Are ULIPs regulated by SEBI?

Are ULIPs regulated by SEBI?

The Central Government on Saturday ended a two-month-long turf war between the Insurance Regulatory and Development Authority (IRDA) and the Securities and Exchange Board of India (SEBI), saying unit linked insurance products (ULIPs) will be regulated by the IRDA.

Does LIC have ULIP?

LIC offers 6 ULIP plans in India, each one designed to fulfil specific requirements.

Why ULIP plans are bad?

The problem with the ULIP is you neither get decent returns nor do you get decent insurance coverage. An investor has the option of choosing where your premium is invested in an ULIP. Your premium can be invested in equity mutual funds, debt mutual funds or a combination of both.

Is ULIP better than LIC?

If your purpose is insurance for life, along with investment, choose ULIP. If your purpose is protection against mishaps in the future, choose a pure insurance policy as it is risk free and premiums to be paid on it is also comparatively lower than a ULIP.

What is full form of ULIPs?

Unit Linked Insurance Policies or ULIPs are insurance policies which offer you the potential of wealth creation while providing the security of a Life Cover.

How is ULIP return calculated?

Absolute Returns: Absolute returns are calculated as per the net asset value (NAV) of your ULIP. Typically, NAV is the total value of your ULIP policy minus ULIP expenses such as fund management fees, surrender charges, operating charges, mortality charges, premium allocation charges, administrative charges, etc.

Which ULIP plan is best in India?


ULIP Scheme Category 1Y
HDFC Life Click 2 Invest Opportunities Fund Mid-cap oriented funds 74.80%
Bharti AXA Life – Merit Plus EDGE – Grow Money Plus Fund Debt short term funds 56.70%
HDFC Life ProGrowth Plus – Opportunities Fund Mid-cap oriented funds 74.80%

What are the disadvantages of ULIP?

What is a ULIP?

  • Disadvantages of ULIPs. Like any other investment product, ULIPs come with their own set of disadvantages.
  • Complexity.
  • Costs.
  • Market realities.
  • Lock-in period.
  • Switching charges.
  • However…
  • Conclusion.

Is ULIP better than MF?

The reason being, ULIPs promise a fixed sum whether or not the investment plan makes money. In comparison, the returns from mutual funds vary depending on the risk factor. Equity mutual funds have the potential to offer higher returns, while debt mutual funds offer slightly lower returns.

What is the difference between in LIC and ULIP?

Traditional Insurance plans usually offer guaranteed maturity proceeds and they invest in low risk return options. ULIP provides you with investment options based on your risk profile. Traditional plans do not have investment options. Your funds will be invested as per the fund details.

How return is calculated in ULIP?

Generally, high-risk funds, comprising more equity, offer higher returns, whereas low-risk funds, comprising bonds, offer stable returns.

  1. There are two ways to calculate ULIP policy returns:
  2. Absolute Returns = [(Current NAV- Initial NAV)/Initial NAV] *100.
  3. Swati Tumar – Travel & Finance Writer.

Which ULIP is best in India?

Comparison of Top ULIP Plans in India

ULIP Plans Minimum Entry Age Maximum Entry Age
Bajaj Fortune 1 Year 63 Years
Bajaj Future Gain 1 Year 60 Years
ICICI Wealth Builder 0 Years 69 Years
Aegon iMaximize Option 1: 7 Years Option 2: 18 Years Option 1: 55 Years Option 2: 50 Years