With the launch of Smart ULIP, now SBI Life 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 on their site.
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.
srinivasu says
hello!
dear all,
WELCOME TO THE BOARD.kindly remember life insurance is to protect the economic value of the policy holder,incase of any UNTIMELY death, ACCIDENT(disability),his dependents like wife,child,parents receive compensation.
kindly donot treat this option as wealth creation.
for income tax savings take E L S S.
take one family (2 adultsplus 2 children) health policy from any psu non life (general) company.
unit linked polices are not suitable for all,only for term above 10 years with maxium sum assurad with riderslike ADB,W O P etc….
A PURE TERM PLAN WITH GOOD FRONT LINE STOCKS will do all good work.
all good luck !
Bhargav says
Hi,
A Well maintained and informative website! Congrats!!!
Regarding SBI Smart ULIP only thing I can say is it is giving you the highest registered NAV, Charges if you compare with other policy then they are also less.
As far as Insurance cover is concerned it is very minimal, but return vise it has already registered 60% growth.. And most importantly the highest NAV is guaranteed so as per my view it is worth a buy.
But honestly speaking I became a fan of your site:-)
Mohan says
hello all, lot of you have been trying to save some money in the form of tax by investing in some plans. Don’t get carried away with that intention. Read my latest two articles on tax planning and I am sure it will help you to plan better. Don’t simply go with the intent of saving tax… think of what is correct and invest smartly.
BENNY says
what will happend if the agent made the paying term 5 instead of 3 in smart ulip policy..
will i loose any money.
Jayant Bhat says
You wont be penalised for not paying after 3 years. In case you pay premium for 3 years and stop premium payment, then charges like Fund management, Mortality and Admin charges would be deducted from your account value. The policy will continue till your account value supports these charges. But then what is the use of such policy. I recommend that you somehow manage to pay for minimum 7-10 yrs and then see the wonderful benefits of any ULIP.
By the way, investing in ULIPs have become more attractive since Jan 1st 2010.
Mutual Funds or ULIPs, whatever be the mode of investment, we are heading towards a more and much better mode of transperancy.
Whatever, be the explanation given by the advisor, pl go through the website of the company for actual product and you always have Mohan who manages his website so intelligently and effectively. And what more, you have Dhirendra Kumar joining us who can always guide us appropriately.
By the way, Once again I reiterate the fact that ULIPs or Mutual Funds are Market driven and hence if any advisor is giving vague return figures then pl refrain from buying from them. IRDA restricts advisors from giving illustrations of more than 6 and 10% returns…It is a universal experience that ULIPs have given much better returns if we pay for more number of years but nobody can commit any figure about returns.
PENALISE THE Advisors:
General Indian Trend observed(which is absolutely incorrect as per me) is that we give basic info to the advisor and then just sign the form plus other reqd docs.
Better way is to read the form (Which are not so lengthy as they used to be earlier), give correct info in the form and only then sign. only then such mistakes wont happen.
If we find any discrepancy in the form which is done by the advisor, then withdraw the application, complain against the advisor. Reapply with some other agent. This would teach a lesson to the advisor so much so that other customers would benefit out of it.
Companies send the photocopies of the form signed by us. So go through the same after the policy is issued and immediately point out the mistakes to the company to get it rectified. Ensure that this is done in 15 days of receipt of the policy document.
As I always say, ITs our hard earned money, So ensure that Advisors and Companies are on the run throughout.
Deva says
Hi,
I would like to invest 1.5l in 3 years.
could you pls tell me the amount I can expect after 7 years and how maturity value would be calculated.
Thanks in Advance
Senthil.R says
Hi,
If i applied today in SBI smart ulip the NAV allocation will be Rs.15.42 or Rs10.00 only pls clarify. . . . .
Dr.Girish Metha says
it is the always current nav 10 rs was launching nav actually you get uits on 8th or 23rd of the month what ever comes first after issuance of policy
pareek ravindra says
please advice me if i want to go for max life insu. to oblige one of my known and forcing me to do some thing, I can/ want to pay 10/20k thru single premium for 3 yrs only. which product of max is good
Dr.Girish Metha says
max newyork life policy details contact its web site go through details on web site do not believe agent
Aran says
Hi Mohan,
i am planning to buy a ULIP from Birla sunlife either Dream plan or classic life premier. PLease help me out which one to choose. have gone thru the broachure and awre of the highlights but unable to decide. Please help
Expecting your reply soon..please
Thank you
Benny says
Dear Mr.Mohan
I have applied for smartulip from sbilife, If i cancel the policy before 15 days , any deduction will be there? or what will happend if the period of the policy is 5 instead of 3 years , becase i applied for 3 year, but the illustration page shows 5 , and if i dont pay after 3 what will happend ?
