One of my known friends after a pretty long gap met and was sharing how many insurances have been taken in his family with a member of 4 (himself, sister, mother and father).
His working father already has an LIC with a good Sum Assured. His father has also taken a ULIP for himself and paying SIP regularly for it.
His father has also taken a ULIP for his wife (home maker) and paying her SIPs regularly too.
My friend (29) is unemployed since 2 years due to various reasons.
He first took a ULIP SBI Smart Wealth Builder Policy (SA: 15 lakhs, PPT: 5 years, PT: 20 years). He completed paying them a couple of years back.
He also took an LIC Jeevan Labh policy (SA: 60 lakhs, PT: 25 years, PPT: 16 years) for which his dad is paying as he's not working now. Both were taken during friend's work tenure.
His sister (recently started earning approx 3L/annum) took PMJJBY and PMSBY.
On top of all this, his father very recently bought a ULIP ICICI PruLife Platinum Growth for his children (him and sister) till approx. 2066 maturity (PPT: 5 years I think, Premium: 10 lakhs for both each year).
Each member in family has their own health insurances too.
On hearing all this, I thought for long and advised:
i) To surrender mother's ULIP when the market is better. Take that amount and invest in some MF either through an investment advisor or directly. Since his mother is not earning, any insurance for her would be futile (except health insurance).
ii) To surrender father's ULIP too when the market is better since he already has LIC. If more coverage is needed, top-up the present LIC one or take a new LIC policy (non-linked, par / non-par). Take that amount and invest in some MF either through an investment advisor or directly.
iii) To surrender his ULIP when market is better as he already has an LIC active. If more coverage is needed, top-up the present one or take a new LIC policy (non-linked, par / non-par). Once he resumes earning, he needs an insurance policy for future. Take that amount and invest in some MF either through an investment advisor or directly.
iii) Take an insurance (endowment / money-back) for his sister through LIC or Post Office as she will start being independent and stop PMJJBY and PMSBY.
iv) Surrender the recently bought ICICI ULIPs as I felt they are redundant and the overall returns will be a little low as compared to directly investing in MF (or through an investment advisor).
The ULIPs for the members in the family were influenced by the banks.
Do you feel too much ULIP has been running in this family unnecessarily where those premiums could've been invested in Mutual Funds, stocks, FDs, RDs, etc. ( although they seem to have them) as earning members have a life insurance policy covering them?
I would like to hear your constructive views to put in his ears.
His working father already has an LIC with a good Sum Assured. His father has also taken a ULIP for himself and paying SIP regularly for it.
His father has also taken a ULIP for his wife (home maker) and paying her SIPs regularly too.
My friend (29) is unemployed since 2 years due to various reasons.
He first took a ULIP SBI Smart Wealth Builder Policy (SA: 15 lakhs, PPT: 5 years, PT: 20 years). He completed paying them a couple of years back.
He also took an LIC Jeevan Labh policy (SA: 60 lakhs, PT: 25 years, PPT: 16 years) for which his dad is paying as he's not working now. Both were taken during friend's work tenure.
His sister (recently started earning approx 3L/annum) took PMJJBY and PMSBY.
On top of all this, his father very recently bought a ULIP ICICI PruLife Platinum Growth for his children (him and sister) till approx. 2066 maturity (PPT: 5 years I think, Premium: 10 lakhs for both each year).
Each member in family has their own health insurances too.
On hearing all this, I thought for long and advised:
i) To surrender mother's ULIP when the market is better. Take that amount and invest in some MF either through an investment advisor or directly. Since his mother is not earning, any insurance for her would be futile (except health insurance).
ii) To surrender father's ULIP too when the market is better since he already has LIC. If more coverage is needed, top-up the present LIC one or take a new LIC policy (non-linked, par / non-par). Take that amount and invest in some MF either through an investment advisor or directly.
iii) To surrender his ULIP when market is better as he already has an LIC active. If more coverage is needed, top-up the present one or take a new LIC policy (non-linked, par / non-par). Once he resumes earning, he needs an insurance policy for future. Take that amount and invest in some MF either through an investment advisor or directly.
iii) Take an insurance (endowment / money-back) for his sister through LIC or Post Office as she will start being independent and stop PMJJBY and PMSBY.
iv) Surrender the recently bought ICICI ULIPs as I felt they are redundant and the overall returns will be a little low as compared to directly investing in MF (or through an investment advisor).
The ULIPs for the members in the family were influenced by the banks.
Do you feel too much ULIP has been running in this family unnecessarily where those premiums could've been invested in Mutual Funds, stocks, FDs, RDs, etc. ( although they seem to have them) as earning members have a life insurance policy covering them?
I would like to hear your constructive views to put in his ears.
