Best ULIP Pension Plan

Best ULIP Pension Plan

Many people have asked me that, Which is the Best ULIP Pension Plan? I receive this query several times a week from readers across different geographical locations. I really don’t know that why people are crazy about ULIP Pension Plans?

In this article, I will clear your all Myths about ULIP Pension Plans. And yeah…. The truth is that, There can never be Best ULIP Pension Plan.

First of all, those who don’t know anything about ULIPs, let me tell you that What is ULIP? Well, ULIP means Unit Linked Insurance Plans. It means that, it is the market linked financial product. Now, you will ask that, What is Pension Plan? Well, Pension Plan is nothing but it is the Financial product which will fulfill your following 3 basic money needs under one roof.

01) Retirement Corpus Building (Capital Appreciation)

02) Tax Benefits &

03) Life Insurance

Pension Plan is one which will fulfill all of your above 3 basic needs. and ULIP Pension Plans are those which are linked to the market means they will invest your money in the stock market for higher return in the long run exactly same like Equity Mutual Funds. ULIP Pension Plans work exactly same like Equity Mutual Fund means here the fund manager will build a portfolio and manage your money and give you higher returns.

In short,

Pension Plan = Equity Mutual Fund + Life Insurance + Tax Saving Product (Such as PPF or ELSS)

Pension Plan is the combination of all of the above 3 Financial products. Now, you will ask that, what’s the problem with investing in ULIP Pension Plans? After all it will be very convenient if they are the combination of all of the above 3 financial products?

Well, the problem is associated high fund allocation charges. Pension plans are nothing but the opaque mutual funds. Pension plans will charge you anywhere between 10-20% of entry load to invest in the stock market. While on the other end, entry load for Equity Mutual Funds & ELSS is 0%. So rather than going for ULIP Pension Plan, which will eaten up 10-20% of your Capital, it is advisable to invest in Equity Mutual Fund separately and Term Life Insurance Policy separately.

In Final Conclusion, There is nothing like the Best ULIP Pension Plans. Stay way from them. They are nothing but the opaque mutual funds…!!!