please answer
benny mathew
Dr.Girish Metha says
One way is if you have given the cheque withdraw money from your account and let the cheque get dishonored or return the policy within 15 days of arrival
Benny says
Sir, Is there any way to cancel smart ulip application once submitted, because the agent did not explain the charges before,
so any ways to do, i applied on 17/12/09
Regards Benny
Dinker says
Yes, but you need to run to the bank for this. You can get it canceled with in 15 Days of purchase..
mohammed Shafiuddin says
I was advised by Mancherial SBH Branch Manager(Garimilla Branch) for the SBI Smart ULP. I immediatly paid 50000 RS. Really this is a very good Plan.
aneesh says
hey can anyone opine which is better
sbi smart ulip or lic market plus1 ????
Jothi says
Hi Aneesh
SBI smart ulip is better than lic
Senthil says
Hi Mukesh,
Thanks for your quotes. Actuall i was planned to invest smart ulip or rich fund in icici – 1.5 lacs in coming three year. But, after saw ur quothe i have a huge doubts
Can you pls directs me where to invest these 1.5 lacs.
*** personal info moderated – please refrain from sharing emails.***
Thanks in advance to mukesh and anyone who guide me. Thanks
Jothi says
Hi Senthil,
Thanks for your version regarding this vision.< * MODERATED - PERSONAL INFO NOT ALLOWED * >
Thanks & Best Wishes in advance to Senthil.
mukesh kumar says
hi ,
Today i went through the whole review given by many thinkers and sufferers . I repent today why i had listened to the agent sitting in the SBI chamber as a AGM and offering us to buy such a nuicense and worst plan ULIP. They didn’t disclose any type of charges and just finishes the formalities within 10 min. when i went through these above reviews then i came to know the biggest mistake i did by buying this ULIP. Friends i don’t know how many times money will multiply in 10 yrs bt at the investment time they have already deducted approx 30,000 which for all of you may be nothing but for me a high earned money.Please don’t buy , its better to pay tax then to go for such a plan.
Dr.Girish Metha says
you are wrong the charges and benefit illustration is included in proposal form you should have read it and any way it is cheap as compair to other ulips
shankarg says
hi, SBI Life – Smart ULIP any closing date is there my agents says this 24th of dec 09 will be closed it is correct
venky says
hi,
I have one query…not sure if this is the forum…..what happens if despite IRDA guidelines on maintaining solvency ratios,an insurer files for bankruptcy, what will happen to the insured? As far as i understand,most of the private insurers are yet to break even with 7-8 years in operation.I heard there are guidelines which allow companies to merge,as happened with the case of ANP Sanmar and Reliance.
Although LIC has the lowest solvency ratio of all, the liquidity is pulled in from their own reserves.
Dr.Girish Metha says
SBI Life is in profit and its solvancy margines are above required thats why it got iAAA+ AAA Stable fron crisil
Ashwin says
The paradox of ULIPs
By Dhirendra Kumar
A couple of days ago there were some announcements from the Life Insurance Council, a lobbying body formed by life insurance companies. Broadly, these announcements appeared to say two things. One, that the terminology of Unit-Linked Insurance Plans (ULIPs) would be made uniform. And two, insurance companies would refuse to underwrite insurance-linked schemes issued by mutual fund companies.
Behind both these issues is a struggle that is going on between life insurance companies and mutual funds. Here’s what this fight is all about. Mutual funds and life insurance are two distinct products, one being intended as a savings vehicle and the other a safety net. However, over the last few years, this distinction has become blurred. Today, if one looks at the actual money that is flowing in, then the life insurance companies are also in the business of running mutual funds. These mutual funds are called Unit-linked Insurance Plans (ULIPs). ULIPs have a mixture of the characteristics of both insurance and mutual funds. Crucially, the mutual fund aspect of ULIPs is regulated by the government under a very different set of rules compared to real mutual funds. From the investors’ point of view (which is obviously the most important point of view), the biggest difference lies in how much of his money is actually used for his insurance and his savings and how much is taken away to pay the commissions to agents and the expenses of the insurance company. The second big, related difference is the quality of the information he is given about his investments.
