I believe that 'child plan' is an absolute waste of money. What one has to realize is that the breadwinner of the family is insured for all future expenses such as education, marriage etc, should something happen to him/her. What is the point of insuring your child? Insure yourself so that the child will automatically be taken care of if such a situation arrives.
Re: Why a child plan?
by thagadappa on Jan 28, 2010 11:33 AM
Very True. I got cheated by HDFC with 60% charges and 2% on subsequest years for 15 years.
ULIPs are aggressively sold by private insurance companies. One has to understand that ULIPs are just like regular insurance but provide much higher return. Charges are as much as with the regular insurance plans.
One has to understand that all insurance companies are governed by IRDA. Infact LIC was working freely and only after private companies came in was IRDA founded. I just cannot open an insurance company and close it any day after making money. Every plan in the market has to get IRDA approval. If IRA feels that the customer interest is not met then the plans are rejected.
If in every insurance plan is re-insured. For eg, if I buy insurance from company A, then A has to insure my plan with another company B. So my insurance is also insured.
An insurance company is not allowed to close down, its taken over. So my insurance once bought i always safe unless I decide to surrender it. This holds true to both ULIPs and regular insurance too.
Hope I have cleared some misconceptions of people feeling cheated.
Re: Understand ULIPs
by Second Thought on Jan 16, 2010 06:52 AM
Dont Fool others. First Read the offer document carefully and explain that if the 70 percent of first premium amount is taken for insurance insted of investment then why there is every month selling of units for maintaing it and if anyone sold it within 5 years Loss of investment plus loss of insurance cover. Read the offer documents carefully dont belive on marketing person.
Re: Re: Understand ULIPs
by thagadappa on Jan 28, 2010 11:34 AM
Very True. I got cheated by HDFC with 60% charges and 2% on subsequest years for 15 years.
They are there to make money at your moneys expense. LIC is the best rest all private insurers are there to cheat you. Their terms and conditions are of 12 pages whereas of LIC it is simple 4 Pages. I made the mistake of investing in ICICI PRUDENTIAL and Birla Sin life and I am not getting even the principal amount even after 3 years. My LIC Policies and money back policies are safe and secure
Re: dONT BE FOOLED BY ULIPS AND CHILDREN PLANS
by SANKET P on Jan 15, 2010 01:59 PM
U have to first understant that ULIPs are Unit Linked Insurances. In regular insurance,u dont bother abt the fund value so u never think of words like 'principle amount' and 'break even'. Regular insurance also has similar or even higher charges. So donot think of your money being taken away by the company.If you invested in ULIPs for jst 3 years and want to remove ur money, then you are a FOOL.
Re: Re: dONT BE FOOLED BY ULIPS AND CHILDREN PLANS
by Pankaj Agrawal on Jan 16, 2010 09:37 AM
R U sick man. he is right they come here to make money at ur money expenses.they r not sincere to safeguard u.all r cheater
Re: Re: dONT BE FOOLED BY ULIPS AND CHILDREN PLANS
by valluri sreenivasu on Jan 16, 2010 09:42 AM
ULIPs are not for investment for 3 years and look for fund value. Keep in mind that ULIP covers insurance also. The only problem with the insurance companies is tnat they charge hefty allocation charges, admin charges etc., which also varies company to company based on their name and fame in the insurance sector. Here we loose money in the initial years as it is not going into the investment. If we are looking only for pure investment purpose either we should look into diversified mutual funds or shares directly instead of looking to ULIPs for making money.
Re: dONT BE FOOLED BY ULIPS AND CHILDREN PLANS
by thagadappa on Jan 28, 2010 11:34 AM
Very True. I got cheated by HDFC with 60% charges and 2% on subsequest years for 15 years.
They are there to make money at your moneys expense. LIC is the best rest all private insurers are there to cheat you. Their terms and conditions are of 12 pages whereas of LIC it is simple 4 Pages. I made the mistake of investing in ICICI PRUDENTIAL and Birla Sin life and I am not getting even the principal amount even after 3 years. My LIC Policies and money back policies are safe and secure
Open recurring deposit,PPF and regular investments in gold.small investments can be made in mutual funds through SIP.Allocation 25 percent in each of these instruments.Investments will be diversified and better option compared to Life Insurance
This is really a very much informataive information which has been given , even i doubt a insurance personal would not know this details.i must congratulate who have given this
