Worst Financial Products Ever

Not the all Financial Products are Best and help you achieve your goals. There are some Financial Products which are Worst Financial Products ever.

Here is a List of Worst Financial Products -

01) Credit Cards – Credit Cards are the worst ever Financial Products of the man kind. In fact, 75% of all the Bankruptcies in USA are because of Credit Cards. Credit Card Companies charge you anyway between 35-50% per Annum interest rate from you. So taking a credit card debt means, entering into the world of negative compounding and going towards the black hole of Bankruptcy.

02) ULIPs (Unit Linked Insurance Plans) -

The second worst Financial Product is INSURANCE + INVESTMENT Products means ULIPs. ULIPs are nothing but the opaque Mutual Funds which charge anywhere between 8-20% of Entry load and other Financial charges from you. You should never Mix Insurance with Investment (ULIPs). The ideal Combination is Term Life Insurance + Mutual Funds and not the ULIPs.

There is a joke, “ULIPs are the most profitable Financial Products only when you are on the selling side.”

03) Whole Life Insurance -

A whole life insurance policy covers you for your entire life, not just for a specific period such as term insurance. Your death benefit and premium in most cases will remain the same. Whole life insurance also builds cash value, which is a return on a portion of your premiums that the insurance company invests. Your cash value is tax-deferred until you withdraw it and you can borrow against it.

It is advisable to Invest in Term Life Insurance + Mutual Funds. Remember, Life Insurance is not the Investment product. It is the Financial protection against loss of your life.

04) Variable Annuities -

It is also a bad Financial Product. These are nothing but the top ups. These will consume your money and nothing else. Instead of this, you should invest this money in some good mutual funds.

So If possible than stay away from all of the above Bad Financial Products. The above products are not the ideal products to reach your Financial Freedom.