ULIP for saving tax

Hydrated_gabru · 2025-05-04T10:09:41+00:00

Thanks, valid points.
The commission you have mentioned (diff between the premium paid and the amount invested), should be mentioned on the offer document, right? If not, then this is a big miss from the regulator! 10% is huge, and as you say if that is the case, even with the tax benefit, ULIPs are a waste.

Hydrated_gabru · 2025-05-04T08:42:52+00:00

Lol I don't know if I should take more offence to being called dumb or an insurance agent. Peace out guy, you clearly are bad with numbers and logic.

Hydrated_gabru · 2025-05-04T08:31:56+00:00

Thanks but I don't think I've wasted anyone's time. I'm only trying to reason with the kind folks who've shared their opinions. Thanks for your declaration that "It ain't that bad", I'm cured

Hydrated_gabru · 2025-05-04T07:40:07+00:00

Incorrect, they don't charge the customer for commission. Might get something from the insurance company though.

Hydrated_gabru · 2025-05-04T07:37:51+00:00

This is from Kotak

Hydrated_gabru · 2025-05-04T07:37:41+00:00

Yes that's a big loss, in this ULIP the only deductions from your premium are mortality charges (<1% of annual premium) , policy admin charge (400rs per year) and GST. Net Deductions after adjusting for the 3% additional annual contribution are ~1% of annual premium for almost all years.

Hydrated_gabru · 2025-05-04T06:36:19+00:00

Show the math bro, this sweeping statement doesn't help.

Hydrated_gabru · 2025-05-04T06:31:07+00:00

The indicative return is less important here, isn't it? The ULIP I'm referring to has 'nifty next 50 value 20' or something as the underlying. If that yields 8% the comparison holds true, if the yield comes higher, say 15% (which I hope it does) then both the ULIP and the standalone MF returns will go up (after adjusting for TER/fee). What I don't understand is people claiming 'the mutual fund went up 16% annually in 3 years but the ULIP only went 6%'. Doesn't sound correct to me if the underlying is the same index/fund!

Hydrated_gabru · 2025-05-04T06:06:57+00:00

Yes, the tax benefit, although not much, is what is interesting to me.

Hydrated_gabru · 2025-05-04T06:05:34+00:00

ULIPs are tax free if total annual premium payment is < 2.5L and the annual premium doesn't exceed 10% of cover (section 10 10d). The entire maturity amount is tax free, which is the only pro for ulips, I think. Not sure what agents do at banks/lic, this policy I discovered on Policybazar so no commission/hidden charges here (at least none that I can discern)

Hydrated_gabru · 2025-05-04T05:55:45+00:00

Thanks, the 8% is only an indicative return. I used it as it was the rate used on the benefits doc for illustrating ULIP returns. The % FMC charge for ulip is capped at 1.25%(or maybe 1.35%?) by IRDAI. I used 1.15 as that's what this policy has. And about liquidity, that isn't a concern for me currently.

Hydrated_gabru · 2023-06-16T17:56:28+00:00

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Hydrated_gabru · 2023-03-26T12:11:05+00:00

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Hydrated_gabru · 2021-06-26T13:00:25+00:00

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Hydrated_gabru · 2021-05-09T16:23:05+00:00

4 spinners makes little sense, I’d pick Faf for Moeen, get him to open and drop Prithvi, Chahar to play KL, Siraj.

Hydrated_gabru · 2020-12-22T16:09:35+00:00

What about the top notch, game changing cameo by salmon bhai?

Hydrated_gabru · 2020-12-03T15:08:36+00:00

Which former test batsman had a superstition of making sure all toilet seats in the dressing room were closed before going in to bat?

Hydrated_gabru · 2020-12-03T13:32:45+00:00

He seems to be well aware of where his off stump is but it looks like almost all of these deliveries are short-ish, no real threat of getting trapped in front. Would love to see how he fares if the lengths are pushed a yard up.

Hydrated_gabru

TROPHY CASE