Dalal Street Investments

Have You Made Money in Wealth Destroyer ULIPs ?

July 30, 2014

ULIPs in IndiaNot now but when ULIPs were selling Hot since then we have advised our readers to keep away from Weapon of Wealth Destroyer – Unit Linked Insurance Plans.

Now with the Markets bouncing bank greedy IL-literate financial advisers are back on the foot to SELL ULIPs and make a Quick buck, so again the advise is the SAME AVOID ULIP Investment at any cost ir-respective of IRDA ( IRDA made rampant changes in the product proposition. It capped charges on them since September 2010. Even the fund management expenses had a fee cap. This was done to make the product more appealing) or SEBI regulating the same as the returns from them are pathetic.

We are very well aware why people get attracted to such products in first place, is because of the twin benefit of insurance and investment which is on offer. Plus, investment in ULIPs also presents income tax benefits to investors.

However, when it comes to performance they have been worse than Foxed Deposits. ULIPs return was linked to market performance. So, when markets were in a downturn, many policyholders lost their net worth. And that too in insurance cum investment plan which is supposedly safe! Not to mention the host of charges that further ate away investor returns.

The bottomline is that both Insurance and Investment needs are separate. If you have made money in ULIPs do share your views and we’ll discuss further.


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