| New ULIP regulations have been announced by the IRDA (the insurance regulator) as a result of which newer & cheaper ULIP products are expected to come in existence from Sep 1, 2010. These new ULIP products are expected to be cheaper (as agents hefty commissions have been brought down) & more investor friendly. However, it has been observed that some insurance agents have become hyper active in the month of August as there commission income is expected to go down post Sep 1, 2010. As a result they are luring investors to buy older more expensive ULIPs. One of the ploys these agents are using is that in the newer version lock-in period is going to increase from current 3 years to 5 years. However, this longer lock-in period has been brought in by keeping investors interest in mind. Investors are advised to be cautious & avoid buying any ULIP product for now. |
Mr. Nirav Panchmatia, the founder CEO & Chief Strategist of "AUM Financial Advisors" is a Mutual Fund Expert, Financial Planner & Wealth Manager. He is a CA & MBA Finance from Narsee Monjee (NMIMS), Mumbai having spent last 8 years in Mumbai working in leading financial institutions like Citigroup, ICICI Bank, IRIS, Quantum Group etc. A keen observer of events and trends, he writes in a lucid yet readable style and takes up issues on behalf of the Indian Individual Investor. He also regularly conducts financial literacy seminar. The above article is meant for general reading only)
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