Is this a good ULIP?

[HumorSimpson]

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

Everywhere it is the same.

 

[Pradumya]

• 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.

According to the Insurance Laws Act 2015 Section 45 no claim can be rejected after 3 years of the policy being in force even if the fraud is detected. This comes as a relief to policyholders and decreases the probability of their claims being rejected by the insurance companies.

Few suggestions - 1. take up a full body health checkup just before taking term insurance (ideally same day or next day). 2. Just tell your family about the section 45. 3. Whenever you take term plan do not add any rider. Just a term plan. 4. Whatever is there on the medical checkup report, mention everything as it is and also save this medical report along with policy document and tell your family about it. In case of dispute arising during claim this report will be helpful in case.

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

For this you can reach out to policybazaar or ditto via call and explain the situation. They will do the hassle of finding eligible term policies for you.
Just mention the cover amount, period of insurance (ideally 65+) and tell them to suggest policy from top 5 insurers only.

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).

I don't usually suggest people to opt for any limited pay, return of premium etc. it just increases the cost.. but if you are 100% sure about it then fine.

I’m usually against ULIPs because of the well-known drawbacks

Well if you've watched videos of LLA on ULIP then you would know how to calculate rate of return. Just calculate for your policies and check. Reference -


Lastly to mention that claim process is same for both term and ulip plans.

 

[HumorSimpson]

According to the Insurance Laws Act 2015 Section 45 no claim can be rejected after 3 years of the policy being in force even if the fraud is detected. This comes as a relief to policyholders and decreases the probability of their claims being rejected by the insurance companies.

Oh man !!

What maya is this pradumya ... you seem to be a lawyer

 

[Chhota Bheem]

Why do you think the claim settlement process is different for term and ULIP with the same Insurance company.

Is it because substantial premiums are paid up front or something else.

The maturity proceeds from ULIP is taxable as the premium exceeds the limits under section 10(10D).

As an alternative, Max life smart secure plus would cost ₹25-45k for 10/5 Years limited pay (approx).

 

[Pradumya]

Oh man !!

What maya is this pradumya ... you seem to be a lawyer

I am padha likha berozgar

 

[Pradumya]

Already got worth 1.1cr of that via Star, that's not a major concern,

Instead of worrying about life insurance claims, you should definitely worry about your health insurance claims especially with Star.
Life insurance claims are usually only delayed but mostly paid. But for health insurances this is entirely different, Search "Star health claim" on twitter and filter by Latest. You can read what people have to say.
It's not just Star, any health insurance company is the same.

Also remember I told in previous reply that section 45, similar rule is there for health insurances as well. It's 8 years* in case of health insurances except here fraud is a valid excuse even after 8 years.
*TnC states that there should not be any changes in the riders, demographics or contact information and policy should not have been lapsed or revived at any point during 8 years. Also this rule can be easily bypassed by stating fraud claim.

Whatever is there on the medical checkup report, mention everything as it is and also save this medical report along with policy document and tell your family about it.

Also apply this to your health insurance as well. On a safer side what I do is mail my latest health checkup report to the insurance company just 60 days before renewal and tell them to keep on record. Something like this:

And lastly I save this mail to drive folder which my family has access to. In case company tries to reject claim, my family can throw this as proof

 

[sonuyos]

Instead of worrying about life insurance claims, you should definitely worry about your health insurance claims especially with Star.

I honestly don't have to.

I know exactly how to handle them.

Dad had cancer earlier this year, had them pay in full along with interest after initial rejection. Followed by every chemo therapy session they paid for.

Our of pocket I paid about 1.5lk rupees on a total bill of close to 15-18lk including chemo and other minor surgeries.

According to the Insurance Laws Act 2015 Section 45 no claim can be rejected after 3 years of the policy being in force even if the fraud is detected. This comes as a relief to policyholders and decreases the probability of their claims being rejected by the insurance companies.

Unfortunately this is not 100% true.

If there is any misrepresentation (willingly or unwillingly) even after 3yrs they can reject. I have confirmed this with ditto, beshak and many providers.

For this you can reach out to policybazaar or ditto via call and explain the situation. They will do the hassle of finding eligible term policies for you.

I already did, the one that were offered were with high premium. Same for my wife, she was denied by many cuz she is housewife.

Well if you've watched videos of LLA on ULIP then you would know how to calculate rate of return. Just calculate for your policies and check. Reference

I will check it out.

Lastly to mention that claim process is same for both term and ulip plans.

