I have watched multiple videos on ULIP'S. This is the simplest explanation I've found. Great video, makes it sooo simple to understand. Amazing work from the Zero1 team!
This video was posted 2hrs ago, and I got my bank RM call 4-5 hrs ago today, selling me some ULIP under the name of a really great Life Insurance that also gives guaranteed returns... Although I had already refused since I know these scams, but this video gave me even more clarity on these schemes.
You should check if discontinuing it and investing that money in a term insurance + mutual funds would give you better returns in the long run or not. If yes, then you should probably discontinue it & invest your money separately in a term insurance & MFs. Anyways, if your life cover is low, and you are the sole bread winner in your family, you should get a term insurance.
When I started to work I knew nothing about investment and did do a ULIP with Metlife which I continued till 5 years. Total 3L of investment. I remember withdrawing it out in two installment due to the lockin. I probably got what I invested back with no returns. Just recently my so called "relationship manager" from the bank was hard selling me a plan and I had to push him back quite a bit. This is really a good one.
Its not mistake.. life insurance part is very very much low.. maximum 5rs per 1000/- for aged people.. for youngers it comes to half.. go and check your NAV. You will know the actual current value of your amount
Back in 2020, I read the 7 ULIP policy documents that my parents had taken years back and was shocked to the core. I realised how much potential gains it is draining and shifted their retirement plan to a pure term ins. + index funds SIPs + stock portfolio. The returns since have thankfully been more than great and my parents feel at ease knowing they will reach their retirement goal comfortably.
Your way of explaining things is so crisp and clear . You make things easier to understand and that's why love to watch your videos. Keep up the great work guys.
The point you folks told about them not revealing all the fees are so true. I had invested in an LIC ULIP for 3 years which I cancelled cause other investments would be way better in the long run.
This video is so good! In fact my parents have been ‘investing’ in these instruments since so long. My fight now is with the agents to take that money out and shoo them away so they don’t sell me and my parents more of these. Believe me it’s quite a struggle. Some agents are even issuing a new policy as you exit from a previous one without your consent. I hope IRDA takes some corrective steps towards this mis selling of these products.
Thanks for the video. So many people who are ignorant or very busy to think are the victims of ULIPS. I happened to join a couple of ULIP plans and lost a hell a lot of my money. When I calculated the opportunity cost by comparing with the earnings from other Mutual Fund SIP and shares which have is amazing. I surrendered all the pension plan by sacrificing lake of rupees. Holding these will not give a good return. This video is an eye opener to the new investors and thanks to the whole team.
Received the call from RM just today selling this Alpha fund generating 26% CAGR. Highly surprised I asked for brochure and it is just plain bullshit missing all crucial details. Thank god I knew already that it is not wise to mix investment with insurance. This video was a happy reminder. God bless you guys.
This channel focuses on solving real life problems a man will have India and have a decision trauma . I’m always amazed about how detailed the content is ! Great work sir 😊❤
Once an agent got me to invest in ulips I wasn't making much money in my internship in medical College so I avoided coz I didn't understand what the hell was that Now I am so thankful
Prateek, your style of simplifying concepts in most of your videos is excellent and I certainly have learnt a lot from them. Please keep up this because even experienced professionals sometimes struggle with basic concepts if they don’t come from finance background and the explanation with examples are very much appreciated. ULIP has been one concept that has always confused me, this video definitely helps. Your team is doing a great job in the video editing as well !
One of the agents actually sold me a ULIP plan, it was my first job , literally the first month. I was paying a massive 65k per year premium for the ULIP, with no idea for what the cover amount was. When I read the policy document, the cover amount was just 24Lakhs,and policy term was 35 years. I calculated 65k*35 is roughly equal to the 24lakhs 😶 Thank god I realized this just after paying my first year premium, though I lost that 65k but I think that is the best financial decision I made till date
Only a few days ago some agent pitched me a ULIP and it looked so juicy but thank god I asked him time for a few days and luckily this video showed up.
