ULIP

What’s wrong with a ULIP?

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WHAT IS WRONG WITH A ULIP

There is a raging debate on ULIPs. Article after article is being published in favour or against a ULIP. Since this is the last leg of the tax saving season, the pitch has become even more shrill.

There was recently an article on ValueResearch about choosing ELSS vs ULIPs and there are angry comments on the article to the extent of accusing the writer of taking sides and not presenting a true picture about ULIPs. Both the camps, for and against, have made their points and it is difficult to ignore either.

If you are not truly aware of what a ULIP today is, you may want to first read another post here.

Now, let’s come to the real issues with ULIPs. What’s wrong with a ULIP?

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Pension Plans: Wolf in sheep’s clothing?

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pension plans

I started investing in HDFC Pension Champion from Year 2010 for sum of Rs 1,50,000 per annum. I have completed 5 years of investment and I see the returns as of today is @ 8.02%. I stopped investing from this financial year, as the returns are less than the normal FD rates. I am thinking to invest in Mutual funds instead of ULIP.

I understand from your previous articles that, if I wish to surrender the policy no taxes to be paid and no reversals of 80C deductions as the invested period was 5 years.

The above note is what a reader (I will call him Rajesh) sent to me recently.

I believe that you or someone you know also owns a pension plan. We have a few lessons to learn here. First, some basics.

What are pension plans and how do they work? – The Sheep’s clothing

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Do you know these 10 facts about new ULIPs?

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ULIPs

ULIPs stand for Unit Linked Insurance Plans. They offer a combination of insurance and investment and are offered by life insurance companies in India. The Ugly Days ULIPs have been a much hated product for most of their existence. So much so that they were considered highly toxic financial products. Here are a couple of reasons. First, there … Read more