Mutual funds deduct no more than 2.5% of the agent’s commission. And this deduction is 0% (by law) if investors don’t use an agent and go directly to a fund company. In ULIPs, the agents’ commission varies but in the first year, it could be anywhere between 25% and in some cases, 75%. There are a lot of things in finance that are difficult to understand but the difference between paying 0% commission and 75% commission is not one of those. Even the difference between 2.5% and 25% is pretty easy to understand.
Next is the issue of transparency. One of the most interesting is the vast difference between the meaning of ‘Net Asset Value’ (NAV) between ULIPs and mutual funds. In a mutual fund, the announced NAV is net of all expenses and charges that the fund company deducts. If your investments were worth Rs 1 lakh when a fund’s NAV is Rs 22, then it will be worth Rs 2 lakh when the fund’s NAVis Rs 44. That’s it. The arithmetic of insurance companies is different. ULIP’s NAVs are effectively pre-deduction. The NAV may double, but your investments won’t double because the insurance company will reduce the number of units you hold to pay for expenses, commissions, etc. This means that the announced NAV has no clear and transparent relation to what the unit holders are actually earning.
However, ULIPs are phenomenally successful. News reports say that last year, a total of Rs 55,000 crore was invested (if invested is the right word) in ULIPs. In the same period, around Rs 16,000 crore was invested in mutual funds. We are often told by the insurance industry that this is because ULIPs are a superior product. That’s complete rubbish. ULIPs are successful because the ultra-high commissions and charges make insurance agents far more aggressive salesmen than those of any other financial products. These charges also enable insurance companies to spend far more on advertising. All of which is the unit holders’ money. The net result of high-pressure sales is that savings that would otherwise have ended up in mutual funds, bank FDs, PPF, post office and many other asset types is ending up in ULIPs, where a good proportion is diverted to pay commissions.
The direction that the Indian insurance industry has taken in the last few years is a huge regulatory failure on the part of the government. This industry was opened up to foreign capital and provided with a relatively lenient regulatory framework so that it could bring insurance to India’s under-insured masses. Instead, it has ended up focusing its energies (and capital) on selling expensive and opaque mutual funds that are dressed up as insurance. It’s tragic that there is no move to even recognise that this problem exists. Now, even higher foreign ownership is on its way, supposedly because more capital is needed to ULIP the under-ULIPed masses even harder.
It simply isn’t in anyone’s interest to bring up these issues. Most large mutual fund companies aren’t bothered either because they are part of financial conglomerates that have flourishing insurance businesses.
It’s up to you, as an investor, to understand the issues and do what you think is in your best interest.
—The author is CEO, Value Research
Ashwin says
The paradox of ULIPs
By Dhirendra Kumar
A couple of days ago there were some announcements from the Life Insurance Council, a lobbying body formed by life insurance companies. Broadly, these announcements appeared to say two things. One, that the terminology of Unit-Linked Insurance Plans (ULIPs) would be made uniform. And two, insurance companies would refuse to underwrite insurance-linked schemes issued by mutual fund companies.
Behind both these issues is a struggle that is going on between life insurance companies and mutual funds. Here’s what this fight is all about. Mutual funds and life insurance are two distinct products, one being intended as a savings vehicle and the other a safety net. However, over the last few years, this distinction has become blurred. Today, if one looks at the actual money that is flowing in, then the life insurance companies are also in the business of running mutual funds. These mutual funds are called Unit-linked Insurance Plans (ULIPs). ULIPs have a mixture of the characteristics of both insurance and mutual funds. Crucially, the mutual fund aspect of ULIPs is regulated by the government under a very different set of rules compared to real mutual funds. From the investors’ point of view (which is obviously the most important point of view), the biggest difference lies in how much of his money is actually used for his insurance and his savings and how much is taken away to pay the commissions to agents and the expenses of the insurance company. The second big, related difference is the quality of the information he is given about his investments.
Mutual funds deduct no more than 2.5% of the agent’s commission. And this deduction is 0% (by law) if investors don’t use an agent and go directly to a fund company. In ULIPs, the agents’ commission varies but in the first year, it could be anywhere between 25% and in some cases, 75%. There are a lot of things in finance that are difficult to understand but the difference between paying 0% commission and 75% commission is not one of those. Even the difference between 2.5% and 25% is pretty easy to understand.
