What are the charges involved in ULIP policies ?

Question

Accepted Answer

ULIP policies have various charges like premium allocation, fund management, mortality, surrender, etc.

Premium allocation charge is deducted from the premium paid and is a percentage of the premium
Fund management charge is levied on the fund value and is a percentage of the same
Mortality charge is deducted to provide life cover and is based on the age and sum assured
Surrender charge is applicable if the policy is surrendered before the lock-in period
Partial withdrawal charge is levied if partial withdrawal is made before the lock-in period
Policy administration charge is deducted for the maintenance of the policy
Examples of ULIP policies are HDFC Life Click2Invest, ICICI Pru Wealth Builder II, etc.

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