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
FUCK ULIPs, never ever get one. The purpose of insurance is not to be an investment. ULIPs end up being neither
No. Watch this to get more information.
I'm being pitched LIC Nivesh Plus(849) ULIP. Average return generated by the funds in this scheme is 15%. I'm okay with the 5 year lock in period. Seems like a decent deal to me.
Why do people advice against ULIPs? What are some things ...
It's been close to a year since I am earning a salary and this is what I do:
Following the 50-30-20 rule for 5 years now. Started with a salary of 6LPA fixed. Now at 25LPA. Investing ...
How to get out of a useless scam of a ULIP/endownment life policy whic gives a cagr of less than 5% over a 20 year term ? What will be the loss in terms cancellation of such a policy ?
