ULIPs in India

ULIPs in India

ULIPs are “Unit Link Insurance Plans”. They have the advantage of Insurance with Investment. And that’s why by taking the advantage of people’s need, Insurance agents are now selling ULIPs in India.

The phenomenal popularity of ULIPs may be attributed to their characteristic to combine the benefits of life insurance policies with mutual funds.

ULIP is life insurance solution that provides for the benefits of protection and flexibility in investment. The investment is denoted as units and is represented by the value that it has attained termed as Net Asset Value (NAV).

Read the Article – ULIPs Versus Mutual Funds

The only problem with ULIPs is that they are associated with higher costs. Unlike the mutual fund product that has a very simple cost structure, Ulips carry a greater number of costs (administration and mortality), in addition to the others.

The problem begins because all these costs are levied in ways that do not lend themselves to standardization. If one company calculates administration cost by a formula, another levies a flat rate. If one company allows a range of the sum assured (SA), another allows only a multiple of the premium. There was also the problem of a varying cost structure (as it should be due to the mortality cost part of the insurance premium) with age.

Here are the Best ULIP Plans in India -

I have gone through the several ULIP Plans in India. Every Insurance company has launched several ULIP Plans but out of these several ULIP Plans only few plans are associated with really los administrative costs and other expenses. Following 14 are the best ULIP Plans in India. You can go for any one of the following ULIP Plans.

I have been forced to remove Life Insurance Corporation of India, Aviva Life Insurance, Max New York Life, SBI  Life and Birla Sun Life from our ranking since LIC does not have a policy currently alive that allows for a long premium-paying term to fit in with our sample. Neither Max New York life, nor Birla Sun Life have fund options with 100 per cent equity exposure that have been running for more than one year.

 

01) Tata AIG Life – Invest Assure II
02) Met Life – Met Smart Plus
03) HDFC Standard Life – ULEP
04) Bajaj Allianz – Unit Gain Plus Gold
05) Bharti Axa Life – Future Confident
06) ING Vysya Life – High Life
07) ICICI Pru Life – Life time Gold
08) Reliance Life – Market Return
09) Kotak Life – Premium Advantage
10) MetLife – Met Smart Premiere
11) ICICI Prulife – Life stage RP
12) Bajaj Allianz – New Family Gain
13) Bharti Axa Life – Future Confident II
14) ING Vysya Life – High Life Plus

However SBI Life, UTI & LIC also have good ULIP Plans.

Recently (2010), Reliance Life Insurance has launched 17 new unit-linked plans to cater to individuals of all age groups. The ULIPs are available in two versions- one basic plan with 15 years plus terms and another with a period of 10 years which covers children education, pension, savings and investment and protection.