This is a perfect section for you if you are interested in enhancing your knowledge about Financial Matters. A few tips and tricks about Investing, Shares, Mutual Funds and Money Saving Schemes.
by Sanjana 25 Mar 2010, 04:34
When an agent comes to sell you a ULIP product, you should ask following are the questions you should ask him. Before doing any thing he should tell you What is a ULIP. Following are 6 Important questions you should ask an ULIP agent before buying a policy from him.

1. What are the returns offered by this ULIP ?

As per the rules of IRDA, an agent should only give illustration assuming 6% and 10% returns, However If he says that in long term its safe to expect more than 10%, It would be fine. But if he starts claiming that It “will” return 18%, 20% or million % returns, be cautious, He is not the right agent.

2. What are the Charges in this ULIP ?

He should give you detailed Information on all the charges of ULIP ,the main one called Premium Allocation Charges. If he tries to hide any Charge from you, I am sure its not because of his dishonesty and no other reason. Ask him the company brochure mentioning the exact charges.

3. How does it suit my Risk Profile and fit in my requirement ?

Before suggesting you the ULIP, the agent should have asked you all the details about your Cash flow (salary, Expenses) and your future goals with ULIP investment should address. He should also try to understand if you can take the risks associated with ULIP. If he does not ask you these thinks, ask him back why he has not asked you these questions. Get the word out of his throat.

4. How is it better than other ULIPS ?

Ask him what is unique with his ULIPS, make sure he does start all non-sense of Sec 80C benefit, high returns and all.. Every ULIP has it. Ask him what are the special features with ULIP and how do they address your requirement. If he claims that his company ULIP is best and no other ULIP can match it, ask him for references if any states that. Just a plain claim from agents will not do. An agent must have enough knowledge to make you understand how to make best use of your ULIPS.