When you fork over your hard-earned cash in taxes, the expectation is that the government will cover the basics-your health, education, and shelter in times of need. You know, like a social safety net or an all-encompassing insurance policy. That was the whole point of taxes when they were first invented: to fund the nation’s development and, more importantly, to look after its citizens. But what a joke that’s turned out to be. In most countries, especially ours, where tax rates are practically highway robbery, the government also mandates that you buy insurance to cover yourself. Insurance-by its very definition-is the world’s most legal pyramid scheme, sanctioned by the government. Why? Because they don't want to waste their precious resources on you. It’s the insurance companies’ job to ensure that you get as little as humanly possible, leaving you with just enough to keep you from staging a revolt. And get this-your government doesn’t stop there. It actually taxes the insurance companies too. How charmingly efficient. There are countries out there with tax systems just as convoluted as ours, but they at least provide free healthcare and education. Hell, they even give you a handout if you’re unemployed, just to keep you from sinking into despair. Here, though, people are dying jobless, the pay scales are as predictable as a roulette wheel, and the safety net is more of a trampoline that launches you straight into the ground. If you’re still reading this, I hope some part of your brain just got a wake-up call. I’m not here to just whine; I’m here to shed light on this absurdity. In the end, we’re not living in a capitalist paradise-we’re just glorified slaves in a communist disguise. And the real puppet masters? The corrupt, money-grubbing fat cats who run the show, aka our so-called government.
Brilliant content and so easy to understand. The looming question - With so many cons, why is the regulatory board sitting idle and doing nothing? What stops the regulator to ban ULIPs?
This goes back to 3 years. Some agent mis sold my father an endowment plan for me and my sister. I was in college back then. Had no idea what they were. Last year when the premiums were due. I started reading about the policy and understood the return and the life cover is absolutely nonsense. I am going to go to the agent to close it. But it seems i am going to lose almost 50-60% of the premiums I have paid in last 3 years. Not even getting what I have invested till now. Really worst terms and conditions. Thanks for the awareness though. People really should be aware about this.
What is your policy period? For eg 10, 15, 20 years etc if you dont pay next premium till 3 years, it will be converted to paid up policy. Means whatever amount you paid, that policy become that amount but you have to wait till your policy time..
@@shobhitagrawal9187 Paid-up Insurance Definition A paid-up insurance policy is one where the policyholder stops premium payment but continues to enjoy insurance coverage.
At the start of my investment journey, I came to know about ULIP plans at first by some influencers. And insurance agents where pushing to buy the plans.. Luckily I had done some research and avoided buying a ULIP plan and entered into the equity market and MF.😅 This video surely helps new investors who are entering.. Hats off to the team..
Thanks sir for giving these information. Actually my family invested in units. But no one informed these differences. V will stop ulips in coming days.
I got a ulip cancelled by my dad which was about to mature in 2030. It has already been 9 years and we got only about 7%. Now I’ll be putting this in a proper mutual fund.
Hi @Zero1 Team, Can you please make a video on Term Insurance. I am 28 years old and I am realizing that I should start a Term Insurance Plan. But don't know where to start from or what to look for.
I've actually changed the whole investment from these ulip and money back endowment policies and started investing in mutual fund during covid phenomenon. Fortunately I could earn and grow the loss even after closing the policies.
I have HDFC Fortune Guarantee Plan and I don't even know if I'm a ULIP target but it does sound eerily similar with life cover, guaranteed returns, lock-in and whatnot. Please make a video that saves all those stuck in this market - enough audience to make it worth it? 🤞🏼
Having worked in Insurance, the companies don’t like ULIPs either due to low margins. And commission% are the lowest for ULIPs. ULIPs are still sold or offered because people buy it much easier.
What if I have already paid for 4 years should I pay this 5 Th premium please to suggest me. How long should I hold this insurance after 5 years or should I withdraw the amount after completing 5 years. Experts advise please.
Vey, it is an informatic episode. I thought I would invest in ULIP, but thank you, team. I'm de-influenced now. Keep us De-influencing.Thanks a lot, Zerodha and team.
Thanks for the video. I was almost trapped into buying this Maxlife Nifty alpha 50 ULIP , but i flatly refused and didn't buy it . Already trapped by other ULIP's in Max Life insurance & SBI life insurance due to my financial ignorance in the early years .
My Father is 50 years and he is not understanding me, is it ok to go on with ulip until 60 or is it better to discontinue it. he tells me term insurance at this age is a waste
I don't think ulips are that worst particularly after watching this year budget by increasing LTCG from 10% to 12.5 %. And I'm assuming they will keep increase this tax slowly, no wonder it will reach 25 -30% LTCG tax after 20 years. But in ULIP the returns are completely tax free, ofcourse upto 2.5lakh investment per year. And about the charges I think many companies really not taking that much and also we get back some of the charges from 11th year onwards as MF units. Other advantage is we can switch from equity to debt vice versa if the market is overvalued and undervalued. there is like 6 switches for free every year
I have invested in Tata AIA Life insurance fortune pro I am paying monthly 19,990 and it's already been 18 months since I started the plan Nav is had decently increased (32.90 to 60.9018) over the time and it's a 5 year lock in period. This was my 1st ever investment. Kindly suggest me the way forward Should I continue paying ULIP for another 3.5 years Or should I stop after 3 years and withdraw it the funds after 5 years
@@user-pc5xr4jp5r I think no need of cancellation required, and also take term plan mandatorily. Better consult an financial advisor and plan according to your future requirements
@@user-pc5xr4jp5r COntinue paying it, looks like u got a decent scheme + cancellation n other charges, would hurt u more. Its just 3.5 yrs more, but dont get upsell-ed to it again.
