Recently, we came across a person who was mis-sold a ULIP. Yes, mis-selling of ULIPs still continues. This lady got a call from her insurer, a reputed private sector insurance company, she was told that the ULIP she had purchased earlier was not performing well, and the company is discontinuing it. The company suggested that she should buy a new ULIP with better prospects. The lady fell for it and completed all the formalities as directed by the agent. But she was shocked when her bank account was debited with Rs 1 lakh, the premiums of both the insurance policies. In short, the first policy was never discontinued.
When she reached out to us through a friend, we advised her to stop her ULIPs. We told her she might lose most of her premium she paid for the ULIPs, but she would be still better off if she invest in a mutual fund. However, the lady was not ready to discontinue her ULIP investments as she was scared of losing her money.
Are you in a similar situation? Do you want to get out of your bad ULIP investments, but not convinced how you would be better off by investing in mutual funds, even after the reintroduction of long term capital gains (LTCG) tax.
Here we have tried to illustrate how it makes sense to surrender your ULIP which was mis-sold to you and invest the money in mutual funds.
We have taken two unit linked plans - from ICICI Pru Life Insurance and HDFC Life - for illustrative purpose. We have compared how investing the same amount in mutual funds works. The ULIP illustration was created using the insurer's calculators. We have taken mutual fund performance at same rate of 8 per cent as well as on 12 per cent and 15 per cent. See illustration below:
The table clearly shows that mutual funds win. If we look at the life insurance of Rs 6 lakh offered by the ULIPs, It is clearly not enough to take care of the financial need of your family after your death. If we look at a pure term insurance cover of Rs 25 lakh life cover, four times the sum offered by the ULIPs, it will cost only around Rs 300 per month. If you invest the rest of the money in a mutual fund scheme, you would still make Rs 8.44 lakh (at 8%), Rs 15.83 lakh (at 12%), and Rs 17.74 lakh (at 15%).
Mutual fund advisors say that liquidity in ULIPs is the main concern apart from the returns and the modest insurance cover. If a unit linked plan under-performs, you cannot move to any other plan conveniently. It is not the case in mutual funds. Also, if you need your money, you can easily redeem your mutual funds as against ULIP where you have to understand the terms and conditions
ULIPs are a long term product of, say, 10 or 20 years, and you cannot stick to one fund manager throughout the long term, say advisors. in ULIPs, you are stuck to a fund manager. Management risk diversification is missing in ULIPs
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ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds Application Forms For further information contact SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...
Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) There were many things common between our Freedom fighters. All had the Single vision (Free India), common goal (independence) and had a disciplined and focused approach. They were ready to do anything and everything and had made so many sacrifices to see India free . But the road to freedom was not easy .They had faced lot many hardships, went to jail so many times and even confronted physical and mental torture from the British. There was one more thing which proved to be an advantage to our fighters that most of them were professional lawyers. The knowledge of legal issues and its impact on our country at large has helped them counter various bills and proposed new laws by the then government. It is due to their continuous effort that we are able to achieve the goal of Independent Indi...
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