It has been more then a year since Indian insurance industry came up with a revolutionary product which guarantees the highest NAV.
Birla Sun Life Platinum plus III, Tata AIG Life’s Invest Assure Apex , SBI Life’s Smart Ulip, are already there from a year, ICICI Pru pinnacle and Bajaj Allianz Max Gain are relatively late entrants.
With popularity of Highest NAV ULIP’s finally LIC has launched Wealth plus.
There is nothing new in this product apart from the brand name of LIC and an extended insurance cover for 2 years, so this plan is strictly for those who wants surety of highest NAV and don’t want to take a risk of parking their money with private insurers.
Comparison of features with highest NAV products:
| | SBI Smart ULIP | ICICI Pinncle | Bajaj Max Gain | LIC’s Wealth Plus |
| Min/Max Entry | 8/60 years | 8/65 years. | 8/60 years | 10/65 years |
| Max Maturity | 70 years. | 75 Years. | 70 years. | 75 years |
| PPT/Term | 3 or 5 year/10 years | 3 Years./10 Years | 7/10 years | 3 or single/8 years |
| Min/Max Premium | 50,000 yearly | 50,000 yearly | 25,000 PA/No limit | 20,000 PA or 40,000 Single premium |
| Min/Max SA | 5 times yearly premium | 5 times yearly premium | 5 times yearly premium | 5 times yearly prem /1.25 times single premium |
Entry premium is less compared to other ULIP and in addition to it there is a single premium option. Maturity amount is also paid at the end of the term which is 8 years.
After policy term an extended risk cover is provided for the next 2 years in which on death SA is paid to the nominee.
Charges:
| | SBI Smart ULIP | ICICI Pinncle | Bajaj Max Gain | LIC Wealth Plus |
| Allocation charge(% of premium) | 15% 1st year, 5% thereafter. | 14% first year, 4% 2nd year, 2% 3rd year. | For lower premium band it is 20% in 1st year, 6% in 2nd year, 3% in 3rd year, NIL therafter. | For lower price band 12% in 1st year. 2.5% thereafter. 5% for single premium. |
| Policy Admin. charge | Rs. 60 pm throughout term + Rs. 5 per year per thousand SA for first 3 years. | Only for 1st 3 years, between 0.40% to 0.60% pm of annual premium. | 1.26% of First years SA perm month for entire term. | Rs. 60 pm for 1st year, Rs. 25 pm for 2nd year, 3% pa increase from 3rd year. |
| Fund. Mgt Charge | Between 0.25 to 1.50% pa | 1.35% PA + 0.10% PA (for guarantee of highest NAV) | 1.25% PA | 1% pa |
| Surrender Charge | 3rd Year: 9% , 4th Year: 2%, 5th Year + NIL | 3rd Year: 4% , 4th Year: 2%, 5th Year + NIL | NIL | NIL allowed after completion of 3 year. |
Maturity:
| | SBI Smart ULIP | ICICI Pinncle | Bajaj Max Gain | LIC Wealth Plus |
| Highest NAV | For first seven years based on two reset dates each months. | First seven years based on daily NAV. | For entire term of 10 years based on daily NAV. | For 7 years based on daily NAV |
| Other addition | NIL | 3% of fund value | % of Total Allocation charge(see below table.) | 2 years extended risk cover where SA is paid in case of death. |
Not much difference as far as highest NAV calculation is concerned, only notable thing is 2 years extended risk cover.
Here are once again links to highest NAV products.
TATA AIG LIFE INVEST ASSURE APEX
COMAPARISONS:
SBI SMART LIFE AND ICICI PRU PINNACLE
SBI SMART LIFE AND TATA AIG INVEST ASSURE APEX AND BIRLA SUN LIFE PLATINUM PLUS
SMART ULIP AND ICICI PRU PINNACLE AND BAJAJ ALLIANZ MAX GAIN
Gr8 comparison with other ULIP products..but Aren't we comparing poison with other poison.They are all costly products and Have hidden condition called 0% to 100% in Equity or debt fund? Whats yr call now?
All these Plans comes with WARNING of investment risk then what's meaning of highest NAV?