child plus policy sucks. Premium allocation charge is a whopping 18%, %5, %5 for first 3 years so a massive 28% of your premium goes towards premium allocation charges. The agent tells that you have to pay for only 3 years and it runs for 20 years. My friend went for it even though he had all the info. Surprisingly other child care policies actually charged more premium allocation charges than ICICI. IRDA cannot be blamed as long as customers(suckers) buy such fraudulent policies inspite of knowing a lot about the charges. I had suggested my friend to go for term policy Mutual fund(entry load of just 2.25% for all 3 years compared to 18,5,5). But IRDA definitely needs to do more, they have to educated public that ULIPs are nothing more than mutual funds with a bit of insurance thrown in and it is always better to separate the two and go in for mutual funds term insurance.