Process is same but in ulip AFAIK they cannot reject claim, unless am wrong? Am I?

I

It's 8 years* in case of health insurances except here fraud is a valid excuse even after 8 years.

Have them since 21 age, so i am good, plus I took it at such an early age and even know I do not have any health issues. Just heavy weight...i won't even consider myself overweight. But they surely do.

And lastly I save this mail to drive folder which my family has access to. In case company tries to reject claim, my family can throw this as proof

this is a good idea, I will think about this. But personally I come from medical background and half of family being doctors been told never do check ups it just brings up potential problems that would possibly never happen.

Like Chris Hemsworth discovering that he csn potentially develop alzhimer yet he had to go thru such trauma....just one of the examples.

 

[HumorSimpson]

I honestly don't have to.

I know exactly how to handle them.

Dad had cancer earlier this year, had them pay in full along with interest after initial rejection. Followed by every chemo therapy session they paid for.

Our of pocket I paid about 1.5lk rupees on a

How is he now? Everything 🆗.

 

[vine]

Good ULIP is a oxymoron.
There are no good ULIPs in any bank.
If it suits you, go ahead.
..
ULIPs are cheap way for banks to gain liquidity while giving low returns to customers (and high commissions to bank employees & thats the reason these ULIPs are peddled a lot)

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

Given these factors, is this a good option

 

[fradela]

Stay away from ULIP.

Don't mix your investment with insurance.

Both are different products.

ULIPs are benefit only banks. 🤣 🤣

 

[HumorSimpson]

ULIPs are benefit only banks. 🤣 🤣

As said by some wise one, ULIP means U Loss I Profit for a bank

 

[bkext]

 

[panchabhut]

ULIP is only good for the insurance company and the agent (here bank is acting as agent) . Any ULIP is a disaster for the insured/investor.
Get a pure term cover for the insurance cover component of the ULIP. After paying the premium, invest remaining amount in any good mutual fund. Your returns will be significantly higher than any ULIP, while still having the benefit of insurance.

 

[sonuyos]

How is he now? Everything 🆗.

Yea he is good. Recovered fully. Now just half yearly tests. He had taken LIC Cancer Cover too.

Good ULIP is a oxymoron.
There are no good ULIPs in any bank.
If it suits you, go ahead.
..
ULIPs are cheap way for banks to gain liquidity while giving low returns to customers (and high commissions to bank employees & thats the reason these ULIPs are peddled a lot)

As said by some wise one, ULIP means U Loss I Profit for a bank

That all i agree with, but in this how exactly is it a bad one?

I have attached the screenshot in the first post of the thread I don't find it predatory like how HDFC peddles the Ulip for infinia where they take about 30% of the money you put vs here of 2.5%.

 

[sonuyos]

I understand ULIP is bad, but why is it bad? And is this one bad?

 

[HumorSimpson]

Yea he is good. Recovered fully. Now just half yearly tests. He had taken LIC Cancer Cover too.

Good to hear that . May God give him full strength physically and mentally.

 

[panchabhut]

I understand ULIP is bad, but why is it bad? And is this one bad?

Banks legally cannot offer ULIP. They can only act as agent. The product is offered by MAX Life Insurance. So only the past performance of Max Life is relevant. ULIP is a composite product. To have proper evaluation, it needs to be broken down into the two basic component, pure insurance and pure investment. The details does not indicate the amount of life cover and the present age of insured. Without that, it is not possible make such breakup.
ULIPs do not have any guaranteed returns. So the 8% considered is also indicative only.

 

[Avinash.Mishra]

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.


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Don’t mix insurance and investment, if you want a safe option go for a bare bone term insurance and index ETF/mutual fund

 

[sonuyos]

Don’t mix insurance and investment, if you want a safe option go for a bare bone term insurance and index ETF/mutual fund

Again that's the same story, I want to know why this specific one is bad or is it even bad? If yes then what's the alternative.

Also bigg boss se Kab bhar aae tum bhai.

 

[sonuyos]

Banks legally cannot offer ULIP. They can only act as agent. The product is offered by MAX Life Insurance. So only the past performance of Max Life is relevant. ULIP is a composite product. To have proper evaluation, it needs to be broken down into the two basic component, pure insurance and pure investment. The details does not indicate the amount of life cover and the present age of insured. Without that, it is not possible make such breakup.
ULIPs do not have any guaranteed returns. So the 8% considered is also indicative only.

Hello

It is 1cr, it is mentioned on the first post and are is 29.