I have bought Bajaj Allianz Future Gain plan for 20 yrs with premium of 25000 annually. I have done this investment for son’s future needs who is 1.5 yrs old. I want to know is it good plan in which I have invested.
Nisha-It is a typical ULIP plan. Check at the expenses-average premium allocation charges up to 5 years is around 2%, Fund Management Charges around 1.5%. When we compare the same with mutual funds, I feel it is costly. Along with that you have to continue this fund irrespective of the fund performance up to at least 5 years to avoid those surrender charges.
I suggest to avoid ULIPs on three bases. One is we dont’ know how the fund perform as don’t know the history of fund manager. Second thing, charges. Third thing, liquidity is less up to 5th year. Why to take risk that too when you are planning for your kid’s future.
If it is still in free-look-in period, then better to cancel it.