Avoid ULIPs. Quite simple, don’t mix Insurance and Investment.
Agreed, globally Inusrance Cos. manage huge fund corpus and do lot of investments in equity and bonds markets.
But here it does not make sense, since expenses are not capped by IRDA and paying of 30-40% commissions to agents is ridiculous.
There is a lot of mis-selling of ULIPs by agents.
Instead I suggest the following, for those who want the dual advantage of Term insurance and high and consistent returns of MF worlds.
1) Try Term plan of maximum term (which is 30 years, as of now) from HDFC, ICICI or Kotak or Bajaj. For term, select the most economical plan with maximum term, so that rules out Anmol Jeevan from LIC.
2) For returns, start SIP in diversified equity funds. Select from HDFC Equity Fund, Franklin India Prima Fund, Franklin India Bluechip, HDFC Top 200, Reliance Growth, SBIMF Contra Fund or Reliance Vision Fund.
Above combination would give you the best of both the worlds.
Thanks and Regards,
Sanjay