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Opinions expressed here are entirely my own and do not reflect the position of my employer or any other entity. The views and opinions expressed by visitors to this blog are theirs and do not necessarily reflect mine.
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Term Insurance Vs ULIP – A ComparisonThe folks at gconnect.in have an interesting article on Term Insurance vs ULIPs. Well written and cohesive unlike many other such articles put out by brokerage houses. Do read the full article on the gconnect.in web site. No related posts. Related posts brought to you by Yet Another Related Posts Plugin. 2 comments to Term Insurance Vs ULIP – A ComparisonLeave a Reply |
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Hello,
Need some advice regarding the ICICI ULIP policy,
I finished paying 3 yrs of premiums, which is the locking period.
got an email from icici that if i pay my 4th year premium.. i will be alloted some bonus units.
Can some body advice whether to continue paying the premium with the existing policy or just keep that policy aside without paying the premiums till maturity date(03/02/2046).
Also, If i pay the 4th year 1st premium.. can i stop paying the premium there after?
Thanks,
Visu
#Visu
Please see the calculations in the article linked in the post above. You should also check the details of your ULIP. Most ULIPs allow you to stop paying the premiums after the initial lock-in period. However to retain the Life Cover, they will continue to deduct a premium from your corpus every year. In effect you will not be adding to your investment in the ULIP and the existing investment will carry over for the remainder of the policy term, minus whatever deductions they will make. How much is deducted will depend on your policy. Check with ICICI for exact details for your policy.
If you continue to pay the premiums, then the life cover payment etc will be deducted from that and the remaining amount invested as per your ULIP’s investment type (Equity, debt etc).
Now which course is better for you only you can decide. Why did you go for an ULIP in the first place? If it is because you are not able to do your own investment research and hence depend on the ULIP provider to not only give you life cover but also a mutual fund based investment, then maybe you should continue. If on the other hand you feel you have made a mistake by investing in the ULIP and can do your own research then maybe it is time to switch.
I suggest you go back to your ULIP’s offer document and understand the various options you have and their financial impact. That really is the only way to decide how to proceed. Others, like I, can only offer different points of view. It’s not my money after all