I am a 25-year-old single man. I am currently paying Rs40,000 annual premium for ICICI Prudential’s Ulip (unit-linked insurance plan). What other plans can I opt for in terms of investment and insurance?
Ideally, you should see insurance and investment separately and should not mix up the two.
Insurance, which is a factor of your current and future income and obligation, should be just enough to give you adequate cover.
Investment starts after that and depending on your risk profile, availability of investible funds and need for money in future, you should plan your investments.
In the absence of such information, I cannot say much about your investment or insurance needs.
Generally speaking, if your current or future earnings are likely to be high, then you may increase your insurance, and the best way to invest is to invest through systematic investment plans in mutual funds.
Answers are based on a technical analysis of the markets and individual stocks. The views expressed on this page are not the newspaper’s opinion and are provided for information purposes by Vipul Verma. Readers are requested to do their own research before participating in the stock markets. Neither the paper nor the information provider will be responsible for any outcome based on information provided here.