If the 100% allocation ad pitch got your attention, beware. The costs are still all there, they have just been moved in a way that you can’t see them now
Much like other statutory warnings that manufacturers of harmful products hope you won’t really listen to, ads for unit-linked insurance policies (Ulips) are followed by a jaded voice, chanting: “Please read the policy document before investing”. And, there is a very good reason for you to heed that voice. Insurance companies are removing costs that you recognize and are stuffing them in places that you don’t see yet. To understand the issue fully, we need to understand all the Ulip costs first.
Much like other statutory warnings that manufacturers of harmful products hope you won’t really listen to, ads for unit-linked insurance policies (Ulips) are followed by a jaded voice, chanting: “Please read the policy document before investing”. And, there is a very good reason for you to heed that voice. Insurance companies are removing costs that you recognize and are stuffing them in places that you don’t see yet. To understand the issue fully, we need to understand all the Ulip costs first.
For complete article click: http://www.livemint.com/2009/12/13230117/PACking-a-punch-look-for-hidd.html
My Comments: Indeed a very enlighting article about ULIPS & why you should stay away from such products. You can look at the following articles on my blog related to Life Insurance
http://www.finwinonline.com/2009/11/cheapest-life-insurance-plan.html
http://www.finwinonline.com/2009/11/comparison-of-term-life-insurance-plans.html
http://www.finwinonline.com/2009/11/cheapest-life-insurance-plan.html
http://www.finwinonline.com/2009/11/comparison-of-term-life-insurance-plans.html
New Pension System gets Tier II: should you invest? - Mint
Don’t want to lock in your money till 60? Here is a liquid form of NPS with the same low costs and more flexibility, but beware its tax bite
While we are yet to fully understand the low-cost, investor-friendly pension scheme under the New Pension System (NPS), the regulator, Pension Fund Regulatory and Development Authority (PFRDA) added an optional Tier II facility on 1 December. Look at Tier II as a mutual fund with very low costs and investor-friendly features. It is a liquid version of the Tier I account (pension account) that locks up your money till you are 60. The Tier II account works more like a savings account where you can withdraw your money whenever you wish.
For complete article click: http://www.livemint.com/2009/12/09224218/New-Pension-System-gets-Tier-I.html
Don’t want to lock in your money till 60? Here is a liquid form of NPS with the same low costs and more flexibility, but beware its tax bite
While we are yet to fully understand the low-cost, investor-friendly pension scheme under the New Pension System (NPS), the regulator, Pension Fund Regulatory and Development Authority (PFRDA) added an optional Tier II facility on 1 December. Look at Tier II as a mutual fund with very low costs and investor-friendly features. It is a liquid version of the Tier I account (pension account) that locks up your money till you are 60. The Tier II account works more like a savings account where you can withdraw your money whenever you wish.
For complete article click: http://www.livemint.com/2009/12/09224218/New-Pension-System-gets-Tier-I.html
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