A CEO of a tech Startup invested Rs 50000/- in a ULIP when the Sensex was around 10000.
“Why is the value Rs 47000 now when the markets have gone up to 14000+?”, he asked me.
“Well, only 30-35000 would have been invested in the markets. Rest goes to the advisors and other costs. So your fund has performed well. Only you were not told about the costs”, I replied politely.
I did not tell him that even though he is a CEO, he’s still a moron when it comes to investing. 
Infact, he’s lucky that the fund value is Rs.47000. It could easily be 25-30000 only, if the markets were not rallying so well in the recent past!
With the costs involved, ULIPs are indeed daylight robbery.
Coming Soon! RupeeCamp "Financial Planning Workshop". "Join us"
Welcome back! Join me on this journey to improving our financial IQ and sharing what we know. Updates at RSS feed or Email. And spread the word please Thank You!
So why people are crazy to go and invest in ULIP’S. what factors motivating them towards that direction?
It’s obviously lack of awareness. There’s an information asymmetry there. The seller knows much more tha the buyer and the disclosures are not there.
dear all,welcome to the board !
1.many investors fed up in paying very longer premium payment term in LIC,
2.ulip polices offer premium holiday or cover continuity after 3 policy years.
3.This benefit is given by IRDA to minimise the policy lapsation.
4.ulips are projected by pvt.life insurance companies as pay 3 years, take double of your paid amount.
4.I personally believed this in a BULL RUN period of 2005-07.
5.Agents showed rosy projections of future returns.
6.very important observation of mine is most of these new ulip policy holders never understood the hidden charges and risks.
7.monopoly of LIC and the new tech,hi fi sales guys calling themselves as RELATIONSHIP managers and agents as financial planning advisors or conusltants,
and very highly decorated central A,C,huge corporate offices(with pantry services which i liked very very much)
presented a new face to many many innocent, financial illiterates.
8.A very very good opportunity to earn smart money prompted and pushed many of the greedy people to become agents without any basic education or work experience.
9.It is not fair for me to comment but the way the exams are conducted and certificates(valid for three years) are issued.
10.to conclude, kindly remember pvt.life companies had spent a lot of money in this BUSINESS,which will be recovered from the policy holders,they know how to lobby!
11.I never believed that first year annual premium will be credited to policy holder with 30% addition at the time of MATURITY.such products are already flooded in the market.
KINDLY CROSS CHECK WHAT I SAID!
i read this blog.
thanks
dear all,welcome to the board !
1.many investors fed up in paying very longer premium payment term in LIC,
2.ulip polices offer premium holiday or cover continuity after 3 policy years.
3.This benefit is given by IRDA to minimise the policy lapsation.
4.ulips are projected by pvt.life insurance companies as pay 3 years, take double of your paid amount.
4.I personally believed this in a BULL RUN period of 2005-07.
5.Agents showed rosy projections of future returns.
6.very important observation of mine is most of these new ulip policy holders never understood the hidden charges and risks.
7.monopoly of LIC and the new tech,hi fi sales guys calling themselves as RELATIONSHIP managers and agents as financial planning advisors or conusltants,
and very highly decorated central A,C,huge corporate offices(with pantry services which i liked very very much)
presented a new face to many many innocent, financial illiterates.
8.A very very good opportunity to earn smart money prompted and pushed many of the greedy people to become agents without any basic education or work experience.
9.It is not fair for me to comment but the way the exams are conducted and certificates(valid for three years) are issued.
10.to conclude, kindly remember pvt.life companies had spent a lot of money in this BUSINESS,which will be recovered from the policy holders,they know how to lobby!
11.I never believed that first year annual premium will be credited to policy holder with 30% addition at the time of MATURITY.such products are already flooded in the market.
KINDLY CROSS CHECK WHAT I SAID!
i read this blog.
thanks and spread this message
hi.
no comments on my post chsvja.needs your attention please!