Unit Linked Insurance Plans or ULIPs are insurance cum investment plans. ULIP offers life insurance cover and an opportunity at wealth creation. Part of the premium goes towards mortality cover and the remaining amounts are invested in equity, debt or a mix of both, depending on the type of ULIP. ULIPs help achieve financial goals of retirement planning, investment planning, tax planning and children’s education planning among others.
ULIP is a long-term investment which has a 5 year lock-in period. Insurance agents sell ULIPs promising great return on investments. ULIPs are also marketed as tax saving investments. The purpose of availing insurance is risk protection. Sadly, ULIP offers low mortality cover and insurance agents don’t inform people which is cheating and fraud.
IndianMoney reviews say never mix insurance with investments. ULIPs offer low mortality and have high charges. An IndianMoney review says ULIPS deduct premium allocation charges, mortality charges, policy administration charges and some other charges before investing in debt or equity. This reduces the return on investment. IndianMoney complaints say many people are dissatisfied with ULIPs as they get cheated by low returns and hardly any mortality cover.
IndianMoney reviews advice availing a pure risk protection plan like a term life insurance plan and invest in equity or debt based on risk profile. If you are an aggressive investor, invest in equity mutual funds or stocks. A conservative investor can look at FDs, post office schemes or FMPs.
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Compare ULIP Plans: Reviews and Benefits:
ULIPs are not all drawbacks and do have some benefits:
IndianMoney reviews advise you to take a look at charges in ULIPs. ULIPs have premium allocation charges, fund management charges, mortality charges, fund switch charges, policy administration charges and partial withdrawal charges.
An IndianMoney review asks you to look at these points before investing in ULIPs:
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IndianMoney reviews say insurance agents cheat customers saying ULIPs are like bank FDs. Insurance agents say ULIPs are just like bank FDs with the added insurance benefit. Insurance agents say ULIP illustration benefits offer 4% and 8% which are just like bank FDs. ULIPs also enjoy tax benefits vis-à-vis FDs. When customers lose money, this is cheating and fraud.
Insurance agents say ULIPs double money in 5 years or just invest for 5 years and enjoy great returns. ULIPs have high charges and there’s not much return after 5 years. IndianMoney.com reviews ask you to stay invested in ULIPs for the long-term like 10 years or more.
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