#nrimoneyclinic #ULIPS #Mutualfunds

ARE ULIPS REALLY BAD PLANS TO INVEST ?
INVESTMENT RETURNS

Both Mutual Funds & ULIP Funds Will Give Same Returns
Both Operate In same Market
Returns From Comparable Funds Are Similar

PLAN EXPENSES

Check The IRDA Mandated Illustration
Look For Figures Of Gross Yield & Net Yield
Difference Between Gross Yield & Net Yield Is The Cost
It Is Way Cheaper Than Mutual Funds

TAXATION AT MATURITY

Mutual Funds – 10% Capital Gains Tax
ULIPS – 100% Tax Free
Big Tax Gains In ULIPS

PLAN LIQUIDITY

Mutual Funds – 100% Liquid At All Times
ULIPS – 100% Liquid After 5 years

REBALANCING OF ASSET ALLOCATION
Mutual Funds – Involves Taxation
ULIPS – Does Not Involve Taxation

HOW DOES INSURANCE HELPS IN ULIPS ?

Guarantees 10 Times Of Annual Contribution In Case Of Death
Because Of Insurance, Product Becomes Tax Free
Because Of Insurance, Rebalancing Becomes Tax Free
Insurance Cost Is There Only In The Beginning
Total Cost Of Insurance Drops Every Year
Insurance Cost Negligibly Low
Cost Of Insurance Offset By Addition Of Wealth Boosters

WHO CAN USE ULIPS EFFECTIVELY?

Men Below 45 years and Women below 50 years
Ideal For Long Term Planning Like Retirement Planning
Persons Wanting To Create Tax Free Income throughout Life
Persons Who Have More Than 10 Years Time Horizon
Contributions Ideally Should Be More Than 5 Lakhs Per Year

WHO SHOULD NOT USE ULIPS ?

Men above 45 and Women above 50 years
People With Time Horizon Less Than 10 Years
Persons Who Do Not Have Secure Future Cash Flows
Contributions Less Than 3 Lakhs Per Year