DerpyLlama
DerpyLlama

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.

16mo ago
Talking product sense with Ridhi
9 min AI interview5 questions
Round 1 by Grapevine
SqueakyMuffin
SqueakyMuffin
Zomato16mo

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)

DerpyLlama
DerpyLlama

Amazing opening... 😁 Thanks for advice. Will tell the same to the HDFC person calling me

BouncyMochi
BouncyMochi

Avoid ulips as blanket rule

DerpyLlama
DerpyLlama

Any particular reason or experience?

ZoomyNugget
ZoomyNugget

Check r/indiainvestments wiki page

SquishyQuokka
SquishyQuokka
Gojek16mo

FUCK ULIPs, never ever get one. The purpose of insurance is not to be an investment. ULIPs end up being neither

ZoomyNarwhal
ZoomyNarwhal
NASDAQ16mo

No. Watch this to get more information.

https://youtu.be/1ZHQi3AeoKU?feature=shared

GoofyPickle
GoofyPickle

ULIP -- a BIG no.

SparklyBagel
SparklyBagel

No.

Thank you for coming to my Ted talk.

JumpyPretzel
JumpyPretzel

ULIP is the biggest fraud of insurance/investment industry, just stay away.

SparklySushi
SparklySushi

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.

JazzyNarwhal
JazzyNarwhal

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.

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