SBI ULIPs…. How it works?

July 9th, 2010| Finance.

SBI ULIPs…. How it works?

The SBI ulips are the policies which have fund value and policy coverage options. Unit plus elite 2 policy is better than the ulip policy.

We should expect the NAV upto 15% and this NAV guarantee is given for all the years except for the first year even the equities for the first year are more. So they keep them in the safe and security investments only and the increase is great up to 10%. It is better to take the SBI life unit plus elite-2 for the people who want to pay for three years. In Smart ulip (series 2), if we pay one lakh, we will get a policy of five lakhs. If the policy covers three lakhs in four to five years, then we will get policy coverage of 2 lakhs only. In smart ulip, the fund value or the policy coverage which ever is more is given.

We can pay the policy for 3, 5,7,10 years and stop. We can surrender the policy after five years without any charges. There is partial withdrawing facility and we can get the policy of 20 lakhs for one lakh in elite 2 policy. They will give Rs.40, 00,000 to the nominee when he/she dies and 2 lakhs per year when there is permanent physical disability up to seven years. There will be policy coverage for 20 years if we pay for 3 years and stop. If we select the platinum plan, we will get the total amount and fund value in the time of risk.

We can change the policy coverage and premium amount after four years of coverage. 10% of the premium in the smart ulip is considered as the allocation charges and these charges are 5% in the unit plus 2 elite. And in the next four years, it will be 2% and after six years there are no charges. There will be 1.25% charges as the fund management charges and 0.25% money market fund. As the age is less, it is better to select the elite policy than the ulip policy in the long term.

We should ask the agent and know the details of elite policy as the agent may not tell about it as the commission is less for the agent. Even though there is no NAV guarantee for the elite plan, we can switch between equity and bond fund based on the market value. As there are less charges and more policy amount which is for less duration, the SBI unit plus elite 2 policy is good.