BirlsSunLife - very high Policy Administration Charges
Birla SunLife is selling all kind of life insurance plans. But for normal ppl like me, it is very tough to read & understand all kind of charges that they leavy. And we end up loosing:-(
2 yrs. back, when the stock market was climbing, I was sold a Unit Linked policy by a CitiBank agent. And as usual, this CitiBank agent just told me all good things.
I paid Rs. 60, 000/- & Birla SunLife took almost 50% out of my 1st premium towards "Policy Administration Charges". I was given mutual fund units equivalent to 50% of the premium.
I later realised that this "Policy Administration Charges" money is down the drain for me as a customer. This is Policy Administration Charges is money that Birla SunLife pays to the agent for selling the policy. We can call it as Birla SunLife’s expenses for selling the policy.
When I compared this with other Insurance companies, I found that they charge some 7 - 8% each yr. for 7 - 8 yrs for "Policy Administration Charges". Instead of charging heavily for 1st 2 yrs.
I gave it a thought & realised that Birla SunLife does not trust the very customer whome they are selling the policy. Birla SunLife is intereasted to recover its expenses as early as possible against some other companies who are patient enough to wait for 7 - 8 yrs to recover their expenses.
In my case, it hit me really bad that I had less money to buy the mutual fund units from my 1st premium & the market was just climbing up & lots the opportunity.
Be aware of this kind of items & make sure that you compare products in same category & then decide which one to buy.