IDBI Fortis Wealth Assurance

alroyraj

Well-Known Member
#1
Recently A representative suggested investing in the IDBI Fortis Wealth Assurance plan for 10 years duration @ 1 lakh per year . He said the returns where 32 lakhs at the end of 10 years assured. The plan is a investment ULIP with critical illness rider covering major illnesses ,risks which I want covered. What do you suggest?
He spoke of Assured Fixed Returns,Entire amount of your premium goes into investment options as 100% of your premium is allocated to investment options of your choice (No premium allocation charge),
 
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#2
Recently A representative suggested investing in the IDBI Fortis Wealth Assurance plan for 10 years duration @ 1 lakh per year . He said the returns where 32 lakhs at the end of 10 years assured. The plan is a investment ULIP with critical illness rider covering major illnesses ,risks which I want covered. What do you suggest?
He spoke of Assured Fixed Returns,Entire amount of your premium goes into investment options as 100% of your premium is allocated to investment options of your choice (No premium allocation charge),
Hi, Can you ask the representative to give you some document supporting his claim for this assured return. If he can give the proof than I will ask each and every member of Traderji to invest in this scheme ASAP.
Why so? Well to get 3200K at the end of 10 year with 100K investment per year, your investment has to earn sweet 22.22% return per year. And we all know that with even long term equity investment, this is quite high target.
So I am confident that he can not provide any such document. I have gone through the product brochure and it does not guarantee the return at the end of term.
After negating this assured part, there is not much left in the scheme. This is just like any other ULIP scheme with some variation here or there.
I am not fan of ULIP's. The biggest stumbling block for me is charges (which will be 10%+ for first 5 years in this scheme), transparency and liquidity.
If you want to invest in market indirectly, then best way is MF. There are so many themes available. Its transparent. Based on theme you know where they will\are investing your money. You can get out whenever you want. And best charges are low.
As for the CI, risk cover etc, best way is Term Insurance.
 

alroyraj

Well-Known Member
#3
What I can confirm from what he said is that the entire amount of premium goes into investment options as 100% of your premium is allocated to investment options of your choice (No premium allocation charge). So thats a plus compared to kotak Smart Advantage ULIP where the premium allocation charges is 30% of 1st years premium.
Okay the purpose why this seems atttractive is the critical illness rider which is 4000 per day hospital charges or 5 lakh sum.
The charges as I found are:
Fund mgmt 2.25%
Policy admin 0.14% for 1st 5 years and 0.01% thereafter.
Monthly Policy Administration Charge for Top-up Premiums will
be 2% of Sum Insured in the first month after top-up and 0.1%
from the second month(till end of 3 yrs)


Of course based on what he told me i figure it is the E. Asset Allocator Funds option but he acted if that is guaranteed instead of indicative.

What product you think has a good rider for critical illness. I am assuming the ULIP at present hav a higher critical illness allocation as compared to other options and more specifically ULIPs under the new regulations.
 
#4
What I can confirm from what he said is that the entire amount of premium goes into investment options as 100% of your premium is allocated to investment options of your choice (No premium allocation charge). So thats a plus compared to kotak Smart Advantage ULIP where the premium allocation charges is 30% of 1st years premium.
Okay the purpose why this seems atttractive is the critical illness rider which is 4000 per day hospital charges or 5 lakh sum.
The charges as I found are:
Fund mgmt 2.25%
Policy admin 0.14% for 1st 5 years and 0.01% thereafter.
Monthly Policy Administration Charge for Top-up Premiums will
be 2% of Sum Insured in the first month after top-up and 0.1%
from the second month(till end of 3 yrs)
Well if they are deducting 10%+ as charges then how they are claiming the 100% of money will be invested. (.14% is per month)
Of course based on what he told me i figure it is the E. Asset Allocator Funds option but he acted if that is guaranteed instead of indicative.
No matter which option you choose, this is very high target. I can bet that even the official brochure will not be having this illustration. 22% /year compounded return is way too optimistic.
What product you think has a good rider for critical illness. I am assuming the ULIP at present hav a higher critical illness allocation as compared to other options and more specifically ULIPs under the new regulations.
[/QUOTE]
Well given the plethora of options available, this is very difficult. Also, as I am averse to ULIP's, I don;t track them.
I will suggest you to have a look at CI rider with Term Plan (Max for one offer CI rider with Term Plan) or SOme thing like ICICI crisis cover.
For 100K per year premium, you will be paying 50K in first 5 years for charges. I guess there are lot of plans where 50K will get you better CI for 10 years.
 

alroyraj

Well-Known Member
#5
Well if they are deducting 10%+ as charges then how they are claiming the 100% of money will be invested. (.14% is per month)
That is because of how the charges are taken out. Say for policy admin charges .This charge is deducted at the beginning of each policy month by cancellation of units from your Investment Account. The charge is a percentage of your Sum Insured.
Of course they did not say in the brochure how the Fund mgmt charges will be deducted so I suspect it might be the same.

No matter which option you choose, this is very high target. I can bet that even the official brochure will not be having this illustration. 22% /year compounded return is way too optimistic.
Agreed. I took it up with them to provide the details.

Well given the plethora of options available, this is very difficult. Also, as I am averse to ULIP's, I don;t track them.
I will suggest you to have a look at CI rider with Term Plan (Max for one offer CI rider with Term Plan) or SOme thing like ICICI crisis cover.
For 100K per year premium, you will be paying 50K in first 5 years for charges. I guess there are lot of plans where 50K will get you better CI for 10 years.
I did not restrict my my product to ULIP in fact to all available options.
Need to compare. But thanks a lot for the leads. I had checked out health insurance but they exclude any risk that needed to be covered.
 

alroyraj

Well-Known Member
#6
Well given the plethora of options available, this is very difficult. Also, as I am averse to ULIP's, I don;t track them.
I will suggest you to have a look at CI rider with Term Plan (Max for one offer CI rider with Term Plan) or Some thing like ICICI crisis cover.
For 100K per year premium, you will be paying 50K in first 5 years for charges. I guess there are lot of plans where 50K will get you better CI for 10 years.
There are not many options out there. I am looking for plans with a critical illness rider. But all the options I checked so far say ICICI crisis cover, Max New York LifeLine Safety Net all exclude a pre-existing condition.
This plan really seems to address my requirement.
The only other significant point of concern is whether the current plan is suitable or after the latest IRDA regulations take effect are suitable.
IRDA plans to revise the sum assured to 10 times vs 5 times at present. Not sure how this will affect the critical illness rider. I assumed that the CI would be reduced.
But as I read further i have seen that the CI is subject to the SA,so I think that would be a good thing.
Can you advise on this,Hari?
 
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#7
There are not many options out there. I am looking for plans with a critical illness rider. But all the options I checked so far say ICICI crisis cover, Max New York LifeLine Safety Net all exclude a pre-existing condition.
Hmmm....well pre-existing clause is tricky one. Not sure is there are products which covers this. BTW, I was refering to Level term policy which has dreaded disease rider.
This plan really seems to address my requirement.
The only other significant point of concern is whether the current plan is suitable or after the latest IRDA regulations take effect are suitable.
IRDA plans to revise the sum assured to 10 times vs 5 times at present. Not sure how this will affect the critical illness rider. I assumed that the CI would be reduced.
But as I read further i have seen that the CI is subject to the SA,so I think that would be a good thing.
Can you advise on this,Hari?
CI rider generally not dependent on SA except for the max you can go for CI. Generally max CI is 5/10 lacs or base SA amount whichever is lower.
 

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