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.

13mo ago

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SqueakyMuffin

Zomato13mo

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)