There are a plethora of options available in the market nowadays if someone is trying to purchase a Unit Linked Insurance Plan. The customizations provided by the ULIPs are so many, than keen comparison and evaluation of these schemes become a must-do before buying any one of them. No matter how unique is the need or the financial condition of the customer, there is always a ULIP plan fir for him.
But, there are few performance parameters which are common to every scheme and suggest how well that particular scheme is running.
There two general types of ULIP-schemes offering two types of Death and Survival Benefits:
- Sum Assured or Fund Value, whichever is higher.
- Sum Assured + Fund Value.
The ULIPs are now offered from various insurance companies like:
AEGON, Aviva, Bajaj Allianz, Bharati AXA, BSLI, DLF Pramerica, Future Genarali, HDFC, ICICI, ING, Kotak, LIC, SBI Life, MAX Newyork Life Insurance, SAHARA, Reliance, TATA Aig Life Insurance, etc.
Top ULIP performance based on 1 year absolute return
Company, Plan (1 Year Absolute Return)
- Bajaj Allianz Life , Mid Cap Pension Fund (130.1)
- Bajaj Allianz Life, Accelerator Mid Cap Fund (122)
- Tata AIG , Whole life mid cap equity (91.7)
- HDFC Life, Growth (86)
- HDFC Life ,Growth Fund II (79.4)
- Birla Sun Life , Maximiser (78.9)
- HDFC Life, Equity Managed (77.2)
- Sahara Life ,Growth (75.8)
- ICICI Prudential Life , Maximiser (74.9)
- SBI Life, Equity Optimiser Fund (74)
The table below compares the various features of the top performing ULIPs in the market.
| Company | LIC | Birla Sunlife | ICICI Pru | Reliance Life | SBI Life | Allianz Bajaj |
| ULIP | Wealth Plus | Platinum Permium | Pinnacle | NAV Guarantee | Smart ULIP | Max Gain |
| Entry Age( years) | 10-15 | 8-70 | 8-65 | 30 days to 65 | 8-60 | 8-60 |
| Term | 8 | 10 | 10 | 10 | 10 | 10 |
| Maturity Age | 73 | 80 | 75 | 75 | 70 | 70 |
| Risk Cover | SP 1.25-5 Times; Annual 5-10 Times | 5 Times of Annual Premium | 5 Times of Annual Premium | P 1.1-6 Times; Annual 5 – 30 Times | 5 Times of Annual Premium | 5 Times of Annual Premium |
| Death Cover | Sum Assured + Fund Value | Sum Assured or Bid Value | Sum Assured or Fund Value | Sum Assured + Fund Value | Sum Assured or Bid Value | Sum Assured or Fund Value |
| Extended Cover | Yes | - | - | - | - | - |
| Premium | SP 40000; Yly 20000 Hly 10000 Qly 5000 ECS 2000 | Yly 25000 Hly 15000 ECS, Qly 7500 Mly 5000 | 50000 PA | SP 30000; Annualised Premium 20000 | Yly 50000 Hly 25000 Qly 15000 ECS | Yly 25000 Hly 15000 Qly 8000 ECS 3000 |
| Fund Types | One – Wealth Plus Fund | Ten – (1 guaranteed) | One | One | Two | One |
| PPT (years) | Single/3 | 10 | 3 | 10/1 | 3/5 | 7 |
| Allocation Charges [1st Year] | 11.25-12.00% | 10% | 14% | 20% | 15% | 15.00- 20.00% |
| Surrender | 3 | 3 | 3 | 3 | 3 | 3 |
| Surrender Charges | NIL | Within 3 Yr 40% 4 Yr 20% 5 Yr 10% | 3rd Yr 4% 4th Yr 2% 5th Yr NIL | Applicable, No mention in brochure | 3rd Yr 9% 4th Yr 2% 5th Yr Nil | Within 3 Yr 20% 4 Yr 10% |
| Policy Administration Charge | 1st Yr 60 PM; 2nd Yr 25 PM Escalation @ 3% | 0.24% PM of first 25000 and 0.40% of annual premium (3 Yr) | 0.40-0.60% of Annual Premium PM for 3 Yrs | 40 PM (through) | Flat 60 PM + INR 5 per thousand SA (3 Yr) | 1.26% of First Year SA |
| Fund MgmtCharge | 1% | 1.5% | 1.35% | 1.35% | 1% | 1.25% |
| NAV Guarantee | 7 year/Term End | 7year3month,Term End | 7 years | Full | 7 Years | Full |
| Mode | Many Options | Many Options | Annual | Single or Annual | Many options | Many options |
Please go through the Benefit Illustration of each policy to get a detailed review of charges and flexibilities.
For further queries, write to us or leave a comment.
November 14, 2011 at 5:19 pm
Sir,
would be glad if you provide me with the various features of ICICI PRULIFE ULIP Fund “Life Stage Pension Policy”
rgds,