Is Met Life Premier ULIP plan right for me

1. 

   Anonymous
   

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   Posts: 3

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   I am 25 years old. I wanted an investment plan where I can put in Rs.1,00,000 annually for 5 years.
   I was introduced to Met Smart Premier - ULIP plan.

   They says if I invest Rs. 1,00,000, annual regular premium for 5 years, I will get following benefits @10% gross rate of return:-
   On survival: Rs.5,81,601
   Death benefit: Rs. 30,81,601 (Rs. 25,00,000+Rs.5,81,601)
   The surrender value will be as follows:-
   Yr. 1 - 0
   Yr. 2 - 0
   Yr. 3 - 0
   Yr. 4 - 3,76,247
   Yr. 5 - 5,21,601

   I dont know whether this is the right plan for me. Am I get the best returns in this plan? Is there any other option also?

   Posted 2 years ago #
2. 

   vikash
   

   member
   Joined: Jun '09
   Posts: 11

   Reputation:13

    

   One thing that alarms is during the 1st three years, there is no surrender value. If you are sure that you wont need to encash this plan anytime during 1st 3 years, then the plan seems to be ok. Otherwise you must negotiate or find a plan where there be some surrender value during the 1st three years tenure.

   Posted 2 years ago #
3. 

   Pooja
   

   member
   Joined: Jun '09
   Posts: 24

   Reputation:24

    

   You may refer to this article if you want to know the basics of ulip policy.

   Posted 2 years ago #
4. 

   devanand
   

   senior admin
   Joined: Jun '09
   Posts: 94

   Reputation:97

    

   In order to choose ULIP plan you need to consider following:

   1. Understand what is ULIP plan? :
   Gather information on ULIP through various web sites, newspapers etc. Before knowing there policy u should be aware of general charges which all the insurance company collect from policy holder. Try to find out weather there are some hidden charges involved in it.

   2 Risk taking appetite :
   Your risk appetite decide the plan or the investment portfolio which suite you the best. If you have high risk appetite then the investment portfolio have higher equity component. If you have low risk appetite then the investment portfolio have govt. bond. According to your risk appetite you can choose your fund.

   3 Compare ULIP product among various insurance company :
   Compare the benefits you are receiving with other companies like charges, number of times you can make free switches from one fund to another, past performance of company (through NAV), etc.

   4. An experience insurance advisor,broker :
   Insurance advisor must be unbiased & independent, & must be perfect in ansering all ur que & clearing all ur doubts. It would be better if u can concern any broker.In order to understand him better you should cross question him. See how many claims have been resolved by him & how many still pending.

   5 Does ur ULIP offer u min guarantee? :
   At time of maturity Co. provide higher of two (Guaranteed maturity benefit or Fund value) so a policy holder must look weather this guaranteed maturity option is 100% or not.

   IBS

   Posted 2 years ago #
5. 

   vineet
   

   new member
   Joined: Jun '09
   Posts: 4

   Reputation:6

    

   Hi ajaysus

   ULIPs are good for long term investments. Consider extending your term to at least 10 years.
   Can u share the sales illustration figures given by Met life guys.

   Posted 2 years ago #
6. 

   Anonymous
   

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   Following is 25 years returns fugures of Met Smart premier as given to me:-
   Policy year end : 5
   Total premium paid by year end : 5,00,000
   Total charges by year end : 34000
   Fund value by year end : 581601
   Surrender value by year end : 521601

   Policy year end : 10
   Total premium paid by year end : 10,00,000
   Total charges by year end : 61937
   Fund value by year end : 1441496
   Surrender value by year end : 1431496

   Policy year end : 15
   Total premium paid by year end : 15,00,000
   Total charges by year end : 98125
   Fund value by year end : 2729348
   Surrender value by year end : 2729348

   Policy year end : 20
   Total premium paid by year end : 20,00,000
   Total charges by year end : 161716
   Fund value by year end : 4625475
   Surrender value by year end : 4625475

   Policy year end : 25
   Total premium paid by year end : 25,00,000
   Total charges by year end : 255621
   Fund value by year end : 7415023
   Surrender value by year end : 7415023

   Posted 2 years ago #
7. 

   vineet
   

   new member
   Joined: Jun '09
   Posts: 4

   Reputation:6

    

   As per our the figures given by you, the annual interest rate are as follows:-
   Annual return by end of policy year 5: 3.26%.
   Annual return by end of policy year 10: 4.41%.
   Annual return by end of policy year 15: 5.46%.
   Annual return by end of policy year 20: 6.56%.
   Annual return by end of policy year 25: 7.86%.

   Note that:
   1. The interest rate increases with increase in policy term
   2. These rates depends on market performance as your fund is invested in share market, debt,securities etc.
   3. Life insurance coverage
   4. Tax benefit

   Also take quotation from at least 2-3 insurance companies and compare the past performance of their NAVs.

   Posted 2 years ago #
8. 

   Anonymous
   

   Unregistered
   
   

   Reputation:0

    

   Don't Every Go for MaxNewYork ULIP Products

   Posted 1 year ago #

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