Know about your ULIP

Dear Readers,

             Now a days agents are promoting more ulip's than traditional insurance plans, but still there are some terms which are not clear to the end customers, so i would like to present hear some details about the ULIP which may help the readers to understand about there ULIPS. 

First lets look into the charges and term involved in the ULIPS.

Most of the insurers try to be transparent about these changes in the brochures & in policy documents, most of the policyholders don't understand what they  are being mad to pay for. There are seven common changes that come with a ULIP:

• Premium Allocation Charges 
• Fund Management Charges 
• Policy Administration Charges
• Mortality Charges
• Fund Switch Charges 
• Surrender Changes
• Service Tax Deduction

Let's see these in details 

Premium Allocation Charges: The entry load charged on issuing the units under the policy. This normally includes initial and renewal expenses, apart from commission expenses.

Fund Management Charges : This is the free levied for management of the fund(s) and is deducted before arriving at the net asset value (NAV).

Policy Administration Charges ; This is the fee for administration of the plan. It is levied by the cancelling units worth the amount every year. This could be flat throughout the policy term or vary.

Mortality Charges : This is the cost of the insurance cover offered in the policy. Mortality Charges depends on a number of factors such as age, amount of coverage and health of the policyholder.

Fund Switch Charges : Most insurance companies offer four free fund switches in a year. The subsequent switches are charged.

Surrender Charges : A Surrender charge may be deducted for premature partial or full encashment of units wherever applicable, as mentioned in the policy document.

Service Tax Deduction : Before allotment of units, the applicable service tax is deducted from the risk portion of the premium. Some companies absorb this cost.

For more information  please contact :

Venkataramana.D

Email id : sriram.adviser@gmail.com

Phone No: +1-408-250-9952

This information is take form Money Today

Traditional Plan Vs ULIPS

Dear Readers,

           This is the table to comparision of Traditional insurance plan with Unit Linked Insurance Plan (ULIP). When you people are taking any dession about the insurance which you are planning to take, this table may help you in making such dession.

FEATURES	TRADITIONAL PLANS	ULIPS
Investment mix	High exposure to bonds and no choice to hike equity exposure	Policyholder can choose exposure to debt, equity
Transparency in cost	No	Yes
Alter scope of cover	No change possible in sum assured and premium	Freedom to enchance life cover, top up premiums
Charges	Variable charges through the term of the policy	Flat charnges throughout the term
Vary exposure to risk	No option for policyholder to alter exposure to risk	Possible to switch between fund options
Premium hoiliday	No	Allowed
Liquidity	Plociyholder can take a loan against the policy after three years	Partial withdrawals allowed after three years
Policy value	Complex calculation to arrive at paid-up value after 3 years	Surrender value indicated at the end of each policy year

this table is taken form Money Today 

For more details please contact our adviser 

Venkataramana . D

email id: sriram.adviser@gmail.com

phone no : +91-9741598945