ULIP Plans
Recently I have published 2 detailed articles about ULIPs.
02) ULIPs in India
ULIPs are Unit Linked Insurance Plans and these are very popular in India because they offer Insurance and Investment both the needs of people in single financial product. There are total 14 Insurance Companies in India and every company has launched several ULIP Plans in India. Recently (2010), Reliance Insurance has launched 17 ULIP Plans in the market for the all the age group of people.
Thus, right now in India there are literally hundreds of ULIP Plans. Thus, choosing a ULIP Plan itself is a job.
However, if you ask me than I personally don’t prefer to invest in ULIP Plans. This is because they are associated with higher costs. Rather than that I would like to go with Term Life Insurance Policy + Equity Diversified Mutual Funds.
According to me, ULIPs are nothing but the opaque mutual funds. They are associated with ultra-high administrative & fund management charges. And the another problem i that, there are 14 insurance companies in India and there is not any standardize method approved by government of India according to which such kind of charges should be taken from the Investor.
But on the other hand, if we talk about Mutual Funds than the Indian Mutual Fund Industry is the highly regulated industry with lots of regulation, Zero Entry load and Minimal fund management and other administrative charges
Thus, rather than going for ULIPs, it is advisable to go for Mutual funds separately and Term Life Insurance Policy separately.
ULIPs can be profitable only if you are on the SELLING SIDE…!!!
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