Mar 10, 2010

Guaranteed Highest NAV

All Insurance companies launched ULIP plans with Guaranteed Highest NAV in the last 7 years.

I wonder how there can be a Guarantee in a market linked plan.

Even if you invest in Debt funds, you cant guarantee the Highest NAV of a particular period  on maturity.

So these funds will be managed in such a way that the NAV is not going beyond a level.

Is it worth investing in such plans.

Instead you may very well go for a 100% equity or for a balancer Plan which will give a better return over a period of 8 more years.

Guaranteed Highest NAV

ULIP plans from insurance companies are regulated by IRDA.

SEBI wants to regulate and like to have a monitoring control over ULIP plans. ( IRDA is against this)

Now all insurance companies launched Guaranteed Highest nav in the first 7 years for a 8 to 10 year term ULIP policies.

This is to be analyzed by SEBI.

In Market linked plans there can be No Guarantee.

Agents are to be educated and trained well.


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