ING Market Shield ULIP Review

ING Market Shield ULIP Review

ING Market Shield is the Unit Linked Insurance Plan (ULIP) launched by ING. It is the combination of Insurance cum investment. Yes, it is the mixed financial product which not only gives you the life cover but also give you the growth of your capital.

The scheme invests in equity and debt both for the better returns. The salient feature of this plan is that, it does the Dynamic asset allocation and thus, the minimum NAV is guaranteed.

In other types of ULIPs, the NAV is not guaranteed but here you will have guaranteed NAV. So when the market will be up, your money will grow by its equity component and when the market will be down, your money will be protected by its debt component.

For a premium paying term of 5 years the minimum payable is Rs 48,000 and for a premium paying term of 10 years or the entire policy term the minimum premium payable is Rs 36,000. The plan offers premium payment in the annual mode, and customers can choose their desired life cover ranging between 10 to 20 times the annual premium.

This is really a good thing in comparison to the traditional ULIPs which give just 5 times life cover of that of annual premium. Means traditional ULIPs will give you just Rs.5 lakh of insurance cover for Rs.1 lakh of annual premium. But this plan will give you 10-20 times life cover according to your desire.

My Opinion -

I have downloaded the brochure and analyze the various charges associated with the policy. The following are the various charges associated with the policy.

01) Premium allocation charges – 9% for the first premium and 3% for the 2nd and third premium. After 3 years, it is NIL. the premium allocation charges are still very very high. This is because mutual funds don’t have any entry loads. Thus, still it is better to invest in mutual funds to build the long term corpus rather than ULIPs.

02) Mortality charges -

Mortality Charges will be deducted monthly in advance at the Daily
NAV from the Fund Value. Charges are based on age and gender.
Sample Mortality Charges (in Rupees) per annum per 1000 of Sum at
Risk for a healthy male & female life.

Again in comparison to the term insurance, these are the higher charges.

03) Fund management charges – 1.10% – Reasonable

04) Guarantee charges – 0.50% per annum – I really don’t understand why they charge this charge. I mean if you are going to invest investors’ money in debt to protect their wealth than why you are charging such kind of charges?

Thus, over all still the Term Insurance + PPF + Equity Mutual funds is the best investment combination to protect your life as well as build the long term corpus. No need to go for this plan in my opinion.