Are ULIP plan benificial than normal endowment plans ?

POSTED BY DeepakB12 ON September 23, 2013 8:41 am COMMENTS (3)

I am 25 yrs old. I am planning to put 5k monthly investment. Can anyone please suggest me the ways to do it.

My plan is

1. 2k/month in LIC’s Jeevan Saral Endowment plan

2. Rs.600/Month in LIC’s term insurance

3. remaining rs. 2400   in Mutual Funds

Please comment on this plan. I am confused about #1 item. I am really not sure whether to go for Life insurance policy or not. Also, Are ULIP plan benificial than normal endowment plans?

3 replies on this article “Are ULIP plan benificial than normal endowment plans ?”

  1. ashalanshu says:

    Dear Deepak, the deadline for old insurance plans has been extended. On one hand, you are saying insurance for your parent need and another hand, you are asking for wealth creation in 35Y, please decide yourself what do you want to acheive? If it’s about, insurance please purchase plain vanilla term covers from the insurer of your choice. If you want to crwate wealth, please opt for pure investment vehicles (like PPF). As simple as that.

    Thanks

    Ashal

  2. ashalanshu says:

    Dear Deepak, what do you want the end result should decide your investment vehicle. Do you want to create a large corpus from your money or do you want to create a small corpus from your money. Do you really need insurance as of now?

    Thanks

    Ashal

    1. DeepakB12 says:

      Hi Ashalanshu,

      Thanks for quick response.

      My Parents are dependent on me, as I am the only child. Hence I have to take a insurance policy.

      Also, The reason why I am thinking of to take LIC is to have safe money after 35 yrs for my after retirement days.
      Today is last day of this plan [Jeevan Saral], as per LICI , they are going to stop this product in market from 1st Oct 2013. Is it okay to opt for this Policy?

      What do you think, investing in PPF for 35 years [for ex- 2k/mnth] and investing in LIC Jeevan Saral for 35 years [for ex- 2k/mnth],, which will give better returns??

      Also, If I am going for insurance policy , my one of the biggest confusion is to choose from LICI and Birla Sun LI….
      Is it safe to go with private insurance companies, that to BLSI?

      Thanks,
      Deepak

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