I don't totally agree with what is being communicated in the video. Choosing the funds in a ulip is same as choosing where to invest in a mutual fund. If we do our due diligence, there is double benefit in the product. I have a ulip running for the last 4 years and have a 27% irr. This is calculated by me after removing all the charges that were levied. I do agree with the mis-selling bit that happens and honestly this is not because of commissions (it's 5% for the first year and 1% from second year onwards in most cases based in my research. MFs give out 0.5 - 2% commissions depending on the funds) but more so because the insurance agents themselves don't understand the product very well. Would love to discuss this further if you are interested.
I am an NRI and was looking for a locker with HDFC bank where I have my NRO account. I visited 6 branches and all the branches are forcing me to take ULIP in order to provide me with a very small locker. Its really annoying. I clearly knew about ULIP and do not want to take any for the sake of getting a locker!!
I have invested without being aware sold by one of the premium banks , it was such a disappointment, These bank know what money is there and they upsell, everyone should be aware of this
Just started the ULIP... Investing on ULIP as I am not eligible for pure term insurance (based on my salary)... What I can do in this case??? Your assistance will be greatful
My dad invested in 8 Ulips for all of our family. I used to live outside so I never knew about it, but since 2020 I have been home and now I told my dad stop everything. All the new ones like less than 4-5 years I pre closed it and and took the losses other ones which have been running for a few years those are still running. Eg. I have one, already paid 10 years premium, 10 more years to go will mature in 2034. Tired of paying this premium when I know I will get nothing back.
I did exactly the same thing in August 2020, cancelled all ulips and endowment plans purchased by my Dad. Some agents and even a family doctor😢 sold these kinds of useless products to my dad.
With tax increase 12.5% LTCG, these agents are having great advantage to sell more ULIP's. I wonder if Govt keep increasing tax like this every budget then at one day ULIP will be better than direct MF. Your thoughts on this?
But I think first con is wrong for some plans, cause as per my ULIP if the investor expires, the life insurance part is paid immediately, if there is any premiums left that will be paid and the final amount will be paid after maturity…
bro I am putting 60k in a ulip [6 lakh in total] and the cover is of 1 cr [2 cr for accidental death]. Although, I'll have to check the amount of money invested out of 60k! Thanks for the video. Let me know anything else I may check.
Awesome explanation... This make a looooooot of sense man.. thank you very much for explaining it in very simple terms. Brw i love these skit model videos on your channel.. keep up the good work guys ❤
What about the term plan premium for a 45-50 yr old person? It is very much high and u don't even get that money back. In Ulip money is growing plus u get 10 times life cover too
It depends on what exactly you want & what premiums you are getting. A 10x life cover (10x of annual premium) is usually very low. If the premiums are similar for the term plan and the ULIP, you need to check what's your priority. A great life cover for your family in case of an untimely death or a mediocre life cover + returns on your investment (which you'll probably get back at the age of 60-70). If you are the sole bread winner of your family, getting a good cover amount should probably be your priority.
This year could turn out worse. I lost a lot of money last year as a result of poor investing decisions that I would never have made if I hadn't been so concerned about my portfolio. I wasn't sure whether to keep investing or make mortgage payments. After selling my investments, I discovered that the house required more work than I expected. I'm not sure how long I can go on like this.
Invest in companies that provide current cash flows to diversify your portfolio. I hired a planner at the end of 2023 to enhance my portfolio, and in the last ten months, I've made profits in over fifty different marketplaces. Should 2023 teach us anything, it's that luck doesn't last forever. Even in times of abundance, we should put in more effort to prepare for the worst case scenario.
Lina Dineikiene a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Out of curiosity i just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. Thanks for sharing.
I took a ULIP in 2019, My actual XIRR for 5 years is 29.35 %. My starting salary was low, I did not Invest in PPF or NPS which give 7 to 12 % Return Respectively, I used my 1.5Lakh 80C limit to invest in ULIP. Now 29.35 % in 5 years is much much higher than 12%. Today, I own ULIPS, Stocks and Mutual Funds all.. It's not about the product, it's about how smartly you plan your finances. People may miss sell the product but you have to learn to turn disadvantage to your advantage. Now, I know 80C is covered under ELSS funds too, That is part of a seperate debate and reason not to choose them were also valid personally.
