WHY NOT TO BUY ULIPS - READ ON

Insurance and investment should be kept separate.


In ULIP since the amount is invested as well as used for cover, there is no way of determining the actual position either if it is a good investment or a good cover over a long term, besides the change in conditions, hidden clauses, etc. It is best to buy only pure insurance for specific needs and keep investments separate.

Partha Datta says
My thoughts...dont venture into ULIPs....you will lose so much money on your initial charges, that you would rue later. Indeed if you make 10% CAGR on your money for 10 years, you actually just make a tad above 8% because of charges etc. Only benefits according to me are an impressive number of switches allowed from debt to equity and vice-versa and of course the tax exemption for your accumulated funds at end of period. But then again, if you are talking about 8% CAGR and tax exemption, won't just PPF be a good bet?


Ajay Narang says

Financial goals are different and therefore the instruments to meet these goals can't be one... So comparison of MF and ULIPs is absurd. One imp factor everyone forgets while comparing these two is what a ULIP can provide a MF can't i.e. risk cover.. I can bet a ULIP scores much better when compared with Term Assurance MF when taken for a term 10 years or above... And obviously Life Insurance is never bought less than 10 Years

Niraj Kumar says
Based on my personal investment experience so far ULIP is better than MFs. If you look at total charges in Mfs fund irrespective of what anybody has to say 5-6% of investor money even MFs charges and most of the time then even underperform the sensex. This is also true for so called popular funds which advertise claiming their outperformance. If you look at indian market from last 10 years money should have grown anyway around 6 times because overall market has grown that much. Then big Mfs houses also indulge in manipulating market during peak time or when sip is due to cheat common investor. Also in long run you can not rely on fund managers because in his personal interest he can invest your money in poor companies in return of his personal gain.


kiran kumar says
ULIP is not a base investment instrument by itself. It combines the features of Insurance and Mutual fund. Subscribing into ULIP cannot be considered a way of diversification without alternatives. One can always purchase insurance, tax saving deposits and ELSS mutual funds in appropriate ratio to achive same kind of diversification and tax benefits. This will also avoid the investor being bound to one ULIP provider even after the terms and conditions change