I am a cheated customer of Bajaj Allianz Capital unitGain ULIP policy the most popular ULIP which promised 95% allocation . I have taken a policy with Accelerator MIDCAP FUND & EQUITY GROWTH FUND as 2 funds for investment and the NAV at that time is 13.20 ps.., Sensex at that time is somewhere in the range of 13000-14000.I took this ULIP policy in Feb 2007 as one of my tax saving investments. premium is 10, 000 per year.
In November 2007 (when the sensex crossed a whopping figure of 20, 000) when I have downloaded my account statement from their web site in flying colors in an assumption that my fund value might have gone to 15000, (bajajallianz.co.in I think) , I was shocked to see that my account value is only 10, 971. i.e., only 971 over a period of 9 months.
The reason is their hidden charges. Every month, out of my account value, they are deducting 50 per month towards charges like
Mortality charge regular,
Service tax charge regular,
Premium rider charge regular,
Education cess charge regular,
Initial management charge regular,
apart from Premium allocation charge at the time of investment.
Friends, I have my account statement with me..if u want to go thru, please mail me mandala.pavan@gmail.com.
Friends, if any insurance adviser or any agent approaches you with 95% allocation , 100% allocation (ICICI is canvassing an ULIP in the name of some LIFE STAGE PENSION ...I don’t remember exactly with 100% allocation) Ask a detailed brochure with all charges that ULIP carries.
My final advise is dont mix insurance and mutual funds. (ULIP is nothing but a product which offers insurance and advantage of share market ). If u want insurance, LIC is the best option. If u want to make advantage of share market, better to invest in MUTUAL FUNDS.
IMAGINE WHAT WOULD BE MY FATE AND WHAT WOULD BE THE RETURNS FROM MY CAPITAL UNIT GAIN POLICY IF SENSEX DIDNT APPRECIATE THIS MUCH OR SENSEX HAD CRASHED.