What is the best for a young man for long term savings, like unit linked pension plan et al. who offers the be

These days there are many options for pension plans with several riders ; A hordes of never heard names are floating in the market , like Aviva, Max Newyork, AXA besides our age old LIC, UTI. All claim to have best track records and offer the best scheme. I do not know whom to trust and do not understand their satistics of track records. Please tell me what is the best and how to comperhend that.

4 Replies to “What is the best for a young man for long term savings, like unit linked pension plan et al. who offers the be”

  1. This is very natural. All of them show the bet returns. One thing that has to be taken care is COST per year. Some charge a flat 25% per year, some 70% etc.

    Also what feature does one have and what extra benefits that each is providing.

    better keep a note (I usually prepare an excel) and then compare. it might sound silly but doing all this requires some 2 months of time and then coming to a conclusion. Would also suggest reading business mags and blogs.


  2. Even if you are thinking of long term, a lot needs to be understood regarding Unit linked plans. These plans charge too much in first year & this affects the return. Because of the charges, no unit link plan is good.

    There is one more problem with pension plan. only one third return is given on maturity as tax free & rest two third is used to buy annuity. Rate of annuity is too less (less then 5% currently compared to 8-9 % long term Fix Deposit rate.) & your pension is taxable & is added to your income.

    If you take Unit linked insurance plan then you do not face the issues of tax & annuity but you are forced to pay high chages in initial years.

    So my solution is to accumulate the same same amount using any other mean like PPF, Other deposits, Mutual fund(exposure to equity should not be more then 50-60%) & then use MIP schemes to enjoy the pension.

  3. Let me assume that you are under 30.
    It is also assumed that you have taken adequate insurance cover.
    If you have not yet taken risk cover first get a TERM INSURANCE from LIC which is the cheapest form of risk cover. You can insure yourself for a larger amount with a very small premium.

    As regards tall claims – they are not here for the cause of charity. You can Trust your Old friend.

    Now let us come to the main part – INVESTMENT.
    Never mix your investment with insurance. For unit linked plans they charge a hefty amount as allocation charges starting from 25% and above – of the first yr premium. Some even charge this for the first 3 years.

    For investment look for some good MUTUAL FUNDS. They are less risky compared to Stock Market. In the long run they will give you returns far better than the pension plans and those are tax free. Whatever you pick do it in a disciplined way.
    You can also go for SIPs Systematic Investment Plans.
    I know the answer is inadequate.
    More specific questions are welcome
    Best of luck
    Myself is an Investment & Ins. advisor

  4. on the point of economics, get a pure life insurance policy with double risk cover, and in case of accident tripple risk cover, for longer period of life as you as you can, it will be much cheaper.then with balnce saving invest in div, mutual funds, eles funds and some in etf gold.you will get more return then ulip and other plans.and flexiability too.

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