I don't think ulip is bad. But, it shouldn't be your primary investment option. It should be a back up one. Where you will invest a small amount for 5 years and forget it it 15 to 20 years.
I find the video slightly biased. I use credit cards to pay for ulip premia. This gives me rewards of 2-4% based on the milestone reached. So the charges associated with ulips get covered there. I have a good term insurance already. For a long term ulip beats mutual funds easily. Mutual funds have charges and the return is taxed at ltcg rates which will increase in coming years. I have actually started shifting my mutual fund sips to ulips for the same reason. If you have a liquid emergency fund and a term insurance, ulips are much better compared to mutual funds in a long term. Credit card milestones will give cashbacks which cover all the associated fee of ulips, the return is not taxable.
In addition to above you can claim the investment in Sec 80c (ELSS mutual funds usually give a lower return as compared to index fund). Return is only tax free if your yearly premium is less than 2.5 lacs. Above that ULIPS proceeds are now charged as capital gain. I think the hi video should take account of these advantages too.
I think this plan is for people who have surplus money so this way they can get some tax free money and they are not much worried about paying premium even in situation like Covid. In foreign countries, you can even take a loan against your insurance and you can even pause premium in case of emergency and still keep your life cover. So I think, like any other investment, each investment is not made for all type of individuals as their needs and goals might be different. But good video though. (I am not insurance agent. lol)
My bank manager who manages some of my mutual funds meets me every few months to discuss my portfolio and the shameless guy invariably tries to pass off a ULIP under the guise of investment, every time. Most of my mutual funds are now through the direct route and i am slowly shifting my remaining mf taken through the bank many years ago, to direct funds
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I have watched multiple videos on ULIP'S. This is the simplest explanation I've found. Great video, makes it sooo simple to understand. Amazing work from the Zero1 team!
Glad it helped :)
This video was posted 2hrs ago, and I got my bank RM call 4-5 hrs ago today, selling me some ULIP under the name of a really great Life Insurance that also gives guaranteed returns... Although I had already refused since I know these scams, but this video gave me even more clarity on these schemes.
Wow what a coincidence. Thanks for sharing this story
I have been investing in ULIP from past 3 years and now I see this video. OMG what a mistake.
I actually took 2 days back but cancelled it today . After that I'm watching this. Let's see how it goes now
You should check if discontinuing it and investing that money in a term insurance + mutual funds would give you better returns in the long run or not. If yes, then you should probably discontinue it & invest your money separately in a term insurance & MFs.
Anyways, if your life cover is low, and you are the sole bread winner in your family, you should get a term insurance.
When I started to work I knew nothing about investment and did do a ULIP with Metlife which I continued till 5 years. Total 3L of investment. I remember withdrawing it out in two installment due to the lockin. I probably got what I invested back with no returns.
Just recently my so called "relationship manager" from the bank was hard selling me a plan and I had to push him back quite a bit.
This is really a good one.
@@Zero1byZerodhawhat if I surrender my ULIP after 5 years of lock in. Do i have to pay tax on the capital gain till date (i.e., on 5 yrs investment)
Its not mistake.. life insurance part is very very much low.. maximum 5rs per 1000/- for aged people.. for youngers it comes to half.. go and check your NAV. You will know the actual current value of your amount
Back in 2020, I read the 7 ULIP policy documents that my parents had taken years back and was shocked to the core. I realised how much potential gains it is draining and shifted their retirement plan to a pure term ins. + index funds SIPs + stock portfolio. The returns since have thankfully been more than great and my parents feel at ease knowing they will reach their retirement goal comfortably.
Your way of explaining things is so crisp and clear . You make things easier to understand and that's why love to watch your videos. Keep up the great work guys.
The point you folks told about them not revealing all the fees are so true. I had invested in an LIC ULIP for 3 years which I cancelled cause other investments would be way better in the long run.
This video is so good!
In fact my parents have been ‘investing’ in these instruments since so long.
My fight now is with the agents to take that money out and shoo them away so they don’t sell me and my parents more of these.
Believe me it’s quite a struggle. Some agents are even issuing a new policy as you exit from a previous one without your consent.
I hope IRDA takes some corrective steps towards this mis selling of these products.
