Hi basu sir, my doubt as follows:
I started investing 1L per year in ICICI SMART KID PREMIER , a ULIP POLICY from the past 3 yrs. Next month 4th premium follows which I am ready to pay. Today my fund value is 3.94L. So I want to know how this ULIP is performing & at what rate.
Is it advisable to stop after 5 premiums or still to continue. Please give me your valuable suggestion Mr.basu.
Kasudheer-The charges are less (Premium allocation charges at a first year is 2% and later on it is zero and fund management charges is around 1.3%). This may be the reason that it is showing the positive return with booming equity market. If you are comfortable with fund management and no issue about liquidity then you can continue.
The few problems are liquidity issues, no control over portfolio (debt and equity), insufficient insurance (Ideal insurance must be around 15-20 times of your yearly income) and death claim amount (Higher of Sum Assured and 105% of the total premiums (including top-up premiums) paid till date, less applicable partial withdrawals would be paid to the Nominee immediately. Where the Nominee is minor, the benefits shall become payable to the Appointee under the policy), however if you bought term insurance and invested separately then your nominee will get the death claim from term insurance and the value of investment as of that day. This is not possible with this plan.