Is this a good ULIP?

[sonuyos]

There are many insurers, including Max Life itself, that issue term plans to those having min 10th pass qualifications. You can buy term plan, just that you do not want to. That is a decision from your side.

I’ve made it clear I don’t want term insurance. This decision is based on past issues with such providers and my family’s inability to handle potential disputes. I won’t risk even a 1% chance of them losing the payout when I can guarantee it for ₹10k–₹15k more per year.

Combination of term plan+MF would give significantly higher death benefits than this option right till 20th year and min 20-25% higher survival benefits in case the insured remains alive after 20 years.

Wouldn't the term plan lapse if I do survive post-20?

For ULIP performance, never compare with regular MF. Comparison can only be made with similar ULIPs. Almost all AMCs use least aggressive investment pattern for ULIPs. So growth in investment portion of ULIP is significantly lower than normal MF.

That’s exactly why I’m leaning toward this one—their performance has been impressive, with the NAV climbing from 30 to 120 in the past five years.

I’m comparing it to mutual funds because the combination of a term plan + MF would need to deliver similar returns to make sense. That’s why I’m evaluating this ULIP against MF performance rather than other ULIPs.

The fees they are charging are on Par with MF as well.

The plan they are referring me to is this - https://www.moneycontrol.com/insura...-capital-builder-high-growth-fund-IMA061.html

If I pick their last 10yrs annualized return is 19.71%.

That gives me IRR of 20.51% AFTER all fees and shit getting deducted.

This is the closest IRL calculation I get to for this fund.

ULIPs are bad because of all the charges they put especially due to riders and all, but here the charges are actually quite minimal.

The only outrageous charge that I feel is there, are the PAC & Admin Charges of 26k++ for first 5yrs (aka paying term).

 

[Chhota Bheem]

I’ve made it clear I don’t want term insurance.

The only outrageous charge that I feel is there, are the PAC & Admin Charges of 26k++ for first 5yrs (aka paying term).

Ok then, this ULIP is decent. PAC is on higher side but at least you're saving on the Admin charges (some charge throughout the policy tenure).

Mortality charge is unrealistic, is it because of higher PAC? (I'm not sure). Ask for original copy of illustration with your complete details.

Again ULIP proceeds are taxable under section 10(10D).

Also, can you share the plan variant with brochure.

 

[sonuyos]

Ok then, this ULIP is decent. PAC is on higher side but at least you're saving on the Admin charges (some charge throughout the policy tenure).

Yes PAC Is higher, RM also shared Tata, but suggested against that, its PAC was 55k. ICICI one which you (I think) recommended, has no PAC, but continuous Admin Charges. Which is cheaper but then there is no loyalty & wealth booster.

Mortality charge is unrealistic, is it because of higher PAC? (I'm not sure). Ask for original copy of illustration with your complete details.

Its actually the difference between the Fund Value & Death Benefit. Thats why it is low. The higher the Fund Value, the lower it gets.

Again ULIP proceeds are taxable under section 10(10D).

Thats honestly fine by me, as even MF will be taxed at same rate, which is the alt here.

Ok then, this ULIP is decent. PAC is on higher side but at least you're saving on the Admin charges (some charge throughout the policy tenure).

Mortality charge is unrealistic, is it because of higher PAC? (I'm not sure). Ask for original copy of illustration with your complete details.

Again ULIP proceeds are taxable under section 10(10D).

Also, can you share the plan variant with brochure.

This is the link they provided - https://www.maxlifeinsurance.com/ulip-plans/platinum-wealth-plan

Platinum Wealth Plan.

 

[vine]

Platinum Wealth Plan.

Can you pause for a moment and think why and how the ULIP Seller/insurance company is able to provide you 30% returns ?
They are good at hiding charges, that's their job.
I assure you that you did not run into a secret pot of gold.

 

[sonuyos]

Can you pause for a moment and think why and how the ULIP Seller/insurance company is able to provide you 30% returns ?

They are clearly charging me PAC + Admin Charges plus FMC of 1.4% per year.

If anything its higher than Direct MF.

They are good at hiding charges, that's their job.
I assure you that you did not run into a secret pot of gold.

I agree with you, but in this one, I just cannot find any evidence of it. Hence why I opened this one, if there is then let me know, or if there is a better plan than this then also let me know.

 

[Chhota Bheem]

Yes PAC Is higher, RM also shared Tata, but suggested against that, its PAC was 55k. ICICI one which you (I think) recommended, has no PAC, but continuous Admin Charges. Which is cheaper but then there is no loyalty & wealth booster.

Yes, Max is better. It's the right choice. I checked for 26Y, there were zero PAC and admin charges.

Full premium is allocated to Nifty momentum quality 50 fund (not my recommendation).

Apart from charges mentioned above, you would be paying 0.2-0.4% excess FMC compared to direct mutual funds.

Its actually the difference between the Fund Value & Death Benefit. Thats why it is low. The higher the Fund Value, the lower it gets.

Thanks for the clarification, must be the reason. As the fund value gets higher, they take FMC in %.

 

[sonuyos]

Yes, Max is better. It's the right choice. I checked for 26Y, there were zero PAC and admin charges.

Full premium is allocated to Nifty momentum quality 50 fund (not my recommendation).

Apart from charges mentioned above, you would be paying 0.2-0.4% excess FMC compared to direct mutual funds.

Thanks for the clarification, must be the reason. As the fund value gets higher, they take FMC in %.

Actually i looked up on their website, they are not giving Premium Wealth Plan there, I suspect its only via Bank RMs as I saw the same plan on Yes Bank Website too.

I am thinking about this fund - https://www.moneycontrol.com/insura...-capital-builder-high-growth-fund-IMA061.html

The average FMC % was around 0.89% due to loyalty and wealth booster. 0.45-0.6% at cumulative weighted average.