Buying an ULIP vs MF + Insuarnce

Personal finance
1

Can all of you please list down here the cons pf buying an ULIP ?
And how MF + insurance separately is much better than it ?
And how one should never, never buy an ULIP is greed of saving tax.
Thanks a lot. I will really appreciate your help.

2
  1. ULIP is Illiquid + long lock in
  2. No real way to track performance nor any history of past performance
  3. Too many hidden costs, you never sure what is being charged upfront
  4. Insurance component in ULIP is typically very small. You anyways will have to buy a separate insurance cover to get sufficient cover.
2 Likes
3

Admin charges and other charges for initial few years would be too high.

4

My suggestion would be to go for direct funds and skip buying ULIPs. Then you can just use a term plan and health insurance for protection. No need to go for hybrid products or products which are too difficult to understand just keep it simple.

1 Like