Analysis of Sbi Life Smart Ulip free essay sample

Insurance too has joined the bandwagon of ULIP market. Similar players in the market include LIC jeevan Varsha, ICICI Return Guarantee Fund, IDBI Fortis Bondsurance and Birla Sun Life Platinum Plus. You can read my take on those policies by following the links mentioned for each of those. Now, here is a quick review of SBI life Smart ULIP. As usual, first the good things about this product: †¢The Smart ULIP product provides NAV guarantee that is the highest of 168 fortnightly NAVs during first seven years or NAV at maturity, whichever is higher. In case of the unfortunate event of the death of the insured during the policy term, the nominee receives the higher of fund value or sum assured. †¢Shorter premium paying term (3 or 5 years). †¢ Tax benefit on both premiums [U/s 80C] and maturity amounts[U/s 10(10D)] †¢Investment is managed by SBI Life – policy holder need not panic in volatile market Now the bad: †¢Short term – just 10 years! †¢Too many charges †¢Premium allocation charges : 15% in 1st yr, 5% for next 2-4 yrs for 3-5 yrs terms respectively. †¢Admin charges – Rs 60/- per month for full term. For first three years, annual administration charges of Rs 5 per 1000 of sum assured. †¢Fund management charge 1. 5% pa. Fund management charge can be increased to 2. 5% pa †¢Mortality charge levied on 1st day of each policy month. For more details on this product check the brochure and see the benefit illustration here. Verdict: This product may appear to be better than other ulip products in the market but not better than a combination of mutual funds with term insurance. I still suggest you folks not to combine insurance with investment. Invest of specific products for each purpose and reap the best benefits from each of those. I know many of you may not agree with me, again it boils down to individual requirement and the phase at which an individual looks at these products. Whatever the case may be, I welcome your comments and suggestions. Tagged as: insurance, investment, sbi, smart, ulip Share this post: Tweet It | Facebook It | Stumble It | Digg It | Delicious It Related Posts: †¢BSLI Platinum Plus review analysis †¢ICICI Return Guarantee Fund †¢LIC Jeevan Varsha Review †¢Review of LICs Jeevan Aastha †¢Are you Investing the Right Way? 1 Deepak April 1, 2009 at 9:43 am Second question is: What is the other product compareable in the line of this product. Reply 13 Manoj Khatri May 17, 2009 at 2:21 pm If I invest for smart ulip then how much I expect after 10 years maturity with an investment of 1. 5 lac in three years? I want details. Reply 14 chandrakant May 20, 2009 at 1:18 pm Kalyan :My first question is: How much is the expected return at the end of seven years with an investment of Rs. 1. 5 lac through three years. Please mention the higher as well as lower side. Second question is: What is the other product compareable in the line of this product. @gaurav Reply 15 chandrakant May 20, 2009 at 1:27 pm my question is;how much is the expected return at the end of seven years with an investment of RS. 1. 5 lac through three years. Reply 16 Rakesh kumar Singh May 21, 2009 at 5:12 pm Dear Sir, My first question is: How much is the expected return at the end of seven years with an investment of Rs. 1. 5 lac through three years. Please mention the higher as well as lower side. Can I withdraw this money after 3 years? as my agent told me that i can. Reply 17 Rakesh kumar Singh May 21, 2009 at 5:18 pm Is it the correct time to invest in SBI ULIP plan? My agent didn’t tell me about all this charges, just i know that they will charge Rs. 4500/- for first year. not to combine insurence with investment, i didn’t get it ? In SBI smart ulip plan do we have this option ? Reply 18 Mohan May 21, 2009 at 8:45 pm Hi all, most of you have been asking what would be the return after n number years if i invest x amount. To answer your question, there is no specific number that I can quote. Since it is a ULIP, it is subject to market variations. It completely depends on how the fund manager takes care of your investment. Please talk to the concerned agents and they will be able to give you approximations based on some numbers. Reply 19 RAVI May 29, 2009 at 3:26 am Return is guarenteed. put 1. 5 and get 2. 5 min. guarentee. or more. so i did not understand why bother all charges etc. any one can get min. 2. 5 or more if NAV is more while withdrawing. do u guys agree with me? Reply 20 sureshkumar June 9, 2009 at 2:32 am Sir, If I invest for smart ulip then how much I expect after 10 years maturity with an investment of 1. 5 lac in three years? I want details. Please reply sir Reply 21 Mohan June 9, 2009 at 10:39 am Ravi I didn’t quite understand your statement. Could you elaborate on that please? @Suresh Please check their website for detailed calculations and deductions. If you get a chance to talk to their customer care, bring out such questions and get all your queries clarified. Reply 22 chitra June 19, 2009 at 12:42 pm hello mohan, thanks for the detailed info abt this Plan.. But i would li ke to invest 50,000 this year for tax saving.. This morning i talked to my agent and he told me abt this.. I thought to invest in this plan.. But after seeing these discussions.. I have a backlog.. So please suggest me in which i can invest with maximum profits..? Reply 23 Ankur Chawla June 19, 2009 at 1:26 pm SBI did a goof up on this one†¦when there employees contacted us to buy the polivy they said that return will start from 4th year onwards and the policy came stating that return will come only after 5th year completion i. e. in 6th year†¦so that is no good for me anymore†¦i ams tuck i want my money back as i feel cheated by SBI†¦and i donno how to do that†¦because they are not going to give it back that easily†¦SBI Sucks†¦they promise something and give something else†¦they are among the worst cheaters almost equitable.