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Is it a good idea to have multiple ULIPs?

Pravi

TF Buzz
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.
 
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family overly invested in ULIPs (Unit Linked Insurance Plans)

Father already have LIC, ULIPs doesn't necessarily increase insurance coverage but does increase financial complexity and cost.
In many cases, pure term insurance + mutual funds (for investment) works better than ULIPs, both in terms of returns and cost efficiency.

Considering that your friend is currently unemployed, it might be wise to pause new insurance commitments until he resumes earning.

For his sister, a simple term plan might suffice instead of endowment or money-back plans, as these plans typically offer low returns and are costlier.

Maturity till 2066 seems unnecessarily long-term and could end up being a financial burden rather than an asset. Surrender is good option but it’s crucial to analyze the surrender value. if there is any option make it paid-up and retain till its maturity without paying further premiums.

---------------------------

But its upto the father, if he sees not much interest in mutual funds, might take ULIPs for conservative approach or stability as per bank advertisement.
 
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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.
Haven't read full

Ulip is money killer unless u earning 50 + lakh u just want stompy stuck growth to money
Some tax benefits
U don't care earning fd rates on investment plan
Go ahead do it


Else stay away from ulip scam-
 
The reason I advised for money-back or endowment insurance for sister is because she has some health issues and I felt it would be safe if she has a backup (through LIC) if something is wrong in her health (unable to earn). Although it gives lower returns, it is safer now to forgo monetary benefits. Remaining money can be invested in MFs, RDs, FDs, etc.
 
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.
Although to be honest I haven't read your whole story, but I can still say you one thing on the basis of my financial experience of almost 13 years, NEVER EVER GO FOR ULIPS, those are like LEECH, it will suck your money without even letting you realise. STAY AWAY, STAY AWAY, STAY AWAY, FROM KISS OF LOVE ULIPs. Song from JHOOM BARABAR JHOOM (a much hyped movie, equally FLOPPED), someone born in 90s will recognise it. 😆
 
Yes...It will keep your RM's employed as they will meet their targets..You are indirectly creating jobs by buying ULIP
 
Last edited:
Haven't read full

Ulip is money killer unless u earning 50 + lakh u just want stompy stuck growth to money
Some tax benefits
U don't care earning fd rates on investment plan
Go ahead do it


Else stay away from ulip scam-

How would it be beneficial to people earning 50L+?
 
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