Personal Finance

Spend less than you earn, invest the rest

Novice

Mastery0%

Novice

Note. Education, not financial advice. Tax rules, regulations and product specifics change, for real money decisions, talk to a SEBI-registered advisor whose incentives don't depend on selling you a product.

Concept 11 of 19

settled

Term insurance vs ULIP trap

(Unit Linked Insurance Plan (ULIP))

Insurance is insurance, investing is investing. Mixing them is how banks get rich, not you.

Definition

Buy pure life cover (term insurance) and invest separately in low cost mutual funds, rather than buying a bundled product (ULIP, endowment, money back) that hides charges inside an insurance wrapper.

Step 1

Predict first

In one or two sentences, what do you think this concept means? Wrong is fine; the small struggle is what makes the answer stick.