Thanks for the video. So many people who are ignorant or very busy to think are the victims of ULIPS. I happened to join a couple of ULIP plans and lost a hell a lot of my money. When I calculated the opportunity cost by comparing with the earnings from other Mutual Fund SIP and shares which have is amazing. I surrendered all the pension plan by sacrificing lake of rupees. Holding these will not give a good return.
This video is an eye opener to the new investors and thanks to the whole team.
Received the call from RM just today selling this Alpha fund generating 26% CAGR. Highly surprised I asked for brochure and it is just plain bullshit missing all crucial details. Thank god I knew already that it is not wise to mix investment with insurance. This video was a happy reminder. God bless you guys.
ICICI ? 🤣
@@NITISHBHATT008 HDFC. It seems everyone has such products.
@@TheOrigamy Oh..ohk..yes, everyone :)
This channel focuses on solving real life problems a man will have India and have a decision trauma . I’m always amazed about how detailed the content is ! Great work sir 😊❤
Stellar explanation. I tried to convince many people to walk away from this but now I can just share this video.
One of the best TH-camchannel.
Once an agent got me to invest in ulips
I wasn't making much money in my internship in medical College so I avoided coz I didn't understand what the hell was that
Now I am so thankful
Prateek, your style of simplifying concepts in most of your videos is excellent and I certainly have learnt a lot from them. Please keep up this because even experienced professionals sometimes struggle with basic concepts if they don’t come from finance background and the explanation with examples are very much appreciated.
ULIP has been one concept that has always confused me, this video definitely helps.
Your team is doing a great job in the video editing as well !
Thank you so much Prateek for explaining in the simplest way possible.
One of the agents actually sold me a ULIP plan, it was my first job , literally the first month. I was paying a massive 65k per year premium for the ULIP, with no idea for what the cover amount was.
When I read the policy document, the cover amount was just 24Lakhs,and policy term was 35 years.
I calculated 65k*35 is roughly equal to the 24lakhs 😶
Thank god I realized this just after paying my first year premium, though I lost that 65k but I think that is the best financial decision I made till date
Only a few days ago some agent pitched me a ULIP and it looked so juicy but thank god I asked him time for a few days and luckily this video showed up.
Wow hail to the algorithm gods!
Thanks, I have learnt a lot about ULIPs. I'll not take ulips and not make investment into it unless I learn a lot about it.
When you fork over your hard-earned cash in taxes, the expectation is that the government will cover the basics-your health, education, and shelter in times of need. You know, like a social safety net or an all-encompassing insurance policy. That was the whole point of taxes when they were first invented: to fund the nation’s development and, more importantly, to look after its citizens.
But what a joke that’s turned out to be. In most countries, especially ours, where tax rates are practically highway robbery, the government also mandates that you buy insurance to cover yourself. Insurance-by its very definition-is the world’s most legal pyramid scheme, sanctioned by the government. Why? Because they don't want to waste their precious resources on you. It’s the insurance companies’ job to ensure that you get as little as humanly possible, leaving you with just enough to keep you from staging a revolt.
And get this-your government doesn’t stop there. It actually taxes the insurance companies too. How charmingly efficient. There are countries out there with tax systems just as convoluted as ours, but they at least provide free healthcare and education. Hell, they even give you a handout if you’re unemployed, just to keep you from sinking into despair.
Here, though, people are dying jobless, the pay scales are as predictable as a roulette wheel, and the safety net is more of a trampoline that launches you straight into the ground. If you’re still reading this, I hope some part of your brain just got a wake-up call. I’m not here to just whine; I’m here to shed light on this absurdity.
In the end, we’re not living in a capitalist paradise-we’re just glorified slaves in a communist disguise. And the real puppet masters? The corrupt, money-grubbing fat cats who run the show, aka our so-called government.
Brilliant content and so easy to understand. The looming question - With so many cons, why is the regulatory board sitting idle and doing nothing? What stops the regulator to ban ULIPs?
So much to learn abt ULIP from this video…cleared all doubts…will refrain myself and others from taking such useless products
Great content, great channel. Thank you guys for sharing such awareness.
This goes back to 3 years. Some agent mis sold my father an endowment plan for me and my sister. I was in college back then. Had no idea what they were. Last year when the premiums were due. I started reading about the policy and understood the return and the life cover is absolutely nonsense. I am going to go to the agent to close it. But it seems i am going to lose almost 50-60% of the premiums I have paid in last 3 years. Not even getting what I have invested till now. Really worst terms and conditions. Thanks for the awareness though. People really should be aware about this.
You can stop paying premium now and wait until actual policy tenure period.. you will get your initial amount. its called Paid Up Policy
@@SparkUp. What do you mean by maturity period? I mean it’s supposed to be when I get 60y.
