Why You Should not Buy Endowment Plans or ULIPS for Investment
Insurance is a means of protection from financial loss. Investing is a means of creating wealth." Information Sources For Buying Insurance Products 34% Friends, Family & Colleagues 3% Direct contact with bank or insurance company 20.22% Newspapers & Magazines 8.07% Television 7.30% Internet 19% Intermediary agents What are ULIPs and Endowment plans? ●They are both insurance cum investment products. Neither of them is recommended as they offer a sub-optimal combination of insurance and investment. ●ULIP is a market-linked insurance scheme where the scheme invests in equity or debt oriented schemes, whereas endowment plans offer a guaranteed benefit called the sum assured. Why are they so Popular? A lot of people buy insurance in haste and that too for the sole purpose of saving tax and they do so without fully understanding the products. Often the insurance agent is a neighbour, or a friend or, even worse, a relative. It’s kind of difficult to turn them down. S