Unit linked insurance plans are probably the hottest selling product for most life insurance companies today. However, when it comes to evaluating ULIPs from across life insurance companies, individuals find the task arduous and challenging.
The table below provides information on ULIPs from four leading life insurance companies, which will help individuals who want to assess their ULIP products effectively.
ULIPs: A comparison
| LIC (Bima Plus)* |
ICICI-Prudential (Lifetime II) |
HDFC Standard Life (Unit linked endowment) |
SBI Life (Horizon) | |
| PRODUCT TYPE | Market linked plan | Market linked plan | Market linked plan | Market linked plan |
| ULIP FUND OPTIONS | Risk fund, Balanced fund, Secured fund | Maximiser II (Growth), Balancer II (Balanced), Protector II (Income), Preserver | Growth fund, Balanced fund, Defensive fund, Secure fund, Liquid fund | Dynamic fund, Growth fund |
| ALLOCATION TO EQUITIES | Min 50% in risk fund; min 30% in balanced fund; min 10% in secured fund | Upto 100% in maximiser-II; upto 40% in balancer-II; nil in Protector II & Preserver | 100% in growth fund; 30-60% in balanced fund; 15-30% in defensive managed fund; nil in secure managed & liquid fund | 0-100% in Dynamic fund; 0-75% in growth fund (allocation depends on age) |
| MINIMUM PREMIUM (RS) | 10% of sum assured (Min. sum assured: Rs 50,000) | 18,000 | 10,000 | 12,000 |
| MIN/MAX AGE AT ENTRY (YRS) | 12Yrs-55Yrs | Min: 0 or 18. Max: 35 or 60 (depends on level of sum assured) | 18-60 (subject to plan type) | 14-60 |
| HOW IS SUM ASSURED CALCULATED** | 10 times annual premium | Level I sum assured: Annual contribution X a multiple. Level II sum assured: sum assured can be increased subject to certain conditions | 5-20 times the regular premium amount | 10 times the annual premium. Maximum limit: Rs 10 Lacs |
| RIDERS AVAILABLE** | Yes | Yes | Yes | No |
| INITIAL YEARS' EXPENSES | N.A.# | 12%-19% in first yr (depends upon the annual premium amount). 4% from 2nd-5th yr. 2% from 6th-10th yr. | 10%-27% in initial 2-Yrs (depends upon the annual premium amount) | 15% in 1st yr. 10% in 2nd and 3rd yr. |
| FUND MANAGEMENT CHARGES | 1% p.a. | Maximiser II- 1.5%; balancer-1.0%; protector II & preserver-0.75% | 0.80% | Equity fund-1.5%; bond fund-1.0%; money mkt fund-0.25% |
| EXPENSES AFTER INITIAL YEARS (%) | N.A.# | 1 | 1 | 5 |
| FIXED MONTHLY EXPENSES (RS) | N.A.# | 60 | 15 | 70 |
| PARTIAL WITHDRAWALS ALLOWED** | Yes | Yes | Yes | Yes |
| CHARGES ON TOP-UPS (%) | 1.5 | 1 | 2.5% for initial two yrs. 1% thereafter. | 1 |
| SWITCH CHARGES | 2 switches allowed during policy's life. Charges: 2% of the unit value at time of switch | 4 free switches in a year. Rs 100 per switch thereafter | 5 free switches in a year. Company may charge upto 2% of switched amt for additional switches | - |
| *This policy has now been closed for sale. The information in the table is as sourced from company websites and interactions with the company. To understand them better, we advise you read information available on company websites and/or call the your insurance advisor/agent for further details. Fixed monthly expenses for some companies are subject to inflation-based indexation and may change in future. Companies reserve the right to change their policies anytime in the future. ** Conditions apply. # Not available. |
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