What is your policy period? For eg 10, 15, 20 years etc if you dont pay next premium till 3 years, it will be converted to paid up policy. Means whatever amount you paid, that policy become that amount but you have to wait till your policy time..
@@shobhitagrawal9187 Paid-up Insurance Definition
A paid-up insurance policy is one where the policyholder stops premium payment but continues to enjoy insurance coverage.
At the start of my investment journey, I came to know about ULIP plans at first by some influencers.
And insurance agents where pushing to buy the plans..
Luckily I had done some research and avoided buying a ULIP plan and entered into the equity market and MF.😅
This video surely helps new investors who are entering.. Hats off to the team..
Thanks sir for giving these information. Actually my family invested in units. But no one informed these differences. V will stop ulips in coming days.
Glad the video was helpful :)
Great video guys! Please talk about NPS and its peer comparison! Thanks😀
these videos making me smarter day by day
Thank you :)
I got a ulip cancelled by my dad which was about to mature in 2030. It has already been 9 years and we got only about 7%. Now I’ll be putting this in a proper mutual fund.
My friend also did the same 😐
They are doing too good marketing.
Thanks guys for making this awareness video
Please make video on real estate buying & selling scams and things to know before buying a property i.e Flat/Land/Row House/Bunglow etc.
It's an eye opener video on ULIP. Really a Good Video and the explanation is so simple that anyone can understand.
I have know ULIP but this video is very good with lots of information
Hi @Zero1 Team, Can you please make a video on Term Insurance. I am 28 years old and I am realizing that I should start a Term Insurance Plan. But don't know where to start from or what to look for.
I've actually changed the whole investment from these ulip and money back endowment policies and started investing in mutual fund during covid phenomenon.
Fortunately I could earn and grow the loss even after closing the policies.
The best demystifier on the web ... love you dude
❤️❤️❤️
I have HDFC Fortune Guarantee Plan and I don't even know if I'm a ULIP target but it does sound eerily similar with life cover, guaranteed returns, lock-in and whatnot. Please make a video that saves all those stuck in this market - enough audience to make it worth it? 🤞🏼
So is there a way out now? Unfortunately I’m already 3 years in the investment!
12 Lakhs vs 18 lakhs wow .. basics I didn’t know thanks
Having worked in Insurance, the companies don’t like ULIPs either due to low margins. And commission% are the lowest for ULIPs.
ULIPs are still sold or offered because people buy it much easier.
What if I have already paid for 4 years should I pay this 5 Th premium please to suggest me.
How long should I hold this insurance after 5 years or should I withdraw the amount after completing 5 years.
Experts advise please.
Vey, it is an informatic episode. I thought I would invest in ULIP, but thank you, team. I'm de-influenced now.
Keep us De-influencing.Thanks a lot, Zerodha and team.
Doing God's work here mate
Thanks for the video.
I was almost trapped into buying this Maxlife Nifty alpha 50 ULIP , but i flatly refused and didn't buy it .
Already trapped by other ULIP's in Max Life insurance & SBI life insurance due to my financial ignorance in the early years .
My Father is 50 years and he is not understanding me, is it ok to go on with ulip until 60 or is it better to discontinue it.
he tells me term insurance at this age is a waste
Can you please make a video on smallcase, something which is still new to large amount of equity investors.
Kudos ..even small kid can understand this
Best yt channel in recent times ❤
Fantastic video , thanks for such valuable information 👍
I have invested in ulips during COVID time now it's lockin period , yes my family also did this mistake, Thank you once again
I got brain washed by an agent and have done investment in Max Life Insurance. Thanks for the video.. reall a great mistake.
Question: Why does everyone say to invest in Nifty 50 Index funds and never in Sensex Index Funds?
Very nice explanation 😊
I don't think ulips are that worst particularly after watching this year budget by increasing LTCG from 10% to 12.5 %. And I'm assuming they will keep increase this tax slowly, no wonder it will reach 25 -30% LTCG tax after 20 years. But in ULIP the returns are completely tax free, ofcourse upto 2.5lakh investment per year.
And about the charges I think many companies really not taking that much and also we get back some of the charges from 11th year onwards as MF units. Other advantage is we can switch from equity to debt vice versa if the market is overvalued and undervalued. there is like 6 switches for free every year
Not all ULIPs are bad. But our job is to tell people that some of them are :)
@@Zero1byZerodha but people assume all the ULIPS are bad by watching this video, you hadn't highlighted that some are good
I have invested in Tata AIA Life insurance fortune pro
I am paying monthly 19,990 and it's already been 18 months since I started the plan
Nav is had decently increased (32.90 to 60.9018) over the time and it's a 5 year lock in period.
