Should I continue with LifeTime Super? | Value Research You are paying an annual charge of approximately 8% per year from the third policy year by investing in the ICICI Pru LifeTime Super
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Should I continue with LifeTime Super?

You are paying an annual charge of approximately 8% per year from the third policy year by investing in the ICICI Pru LifeTime Super

Can you please guide me on ICICI Pru LifeTime Super? I know it is a ULIP and had to go for this policy on advice of my father. Do you think I should continue with this policy ?

Fund NameNAV (INR) # UnitsFund Value (INR)
Flexi Growth24.2515111.58207366455.8659
Flexi Balanced21.4215463.40489331226.133
Total697681.999

Issue Date: 30/09/2007
Term: 25 years
Maturity Date: 30/09/2032
Premium Amount: ₹5,000.00
Sum Assured: ₹750,000.00
Frequency of Payment: Monthly

Bonus is not applicable for this Policy
So far : 91 months * 5000 ₹=455000
Gain or Loss on Investment (₹) 242,682
Investment Term (Years) 7.6
Return on Investment (%) 53.3%
Simple Annualized ROI (%) 7.0%

- Ravi Hariharan

ICICI Pru LifeTime Super is a unit linked policy. You are paying an annual charge of approximately 8% per year from the third policy year. You had paid much more during first two policy years. This is a very expensive policy. You have paid ₹5,000 as premium on a monthly basis. Had you invested the same amount in well-rated mutual funds, the results could have been as below.

Investment (₹)₹5000 p.m 4,55,000
Current Value (₹)ICICI Pru Life Time SuperULIP6,97,682
HDFC Balanced FundHybrid-Equity10,39,000
Franklin India Prima PlusLarge & Mid Cap10,49,000
Reliance Equity OpportunitiesMid & Small Cap11,77,000

Insurance policies with investment element in them neither good investments nor insurance. This is because they offer you a limited cover as a large part of the money go towards investment. Their returns may not compare with pure investments because some part of your investment would go towards insurance cost and other charges.

Your insurance cover is too small. ₹7.5 lakh cover is too small for your financial liabilities and expenses of your family. Buy a term cover to make your family financially independent.

Surrender your policy. Surrender penalty is zero in our case, but surrender value will be added to your income and taxed accordingly. You also will have to pay back the tax exemptions you have availed on the premiums paid until now.

Insurance policies are not the ideal vehicle to grow your money. Equity mutual fund schemes are better vehicles for the purpose. Start with balanced funds if you are a first time investor. Invest in one or two equity mutual funds that suit your risk profile for any financial goal that is at least five years away. Use a monthly systematic investment plan (SIP) to avoid investing all your money at a market high. You may choose high-rated funds from our website Fund Selector tool.


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