Next is the issue of transparency. One of the most interesting is the vast difference between the meaning of ‘Net Asset Value’ (NAV) between ULIPs and mutual funds. In a mutual fund, the announced NAV is net of all expenses and charges that the fund company deducts. If your investments were worth Rs 1 lakh when a fund’s NAV is Rs 22, then it will be worth Rs 2 lakh when the fund’s NAVis Rs 44. That’s it. The arithmetic of insurance companies is different. ULIP’s NAVs are effectively pre-deduction. The NAV may double, but your investments won’t double because the insurance company will reduce the number of units you hold to pay for expenses, commissions, etc. This means that the announced NAV has no clear and transparent relation to what the unit holders are actually earning.
However, ULIPs are phenomenally successful. News reports say that last year, a total of Rs 55,000 crore was invested (if invested is the right word) in ULIPs. In the same period, around Rs 16,000 crore was invested in mutual funds. We are often told by the insurance industry that this is because ULIPs are a superior product. That’s complete rubbish. ULIPs are successful because the ultra-high commissions and charges make insurance agents far more aggressive salesmen than those of any other financial products. These charges also enable insurance companies to spend far more on advertising. All of which is the unit holders’ money. The net result of high-pressure sales is that savings that would otherwise have ended up in mutual funds, bank FDs, PPF, post office and many other asset types is ending up in ULIPs, where a good proportion is diverted to pay commissions.
The direction that the Indian insurance industry has taken in the last few years is a huge regulatory failure on the part of the government. This industry was opened up to foreign capital and provided with a relatively lenient regulatory framework so that it could bring insurance to India’s under-insured masses. Instead, it has ended up focusing its energies (and capital) on selling expensive and opaque mutual funds that are dressed up as insurance. It’s tragic that there is no move to even recognise that this problem exists. Now, even higher foreign ownership is on its way, supposedly because more capital is needed to ULIP the under-ULIPed masses even harder.
It simply isn’t in anyone’s interest to bring up these issues. Most large mutual fund companies aren’t bothered either because they are part of financial conglomerates that have flourishing insurance businesses.
It’s up to you, as an investor, to understand the issues and do what you think is in your best interest.
—The author is CEO, Value Research
srinivas chennapragada says
sir,
every word is true.
ULIP are very very useful for agents/ life insurance co. only for the first 3 policy years. so the propogonda is like pay 3 years , enjoy FREE rissk cover for the rest of your life while your money still participating in equity !!
as long as innocent clients are busy and NO time to read even polcy documents for just 15 mts, this type of discussions goes on.
thanks for this service.
swarupvt says
hi,
this is one of the good invetment with guranteed return in ths decade
shilpa says
Very Useful discussion on SBI life Smart Ulip.
Just want to add one more point. Just incase of poliy holders death in frist few years assuming your investment is 50K the actual value will be 2.5K. Can any mutual fund match this? This insurance coverage you are getting without going for medical tests. then why worry about charges. Everything costs something in this world.
For any guaranteed returns investment or insurance prodcuts in market more than 8% returns you should wait for atleast 5 years ( thats why the NSC or LIC guranteed plans come with 5 year lockin period.). form Jan 2010 onwards all ULIPS will come with 5 year lockin period as IRDA has made it mandatory.
SBI Smart Ulip is good ULIP in market with Guranteed returns more than any other investments ,if you stay invested for 10 years with protection of invested amount. Happy investing.
< personal info moderated >
srinivasu says
dear all,
welcome! thanks for this service.
i am very confused to see some of them promoting ulips and particularly from S B I.
ask any policy holder of unit horizon ,paying premiums for the last 4 years, is still in loss.
if any one of you is happy with ulip of any company,
post your policy no/company name, so that some one can VERIFY the facts.
thanks
Jayant Bhat says
Economic recession is the responsible culprit. But this is just a passing phase and in the Long run, the investor would be the winner. Just keep a horizon of 7-10 years. Dont panik and exit early.
Unfortunately for those who invested in ULIPs were not educated about the various fund options. Remember a typical rule of switchovers amongst various funds. (Percentages might vary from Co to Co.). When Markets are moving in positive trend, invest in maximum Equity option and when in negative trend like 2008, one must invest/switch in debt based funds. In case you are skeptical or not market savvy then the best option is balancer fund. Unlike my peers, I actually earned good money before recession,during recession and even now at the fag end of recession. Reason – When Stock Mkts were drifting towards peak, I opted for maximum equity fund option, When our began to react to recession, I switched to balancer fund and when I realized that mkts wont recover soon. I parked my funds to maximum debt option. Typically, I earned over 50% pa before recession and 18% pa during recession.
