I just want to know the changes on ULIPs with recent reduction in the ULIP charges by the IRDA in India. Please also suggest me about the Canara HSBC Oriental Bank Of Commerce Life Insurance - Dream Smart Plan.
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I just want to know the changes on ULIPs with recent reduction in the ULIP charges by the IRDA in India. Please also suggest me about the Canara HSBC Oriental Bank Of Commerce Life Insurance - Dream Smart Plan.
The main changes are charges and agent commission is reduced on all ULIP policies. Also Policyholder can only surrender the policy after 5 years (not 3 years).
I won't see any big change in this plan, Charges are very high in the plan.Quote:
Originally Posted by Vikram
Charges under Dream Smart Plan -
Premium Allocation Charge will be deducted upfront and will be levied through reduced premium allocation to the fund.
1st Policy Year - 8.4%
2-3 Policy Year - 6.4%
4-10 Policy Year - 5.40
11 Policy Year - NIL
Fund Management Charge [FMC] of 1.35% p.a. will be charged on all funds except Liquid fund where the FMC will be 0.80% p.a.
Policy Administration Charge will be 0.05% per month on the annual premium during the first five policy years. Thereafter it will increase by 20% every five years. This charge will be deducted at monthly policy anniversary.