The biggest problem with Ulips is that if you use them to buy an adequate amount of real insurance, then you could consume most, if not all of your income. Of course, I use the word ‘insurance’ to mean what it should: money that your family will get if you die.
As a general rule, any earning person should be insured for at least ten years’ income. However, life cover in Ulips, almost universally, is exactly ten times the annual premium. Therefore, to get life cover equal to ten times your annual income, you will have to pay ALL your income as premium. The maths is unshakeable. No matter what the salespeople or the analysts say, anyone who has a family should not put even a paisa in Ulips (or any other investment) before they buy a life cover policy usi ..
