ULIPs are useless as insurance products

This is an absolutely negative article and this person knows nothing about insurance or insurance industry or our country's people and their way of thinking. He just wants to force his( foreign) way of thinking which actually is not suitable for our people.

My request is please ignore this person because he is poisoning the minds of indians by his western thinking and western education.

I will prove this person is completely wrong. Our people have Benn doimg this from years and we are till date the best saving economy in the world and even though our government doesn't give any social security we have managed to tackle it very well. This western jargons like inflation( never existed in India especially food inflation until the economy was opened up for foreigners to come and earn money. Inflation only benefits industries and companies because it takes away money from individuals and gives it to companies in the garb of growth) and devaluation of money( in 1947 ,1 rupee was equal to 1 dollar which benefitted our economy a lot because we are an importing economy). These things are brought artificially to benefit the foreigners at our cost so I disagree and boycott this person completely.

I don't subscribe to the views of Dhirendra Kumar fully. I read the article and if not fully I corroborate with Mr Kumar on buying adequate Term Insurance/ Pure Risk Plan at the start of one's career and invest across investment products including ULIPs. It is true that once during 2002-2010 ULIPs were priced exorbitantly and Clients were sold inappropriate products by Bankers, Corporate brokers and Individual Agents with unrealistic return promises which fell flat in reality. But myself have been selling ULIPs since 2006[ high charges regime] and till now never ever sold Traditional endowment plans but Pure Term Insurance .My and my clients experience in ULIPs have been largely positive because I always encouraged long term saving principle. People actually got double-digit CAGR [%] return in ULIPs in my case, I myself got it. Yes, one should not buy ULIP as Protection cover but as Investment plan over longer horizon[ ideally > 10 years] . The reason being two- one, today most of the ULIPs , especially the online ones are at times scores over MF schemes in terms of Cost/charges and comes with lots of freebies like Free switching, premium redirection, loyalty Bonus and refund of Mortality charges on maturity etc. Two, In case of MF investments[ being in MF industry now for more than a decade] investors seldom stick with their original investments and kill the golden goose[ return multiplier] as they often switch between schemes[ chase past returns], not properly allocate investments across Asset class and more importantly redeem unnecessarily of flimsy ground. But most of the investors consider Insurance a long term plan and due to non-availability of periodic statements , practically no coverage of ULIP schemes by Newspapers, online portals they stick to the ULIP plans and make handsome double-digit return by default.