ULIP/MF premium frequency?



I have AVIVA SaveGuard ULIP policy, any originally i have opted for yearly premium payment.

I am wonderig that if i start paying premium monthly/quarterly, then will it be more beneficial?
Let me explain my idea in detail…….
if i pay 12000/- premium yearly in December 2008 then i will be getting units with NAV as in december.
But if i pay premium monthly (1000/-) from Jan 2008 to Dec 2008, then will get more units throughout year, because NAV will be definitely less in Jan 2008 than Dec 2008.

Will this plan be really beneficial?
will i have to pay extra allocation charges if i opt for monthly premium?

2 Replies to “ULIP/MF premium frequency?”

  1. Ideally, you should opt for term insurance only when buying insurance from the cost/benefit point of view. When investing for returns, pure Mutual funds are the best way to go. Back to your question, yes, buying monthly/quarterly allows you to average out your cost of investment.


  2. You are thinking in opposite direction. Actually you are paying monthly premiums in advance by paying annually. your annual premium is not for the months gone, it is for the months to follow.

    When you started your policy, you paid the premium for whole year in advance. So as per your thinking , you have got more units.

    But who told you that NAV will be definitely less in Jan 2008 than Dec 2008????? I think your Agent has given you this knowledge that NAV will always increase & you purchase the policy ASAP.

    This is Equity linked investment & there is no word “definitrely”.

    I agree with the previous answerer that Mutual Fund is best for investment & not ULIP.





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