Is this a good ULIP?

[sonuyos]

My AXIS Relationship Manager (RM) is offering me a ULIP (Unit Linked Insurance Plan).

I’m usually against ULIPs because of the well-known drawbacks, but this one seems worth considering for me atleast.

1. Investment Details:
   
   • It’s a ₹10 lakh plan, out of which ₹9.66 to ₹9.7 lakh is invested.
   • The Fund Management Charge (FMC) is on par with direct mutual funds.
   • It has a lock-in period of 5 years.
     
2. Term Plan Concerns:
   
   • I need a term insurance plan, but I’m hesitant because of:
     • The hassle of medical checkups.
     • Potential stress for my family during claim settlement.
     • Higher premiums due to my weight.
   • On PolicyBazaar, many companies are refusing me a term plan because I haven’t completed my 12th grade.
     
3. Cost Analysis:
   
   • For a standalone term plan, I’d be paying around ₹20k per year (₹14k base + additional costs for being overweight + GST).
   • The FMC is falling around 0.5-1.5% over 20 years, with the last 10 years being under 1% on average. Which is on par with Direct Mutual Funds.
     

The only major downside I see in this ULIP, is that the Premium Allocation and Admin charges are ₹26k+ for the first 5 years.

Given these factors, is this a good option, or are there better alternatives?

PS: I used ChatGPT to optimize the post.

 

[Pissant]

>On PolicyBazaar, many companies are refusing me a term plan because I haven’t completed my 12th grade.

This is weird. Even if you are salaried they can still pull shit like this? What is the point of restrictions like this. I don’t see how this will benefit their business in any way.

 

[sonuyos]

>On PolicyBazaar, many companies are refusing me a term plan because I haven’t completed my 12th grade.

This is weird. Even if you are salaried they can still pull shit like this? What is the point of restrictions like this. I don’t see how this will benefit their business in any way.

I am not salaried.

I do think that education is an important criteria for this.

 

[Pissant]

I am not salaried.

I do think that education is an important criteria for this.

Are you self-employed then? I count that in as salaried. But what does health insurance have to do with education?

 

[Dragon_slayer]

Are you self-employed then? I count that in as salaried. But what does health insurance have to do with education?

Its supposed by banks that an well educated person will likely to take better care of themselves to live a longer life. Thereby they will have less chances for claim from that perosn

 

[coolguy1]

ULIP is mostly not a good option until and unless you're getting a really good upperhand or some sort of fancy return from the bank in return.

If you're looking from the investment perspective, several MFs would offer a much better return on your capital.

 

[Dragon_slayer]

Higher premiums due to my weight.

You should buy a Health insurance first, in that case

 

[sonuyos]

Are you self-employed then? I count that in as salaried. But what does health insurance have to do with education?

It does apparently.

ULIP is mostly not a good option until and unless you're getting a really good upperhand or some sort of fancy return from the bank in return.

If you're looking from the investment perspective, several MFs would offer a much better return on your capital.

Hence why i laid out all the facts about this one that I have been proposed. Seems like a good deal to me.

You should buy a Health insurance first, in that case

Already got worth 1.1cr of that via Star, that's not a major concern, just want a safety net.

 

[Pissant]

Its supposed by banks that an well educated person will likely to take better care of themselves to live a longer life. Thereby they will have less chances for claim from that perosn

I guess that makes a bit of sense. But it is entirely different to not even offer a term insurance. They could just raise the premium.

 

[Chhota Bheem]

Check ICICI Pru iProtect Smart plan and for capital appreciation invest in mutual funds.

It's better to wait for a few years, get stable income and then opt for a life insurance.

Till then PMJJBY is the only option.

 

[sonuyos]

Check ICICI Pru iProtect Smart plan and for capital appreciation invest in mutual funds.

It's better to wait for a few years, get stable income and then opt for a life insurance.

Till then PMJJBY is the only option.

Why would I waste my money investing in life insurance.

 

[sonuyos]

ICICI Pru iProtect Smart plan

Not giving to me cuz i didn't complete 12th.

 

[Chhota Bheem]

Age requirement is 18 Years. It's better to wait for now.

