ULIPs vs Mutual Funds: Who's better?

Question

ULIPs vs Mutual Funds: Who's better?

Answer 1

pradeep ji open offer

invest 60000/- in ulips as annual premium

travel to hongkong free

investment bhi

insurance bhi

travel ka maja bhi

Answer 2

Both has its advantages and disadvantages.

ULIP is certainly a long term investment product with 10 or 15 year focus. It is because the cost of this product is high compare with Mutual fund. But, it is providing the insurance coverage to the policy holder.

Mutual fund is good for balancing your portfolio upon risk profile. This too have entry and/or exit load applicable. It is not providing any kind of insurance to the holder.

ULIP has 3 years lock in period. Except ELSS funds, no mutual funds has lock in period.

Advisable mutual fund investment is through SIP (systematic investment plan).  Advisable ULIP selection criteria is the Fund performance and cost of the product by comparing with its peers.

If you have a long term investment perspective, you can go for a ULIP.

But your term is short, go for mutual fund with a good term policy.

Answer 3

ULIP is NOT AN INVESTMENT. It is INSURANCE!

In fact it is against SEC rules to sell insurance as an investment or to call the account portion an investment account.

ULIP should be purchased if you feel the need for a lifelong policy. There is nothing wrong with that. If you want an investment buy an investment product like mutual funds, stock etc.

Many people on Y!A say insurance is the worst investment, well that would be true if it was an investment. Life Insurance is meant to do many things and can do things no investment can do. With one premium payment life insurance can give your beneficiaries $1 million or more. I have personally sold payroll deduction supplemental UL insurance to low income individuals who have collected the death benefit within a few months of buying the policy, no savings plan can match that.

And no ULIP can match a mutual fund for the investment value.

Most people need a combination of term, UL and mutual funds. Just make sure you are buying the right product for the right reason.

I feel better now, sorry about that.