Comments on: Would you buy a ULIP? Share your views http://blogs.reuters.com/moneyonthemarkets/2010/04/12/would-you-buy-a-ulip-share-your-views/ A maturing market amid the mayhem Thu, 22 Nov 2012 11:50:01 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: iamraj http://blogs.reuters.com/moneyonthemarkets/2010/04/12/would-you-buy-a-ulip-share-your-views/comment-page-1/#comment-836 iamraj Thu, 13 May 2010 05:36:30 +0000 http://blogs.reuters.com/moneyonthemarkets/?p=1866#comment-836 Hello Readers, Well to give u all a small shock (to a few who don’t know the story behind the screen. Most of us feel that the agents (read it as insurance agents or financial advisors) make a lot of commission. Infact to be honest, these guys not make anything more than 15-20% (on the higher side). They earn only the base commission and that too for the first year only. Year 2+ they make only the renewal commission which is very low (nothing more than 5%, it wont last more than 3yrs). If you people have lately seen the spurge of Telemarketers calling day in and day out regarding Insurance sales. These guys represent the chunk called Corporate agents. These corporate agents are people who make the max of ur invested money. the number runs anything between 40%- 70%. Reason: apart from the base commission, they get the additional commission called Marketing commission. Which means ur hard earned sweat toiled money of Rs.1 Lac when invested, 70k goes to these guys who spent Rs.1/- on calling you and make a Hefty commission charge Painful??? but i believe strongly that these people make so much money becoz we have been feeding them, careless enough not to check the charges before buying. so every time u guys buy, please beaware... CHECK FOR THE CHARGES> PS: DECIDE ON WHAT U WANT TO BUY.. Hello Readers,
Well to give u all a small shock (to a few who don’t know the story behind the screen.

Most of us feel that the agents (read it as insurance agents or financial advisors) make a lot of commission.
Infact to be honest, these guys not make anything more than 15-20% (on the higher side).
They earn only the base commission and that too for the first year only.

Year 2+ they make only the renewal commission which is very low (nothing more than 5%, it wont last more than 3yrs).

If you people have lately seen the spurge of Telemarketers calling day in and day out regarding Insurance sales. These guys represent the chunk called Corporate agents.
These corporate agents are people who make the max of ur invested money.
the number runs anything between 40%- 70%.
Reason: apart from the base commission, they get the additional commission called Marketing commission.
Which means ur hard earned sweat toiled money of Rs.1 Lac when invested, 70k goes to these guys who spent Rs.1/- on calling you and make a Hefty commission charge

Painful??? but i believe strongly that these people make so much money becoz we have been feeding them, careless enough not to check the charges before buying.

so every time u guys buy, please beaware…
CHECK FOR THE CHARGES>

PS: DECIDE ON WHAT U WANT TO BUY..

]]> By: mesa http://blogs.reuters.com/moneyonthemarkets/2010/04/12/would-you-buy-a-ulip-share-your-views/comment-page-1/#comment-833 mesa Mon, 10 May 2010 17:53:55 +0000 http://blogs.reuters.com/moneyonthemarkets/?p=1866#comment-833 SEBI has woken up, albeit a bit late. ULIP were first started by Unit Truat of India. No one ever bothered what was UTI doing with such a big corpus. Even now the ULIP holders are charged a fat comission and irelevant administrative charges through first three years. Risk factor are never discussed by the agents. They usually create a mirage and promise sky. SEBI must propose criminal liabilities against the fund manager if they fail to give the promised returns. Now IRDA should keep away as the ULIP have more investments than insurance. SEBI has woken up, albeit a bit late. ULIP were first started by Unit Truat of India. No one ever bothered what was UTI doing with such a big corpus. Even now the ULIP holders are charged a fat comission and irelevant administrative charges through first three years. Risk factor are never discussed by the agents. They usually create a mirage and promise sky.
SEBI must propose criminal liabilities against the fund manager if they fail to give the promised returns. Now IRDA should keep away as the ULIP have more investments than insurance.

