IN line with IRDA's new charge structure for ULIPs, Kotak Life has launched a ULIP, which offers guaranteed maturity addition of up to 280% of your first year premium. The fixed return of the first year premium ranges from 110% for 10-year policy to 280% on a 30-year policy. The Kotak Super Advantage, which has replaced its earlier ULIP plan called Kotak Smart Advantage, claims 100% allocation of your premiums from the second year onwards. Besides, the ULIP offers assured bonus addition to enhance your fund value at maturity, the life insurer said in a statement. This benefit is calculated as 3% of the average Fund Value of the last three policy years. This ULIP offers five fund options to customers on the basis of their risk appetite.
ICICI Pru LifeTime and ICICI Pru Lifestage are Unit Linked Pension Plans. Such insurance linked retirement plans are neither good investments nor do they offer sufficient insurance cover. As you can see, these have turned out to be bad deals. In the Lifetime plan, the fund value is not even equal to the total premiums that you have paid and in the Lifestage plan your return is just about 6% which is quite low. The mortality charges are as per your age which is why they have increased. Moreover, once these plans matures, you will have to compulsorily opt for annuity (regular income) and the annuity rates are generally modest. Assuming these plans mature in the next one year, it will be wise to surrender the plan now and curb your future commitments. Before you choose to buy a term plan, you have to consider a few points. You need to insure yourself, only during the time you are working and your family is financially dependent on you. At the age of 59, not all insurance companies w...
