Endowment Policy Vs ULIP

Endowment Policy Vs ULIP – Which is Better?

Recently many readers have ask me this question. They wanted to know that which is better? Endowment Plan or the ULIP? This is because the insurance agents are now telling to the people that Endowment plans are better than ULIP. This is because they offer safe and secure returns than the ULIPs.

So finally which financial product is really best among the above two?

Well, none of the above.

Both the ULIP and Endowment plans are highly opaque financial products which charge lots of charges from the investors in the form of premium allocation charges and various other charges and thus, very little money goes towards long term investing.

Here are the better alternatives for the above two financial products.

- Alternative for Endowment Plans -

Term Insurance + PPF

- Alternative for ULIPs -

Term Insurance + Equity Diversified Mutual Funds.

- The combined better alternative -

Term Insurance + PPF + Equity Mutual Funds.

What I advise you is, don’t be fooled by the marketing speech of your insurance agents. Insurance cum investment products are worst type of financial products and should be avoided.

In the long –run, they suck your wealth in a very bad manner. And that’s why you should keep your two needs separated – Insurance needs and investment needs but never mix the both the needs.