Unit Linked Insurance Plans combine life cover with systematic investment into a balanced portfolio. As such they are good for younger investors who wish to accumulate a nest egg for the long run, without the bother of constant portfolio monitoring.
Recently ULIPs have produced a mixed bag of results. Due to recession, many of the Equity-focused ULIPs have performed very baqdly. What surprises me is when these Insurance Companies come back to the Client and ask him to “close” the existing ULIP as it is “not performing well.” Well, whose fault is that. More importantly, why should I entrust my hard earned money to the same jokers who mismanaged it once? Kotak Life Insurance is yet to give me a reply on this question.
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