How can one design a Product similar to ULIP’S

The need for such a portfolio is to remove the disadvantages and higher charges incurred in a product like ULIP’S and also have the benefits of a ULIP’S.

ULIP (Unit Linked Insurance Plan) is nothing but a combination of Term insurance plan + Investment Plan with tax benefits under the section 80 C . This can be achieved by investing in a term insurance and a TAX Saver / ELSS Mutual Fund.

Advantages of such a portfolio
1) In this the investment made is liquid in a short span of 3 years. There is no surrender charge which is not in case of ULIP.

2) There is no charges such as monthly maintaince charges or fund allocation charge which is not the case in ULIP.

3) The term insurance premium in case of ULIP’S is charged as mortality charges which keeps increasing as the age of the policy holder increases. In case of Term Insurance the premium remains same for the entire tenure of the policy.

4)The Service tax is paid only on the premium of the Insurance. whereas in case of ULIP the service tax is paid for the entire premium.

eg: In case of ULIP if the premium is Rs 10,000/- per year. The Service tax on the premium is 12.36%. So the total premium Rs 11,236/- In case of such a portfolio. The term insurance premium is say Rs 2000/- Per year so the service tax incurred is only Rs 247 SO the remaining Rs 7,752/- is invested without paying service tax.

And above all this, by investing in such a portfolio ypu will be able to save tax under section 80 C.

To invest in Tax Saving Mutual Funds Visit or call us @ 9739030606


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