Buying a Ulip? Look beyond returns
You should check your corpus, financial goal and risk appetite before investing in Ulips, as they are meant for long-term investment
Assessing your own financial health becomes essential because insurers charge you for withdrawing your plan before the five year lock-in period
Mumbai: Prior to 2010, Ulips was the bad apple in the basket with charges soaring up to almost 7-8% and hugely mis-sold. From 2010, the regulator has made multiple changes including limits on charges. “Currently there are about 100 plans and over 500 fund options," said Kapil Mehta, founder, Securenow.in. Ulips have two components—insurance and investment. “Because of the life insurance component Ulips have mortality charges," said Anik Jain, co-founder and chief executive officer, Symbo Insurance, a Mumbai-based insurance broker. The fund component takes care of the returns of Ulip plans.