I am having ICICI Prudential Invest Shield Cashback policy. is it good or bad? I am paying 25000 every year. what will be the amount at a time of maturity?
The return assured "on" premium paid is affected when the premiun paying term is lowered due to higher charges and lower investment in the market. At the same time the allocation rate also decides how much amount of the premium will be invested in the marke. So, when these two combines it increases the chance of getting a low guaranted return.
RE:Term plan?
by Nagesh on Mar 22, 2007 05:28 PM Permalink
It is a ULIP and should be for 10 years. However lock-in period is only 3years after which you can surrender the policy.
RE:Term plan?
by Mandar on Mar 22, 2007 05:13 PM Permalink
No. it is ULIP. If you have taken it in last 15 days , give it back to ICICI. otherwise you will end up filling your agent's pocket forever.
Every where there is a craze that one should not opt for ULIPs - But the real fact is that they are wonderful products provided one stays invested for long term ( At least 12 yrs). Over 3-5 yrs horizon they will be the worst bet due to the front end charges been imposed. These charges are also made so that one should not withdraw in a shorter term. Also there is a discipline that creeps in Savings as no one would like to surrender a life insurance policy & hence any long financial goal namely Retirement (or) Children's Education, etc can go thro' with out any changes. In contrast, Mutual Funds provide Liquidity right from Day-1 & there is always a temptation to withdraw it if the market is very good & a fear if the market is very bad - So thumb rule is opt for ULIPs but only if you are ready to save for long term. For short terms fianancial goals, Mutual Funds are the best & Incomparable ...
RE:ULIPs are good (But only in Long Term)
by Mandar on Mar 22, 2007 05:20 PM Permalink
Sir , it;s not just a craze. Agree with you that customer need to have some dicipline while investing in ULIP. But charges in ULIP are very heavy. With little discipline , customer can save lot of money . Also one more problem with ULIP is after one year you realize that the fund manager of your ULIP is not good, you don't have an option to shift. where in MF , you can go for different fund manager.
RE:RE:ULIPs are good (But only in Long Term)
by Lakshminarayanan V on Mar 23, 2007 09:53 AM Permalink
I agree charges are heavy - but it is too much when you compare it with an endowment type of plan - We are talking about discipline here - But unfortunately Study says 85% of Mutual Fund Investors does not stay beyond 3 yrs & 95% beyond 5 yrs - so where does long term come into picture? Also one more fact is that there is nothing called "Fund Management" as far as ULIPs goes - it is all stipulated & guided by IRDA. And the option to shift in MF if the Fund Manager is not good does not seem to a viable option as you only practically end up trying every fund & does not make money at the end the day. And as such fund managers keep changing every day - they shift to the AMC that pays them more !!! The best way for the investor is to know the fine prints of the policy & to know what is his investment objective ...
RE:uti ulip
by pankaj bost on Mar 22, 2007 04:33 PM Permalink
No Never go for ULIP. iT WILL AET UR MONEY FOR COMMISIONS TO AGENTS FOR NEXT 3 YEARS. go for Term plan,( cheapest) and ELSS.
RE:RE:uti ulip
by Mayank Manglik on Mar 22, 2007 05:19 PM Permalink
Dear, I am totally dis agree with your views,In LIC's ULIP Plans they are allocating 73.5% in first year thereafter in 2nd & 3rd year, they are alloting 95% of the premium amount then how can you say that these policies are made only to pay commissions to agents
RE:uti ulip
by sudheer das on Mar 25, 2007 03:16 PM Permalink
Term plans....Maximum coverage but no returns.Ideal for people with huge liabilities like home loan.You can get a cover for 30 lacks by paying around 10,000 .
RE:Ulip ..
by Mandar on Mar 22, 2007 04:36 PM Permalink
Agree with you. Look at any ULIP's charges. You will find 1) Mortality charges which is equivalent to term insurance premium. 2) Fund management charges which is equivalent to fund management charges of a mutual fund 3) On top of it in ULIP , you will be paying a huge sum which directly goes to agents and insurance company. ( Have a look at ICICI - it is 20% for first year . 7.5% for the second. and 4% for third year onwards. This is a complete loss for a customer.
Also any plans under the name of children plan / baap ka naam roshan karega plan etc. is basically endowment or money back or UPIP. Don't fall in agents trap. You should only buy Term insurance from Insurance company.
RE:RE:Ulip ..
by Amit Phatak on Mar 22, 2007 06:59 PM Permalink
Read my reply to "ChanC"'s comment below. What you say is true, but you have to take care of your investments regularly and punctually.. if not you'll have insurance no doubt but no investment gains. Also you need to understand ULIPs are long-term products. Over long term, money gain & insurance from ULIP is equal to money gain & insurance from termplan&MF combo..
RE:Ulip ..
by Rajendra Pandharinath Zanpure on Mar 22, 2007 04:21 PM Permalink
Never invest in insurance Buy NSC at regular interval This will give you liquidity at any given time You can avail load by pledging NSC
RE:say no to ulip
by Amit Phatak on Mar 22, 2007 04:34 PM Permalink
in your case just make sure you don't be lazy in investing in MFs added with all research needed to select best options/ tax implications.. Many people opt for Term Plan MF investments as against ULIPs and then become lazy on the MF investment part. In ULIP you are guaranteed of both. In the long term (20-25 years) ULIPs will turn out as good as Term Plans MFs if not better.
RE:say no to ulip
by sarwan thakur on Sep 07, 2007 04:25 PM Permalink
i want to invt. in ulip plan please guide me which one are the best for 12 yr. long term investment.
