Stopping SIPs during a downturn undermines the benefit of rupee-cost averaging.
After trying to reform unit-linked insurance plans (Ulips), the Insurance Regulatory and Development Authority (Irda) is now turning its attention to the protection of policyholders.
The Sebi-Irda tussle will change Ulips forever. What it means for millions of investors.
Aviva CEO talks about talks about some of key issues on insurance.
Buyers of unit-linked insurance plans may soon find it easier to compare features and charges of these products across companies, with life insurers deciding to standardise the product.
These offer great scope and flexibility when you fall upon hard times, says Harjot Singh Narula
Finance ministry asks Irda to make this and other changes while clearing these products.
Income from distribution of third-party products such as insurance policies and mutual fund schemes is already under pressure because of the unfavourable economic climate.
After setting stiff norms for unit-linked insurance plans, the Insurance Regulatory and Development Authority is planning to cap charges on traditional products within three months.
ULIPs essentially combine the benefits of an insurance policy and a market-linked investment.
Here's a quick look at the likely changes proposed for selling unit linked insurance plans from September 1, 2010 and how they will impact investors.
The old ULIP lacked both and individuals did not have an inkling about either even after taking the ULIP.
Allowing it to lapse leaves you unprotected and can, in some cases, cause loss of premiums paid, experts tell Sanjay Kumar Singh.
Insurance and investment are two different needs. Then, there are Ulip pension plans with no sum assured. No wonder, there is confusion.
Prudential ICICI's managing director, Shikha Sharma, talks about how the journey has been so far and also why she thinks unit-linked insurance plans are the best allocators of long-term funds.
There is little doubt that the policy offers some interesting features, but these do not come for free, policy holders have to pay for the same by way of higher premiums.
So how does one go about comparing ULIPs vis-à-vis tax-saving funds? An illustration will help in putting things in perspective.
Cover the spouse under the same policy. A joint life plan offers assurance that one will continue to receive the same financial care in case of an unforeseen loss of a partner, advises Pankaj Razdan.
Insurance agents of all life insurance companies selling unit linked insurance plans will now show rate of returns ranging between 6 and 10 per cent to customers.
Investments in such products are due to either of the following reasons: Surplus money, getting maturity proceeds from another policy or last-minute investments for tax exemption.
However, policyholders will have to stay invested for the entire period of the scheme to get these benefits.
Insurance regulator IRDA today said it will not tweak its proposed guidelines on unit-linked insurance products (ULIPs) even as the industry fears that the norms, to be effective from next month, could squeeze their profits in short term.
With the Securities and Exchange Board of India abolishing the entry load on mutual funds, sector experts believe distributors are likely to aggressively push high-commission insurance products. The quashing, applicable from August 1, will bring down their commission to less than half of what they earn right now. The result is likely to be aggressive selling of, for one, unit-linked insurance plans (Ulips).
The Insurance Regulatory & Development Authority has capped the charges from the fifth year to around four per cent of the annual premium paid.
Sebi is locked in a turf battle with insurance regulator IRDA over who has jurisdiction over ULIPs.
HDFC Life has a balance between traditional policies and Ulips
A day after the finance ministry brokered a truce between two financial sector regulators, Sebi on Tuesday said any new ULIP scheme launched after April 9, 2010 by insurance companies will remain covered by its earlier ban order.
These products do not suit everyone even though they are flexible and facilitate investments in debt and equities.
The cornerstone of any efficient financial market is certainty and coherence in its regulatory framework.
ULIPs have become popular amongst investors, especially those who do not have the time to track the markets but want to earn higher returns on maturity.
Saving tax through Ulips will lead to mixing of insurance with investment.
These are the highlights of the Union Budget 2025-26 presented by Finance Minister Nirmala Sitharaman in Parliament on Saturday.
You bought a unit linked insurance plan, ULIP, from your agent thinking that it is the best insurance product. However, when you see your ULIP statement you are more than confused. Here's some help to decipher your ULIP statement.
The Insurance Regulatory & Development Authority (Irda) is planning to cap the charges on universal life policies, or ULPs. These have almost replaced unit-linked insurance plans (Ulips) in terms of new business. Ulips, which used to account for around 80 per cent of the segment, lost their sheen after the regulator brought in stringent norms from September 1.
While these two are important, there are other risks such as loan repayment and retirement that you need to insure.
Regulators are expected to work within their domain, says Pranab Mukherjee.
How to buy n Unit Linked Insurance Plan? Well, read on. . .
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