Term Insurance Advice & ULIP

POSTED BY sorabhk5 ON February 3, 2011 11:09 pm COMMENTS (4)

I will start with big thanks to Manish for the great content & quality posts @jagoinvestor.com [First Post here]


Honestly, I don’t belong to finance domain but after reading this blog i have decided to handle my investments in a better & organized way. So i have decided to start by fixing past mistakes first read “
पापों का  प्राश्चित


So in this thread I want advice on INSURANCE front

Query 1:

– I now understand the meaning of insurance [its not as investment] and i want to cover life risk with term insurance. I understand its a low probability event but I wish/plan to be on safe side and would prefer to never get this money back.

 – I am 27 year old, married & have no dependents financially so far. Even my wife is working and plans to continue so but i guess it doesn’t hurt to be valuable in case of any bad situation.

 – I am planning to opt for 2 different insurance of 35 Lakh each with 30 year term. [One for me & one for wife]

 – After going through many posts on the blog & in moment of instant gratification. I  even went on apnainsurance.com & registered my mobile. Now I am getting calls from agents but still i am not sure of which plan, value & term [duration] should I opt for term insurance and what other options or riders  i need to care about.

 – Is my decision correct? I am open for discussion or suggestions.


Query 2: [this was me when i was a not reader of jagoinvestor.com ]


I have 2 ULIP based plans

i.  ICICI Lifestage Pension PLAN — 15000 annually [started since 2008 with 25 years term]

ii. BAJAJ ALLIANZ LIFE — 12000 annually [started since 2007 with 20 years term for 408000 sum assured]

Also my wife has 1 ULIP insurance plan from

iii. LIC — 15000 annually [started since 2008 for 20 years term & premium term for 5 years with 1,50,000 sum assured]

What you guys suggest about these plans…?

My gut feeling is Manish will say get out & run away from these plans but i can be wrong.

Does it make sense to continue this plan or get out later….? or just stop them straight away.

Any suggestions on which term plan [insurance company], how much and for how long would also be great.




4 replies on this article “Term Insurance Advice & ULIP”

  1. bharat shah says:

    i like to read you recent post on subramoney.com on ulips (though ,as i remember, once he nicely explained how his ulip proved good to him, however , he wrote other side of ulip). apart from suitability of the product on return , one should need see the liquidity part of the product, and i think,where ulip scores poor.

  2. Sorabh

    1. Yes you are perfectly on right direction . Just make sure you really “need” life cover . It will definately not hurt to have 30 lacs of term in your case .. More than which term plan to buy , you have already made the most important decision of actually buying the term plan , so 95% of the problem is solved

    2. You are wrong here . I am not against ULIP as a product , I know people who have earned a lot using ULIP’s , they are wonderfully designed products .. But the only point here is “IS IT FOR YOU” ? Trekking is a wonderful activity , and many people love it , but they wont send their parents to it or a 5 yr kid of it , as its dangerous for them ! . They dont know how to handle a lot of situations .. If all they are going to do is to sit and relax at one place, then there is no point in sending them to TREKKINg ..

    In the same way , if all you are doing is just buying the ULIP on some one’s suggestions and just paying premium and sitting there without utilizing the power of ulip , and its features then you are also in same condition .. you have bought a wonderful thing for wrong reasons .. thats a reason everyone who suggests that get out ULIP says so ..

    So incase you understand how market moves ,when to switch , how to use Top ups ! .. etc etc .. then continue it .. else get out of it ..


    1. Sorabh Kalra says:

      Thanks Manish for the response

      1. “Need” is very hard to define, its just risk I believe that one needs to cover. I just hope its not needed ever. You mentioned 30 lakh is it that for the 2 policies combined or for just one.

      2. I don’t know much about market, plus i don’t even have time to do all the trekking. So i guess i should opt out from the above policies.

      Any more thoughts or inputs would be great.

      1. Sorabh

        30 lacs I thought for each one of you assuming you are dependend on each other ..

        Opt out of policies ..

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