I am writing this review regarding Birla Sun Life Saral jeevan ULIP policy. Let this be an eye opener for every one.
I have taken this policy in Feb 2009, I was looking for a personal loan and Citibank told me that I can only get a loan if I take this Saral jeevan policy. I was in desperate need of loan and I signed on the Policy Document, agent did not explain anything about the policy.
I paid a premium of Rs 24000 yearly for two years (total Rs 48000) and when I checked the fund value it is only Rs 34000. when I asked why my fund value is less than the premiums I have paid, they started explaining all the charges included in the policy...
Fund Management charge - 1.50% - 1.75% per annum
Policy Administration Charge - - approx more than Rs 600 per month for 20 year term policy
Mortality charge - 2.41%-3.28% of the premium- deducted every month
Surrender charge - if you surrender the policy before 3 years - approx upto 20% of total premiums paid
no surrender charges after 3 years - this means you cannot get your money until 3 years completed even after surrendering the policy.
Apart from all these charges - revival charges (if premiums are not paid regularly) - service tax and other levies are charged.
Bottom line. They will continue taking 22-25% of your premium towards above mentioned charges and rest is invested in fund units which they still manipulate via fund management charges.
Birla sun life Fund managers are the worst in market.
YOUR FUND VALUE WILL ALWAYS BE LESS THAN TOTAL PREMIUMS YOU HAVE PAID!!! (DOES NOT MATTER IF IT IS LESS THAN 3 YEARS OR MORE).
Finally I have surrendered my policy after 2 years for an fundvalue (after deducting surrender charges) Rs 26000 and I still need to wait till Mar 2012 to receive this amount.
This is clearly insurance misselling of Birla sun life. I never expected a respectful company like aditya birla can involve in this fraud.
Share your experiences too.
Yours
BVB
Hyd