Complete Guide to Unit Linked Insurance Plans | ULIP में Invest करें या नहीं? | How ULIP works?
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- čas přidán 27. 07. 2024
- The Unit Linked Insurance Plans or ULIPS is a product of perspectives. Insurance agents tout its tax saving & in-built insurance benefits often at the expense of playing down the impact of charges. On the contrary, financial planners & mutual fund distributors explain the charge structures which is often an older version of the current day ULIP. In this video, we look to set the record right and get you the truth about ULIPS.
What’s covered in this video?
00:00 Introduction
01:20 What is a ULIP?
03:32 Mortality Charges
08:26 Other Charges
14:00 Investment
16:24 ET Money Opinion
👉 WHAT IS A ULIP
A ULIP is an investment-cum-insurance product which offers many tax benefits and it is this triple benefit that forms a formidable story that insurance agents pitch to prospective policyholders.
The understanding of the product construct is most important in case of a ULIP which includes three parts:
1. Insurance
2. Charges
3. Investments
👉 MORTALITY CHARGES
The insurance cover offered in a ULIP is generally 10 times of the premium paid to take advantage of Section 10(10D) rules
In the video, we show how mortality charges work by taking the example of a 36 year old non smoker male who is looking to invest a 1 lakh of rupees every year in a ULIP. Our research also shows that as a general principle the mortality charge kept on reducing every year and at one point it actually turns to zero.
👉 OTHER CHARGES
In addition to mortality charges and fund management charges (both are essential charges), a ULIP might also has many other charges like -
- Premium allocation charge
- Policy administration charge
- Fund switching charge
- Partial withdrawal charge
- Discontinuance charge
- Surrender charge
In the video, we also go on to illustrate how the charge structure has changed from the pre-2010 days (when charges were very high) to present day charge structures (which are much lower). For this we examines four plans - ICICI Prudential Lifetime Plus, ICICI Prudential Signature, HDFC Standard Life Unit Linked Endowment Winner and HDFC Life Click2Wealth
👉 INVESTMENT
The money that goes into your investment bucket is the net of all charges that we have discussed in the previous two sections of this video. ULIPs operate a lot like mutual funds with professional management teams, issuance of units, daily NAV, monthly fund statement, multiple fund options etc.
When put together the last 5 year performance of ULIPs and mutual funds across a few popular categories we found that the performance of a ULIP is quite comparable to mutual funds.
The real issues with the investment bucket are again related to the construct of ULIPS on account of a) money that goes towards investment is lower than the premium paid due to charge and b) there is no porting feature if you are not satisfied with the fund performance
👉 ET Money OPINION
With ULIP, the goal-fitment part that always seems to be a bother.
Further, in the video, we went on to explain that the difference of 1.25% (i.e. 1% charge on direct mutual funds and 2.25% charge on ULIP) over a 10 year period can completely eliminate the capital gain tax advantage that the insurance industry pitches when positioning ULIP over mutual funds
ET Money have been great supporters of insurance plans and continue to assist tens of thousands of our investors with the ideal term insurance plan through our platform. However, a combination of product complexity, undefined goal fitment, compounding losses and a general lack of options in terms of asset classes and funds have dissuaded us from having ULIP products on our platform.
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Nicely explained in detail. Thanks for information.
Great insights!
All confusion resolved now 😃
Great explanation
Amazing 👍👍👍👍
Thank you sir
Thanks.
Good
Thank
Exemption under 80c is also there
Tata aia ke charge.
Sir pls tell me best way for investment+cover
Mutual fund+pure term insurance
Or
Only ulip
Mutual fund or term plan return of primium
Mutual fund + term insurance
@@prakashghosh985 term insurance main sir return nehi hain, or smoke karne ki wajah se premium vhi jyada hain
Charge wapas ho jata hai maturity par
Tata aia ulip sand video 📸
You missed EEE TAX benefit of ULIP. That is the measure benefit of ULIP.
I have seen multiple videos but I think EEE beneft should be compared vs MF or SIP with an example
I am 53 years old, do I go for Ulip or SIP
Go for SIP. As ULIP is best for 10 to 15 years lock in. if you can wait without needing that money then may consider ULIP.
Also - mainly consider tax benefit
No it mortality charge is more
Tata aia plan ka charg
Kya hua Bhai
So ET money has started taking sponsorships from financial institutions offering ULIPs. This misguiding is very irresponsible from a reputation channel like yours.
Why don’t you instead compare the Term Insurance+ELSS/PPF/Mutual funds for a better better coverage and investment with a comparatively lower premium? Unsubscribed.
Ulip has many advantages over MF. EEE advantages, mortality charge also returned back, do proper research then post video.
Real account se aa ULIP Agent.
@@theundiscoveredjourney_ Koi naa yaaar, sabko footage khaane do
@@vaibhavsingh9663 pata chalega jab duba dega MF
Wrong info
Thoda lengthy hai.. Simple language me samjhne ki try karo. Kuch bhi clear nhi bta rhe. Sara kaam isharo me ho rha hai
Kya samajhna hai sir bataiye. Mai samjhata hu
Koi bhi mf wala nh chahata ki ULIP grow kare, ulip is best as compared to MF now a days. No any such charges are there which you are showing?.
😂😂भाई तुम रहने ही दो।ये एक ऐसा प्रोडक्ट है जो jack of all master of none है ,🤣🤣
@@ashishtalyan ha ha ha, lagey rahey fir isi pe, pat achalega kuch saalo me.
Aaj hi cancel kra k aaya hu 5.5% allocation charge + 6-7 mortality charge + gst. (ULIP == Chutiya)
@@Divine_Power ..
What is your return from ULIP from yr portfolio in 10 year?... If it is more than 12 % u r right... nahi tho galat ho
@@cssbiot 18%