ULIP investment worth it??
I have been receiving calls from HDFC to opt for ULIP plans. I didn't know much about it. Now I knew after much discussion with their fund manager and research on internet. What worries is the charges. The plan HDFC recommended had 12% premium allocation charge for 1st year itself and other charges after that. Still want an option if it is worth an investment and if any other bank or service that offer better ULIP plan.
First, write the full form of ulip down on a paper/doc.
Next, stare at it, and ask yourself:
Why the f is my insurance policy linked to some kind of units?
ULIPs are being missold as unit linked Investment Plans everywhere (it's not the full form), to justify the investment in equities.
Next, go to LIC's website and see how much premium you can earn if you become an LIC agent and sell ULIPs/other policies
(Hint: It can go beyond 25% of yearly premium paid by the purchaser)
Lastly, get a pure term insurance. LIC or HDFC or xyz, everyone has one.
Um, but, my premium, investment, return, bla bla bla.
LIC makes 45,000cr+ profits every year after paying 20% premium as commission, and settling all claims.
Just buy index funds from the premium difference (pure term insurance vs ULIP).
You'll be wayyyy better off in the medium/long run (equivalent to your ULIP horizon)
Amazing opening... 😁 Thanks for advice. Will tell the same to the HDFC person calling me
SebastianFettel
Stealth
10 months ago
https://www.linkedin.com/posts/finshots_avoid-investing-in-this-insurance-activity-7130863831974637569-_wCl?utm_source=share&utm_medium=member_android
This should help you
FUCK ULIPs, never ever get one. The purpose of insurance is not to be an investment. ULIPs end up being neither
Noobita
Stealth
10 months ago
No.
Watch this to get more information.
https://youtu.be/1ZHQi3AeoKU?feature=shared
For salaried no. For self-employed, may be yes (need personalised review). Most of the ULIP are same. One or two plans may be better based on their investment attributes. I'm an IRDAI certified and senior insurance advisor.
As a rule of thumb, any product that bank markets or sells aggressively is never beneficial for the customer.
They'll always push higher margin products, and those higher margins almost always come from customer's pocket.
GlassMixer74
Stealth
10 months ago
No.
Thank you for coming to my Ted talk.
ULIP is the biggest fraud of insurance/investment industry, just stay away.
Just youtube it.. Lot of videos explainer by influencers asking to avoid it.. Can't type all the reasons
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