For all your premiums, they would deduct various allocation charges
like premium allocation charges, policy administration charges, mortality charges and fund management charges.
Plans with no
upfront premium allocation charges are popular since the total premium gets invested in the funds of choice, thus maximizing the scope for long - term returns.
These ULIP's would charge
premium allocation charges + policy administration charges etc. up to 30 % of the premium paid in the initial 1 to 3 years.
However due to
high premium allocation charges for first 3 years, your fund value after considering 10 % return might be only Rs 2.4 Lakhs to Rs 2.5 Lakhs.
Not
just premium allocation charge, various other charges are also levied such as Policy administration charge, Mortality Charge, Fund Management Charge, etc..
The charges levied by Ulips are clear now —
premium allocation charges of up to 10 per cent and FMC and policy administration charges up to 0.50 per cent of the premium (many times in the later policy years).
In this article, I would review some of the best single premium insurance plans in India which offers highest returns, zero or
less premium allocation charges and with maximum benefits.
Also, there are zero
premium allocation charges.
The total
premium allocation charge of most ULIPs for the first 5 policy years reduced from about 57 % in 2006 to a range of between 15 % — 20 % in 2013 and currently in 2018, for policies purchased online, the premium allocation charge is zero.
Typical charges in ULIPs are
premium allocation charge (as a percentage of premium at the time of premium payment), policy administration charges (deducted monthly as a percentage of premium or a fixed Rs.
For Exide Life My Term Insurance Plan,
premium allocation charge is not applicable and policy administration charge is applied on the fund value.
For Future Generali Wealth Protect,
some premium allocation charge is levied on the fund value and policy administration charge is not applicable.
For Birla Sun Life Protector Plus Plan,
premium allocation charge is not applicable and policy administration charge is applied on the fund value.
For Aviva LifeBond Advantage,
some premium allocation charge is levied on the fund value and policy administration charge is not applicable.
For IDBI Federal Future Star Insurance Plan,
some premium allocation charge is levied on the fund value and policy administration charge is not applicable.
For Max Life Premium Return Protection Plan,
premium allocation charge is not applicable and policy administration charge is applied on the fund value.
For Kotak Wealth Insurance,
some premium allocation charge is levied on the fund value and policy administration charge is not applicable.
For Sahara Utkarsh,
some premium allocation charge is levied on the fund value and policy administration charge is applied on the fund value.
For DHFL Pramerica Smart Wealth Plus,
some premium allocation charge is levied on the fund value and policy administration charge is not applicable.
For Kotak Assured Income Plan,
premium allocation charge is not applicable and policy administration charge is applied on the fund value.
For Aviva New Group Leave Encashment Plan,
premium allocation charge is deducted from the fund value and policy administration charge is not applicable.
For HDFC Life Super Savings Plan,
premium allocation charge is not applicable and policy administration charge is applied on the fund value.
For Birla Sun Life Wealth Max Plan,
some premium allocation charge is levied on the fund value and policy administration charge is applied on the fund value.
For Max Life Super Term Plan,
premium allocation charge is not applicable and policy administration charge is applied on the fund value.