This was my 1st ever investment.
Kindly suggest me the way forward
Should I continue paying ULIP for another 3.5 years
Or should I stop after 3 years and withdraw it the funds after 5 years
@@user-pc5xr4jp5r I think no need of cancellation required, and also take term plan mandatorily.
Better consult an financial advisor and plan according to your future requirements
@@user-pc5xr4jp5r COntinue paying it,
looks like u got a decent scheme + cancellation n other charges, would hurt u more.
Its just 3.5 yrs more, but dont get upsell-ed to it again.
I don't totally agree with what is being communicated in the video. Choosing the funds in a ulip is same as choosing where to invest in a mutual fund. If we do our due diligence, there is double benefit in the product. I have a ulip running for the last 4 years and have a 27% irr. This is calculated by me after removing all the charges that were levied. I do agree with the mis-selling bit that happens and honestly this is not because of commissions (it's 5% for the first year and 1% from second year onwards in most cases based in my research. MFs give out 0.5 - 2% commissions depending on the funds) but more so because the insurance agents themselves don't understand the product very well.
Would love to discuss this further if you are interested.
I am an NRI and was looking for a locker with HDFC bank where I have my NRO account. I visited 6 branches and all the branches are forcing me to take ULIP in order to provide me with a very small locker. Its really annoying. I clearly knew about ULIP and do not want to take any for the sake of getting a locker!!
Thank you for covering in detail to clear all doubts.
Good eye opener guys! I had one years back.. :)
I have invested without being aware sold by one of the premium banks , it was such a disappointment, These bank know what money is there and they upsell, everyone should be aware of this
Just started the ULIP...
Investing on ULIP as I am not eligible for pure term insurance (based on my salary)...
What I can do in this case???
Your assistance will be greatful
i too dono. i just asked for it to cancel in policy bazar. please do tell me if u found any other way
Its great video. Nice piece of work
I am investing in ULIP, is it good to stop?
Hi Sir
Can you please do a video about SWP
need full detail practical explanation with an example
how to invest and how to withdraw monthly
Very good initiative, nicely presented. Thank you for this Zerodha
I made the mistake and am realising now. It’s been three years and I’m struck. Not sure if coming out is beneficial or staying is beneficial. 😔
How i can cancel my ULIP and get my money back. I have invested last 3 years. 65K per year.
I have investEd in an ULIP for last 1 year, what should I do ?
Should I cancel it now as I think I would get more returns if I invest the same in MFs.
cancel and file police case, surely you will get refund
I also fee afraid its been a more than 3 years i have been invetsted into Ulip , don't know what to do.
My dad invested in 8 Ulips for all of our family. I used to live outside so I never knew about it, but since 2020 I have been home and now I told my dad stop everything. All the new ones like less than 4-5 years I pre closed it and and took the losses other ones which have been running for a few years those are still running. Eg. I have one, already paid 10 years premium, 10 more years to go will mature in 2034. Tired of paying this premium when I know I will get nothing back.
I did exactly the same thing in August 2020, cancelled all ulips and endowment plans purchased by my Dad. Some agents and even a family doctor😢 sold these kinds of useless products to my dad.
Nice job. Would suggest people watching LLA video on the same topic too
It's simple whatever is being needed to adverstised too much it's in benefit of company soft drink , ulips,..
I saw that Tata aia ulip will return all charges from middle of the policy as a bonus
Is it true sir?
please make video on guaranteed return plans
With tax increase 12.5% LTCG, these agents are having great advantage to sell more ULIP's. I wonder if Govt keep increasing tax like this every budget then at one day ULIP will be better than direct MF. Your thoughts on this?
It's right.. if below 2.5 annually investment.. then return totally tax free. And ulip me after 10yr charges return bhi ho jaate hai..
Why IRDA is still continuing to sell ULIP?
I just love your content guys! ❤
But I think first con is wrong for some plans, cause as per my ULIP if the investor expires, the life insurance part is paid immediately, if there is any premiums left that will be paid and the final amount will be paid after maturity…
bro I am putting 60k in a ulip [6 lakh in total] and the cover is of 1 cr [2 cr for accidental death].
Although, I'll have to check the amount of money invested out of 60k!
Thanks for the video. Let me know anything else I may check.
Super initiative from zerodha...
Loved all your videos...
