I have not been a great admirer of market linked Insurance Plans, popularly known as ULIPs, primarily because of the amount of premium allocation being done by most insurance companies towards buying the units of the Unit Linked Plans.
In most of the old ULIP plans buyers have paid hefty percentage of their premium towards commission and marketing resulting in fewer unit purchased and thus poor return on their invested capital over the period. This happened primarily because of lighter regulation and less awareness about the product. Agents promised hefty returns and buyers in general didn’t question how? But with increased awareness and much tighter regulation these days, one can again look at some ULIP plans from trusted insurance companies which are offering even 100% allocation.
Recently I came across iINVEST INSURANCE Plan which is insurance cum InvestmentPlan from AEGON Life Insurance and it invests 100% of the premium you pay & deducts no allocation charges thereby helping maximize your investment.
Key Benefits of the Plan:
# It pays the higher of sum assured or the Fund Value or 105% of all premium paid.
# Option to choose from six different funds depending on your need.
# No Allocation charges
# Tax Benefits on premium paid
This ULIP plan also provides the flexibility to switch from one fund to another depending on the needs and withdraw up to 20% of your investment after five years.
If one is looking at the flexibility of having insurance and investment at the same place, one can allocate a portion of their capital towards such products after comparing the features and offers provided by various insurance companies in India.