[Resolved]  Birla Sun Life Ulip Plan — Admin & Fund Allocation Charges are too high

ulip — High Allocation Charges

Hi,
My policy no 10582881, i have been paying 3000/- every month from my salary through ECS scheme to HDFC STANDARD LIFE INSURANCE but unfortunately i cant able to pay the last installment but when i went to one of their chennai branch R. K. SALAI, they informed me that i have to pay 2 months ECS then only i can surrender the policy and also the allocation charges are 30% for the first 2 years. Their Representative never informed me this high allocation charges other wise i would have not taken the policy. since i am in IT Field i have decided to inform all my friends to inform about this company through mail and chain the mail to their concern which will impact a lot to the company reputation. Now i am need of money but they are informing me since the market value is down hence i will get less amount but for the last 2 years profit they are not sharing with me. Kindly advice me what to take the step against them to protect others from this FRAUD concern.

i think you are abosoluty correct.never buy to BIRLA SUN LIFE plan .very high alllocation charges in all plans.

worst they are thiefs they robbed me nicely

very true.the agent never tells about the actual charges.they are robbing

Yes i am also affected for the high admin charges/cost of insurance, do we have any option to with draw the insurance in ULIP?, They are cheating us smartly thru the agents!

yes ..even i have the same experience with these people..this is the most stupid life insurance policy i ve ever seen... they are charging 600 rs for the monthly amount of 2000 rs. they didn't inform me about the charges earlier and now wen i call the representative for finding out the details he is not even picking up the call.. my serious advice for all o[censored] is don't ever take any insurance policy in BIRLA through CITI bank

well dont pay end up policy that will save your money.

Exactly same thing happend to me in larger scale with HDFC growth fund. I invested 100k in the year 2007 (for 10 years) and they have taken 70k allocation charges balnce 30k depreciated to 18k in year 2008 and hence i discontinued the policy.I was not informed these charges at the time of entry.

This is quite common in every indian banks they are not informing coustomers about charges in such policies.All this sale of policies manufacturing is on lies.after you have signed it you never get back money upto 5 to 10 years time.there is no growth in such polices up to 5 years thereafter growth is veary slow.risk of all investment is oc coustomer so dont sign this polices you can better have money in normal accounts.

Top 10 Reasons For Avoiding ULIPs in India
Top 10 Reasons For Avoiding ULIPs in India
10 Reasons For Avoiding ULIPs in India
ULIPs are like Dynamite in your hands which can destroy your financial Planning if you do not know the charges and other finanial Implications o[censored]LIP’s
Here we are Giving 10 reasons Why ULIPs To be Avoided
1.Premium Allocation Charge:This Charge is the Highest and is Front loaded.Depending on the ULIP 20 to 30 % amount is not invested and is deducted for various accounts like Cost o[censored]nderwriting, medicals & expenses related to distributor fees.Means if you invested Rs 1 lakh there is strong chance that you will be shocked to see only 70000 to 80000 is invested .This charge decreases progressively and in most cases it is negligible after 3 years
2. Policy administration charges:To recover the expenses incurred by the insurer on servicing and maintaining the life insurance policy like paperwork, work force etc.Normally Units gets deducted by small nos each month for this charge.
3. Mortality Charges: These are the charges provide you life cover
4.Fund Management Charges: These charges are deducted for managing the funds, Typically 0.5 to 2 percent per month

5.Always separate Insurance and Investment.For insurance, Term plans are best while for equity investment stick to MF’s
6.Does not offer flexibility to exit if your fund manager is a non-performer
7.Very Complicated products its very tough to compare ULIP’s and choose the Best
8.ULIP’s are For Long term even then return is not fixed or guaranteed above or at Par with indexes
9.lack of standardisation in ULIP products
10.There are indications from government that Non pure life ULIPs may be taxed(MF’s too)
Source Avoid Ulips 2010

ULIPs is a farce... to hell with them all..
They exploit section 80C and lure naive public into these instruments and put all the burden of money lost in the market on the customer while they continue charging you the administration charges/allocation fees.
I dont know what exactly are they charging for if they dont manage to save our money, let alone grow it..
The worst of them all is Birla Sunlife perhaps..
To add to the woes, you cannot withdraw your investment before the lock in period (usually 3 years or more) and are bound to keep paying the premium - otherwise you are bound to loose you past paid premiums.
Trust me, if you want to go for ULIPs for their tax saving benefits, then you are much better off avoiding them and paying the taxes instead.