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1.3

Summary

HDFC Life Insurance
Pankaj Shrivastava@prshrivastava
Mar 22, 2006 04:54 PM, 8125 Views
(Updated Mar 22, 2006)
ULIP are a no-no

Have you ever noticed that every insurance agent first tries to sell you ULIP products? Allmost all the time.


Have you ever seen an insurance agent who offers Term Life insurance product on his/her own. Allmost never.


The ULIP products are very expensive for the buyer, you pay anything in the range of 30-35% of the first premiun and 10-20% from next two premiums as fees. This money is gone for ever (and some of it into the pockets of the agent selling it). Plus there are fees under various heading which are preiodic (annual).


You can achieve the same results as ULIP by buying mutual funds at 2.25% entry load and dirt cheap term insurance. Besides you have the freedom to move in and out of the market and access to different fund houses should you feel there are better offerings in the market.


So would you rather fund the next foreign trip of your agent?

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