ING Vysya Best Years policy?
I bought the above policy three years back and hold two more years to go. Am a senior citizen. Was told by counsellor at the time of taking policy that the return would atleast be 8 %. Till date I deposited Rs. 40,000/- I am surprised that my balance as on date is just Rs. 39,000/- or so. Due to my age I was unacceptable to take energy cover which is an add-on.Should I hold on to the policy till the ending? If I surrender the policy, how much will I get? Which is a better ruling?
Thanks in finance for the help.
Answers: As per the policy document, following are the charges
Applicable Charges
Initial one-time charge Rs. 700
Contribution Related Charges
All first year contributions 10%
All subsequent contributions 3%
Annual Management charge will be levied on respectively 31st March on the IPA after crediting bonus interest. The Annual Management fee will depend on the size of symmetry in the IPA and will be as follows:
Balance within IPA Annual Management Fee p.a.
Upto Rs. 50,000 2.5%
50,001-75,000 2%
75,001-1,00,000 1.75%
Above 1,00,000 1.5%
As I can understand, the agent with the sole purpose told you that there is guarnteed return of 8%, but what he did not describe you was that it is on your corpus after deduct charges. Your return is eaten by the charges of the plan & I be aware of sorry that these charges were not explained to you clearly. Insurance companies & their agents within india are doing this mis-selling in almost 90% of the policies sold.
Now I reflect on you should continue for more 2 years within this policy to recover your losses of first year(when you rewarded 10% + 700/-). For next 2 years , following will be the charges.
1. 3% speculation on annual premium.
2. About 2.5% of your total accumulation every year.
As per my estimate your final return will bequeath you a yield of 4% on a assertion of 8% return.
You can call up the customer careof ING Vysya and check beside them what are the surrender charges. If there are no surrender charges later you can surrender the policy. If there are afterwards there is certainly no advantage surrounded by surrendering the policy.
Secondly all ULIP's hold the most charges in the 1st year due to which your actual investment would own reduced. These start giving returns only after 5 years, as the charges from 2nd year onwards is outstandingly small. You can also check with the customer contemplation what are the annual charges in your defence.
Thirdly you can check the NAV as see the grwoth rate per annum, if its good next you can calculate after deduct the charges and see what your money would be after 4 yrs, 5 yrs and decide what is correct for you.
Also, please check with the customer charge whether the total fund value that you will be getting, is it taxble or not.
In adjectives the ULIPs, even with or in need Life risk cover, initial charges could be higher side. I reckon in your plan they have deducted around 15% (10% +2.5% and Rs.700) from your premium and the harmonize say around 85%of 40,000 which is around 36,000/-. If the Growth surrounded by the fund is less next you cannot expect more. Please check the NAV for the past 3 years and find the growth rate. IF the growth rate is between 10 to 30% per annum consequently patiently wait to grasp your money to grow further or if find the growth is even less than 10% per annum for the concluding 3 years, then close the side and invest in 5 star rate mutual funds. To know more about Mutual funds drop by valueresearchonline.com or moneycontrol.com
good luck
pnkmurthy(a)yahoo.com
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After introducing detariffication on premium rates any problems or drawbacks arised if any what r they distribute?
effect of removal of tariff in insurance sectorAnswers: You posted to the USA one and only board.
There is no tarrif on insurance for admitted carrier in the USA.
Life Insurance?
Two years ago my sister died after a drunk driver run a red light and crashed into her SUV. She have two kids and no life insurance. Things where on earth very not easy when it came to the funeral arrangements, we adjectives had to pitch within (some of us end up spending adjectives of our savings). My older sister contracted to keep her children and even though she doesn't read out anything, we all know that adding up two members to a ancestral of 5 is extremely hard and expensive.Answers: There are two most important types of life insurance out here. The first type of life insurance contains a hoard plan in it. They are specified as whole life span, universal duration, or variable go. These types of life policies are collectively expensive to the average consumer. While they provide protection to age 100, majority of people usually don't maintain their life policies for that long. They usually call off it when they pay bad all their debts and their kids are adjectives grown up because their focus would be to save for retirement. The problem near this is that people should of started positive a long time ago.
A comparison to whats already out there is accurate too..
http://www.surveyland.org/jump.php?link=...
Hope that helps.
So, what's your examine? There isn't one.
It's hard. Good for your elder sister keeping the kids. Sorry for the family loss.
u find some details on this
http://www.insuranceplan4u.com