ULIP as replacement for Term plan?? Please advise

#1
Hi All,

I find this forum very useful; especially for novices like me.

Recently a financial advisor from DBS Chola recommended and got me two Kotak Smart Advantage ULIPs (for me and my wife) instead of a pure term plan. He mentioned that the returns might not be too high but the coverage is about 100 times the annual premium.

I was wondering if this is the right thing to do i.e. have a ULIP in place of a pure term plan. Any advise on this regard is most appreciated.

Thanks in advance,
Rajiv
 
#2
Hi All,

I find this forum very useful; especially for novices like me.

Recently a financial advisor from DBS Chola recommended and got me two Kotak Smart Advantage ULIPs (for me and my wife) instead of a pure term plan. He mentioned that the returns might not be too high but the coverage is about 100 times the annual premium.

I was wondering if this is the right thing to do i.e. have a ULIP in place of a pure term plan. Any advise on this regard is most appreciated.

Thanks in advance,
Rajiv
Go 4 term plan. ULIPs have bulky recurring charges, hence not good 4 investment purpose.
mr india
 

Sunil

Well-Known Member
#3
ULIPS is actually Term Insurance Plan + Investment in Mutual Funds

Why not take both separately???
Your costs would be less; you can get much higher coverage with term plan; you can get better quality mutual funds; the cost advantage is definitely there.

For example, if the monthly premium of ULIP is Rs 5500/-, I would advise to invest Rs 5000/- in a mutual fund, and Rs 500/- in a term plan.

Sorry to say, but ULIPs are hard-sold in the market, as they give higher commission to the agent.
It's suitable for those who don't have time (???) to manage his finances, and want one complete package.
 

AW10

Well-Known Member
#4
I 100% agree with argument of Sunil and also think in same line.

ULIPs are packaged nicely and marketed very well to common public who don't understand the Insurance and Investment. I got fooled by one such agent in early stage of my earning days.

Better to go to Term Insurance for insurance perspective. and go and get best mutual fund for investment. Investment industry has grown a lot and hence buying-selling a mutual fund/ getting info about their performance etc is not that difficult as it was in 80s/ 90s.
 
#5
Thank you for the replies.

Being a novice, I got lured by the sales talk and opted for the ULIPs. This was way before I got to know about this forum.

Is there a way out now? Should I persist for 3 years, pay the premium and then opt out?

Thanks in advance,
Rajiv
 
#6
Thank you for the replies.

Being a novice, I got lured by the sales talk and opted for the ULIPs. This was way before I got to know about this forum.

Is there a way out now? Should I persist for 3 years, pay the premium and then opt out?

Thanks in advance,
Rajiv
Of course, It has 3 year lock-in period, u have to invest for three yrs. After that try to extract maximum money whenever u get chance of exiting at comfortable NAV.
mr india
 
#7
hi rajiv_bang,
Definitely i too agree with mr.india , because if you opt now you wont get the better returns as compared to the return if you persist for 3 years. So i hope you select the smart option.

Regards,
Conan
 

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