With finance minister Arun Jaitley re-introducing Long Term Capital Gains Tax (LTCG Tax), the debate on whether the principle of keeping insurance and investments separate is still the right strategy has now been re-ignited.
Insurance players are saying that ULIPs (Unit-Linked Insurance Plans) will now be a compelling proposition and investors need to shift to ULIPs. On the other hand, purists reiterate that in spite of LTCG tax, buying term insurance and keeping investments/MFs separate is the best strategy for a healthy portfolio.
