Why my bank executives (India) are suggesting (insisting) me to buy ULIPs over PPF and ELSS?

POSTED BY Avadhut ON March 19, 2014 5:23 pm COMMENTS (2)


Today I visited my bank (ICICI) to open PPF account. Instead of giving more info about opening a PPF account, the bank executive asked me why do you want to open PPF account.

When I told him that it’s for long-term investment and tax benefit both, she insisted for ULIPs and told that ULIPs are better than PPF and ELSS. I told her that I don’t want ULIPs because I want to keep insurance and investments separate. She started explaining how ULIPs are better and giving higher returns than ELSS. She also said that the expenses have been reduced on ULIPs. Is it so?

I want a genuine answer on this.



My question is –

2 replies on this article “Why my bank executives (India) are suggesting (insisting) me to buy ULIPs over PPF and ELSS?”

  1. ashalanshu says:

    Dear Avadhut, let’s discuss this thing differently. Say you are that executive and I’m Avadhut. If I sign in for that ULIP, you ‘ll get some incentive or commission. Now do tell me honestly as you are bank executive, should I (the customer) invest in ULIP or PPF?

    I hope you ‘ll get the point.



  2. varunpatodia says:

    A classic explaination to this is given in Chapter 1 of the book ” How to be your financial planner in 10 steps”

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