Its our hard earned money that we are investing and advisor gets good commission on our investments. So I ensure that my advisor and the company is on the run throughout.
Lalitha Reddy says
Mr. Srinivas, Yes., whoever invested in to our ULIP ie LIC as single investment they got double in 4yrs in this drastic market down period also. < personal info moderated >
Regards
Senthil says
Hi All, I have a big doubt. Am planning to invest 1.5 lacs in coming 3 yrs. I need to know ICICI RICH FUND is better or SBI Smart ULIP is better or # ICICI Return Guarantee Fund is better? Kindly reply, am waiting for ur reply.
vakil jenab says
Dear Sir,
In the SBI NAV Gurantee, is it correct that the funds will be tranferred to Money /Debt Fund twice in a month at the stipulated date. The highest of NAV of these funds shall be given ? Please comment
Kalpesh Sonje says
Hi Mohan,
Looking at the current NAV of 15.67, is it benefecial to invest 50,000*3=1,50,000/- Rs in the SBI Life ULIP plan? Whether PPF will be better option for me? Kindly reply.
Anoop Shukla says
1.If i invest Rs.80000 yearly(premium) how much i can except at the tiume of maturity.
Penchal Reddy says
Sir i am planning to invest in market plus with 50000 one time. After ten years how much would the return be? please let me know… already i have invested in market plus worth 50000 in 2007
RD Undra says
Sir i am planning to invest in SBI life Smart ULIP fund with 100000 one time. After 5 years how much would the return be? please let me know.
Satya says
Hi Mohan,
I had invested 50K in SBI Life Smart ULIP and my advisor (who is my friend) told me that it’s for single time payment only. But I got a letter from SBI Life to pay the next year premium for 50K. I asked my advisor about this and he told, no need to pay the next premiums and the policy won’t be elapsed also. He told they generally select yearly premium payment option while applying, to get high commissions. Is it true? Kindly let me know the facts on this. If I don’t pay the premium, will the policy be elapsed after the due date?
Dr.Girish Metha says
If he had told you that it is single premium lodge a written complain against him with sbi life branch and get your aknowledgement signed also mail to sbi life customer care and still i think you are fooling because smart ulip has been launched on 08/03/2009 yearly renewal premium for very first policy issued has yet to come it shall come only after 08/03/2010
Dr.Girish Metha says
SMART ULIP is best product keep on investing or asign the policy to some body else and let him pay next premiums
Satya says
hi Girish,
Thanks for the update. I had invested in some other ULIP also earlier apart from Smart ULIP and got notice for that one to pay the next premium. Its is the same case with that policy also, he told no need to pay the next premiums. He told if I don’t pay next premiums after due date, the policy will be treated as single term payment policy and it won’t be lapsed. Could you pls tell me whether the policy lapse if I don’t pay the next premiums after due date?
Dr.Girish Metha says
what ever units you have got is yours after lapse of policy no mortality charges shall apply after three years surrender the policy to check you fund value sms NEWREG<>policy no<>birthdate to 56161 after that sms FV<>Policy No. to 56161 this is applicable to all sbi life ulips you shallloose your nav guarenty feature but you can check nav and withdraw your money afte five years
Monica says
hi Mohan
Thanks for providing such useful information.
can you please tell me investment plans for short term period ?
Dr. Vikrama. G says
Hi, can you send me some more details about Smart Ulip plan? Like if i invest Rs. 150000 in three years, what will be the maturity period and how much will be the sum assured….
Dr. Vikrama. G says
Hi, can you send me some more details about Smart Ulip plan? Like if i invest Rs. 150000 in three years, what will be the maturity period and how much will be the sum assured….
Mohan says
It isn’t that easy to predict what would be the sum assured. It depends on various factors including the performance of ULIP as well as the various charges levied towards administering your account. Get in touch with SBI Life customer care to get more details.
Dr.Girish Metha says
Sum assured is 5 times of annual premium and on deth you get higher of Sum assured or fund value in horozon II ulip from sbi life you ger sum assured plus fund value
Dr.Girish Metha says
Do you really want to invest it is closing on 23/12/2009 < MODERATED - personal info not allowed >
Aniruddha Chitre says
I wish to start SBI SMART ULIP plan….& I have following questions…
1) Will their annual process charge of currently 15% will increase? Please tell how much LIC, and other banks are taking this processing fee.? Do they really manage our funds ? If YES – How ??
