Insurance companies and their agents are committing daylight robbery and the IRDA is intent on looking the other way. The high upfront costs are just not justified and investors are getting a raw deal but with the equity markets on a high, most investors are getting conned by the glib marketing. Actually most insurance companies just take the ULIP premium from customers, pay themeselves and their agents hefty commissions and pass on the balance to mutual fund managers to manage the money. It is far better to buy cheaper Term insurance and invest the balance in diversified Mutual Funds oneself and save all the costs of a ULIP.
RE:This is daylight robbery!
by sameer trikha on Sep 13, 2007 06:12 PM Permalink
Hi Mr. Rishi,
Are you aware of the charges in plain term plan and even on your mutual fund investment???
Also, if you think agents of Insurance companies get hefty commisions on selling ULIPs, try and become and agent of any insurance company and check out the commision structure of ULIPs vis-a-vis that of endowments.
Its high time that we as customers understand that ULIPs are one of the best innovations to the insurance product line.
Not only India these plans are globally well accepted. Now dont tell me that only we Indians are smart and rest of globe are fools.
RE:This is daylight robbery!
by S P on Sep 14, 2007 04:38 PM Permalink
The only advantage I see in ULIPs, which is not there with "term insurance mutual fund" combination, is the ability to switch between high/moderate/low risk funds.
I have both ULIP and also "term insurance mutual fund" combinations. One needs to know why and what you are getting into.
