Do not buy ULIPs even if they are tax-free!! Here is why

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💬 Comments

ULIP might be good if you are lucky and good in switching funds?

Author — Vaibhav G


Wonderful video once again!! The key takeaway is stay away from the banks and relationship managers 😅

Can you also give a similar perspective on medical insurance for post retirement coverage (considering that the employer already gives you a medical insurance coverage for the duration of your employment)

Author — Ashay Kharpate


Another 'killer' video by Pattu Sir :-)

Author — Ganesh Nayak


With such a stern warning I will let my kids and grand kids besides me know never to invest in ULIPS! NEVER EVER! Those words will reverberate while I sleep tonight! :D

Author — Shubhendu Verma


Sir, Both ICICI and HDFC were hell bent to get me buying ULIP, I refused knowing this was a stupid vehicle to invest. I am super conservative, 90% of my funds are in FD, PPF, EPF only 10% are in Shares/Mutual funds. I am still skeptical buying more mutual funds. My all investment in mutual funds are lumpsum.



I am addicted to your Blunt to the point... Keep going ... Thanks for the videos pattu sir

Author — suryakiran meenavalli


Thanks Pattau sir
Another valuable information
Very helpful for viewer 👌👌👌👌👍👍👍👍

Author — SANJAY paddhan


Absolutely right! But... there's a thing. I have purchased this very HDFC Click2Invest ULIP TWICE (I'm 34 and I bought it few years back). Yes, TWICE. Why? Because it worked for me. But yes, it's not a good product for the majority, if they are buying it for insurance. Here's why I purchased. This product was almost new to market and I researched and decided to buy it. I originally planned to buy it for MF benefits + Insurance but when the HDFC guy came to see me and gave the details. I did my math. The mortality charges were super high when opt for the maximum life coverage... So I backed off... But decided to buy its SINGLE PAYMENT plan. Because in that case, the sum assured is just 125% of the premium and hence the mortality charges were very low. And the reason why I wanted to buy this plan was.... 1. Tax savings. 2. FUND SWITCHING. Because I wanted to switch between Equity and Bonds (based on my intuition) rather than staying invested in a MF. When it worked for me... I bought the same plan once again after 2 years... So yes, it worked for me. However, as you said, it's NOT a good product for the majority... But btw.... thanks for highlighting the mortality charges for senior citizens. I will cross check mortality charges... if I am going to invest again in this plan. As long as the annual charges (including mortality) is less than 1.50% - I'm fine with it. Also, you said... they stop deducing mortality charges when the FUND VALUE > SUM ASSURED. So again, I think it's a good thing for me as my Fund Value is now above Sum Assured.. Because I opted for a single payment policy plan.. and its sum assured is only Rs. 187, 500 (and the premium amount is Rs. 1.5 lacs). But if the coverage is as they offer.. like 10x of annual premium then most probably one will have to pay mortality charges forever...

Author — Onevestor Malayalam


Question : Why are most Nifty Next 50 Index funds like UTI and ICICI showing composition as 74% largecap and 25% midcap? Aren't companies other than the top 50 largecaps considered in the midcap space? Technically, any Next 50 Index must show 100% midcap composition isn't it?

Author — R P


Can you please make video on lazy stock investing comparing different strategy indices?

I'm particularly interested low volatility value 30 kinda indices.
It beats almost other 90% indices including NN50.Also is there in chance or way to invest in these kinda of strategy indices given that no MF company provides these kinda strategy based indices?

I'd also like your opinion on your lazy investing way portfolio as I think it generates great results with low volatility.

Author — Raj Malhotra


if that Robin Williams quote analogy does not work on the viewers nothing else will...🤓👍

Author — Genie890


Wish there was this video 8 years back when I took an ULIP and wasted 8 years making the distributor and the insurance company richer.
ULIP is money for nothing.

Thank you sir for giving a clear picture of the topics addressed in all your videos. You are friend of investor.

Author — S S


Thanks for video, but many companies return mortality charges on survival during maturity. Also some companies dont have policy application charges as well so I don’t see reason why not to buy ULIP. I think best idea will be put your investment equally into MF, ULIP, Gold and FD. Thanks

Author — Sachin Jonnalwar


Hi sir. Great explanation. Sir can you make a video on term plan mentioning some points like, 1. Which term plan is good to buy. 2. what are the cons of term plan. 3.what i should keep in mind before buying term plan. 4. what are the things that i must follow so that if i die then my family must get the money from the term plans. 5. should i buy term plan from private company or from LIC eterm plan ?
thanks in advance sir.

Author — Rajesh Ghosh


recheck the mortality charge calculations. Definition of Sum at Risk is not policy value; its policy value less fund value. Eg if sum assured is 10 lakhs and fund value is 2lakhs then mortality charge=mortality rate *(10-2)/1000/12.
so mortality rate exponentially increases but sum at risk reduces (mostly linearly).

Author — Akhil Rao


I bought ULIP from HDFC for 20 years+ investment horizon, i dont want this money till retirement age, i will do SWP or partial withdrawal whenever i needs... another feature is we cant withdraw more than allowed partial withdrawal limit, so i will get self-controllled over putting in normal mutual funds

Author — FStudio


Sir, Please could you share the link of the morningstar ratings? I can verify the information that you have given.

Author — Khujith Rajueni


Please make a video about charges in mutual funds

Author — Neha Khanapurkar


Hello Sir, what about new age ulips like HDFC click 2 wealth, Bajaj alliance goal assure etc giving back mortality charges back after completion of term
Even they give booster fund to your corpus..
Don't you think with unlimited switches among various equity & debt funds, ulips have become more attractive than mutual funds...More over no long term capital gains tax & give a fair life insurance protection ..

Do analyse these & plz a new video...

Author — Arya Elsacherian


I thought of take ulip thanks a lot for your valuable videos...

Author — Babu ProCapz