Ear Investors,
Recently I saw the Ad in the TV for ICICI Prudential new Pension Plan. This is not a ULIP
in the sense that it does not have life coverage, but a pure retirement/pension plan.
So I got interested to know more about it. I also met an ICICI agent, He gave an typical
agent / marketing plan. I must admit that he knew the subject well he could keep you in the
conversion very well with all the proper financial jargons.
The new Life Stage Pension Plan. This works just like any other ULIP. There is no mortality
This is supposed to have no allocation charges. Lets see.
- Premium Allocation charges NONE
However there is 1% charge for the top-up
- Policy Admin charges. This is where they are robbing YOUR money.
.25%( yearly option) or .35%( monthly premium pay option) PER MONTH
That is 3% per annum on the premium amount. This is generally 20/30Rs per month
- Fund Management charges( note the percentage here)
2.25% of the Fund value.
To understand this better. If you invest your hard earned money thinking that there is no
allocation charges here is what you are going to pay them
1, 00000 for 3 years
Term of the policy 10 years
1) Premium allocation charges NONE
2) Policy admin charges
3* 100000 for 10 years 30, 000
[ This for other ULIP plans of ICICI would be 2400 Rs for 10 yrs, Here it is only 30000!)
3) Fund management charges 2.25% of the fund value for maximizer.
That is for 3 lacs you will be paying at atleast 66000 for 10 years.
If you sum all these charges its nearly 96600. Where as for their other plans like Premier
Pension plan the cost for similar plan would be 74000.
REMEMBER, These charges are fixed. You will be paying these charges regardless of the
performance of the your investments.
The agent will tell you that this is the best plan on earth. They are telling you the truth
for once. Its best for them.
Do a lot of study for before investing in ULIP or any other ULIP like plans. My sincere
advise is do not invest in ULIP, Its a trap.
regards