ULIP proceeds are also taxable in this case and cover is for 20 Years. Instead you can get a term plan and lock in lower premiums for a longer tenure once you reach 21-24Y.

You are paying huge amount up front to get 10x cover. At this age, focus on investing in yourself for education and higher studies.

The benefit of opting for individual mutual funds is, you have better control as even a small percentage of return will have a great impact on the fund value.

 

[sonuyos]

Age requirement is 18 Years. It's better to wait for now.

ULIP proceeds are also taxable in this case and cover is for 20 Years. Instead you can get a term plan and lock in lower premiums for a longer tenure once you reach 21-24Y.

You are paying huge amount up front to get 10x cover. At this age, focus on investing in yourself for education and higher studies.

The benefit of opting for individual mutual funds is, you have better control as even a small percentage of return will have a great impact on the fund value.

I am 29.

 

[Chhota Bheem]

I am 29.

Sorry, as the age is not mentioned. I made several wrong assumptions.

You can still get the policy through an agent because on online platforms once you enter qualification, the site will show as ineligible.

Ask RM for Max life smart secure plus illustration. Try to increase cover up to 60 Years or more. Then let's compare this plan with ULIP.

 

[sonuyos]

Sorry, as the age is not mentioned. I made several wrong assumptions.

You can still get the policy through an agent because on online platforms once you enter qualification, the site will show as ineligible.

Ask RM for Max life smart secure plus illustration. Try to increase cover up to 60 Years or more. Then let's compare this plan with ULIP.

My main concern with term insurance is the potential hassle my family might face during the claims process. I’ve handled such processes before and could manage them if I were around, but my family isn’t capable of doing so. Adding to this, most term insurance providers have a poor reputation for claim approvals, particularly for individuals like me who are overweight.

I don’t need coverage until the age of 60; I just need it for the next 10–20 years.

Comparison: ICICI Term Plan vs. Max ULIP (via AXIS RM)​

1. Investment Costs:
   • If I invest ₹10 lakh for 5 years directly in mutual funds, the expense ratio would be around 0.7–1.2%, comparable to the Fund Management Charges (FMC) of this ULIP.
   • The additional costs in the ULIP include Policy Allocation Charges, Admin Charges, Mortality Charges, and GST.
2. Cost Analysis:
   • Policy Allocation + Admin Charges + Mortality Charges + GST (Basically all charges except FMC) = 35-40k per year including GST.
   • For a term plan with limited pay (5 years), the cost is around ₹24.1k post-GST per year. (10-year plan, 5-year pay, No Riders).
   • This means I’m overpaying by ₹11k–₹15k with the ULIP.
3. Additional Considerations:
   • The term plan would likely include a surcharge for my weight, pushing the cost even higher.
   • With the ULIP, I get a hassle-free, guaranteed death benefit for an extra ₹10k–₹15k over 5 years, which seems reasonable given my priorities.

ICICI ULIP Drawbacks​

• The ICICI plan has no Premium Allocation Charges but includes continuous Admin Charges for 20 years.
• No Surrender Value for 1st 4yrs, whereas Max does from
• Loyalty bonuses are given only once every 5 years, resulting in a net return after 20 years that’s lower than the Max ULIP.

Unless there’s a better product in the same segment, the Max ULIP seems to work out well for my needs. Is there any other product then I am all ears.

PS: I don't know the name of this product, RM sent it to me, didn't mention name.

PS: I ChatGPT'd this shit.

 

[HumorSimpson]

>On PolicyBazaar, many companies are refusing me a term plan because I haven’t completed my 12th grade

Why you didn't?

 

[HumorSimpson]

Its supposed by banks that an well educated person will likely to take better care of themselves to live a longer life. Thereby they will have less chances for claim from that perosn

They should have learnt it by now that education has nothing to do with health, seeing scams and su. Cides.

 

[Pissant]

Why you didn't?

I was quoting OP. I already have completed my 12th and will be completing my undergrad too in some time.

 

[sonuyos]

Why you didn't?

Started my business, so never bothered to. Did attend Diploma, but I already knew more than the teacher could teach, so I left. I was not interested in doing their job for them and pay them at the same time.

They should have learnt it by now that education has nothing to do with health, seeing scams and su. Cides.

Education has nothing to do with anything tbh. At least in India.