Awesome explanation... This make a looooooot of sense man.. thank you very much for explaining it in very simple terms. Brw i love these skit model videos on your channel.. keep up the good work guys ❤
What about the term plan premium for a 45-50 yr old person? It is very much high and u don't even get that money back. In Ulip money is growing plus u get 10 times life cover too
It depends on what exactly you want & what premiums you are getting.
A 10x life cover (10x of annual premium) is usually very low.
If the premiums are similar for the term plan and the ULIP, you need to check what's your priority. A great life cover for your family in case of an untimely death or a mediocre life cover + returns on your investment (which you'll probably get back at the age of 60-70).
If you are the sole bread winner of your family, getting a good cover amount should probably be your priority.
Hello sir
Can I discontinue bf4 5 years ???
I have seen ULIPs providing 20+% , what are your thoughts that then ? I'm not at all lying.
This year could turn out worse. I lost a lot of money last year as a result of poor investing decisions that I would never have made if I hadn't been so concerned about my portfolio. I wasn't sure whether to keep investing or make mortgage payments. After selling my investments, I discovered that the house required more work than I expected. I'm not sure how long I can go on like this.
Take things easy, we've all made mistakes.
Invest in companies that provide current cash flows to diversify your portfolio. I hired a planner at the end of 2023 to enhance my portfolio, and in the last ten months, I've made profits in over fifty different marketplaces. Should 2023 teach us anything, it's that luck doesn't last forever. Even in times of abundance, we should put in more effort to prepare for the worst case scenario.
How can one find a verifiable financial planner?
Lina Dineikiene a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Out of curiosity i just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. Thanks for sharing.
Good research work, thanks for sharing 👍 keep up the good work 💐
Can you guys make a video about how to read a P&L statement, balance sheet of a company,FCF statement.
I took a ULIP in 2019, My actual XIRR for 5 years is 29.35 %. My starting salary was low, I did not Invest in PPF or NPS which give 7 to 12 % Return Respectively, I used my 1.5Lakh 80C limit to invest in ULIP. Now 29.35 % in 5 years is much much higher than 12%. Today, I own ULIPS, Stocks and Mutual Funds all.. It's not about the product, it's about how smartly you plan your finances. People may miss sell the product but you have to learn to turn disadvantage to your advantage.
Now, I know 80C is covered under ELSS funds too, That is part of a seperate debate and reason not to choose them were also valid personally.
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I don't think ulip is bad. But, it shouldn't be your primary investment option. It should be a back up one. Where you will invest a small amount for 5 years and forget it it 15 to 20 years.
5:03 I don't think any pure term plan give 1Cr cover for 10000 annual premium assuming age group of premium is 30-40
I find the video slightly biased. I use credit cards to pay for ulip premia. This gives me rewards of 2-4% based on the milestone reached. So the charges associated with ulips get covered there. I have a good term insurance already. For a long term ulip beats mutual funds easily. Mutual funds have charges and the return is taxed at ltcg rates which will increase in coming years.
I have actually started shifting my mutual fund sips to ulips for the same reason. If you have a liquid emergency fund and a term insurance, ulips are much better compared to mutual funds in a long term. Credit card milestones will give cashbacks which cover all the associated fee of ulips, the return is not taxable.
In addition to above you can claim the investment in Sec 80c (ELSS mutual funds usually give a lower return as compared to index fund). Return is only tax free if your yearly premium is less than 2.5 lacs. Above that ULIPS proceeds are now charged as capital gain. I think the hi video should take account of these advantages too.
Please Make a vidio on security lending and borrowing mechanism ❤
This video was really helpful but the title does not really show that it is about ulips
Newer ever buy ULIP...1 made the mistake buying ULIP..They mis sell the product...The allocation and other charges are very high...
Thanx #zero1 team for 👁️ Eye Opener video ❤
You have also some product is low cost product and also return your motility charge
Max life plan and bajaj goal assure
ULIPS are good if you come under a higher income tax bracket. Despite that don't make them a part of your primary investment portfolio.
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I think this plan is for people who have surplus money so this way they can get some tax free money and they are not much worried about paying premium even in situation like Covid. In foreign countries, you can even take a loan against your insurance and you can even pause premium in case of emergency and still keep your life cover. So I think, like any other investment, each investment is not made for all type of individuals as their needs and goals might be different. But good video though. (I am not insurance agent. lol)
Thank you Zerodha for making your youtube channel
What about tier 2 nps instead??
My bank manager who manages some of my mutual funds meets me every few months to discuss my portfolio and the shameless guy invariably tries to pass off a ULIP under the guise of investment, every time.
Most of my mutual funds are now through the direct route and i am slowly shifting my remaining mf taken through the bank many years ago, to direct funds