What is Best ULIP product ?

POSTED BY Sanjay Sutar ON January 20, 2011 9:09 am COMMENTS (20)


I want to invest 1 lakh in ULIP. What is the best ULIP available in market with excellent returns in last 3-5 years ?

20 replies on this article “What is Best ULIP product ?”

  1. could some one suggest the difference between having a term plan + multual funds investment vs aegon religare imaximize plan

    1. THe main difference is that both things are independent .

  2. Gary Shah says:

    SBI smart performer looks great currently as the current NAV as of today for daily protect fund is 9.31 and the highest NAV is 10.73 which was back in November. If I enter today, I am already getting around 15% of return as my NAV will be locked at 10.73 though I enter at 9.32.
    In there benefit illustration chart, I am already getting my money at least 4 times in 10 years at 15% after deducting all the charges.
    Am I missing anything here?

  3. Vinubalan says:

    Lemme answer and not advice…

    Please check AEGON Religare iMaximize

    Premium Allocation Charges : 0% throughout the term
    Policy admin charges: Rs.100 per month irrespective of Premium(wheather it is 25000 or 25 crores p.a)

    Mortality charges:Very nominal, as per industry standards

    Death Benefit Option 1:Higher of Sum Assured Fund Value

    Death Benefit Option 2(Do not mind this copy paste!!):
    In case of an unfortunate demise during the term of the policy, the nominee receives the following as death benefit:
    a) Maximum of sum assured (including sum assured increased on account of payment of top-up premium) or 105% of all premiums paid (including top-up premiums)
    b) All regular premiums due after death of the life assured are waived i.e. all premiums due after death of the life assured, are paid by the company. If any premium due date, after the death of the life assured, has passed before the claim is intimated, the due premium is invested. This benefit is known as the Premium Continuance Benefit (PCB). Further, irrespective of the investment fund option(s) chosen or investment strategy chosen, the fund value is transferred to the Stable Fund on the date the claim is intimated.
    c) An amount equal to the annualised premium is paid to the beneficiary at the start of every policy year, following the date of death, till the end of the policy term. This benefit is known as Income Benefit (IB).

    ( Of course…Option 2 comes with lil higher charges on Mortality)

    Guys please chk the Benefit Illustration…

    Im waitin for some unbiased reviews

    AEGON Religare

    1. Sanjay Sutar says:

      Thanks Vinubalan. This one is already with me, but only for a premium of 15K annually.

      1. Ramesh says:

        Then why not use top-ups to get more investment in the same ULIP?

      2. Vinubalan says:

        You must have invested in AEGON Religare Invest Maximizer.

        iMaximize is a new product from AEGON Religare which can be taken only online.

        This was launched on 24th Jan 2011

  4. bharat shah says:

    one more point against ulip v/s mf+term insurance is illiquidity. and also nontransferability.

  5. shashank kashettiwar says:

    @ Sanjay,
    Why did you thought of ULIP , was it only as an investment or you had focuss on insurance and wanted a insurance+investment product with a provision of systemic discipline and delivering returns in the equity space?

    Have you visited the discusion on forum , the link for which is provided by Ramesh above?


  6. Anand says:

    Put it in some liquid MF and set up an STP to equity fund.

    e.g. From fidelity cash fund to fidelity equity fund.
    You may complete the STP within say 6 months.

  7. Debashis Basu says:

    If you had read the links above, especially the 2010 article link, you would have had a different point of view.
    Your choice

    1. Sanjay Sutar says:

      Thanks Debashis. That was an eye opener for me.

      But then can you suggest me, where to put 1 Lakh ?

  8. Sanjay Sutar says:

    Hi All,

    Thanks for you comments. I am well aware of ULIP products and was staying away from them so far because of the charges.

    But now the situation has changed and ULIP are attractive with charges around 10%.

    MF also charge certain percentage, but is somewhat unknown to the investor, since the amount is adjusted from NAV.

    I have already invested heavily in MF SIPs and want to try as ULIP.

  9. Debashis Basu says:

    here is the right link
    many thanks for pointing out the error
    2006: http://www.moneylife.in/article/76/1912.html

  10. Debashis Basu says:

    Hi Sanjay,

    You seem to have made up your mind about investing in ULIPs. Before you do that, you may want to read a few articles we wrote in Moneylife

    2006: http://www.moneylife.in/article/76/1547.html
    2008: http://www.moneylife.in/article/76/1547.html
    2010: http://www.moneylife.in/article/8/11913.html

    We are the only publication to have looked at ULIPs critically, which has cost us lots in terms of ads

    Hope you are able to take the right decision

    1. shashank kashettiwar says:

      Can you again give the link of 2006 article? Both links of 2006 and 2008 reach the same article. It will provide a complete view of the writers so that we can analyse and comment correctly.


  11. Atul says:

    Hi Sanjay,

    ULIPs are expensive and complex product. I suggest stay away from them.

    There are better alternatives for example, Mutual Fund, Equity, PPF etc.

    Please get in touch with good financial planner and invest wisely.



  12. All ULIP’s have different features and flexibilities. Not necessary if one suits me, it will fit in your portfolio also. Also, there are number of charges in ULIP, which makes its return less than mutual funds. So, for better returns, it’s better to invest in equity diversified mutual funds.

    Hope it will help you.

  13. Anand says:

    Why do you want to invest in ULIP? Please think and answer.

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