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What is your opinion about ICICI Prudential Wealth Builder? I need your inputs and advice before I buy it for my life insurance.
- Manu
ICICI Pru Wealth Builder II is a unit linked insurance plan (ULIP). It has high charges during the initial years. Premium allocation charge is 6 per cent for the first year, 5 per cent for the second year, 4 per cent for 3rd,4th and 5th year. It will reduce to 2 per cent per annum from 6th year and onwards. Fund management charges is 1.35 per cent per annum for each fund. Policy administration charge is 2.52 per cent per annum. Also, there will be mortality charge based on the age of the policyholder.
We believe that insurance products with a combination of insurance and investment fail to do justice to both insurance and investment needs. Such products typically offers very little insurance cover. They also fail as a pure investment product because they deduct a lot of charges towards insurance and other expenses.
We ask our readers to keep their investment and insurance needs separate. Always buy a term insurance plan to cover your life. Term insurance plans help you to buy a large life insurance cover with a small premium. Invest in equity mutual funds to meet your long-term financial goals.
This article was originally published on November 03, 2015.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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