]]> By: israo http://blogs.reuters.com/moneyonthemarkets/2010/04/12/would-you-buy-a-ulip-share-your-views/comment-page-1/#comment-822 israo Thu, 15 Apr 2010 16:32:04 +0000 http://blogs.reuters.com/moneyonthemarkets/?p=1866#comment-822 I have purchased few ULIP's. One thing i observed is that every year, the charges got reduced in the new plans they introduced. This means old policy holders lost out every year, and they cannot discontinue for fear of loss of their premium paid. New features like bumper addition etc are available in New plans, is this not a unethical business. Older policy holders are left in lurch. Similarly, u will not get to know the portfolio of stocks in which your money is invested neither in print or by email. In other countries, only one policy is issued and all other additions can take place in this itself. Some thing similar should be done, so that one need not take so many policies, all having different terms etc I agree that more transparency is needed, and the charges should be brought down to bare minimum in the interest of policy holder, and should become fee based instead of commissions. I have purchased few ULIP’s. One thing i observed is that every year, the charges got reduced in the new plans they introduced. This means old policy holders lost out every year, and they cannot discontinue for fear of loss of their premium paid. New features like bumper addition etc are available in New plans, is this not a unethical business. Older policy holders are left in lurch. Similarly, u will not get to know the portfolio of stocks in which your money is invested neither in print or by email. In other countries, only one policy is issued and all other additions can take place in this itself. Some thing similar should be done, so that one need not take so many policies, all having different terms etc
I agree that more transparency is needed, and the charges should be brought down to bare minimum in the interest of policy holder, and should become fee based instead of commissions.

]]> By: gogunners http://blogs.reuters.com/moneyonthemarkets/2010/04/12/would-you-buy-a-ulip-share-your-views/comment-page-1/#comment-821 gogunners Tue, 13 Apr 2010 06:08:47 +0000 http://blogs.reuters.com/moneyonthemarkets/?p=1866#comment-821 If SEBI did have an issue with this, shouldn't they have said as much when Ulips were first introduced to the investors? Why wake up now? Such issues would worry investors, and the average-joe investor mostly depends on his agent for financial advice, who would always promote a Ulip. So, who do you believe then? If SEBI did have an issue with this, shouldn’t they have said as much when Ulips were first introduced to the investors? Why wake up now? Such issues would worry investors, and the average-joe investor mostly depends on his agent for financial advice, who would always promote a Ulip. So, who do you believe then?

]]> By: kokkodan http://blogs.reuters.com/moneyonthemarkets/2010/04/12/would-you-buy-a-ulip-share-your-views/comment-page-1/#comment-819 kokkodan Mon, 12 Apr 2010 16:51:24 +0000 http://blogs.reuters.com/moneyonthemarkets/?p=1866#comment-819 It appears that ULIPS introduced 8 to 9 yrs back,if the claims of SEBI is taken into account they have the right to control the insurance companies,where were they when the insurance companies collected billions from the public for the last 9yrs,if it is the case they can not simply escape from the responssibility,they should have control the companies yrs back. It appears that ULIPS introduced 8 to 9 yrs back,if the claims of SEBI is taken into account they have the right to control the insurance companies,where were they when the insurance companies collected billions from the public for the last 9yrs,if it is the case they can not simply escape from the responssibility,they should have control the companies yrs back.

]]> By: da_bet http://blogs.reuters.com/moneyonthemarkets/2010/04/12/would-you-buy-a-ulip-share-your-views/comment-page-1/#comment-817 da_bet Mon, 12 Apr 2010 13:52:16 +0000 http://blogs.reuters.com/moneyonthemarkets/?p=1866#comment-817 I've always felt uneasy with ULIPs..so it's a no no for me.....and don't get me started with credit cards which give insurance!!!!! I’ve always felt uneasy with ULIPs..so it’s a no no for me…..and don’t get me started with credit cards which give insurance!!!!!

]]> By: VipulTripathi http://blogs.reuters.com/moneyonthemarkets/2010/04/12/would-you-buy-a-ulip-share-your-views/comment-page-1/#comment-816 VipulTripathi Mon, 12 Apr 2010 13:24:37 +0000 http://blogs.reuters.com/moneyonthemarkets/?p=1866#comment-816 i would rather wait till the issue is resolved, but what i dont understand is how can the regulator not see what impact this confusing order is going to produce. Is settling a turf war more important than investors' confidence? And why did the finance minister take the whole weekend and a weekday to come out wiht this simple statement. i would rather wait till the issue is resolved, but what i dont understand is how can the regulator not see what impact this confusing order is going to produce. Is settling a turf war more important than investors’ confidence? And why did the finance minister take the whole weekend and a weekday to come out wiht this simple statement.

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