4 Replies to “what is the best ulip plan for me, i am 31 years old, for 25 year term peried ? pl suggest?”

  1. Always before investing identify your financial goal.
    A ULIP plan at your age can be bought for your retirement
    or to take care of child needs .
    Many good ULIP plans are available .
    I have personally bought HDFC Pension Plan.
    One generally gets attracted to ULIP because of the insurance component.
    My suggestion is to keep the investment and insurance separate.
    Buy a term plan and invest the rest in mutual fund.
    This is coz ULIP has high loadings
    If you need more details drop me a line on
    [email protected]

  2. ULIPS are Not Recomended For Anyone
    Because ULIPS Propogate Many Myths like

    Long Term Investing produces Best Results
    It is A Myth
    Suppose you Would Have Invested Rs 10000 in Ulip in 1996
    What Would have Happened after 11 years assuming no monthly Charge(They Charge per Month Actually)

    They Might have Invested 8000 in 1996( 2000 are Charges for Servicing You)
    Nifty was at 1185 on 17 June 1996

    On 18 June 2002 nifty Closing was 1075

    This Means What? In Long Term of 6 Years your 10000 Would have Reduced to 7257.

    Wow long Term produces returns But For insurance Companies
    ( I have Deliberately Chosen these 6 Years to Show you Negative Returns.But Why shouldn’t I.Insurance Companies Deliberately Give rosy pictures)

    Performance of Ulips in India
    (Time Period 16 Jan 2008 to 26 Jan 2009)

    Aviva – Freedom Life Growth Fund has Given -17.4 % returns
    Bajaj Allianz – Capital UnitGain Equity Growth Fund has given -19.5 % Since 29.01.2008

    Bharti AXA Life – AspireLife – Grow Money has Given -28.8 % returns

    LIC Profit Plus Growth Fund -11.9 %

    No one has fared better .So much to Timing and Analysis Skills of managers

  3. Your question suggest you are interested in investment more than insurance.

    To your advantage, the time horizon you are considering is 25 years.
    Locking in ulip plans for 25 years will not be a wise decision. They will not give you even a reasonable returns.

    I will suggest you go for an equity linked mutual fund like HDFC Top 200.

    You may even consider investment in stocks in NSE or BSE. Invest in companies with strong fundamentals, like Infosys, Tata Steel, etc.

  4. It is good that you have a 25 year time horizon. Though it is not good to recommend you a specific ULIP based on the limited info you have provided, the ULIPS from SBI & LIC are generally cheaper(low cost) than the rest.
    If you are looking for ULIP based child plan, ICICI smart kid and HDFC youngstar can be considered.


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