2) Will their 5 % charges likely to increase after 1st year?
3) How much NAV you think will increase in next 3 years ? is there any risk investing ?
4) If I invisted 60,000.00 pear year, will I be getting 100% tax benefit (i.e. on complete 60,000.00) ? Please confirm.
Dr.Girish Metha says
it shall not increase it goes on decreasing its current nav is rs 15.40 date of launch is 8th march 2009 i.e. within six monts it has grown upto 54% against which you have to pay 15% One lac has become almost 134000 in six monts and this shall not reduce as highest nav is commitment of sbi life hurry up porduct shall not be available after 23/12/2009 and afterwords you gave to pay 5 year premium there is no loss by charge you are getting service
Mohan says
Hello everybody, Aegon Religare has launched a term insurance policy called ‘iTerm‘. This seem to be the cheapest insurance policy in the market. I have written a separate article with all the details about this plan. Check out the plan here – https://mohanbn.com/aegon-religare-iterm-plan-review
Dr.Girish Metha says
wait for smart ulip II to be launched by january unit plus to shall be withdrawan from market by 23 dec now unit plus 3 shall come
rajrrv says
for the first time i am falling into income tax slab.i have to invest 50.000 to save my tax.can anyone advice me which is better NSC,KVP,BANK FIXED DEPOSITS,SBI LIFE SMART ULIP,SBI LIFE UNIT PLUS II,LIC or what pls suggest me
Jothi says
Hi Rajrrv
The best option at present is Reliance Insurance Policies, the wide plan which offers you to a grand success.
Mohan says
you sound like a reliance insurance agent.. don’t you?
Jothi says
Hi Mohan,
This is of course a general suggession.
Kumar says
Hi, thank you for the info on smart ulip. I am going to invest on Smart ulip but after seeing your post , now i am in confusion of where to invest. Can you suggest any best plans without much charges as mentioned above and get more benefits.???? What about other plans of SBI — like UNIT PLUS II ??
Awaiting for your suggestions.
Mohan says
Hi Kumar, thanks and welcome here! Well, I am not a finance adviser to provide some suggestions. I suggest you plan your investments and then go ahead with your investment options. I haven’t looked into SBI Unit plus 2 yet. Will provide a review when I get a chance to go through it.
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Dr.Girish Metha says
UNit plus II is the best plan if you use switching and topup facility the charges are very less if you are going to pay for 20 years or more and go for 50times life cover it is cheaper tan term insurance
Biju says
Hai, I want to know about this plan ,I mean with guarenteed amount that is If I Pay 150000 and what will be the metured amount on which year. please kindly send reply.
R.K.Dewangan says
Hai, I want to know about this plan, I mean with guaranteed amount that is If I Pay 150000 and what will be the metured amount on which year. please kindly send reply.
Biju says
Hai, I want to know about this plan ,I mean with guarenteed amount that is If I Pay 150000 and what will be the metured amount on which year. please kindly send reply.
R.K.Dewangan says
Hai, I want to know about this plan, I mean with guaranteed amount that is If I Pay 150000 and what will be the metured amount on which year. please kindly send reply.
Ganesh Bhat says
My financial advisor discourages to go for ULIP,instead he advised me to go for term insurance.Can anyone please give me a better idea on this.
Mohan says
Hi Ganesh, He is absolutely right as far as my knowledge goes. Never combine insurance with investment. Seperate them out to reap the best benefit out of every rupee you invest.
Jothi says
Hi Ganesh
A Best option for your benefit is going or stepping into Reliance Insurance Plans. The best plans to make us pleasant at present in all types.
Chintan says
I am confused.. should I go with this or do I have an option to withdraw in the middle? I seem to have done a mistake by getting into this smart ULIP business altogether.
Mohan says
Chintan, it depends on the ULIP you have chosen. Go through the documents to find out what provision your ULIP has on your query.
Sadanand says
Hi, I found ur details too late, ok, nice job
Mohan says
Oh… wish you had seen this before! Anyways.. from next onwards you know what to look for before buying any ULIP!
Utkarsh says
Hi Everyone,
I want to invest in SBI ULIP plan. But I have some doubt:
1. If I invest 1.5lacks in 3 year on the NAV 10.00 and at the matuarity time NAV go to 9.00 then how much money I will get through this plan.
