One of the hardest part for the existing ULIPs holders or to who are interested to go for ULIPs is to judge the performance of the particular ULIP. Considering the different types of cost, it is hard to judge the fund performance. The solution to this hardship is Morningstar Insurance Funds ratings.
Recently Morningstar, an independent rating agency started to rate ULIPs too. The rating is from the lowest performer of a single star to the best performer of five stars ULIPs. Oldest funds have given more weightage. In ULIPs each fund offers multiple plans and each plan being different expenses. So it is hard to judge it easily for the layman.
ULIPs are sold particularly as an investment product rather than an insurance product. But I think in current scenario you might not find any agent selling ULIPs. Reason is the drastic decrease in their commission structure from earlier. But these ratings will help you in finding the performance within a plan how a particular fund is performing. Below is the rating list of India’s top insurer LIC. For detailed performance and return % you may visit “Here”
By looking at above ratings, you notice that none of LIC’s ULIPs are rated as a top performer (5 Star). But you can also judge yourself by individually going through the return what each fund type generated since its inception, 5 yrs, 3 yrs or short terms like in monthly too. Hope this rating will actually help out investors for tracking their funds.