Dont take ULIPS.. Its not investement.. . Review on Aditya Birla Sun Life Insurance

Dont get cheated by ULIPs. It is a breed of Insurance and Mutual fund which fetches more money to company and agents but not to customer. More over companies shares only a part of profits with customers. but all loss should be borne by customer.

All salaried people want to save the tax. They want to invest in places which gives more returns and tax benefits. People who have no idea about ULIP will definetly go and buy. While buying it seems to be great instrument. But when the know about the charges they regret.

I bought HDFC young star suvidha, ICICI prulife in my first financial year to save the tax. That time I dint know about any charges of ULIP. I thought people who invest in FD, LIC and PPFs are fools. But they are really intelligent people.

In second FY I bought BLSI saral jeevan plan. CITI agents have sold me this. While taking the policy they told only 3% charges are applicable per policy year, so, I thought this is good plan and took it.

After getting this plan I went through the charges. My god, they are too high. They say 100% will be invested. Ofcourse it is, but when you calculate charges it is almost 40% for first three years, later which it might reduce( but there is a catch, Fund management charges will be calculated on the total fund, not just on premium which will be higher after 3 years. and might increase at any time).

Later I browsed internet. I found it is true. Thank god I cancelled the plan in freelook period. Since the market is good I dint loose money or else I would have lost money for just those 15 days of freelook period.

CITI agents have misselled the product(when I called citi guy he said he is not aware of the product). After all they are trained to sell it this way.

*All ULIPs will give an illustration with a return of 6% or 10%.

They dont even gaurentee that.

I've a plan which gives you fixed and gaurenteed returns with Life cover.which beats the illustration given by ULIP. It is explained below.

*Most of us take ULIP for both insurance and investment. "Don't see Insurance as an investment". Usually we take ULIP for premium of 20, 000 or more. Split the amount in to two things. One for life cover. one for investment. Take a term policy of LIC(where in you dont get maturity value) but you get more life cover for less premium. If you are 26 yrs term policy for 5 lacs will be approx1500Rs per annum.

1. Take Term insurance policy for 1500rs

   
   




2. Take FD(of any nationalized banks) for 18500.(you can take tax saver fds also)

   
   

I bet you, Definetly you will get more return and more cover than any ULIP.

Example: I calculated for amount of 30k and assumed return of 10% every year for ULIP( which usually not happens) and 8.5%(you get with tax saver fds and PPFs). If you compare the total amount after 10 years you will get atleast 10k more compared to any best ULIPs in market.

Tips to save tax and get good returns:

1. FD.

   
   




2. Best way to save tax is invest in PPF.

   
   




3. GOI bonds.

   
   




4. LIC policies