2. what is the risk factor of this plan.
Please me more detail about this ULIP plan. and SBI SIP plans also.
subrat says
My first question is: How much is the expected return at the end of seven years with an investment of Rs. 3.0 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?
subrat says
My first question is: How much is the expected return at the end of seven years with an investment of Rs. 3.0 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?
Mohan says
Hi Subrat, there is no straight answer for your question. It depends on the fund performance which is linked with your policy.
sundar says
I am in this insurance field for the 23 years. As per the Indian mentality , they should get some benefit out of the premium paid to insurance Company. When we are giving our Quotations , use to give plain Term Assurance product, Endowment with term Assurance product, Plain endowment product. only 1 % of the public is choosing term Assurance product. 5to 10% of the people only choosing Double Cover & triple cover policy( Endowment with term rider). Rest use to choose endowment products.
Now a days the people use to choose the ULIP products ( without knowing ULIP concept) because of the terms – you can pay just 3 years & you can withdraw.
When the market is Down we use to advice the policy holders to top up & to take new policies they had fear of Market & they have not invested their money. When the Market is Up , after seeing the present NAV & past NAV – (On Assumption the same growth rate will be there in the future) people use to invest in wrong time.
Mutual Fund or Ulip one should Invest when the Market is Low & you have to book profit when the Market is Up.
Don’t beleive that, you will get 20% or 30 % growth every year.
Now days the Bread & butter for the Insurance companies are ULIP products. There is no expenses & no commitment for insurance Co. Every thing is meet out by the Policy Holder. For Insurance Cos They need not announce any Bonus, Surcharge for insurance prem is paid by the policy holders (In other products Some Cos are paying on behalf of the Policy Holders). Commission is born by the policy holders (Sot hat only LIC fixed less commission to its Agents- Pvt cos are giving 20/25/40% to its ULIP products LIC is giving only 10% – as per the information we got). So better go for term assurance products or go for the ULIP When the Market is at its Bottom that also as Single premium- the charges are very low in single premium policies.
shakti jena says
present NAV of sbi smart ulip
Mohan says
Yes… see the previous comment and follow the link to know the present NAV of SBI smart ULIP 🙂
shrikrishna singh says
Namaste sir,
I have a smart ulip policy.
I want to know the details about my account.
My policy has been dispatched from your part on 15/09/09 but till now I have not
received this. In this regard I have made a complaint and my complaint no is 461240.
Kindly inform the current status.
How can I get information about my account through online?
Thanking you in anticipation. Shrikrishna Singh
Mohan says
Hi Shrikrishna, To know your policy details, please visit their site – http://bit.ly/sbiulip . Please follow that link to know the UNIT values for SBI Life – Smart ULIP Plan options including Flexi Protect fund and Money Market Fund. This is not an official site for SBI ULIPs, instead this blog is my personal site!.
Suchit says
Hi !!
I have a ulip account.
I want to know the details about my account.
How can I get information about my account through online?
please tell me.
Mohan says
Hi Suchit, You can go to their site and find more details here.
Rajesh says
Hi Mohan, I am planning to invest 1 lac , Please let me know which one is the best plan to invest for 3 years.
Mohan says
Rajesh, there is no ready made plan that suits everyone. It depends on the risk factors you are willing to take and the kind of returns you expect. I would suggest you to read this article called ‘Saving for Future Financial Goals‘. This might help you to plan accordingly.
sundaram says
Dear Aswin, Insurance is meant for people who earn less and not for the rich. We koow the impact of equity market last year and how many crores lost. Insurance is an universally accepted concept and it won’t care for your poor comments. I know many families who lost their bread winner and compensated well with insurance. We are not begging for insurance and be serious in your comments.
Thanks,
Sundaram.
ashwin gomatam says
Dear Mr Sundaram,
Maybe I was sounding way too aggressive with my comment, I am totally for insurance. Every earning person should avail the benefits of life insurance, albeit solely for life risk mitigation. Insurance is a simple yet fabulous product; SBI is at the forefront now…. but I shall NEVER encourage anyone to invest in ULIP until insurance companies stop charging exorbitantly high admin/service fee; majority of ULIP investors are unaware of these charges, hence the perennial questions and accusations of mis- selling are raised against the financial services Companies in the insurance industry
Dr.Girish Metha says
you can see charges in ulip but not in traditional endoment product actually with compair to traditional products ulips are far better in traditional products fro 1st two years there is 100% charge zero surrender value