unit Plus II 25.00 7.50 7.50 5.00 2.00 2.00 2.00 2.00 2.00 2.00
Max Newyork Life 25.00 20.00 7.50 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Met Life 6.50 6.50 6.50 6.50 6.50 6.50 6.50 6.50 6.50 6.50
Money Invested Yearly 20000
Groth (%) Assumption 10
ICICI Life time Plus 3ed 15000 27375 48609 71266 97409 125878 156881 190644 227411 267450 314195
HDFE Endowment 4th 14000 24780 46785 70749 96846 125265 156214 189917 226620 266589 313248
HDFC Endowment Plus 1st 8000 28512 50850 75175 101666 130514 161930 196142 233398 273971 321368
Bajaj Unit Gain 7th 5700 24431 44062 65729 89533 114932 142032 170948 201802 234723 278195
Bajaj Family Gain 6th 6000 25802 46931 69475 93530 119196 146583 175804 206982 240250 284275
SBI Unit Plus II 5th 15000 33763 52853 74232 99622 126992 156498 188305 222592 259554 305510
Max Newyork Life 2ed 15000 29200 48211 72302 98537 127106 158219 192100 228997 269178 316096
Met Life Worst 18700 37933 57714 78059 98984 120505 142639 165404 188818 212900 254189
6th Year 7th YearActual Money
Invested in First Year
1st Year 2nd Year 3rd Year 4th Year 5th Year
Groth of Yours Money with Diff. Insurance Comp.
8th Year 9th Year 10th Year
Calculation is Based on assumption of 10% Growth in NAV & 20000 INR Investment Yearly.
But without taking the Consideration of any other Charges
Money Invested Yearly 20000
Groth (%) Assumption 10
ICICI Life time Plus 3ed 15000 27375 48609 71266 97409 125878 156881 190644 227411 267450 314195
HDFE Endowment 4th 14000 24780 46785 70749 96846 125265 156214 189917 226620 266589 313248
HDFC Endowment Plus 1st 8000 28512 50850 75175 101666 130514 161930 196142 233398 273971 321368
Bajaj Unit Gain 7th 5700 24431 44062 65729 89533 114932 142032 170948 201802 234723 278195
Bajaj Family Gain 6th 6000 25802 46931 69475 93530 119196 146583 175804 206982 240250 284275
SBI Unit Plus II 5th 15000 33763 52853 74232 99622 126992 156498 188305 222592 259554 305510
Max Newyork Life 2ed 15000 29200 48211 72302 98537 127106 158219 192100 228997 269178 316096
Met Life Worst 18700 37933 57714 78059 98984 120505 142639 165404 188818 212900 254189
6th Year 7th YearActual Money
Invested in First Year
1st Year 2nd Year 3rd Year 4th Year 5th Year
Groth of Yours Money with Diff. Insurance Comp.
8th Year 9th Year 10th Year
From this Illustration it is Quite Clear that Investment for Short Term (SAY 3, 5 or 7 Year) is not Profitable.
It is Wise to take a ULIP Plan for Minimum 10 Year or above Period not for Short Term. (Surrender Charge, Slide No. 17 & Next Sheet )
Period of Loss
ICICI 8 6 4
HDFE
Bajaj Unit Gain 6 4 2
SBI Unit Plus II 1 1 1 1 1 1 1 Nill
Max Newyork Life
Met Life
For First three Year Poilcy is Block, Surrender of Policy is not Allowed (Money will be Lapes)
% Amount of Yours Fund will
be Deducted
Nill
Nill
No Information
No Information
It is equal to 60 % of the difference between the regular premiums expected & received in the first year of the contract.
11th Year8th Year 9th Year 10th Year
Surrender Value Charges of Diff. Insurance Comp.
6th Year 7th Year1st Year 2nd Year 3rd Year 4th Year 5th Year
Now I think You must have Understand Why ULIP Should not taken for a short term investment
Allocation Charges are very high in regular unit linked policies of all private insurance companies.
The Final Verdict
Keep Separate Yours Insurance & Investment
Safe
Let, we take a Example of Rakesh working with Top One MNC, Working as an Sr. Engineer
Age : 28 Year
Marital Status: Married (Having two Kid also)
Annual Gross Income : 4.5 Lac
Need of Insurance Cover: 40 to 80 Lac (10 to 20 Times of Yearly Income)
Yearly Premium Need to Bye Min. 40 Lac Cover through Endowment Plant* = 200000 Yearly
Is it Possible for him to pay that Much of Premium
No Doubt no……….
Now Question is How he should get the Insurance Cover
Answer is
He Can get the Insurance Cover of 2500000 by Paying 6500 Yearly which is Possible for him to make his family/Depends safe.
Term Insurance are the Pure Insurance in which You will pay to the Insurance Company a small amount of premium for the Big amount of Risk (But You will not Beck Yours Money Like the others ULIP, Endowment, Children, Pension Plans Etc)
Endowment Insurance (ULIP, Endowment, Children, Pension Money Back Plans Etc) In these Plans You will get the Insurance Cover & get back yours Money (Some times Assure soma times depend on Market i.e. ULIP Etc). But if any Company is Giving u the Assure Return that will not be more than 4% to 7% growth of Yours Money.
But If Yours Returns are depend on the Market than why not to Invest directly? Why to Let them Eat a Major part of Yours Investment as the Diff Charges.
Decide Yours Priorities, Long Terms as well as Short Terms.
Don’t Care for Big Investment, But think about Regular Investment
Always Use SIP (Strategic Investment Planning) for Investment.
Diversify Yours Risk/ Investment Portfolio.
Don’t have blind faith on Broker or Insurance Agent (They Hide Facts)
Don’t do the Investment just to Invest or just to Save tax.
Don’t think for saving in the end of Financial Year, think from starting.
Always take Yours own Decisions.