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I seriously think ULIPs ought to be called Unit “Loss” Investment Plans.
I am yet to come across someone who has actually made money off a ULIP. A recent comment on one of the other posts reads — “My wife had taken a ULIP from Bajaj Allianz 5-years back and the first year charges were 90%! Would you believe it? We sold the policy after 4-years and just about managed to recover the investment amount.” There are countless other ULIP-horror stories that you can read when you have some leisure time.
But then, it’s very easy to be misled into buying a ULIP, especially when you see ads such as this:
You’d be forgiven for thinking that life insurance can solve all major problems in your life from [having children?, to] educating your children, to marrying them off, to saving/investing for your goals, to saving enough money to say no to work that you do just for the sake of doing it. Wow! So, is there something that life insurance can’t do?
But then remember these words: “One click is all it takes to lose your hard-earned money.” That should have been the ad’s tagline but then you really can’t publish that can you?
With ULIPs, Units Lose and United [We] Lose. Simply run away as fast as you can whenever someone (usually it’s a relative or a family friend isn’t it?) uses the words “unit” and “linked” in the same sentence. You’ll be financially much better off in life.
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