Jayant Tewari, OutSourced CFO
|| The Problem is most people confuse the objective of Insurance (cover risk) with Investment (earn returns) -
You're actually better off taking a whopping Pure Term Plan for a small premium and covering risk and then personally investing in Mutual Funds for the Returns.
Further, I really don't see the logic of saving tax and then handing over that amount of saving, or most of it, to the Insurance Company as Agent Commission and other costs.
Even if you are in a ULIP, its entirely up to you to manage it dynamically so that you're in Equity when the market is rising and in Debt Funds when the market's falling ...
You can manage your ULIP Portfolio just as actively as your Mutual Fund portfolio - unfortunately, no one ever does.
The fact is no-one reads his Policy anyway, and that's a self defeating mode of operation, as the fine print actually contradicts ever element of the "sales pitch" given by the agent.
It is a rip-off, but by not applying our own minds, aren't we facilitating it ?
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