[]THE first thing I want to tell u that I m nt against insurance but what I have said is that insurance should be use as insurance. It is a protective instrument not a aggressive instrument for appreciation ur money. what u will get after term in back if everything is ok. Is ur extra benefit .So why ULIP? In term insurance for 1M coverage ur premium will be 1k whereas in ULIP it is 10k /anum.
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As suggested by agent ULIP is good for long term saving where as MF are good for short term.[/COLOR] OF course it is good ,but only 4 that agent who suggest u.ask him to explain how it is good providing authentic data.
["]thought for Long Term 10+ years ULIP[/COLOR]
Ur long term is relative long. It is long when Mutual fund is concerned but not so
Long if insurance is concerened. Itis the minimum term for insurance .Thumb rule is that never keep faith on any agent, chose ur own plane as per ur requerment.Ask the agent to provide original broacher and go through it again and again .Particularly the abbreviations and those words written in very small fonts. Remember what company will charge from u it must be written in their broacher.u can get the broacher online also.
Can you suggest 1) tax saving boths side 2) long term investing 10+ years 3) money liquidity like getting money after 3/5 years when required[/COLOR]
I M nt a tax consultant but think u my get so many tax sevings star rated funds fm uti and others. That is ur concern but my question why u are so eager to save tax of just 1k paying 3k.more?
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Charges Under the Plan
?Policy Administration Charge: Policy Administration Charge will
be 1.75% p.a. of the original sum assured for the first 5 years and
0.75% p.a. of the original sum assured for the subsequent years. It
will be deducted at each monthly anniversary through-out the
policy term by cancellation of Units.
?Fund Management Charge:1.35% p. a. of the NAV for Equity
Growth Fund II, Accelerator Mid-Cap Fund II and Pure Stock Fund ,
1.25% p.a. of the NAV for Equity Index Fund II and Asset Allocation
Fund, 0.95% p.a. of the NAV for Bond Fund and Liquid Fund. The
Fund Management Charge is charged on a daily basis and adjusted
in the unit price.
?Premium Allocation Charge: A certain percentage of each regular
premium will be allocated to your account at the prevailing unit
price. This is called the Premium Allocation Rate. Balance is taken as
Premium Allocation Charge. The Premium Allocation Rates are as
per the table below:
90% 100% 102%
Premium allocation rate for top up premiums: 98%.
?Fund Switching Charges: Nil; we offer unlimited free switches
under the policy.
?Miscellaneous Charge: The miscellaneous charge would be
Rs.100/- per transaction in respect of reinstatement, alteration of
premium mode or issuance of copy of policy document
?Surrender Charge:
Policy year 1 Policy year 2 to 5 Policy year 6 onwards[/COLOR]
This is a part of broacher of a very popular product of a reputed company. What u see in that is that u have to pay more then4k in 1st yr and more than 1k
there after for 10k premium. Where as ur tax for 10k =1k only .Hence is it not worthwhile to pay tax honestly?
HENCE INSURANCE ONLY FOR INSURANCE NOT ANY OTHER ELSE.