Say NO to ULIP

Basically, ULIPs are expensive and opaque mutual funds disguised as insurance. This permits the so-called insurance companies to circumvent the strict transparency, expense, and commission-related laws that govern mutual funds. It also enables them to escape the scrutiny of SEBI, which has historically been a tougher regulator than IRDA. Will the new regulations stop these abuses? No way. All I'm hopeful of is that a handful of alert and aware investors will read this new document and ask some tough questions. Anyhow, the realistic situation is that there's almost no chance that anyone will step forward and fix things. As someone responsible for your money, you need to be sensible yourself. Insurance is a great idea and most of us need it. But we need real insurance, which is to say term insurance. Here's what you should do. Make a liberal estimate of how much money your family will need if you die suddenly. Shop around and buy the cheapest term insurance you can find. You'll be stunned at how cheap term insurance is and also at how difficult it is to buy (The quickest way to get rid of an insurance agent is to say that you're interested only in term insurance). You probably won't be able to think logically about insurance as long as you don't realise that it's an expense. It's a necessary expense, like buying a helmet or going to a doctor, but it's not an investment. You need both insurance and investment. To get the best deal in both, don't mix them up.

Courtesy :Dhirendra Kumar, Value Research

Thanks to Mr. Dhirendra Kumar editor of Mutual Fund Insight magazine & CEO of Value Research website - he opened my eyes. Now I am a staunch believer of TERM INSURANCE. If you really think hard about Insurance - you will realise the importance of TERM INSURANCE. My experience was that I felt enlightened. Insurance is for your dependants or nominees. It is for reducing financial loss suffered by them. IT IS NOT AN INVESTMENT OR ONLY A TAX SAVING AVENUE. Do not look at maturity value of insurance policies - the moment you do that you are looking at your own benefit - then you lose focus - . Always look
for policies which give maximum INSURANCE COVER for the least premium. Look at the ratio between annual premium and SUM INSURED. The one with the least ratio is the best for you.