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Shun Ulips

Ulips mix life insurance with investment & in the process, make the investor compromise on both fronts…

I am 32 and my target is to accumulate Rs 50 lakh in 15 years for my child’s education and Rs 3 crore after 30 years for my retirement. I have two Ulip plans with monthly premium of Rs 2,000. Can I achieve my goal?-
Kapil

Life insurance should not be mixed with investment, which is what Ulips do and in the process compromise on insurance cover as well as investment returns. You should consider a pure risk policy in the form of a term cover to take care or your insurance needs and invest in mutual funds to achieve your financial goals.

To achieve your son’s education need of Rs 50 lakh in 15 years you need to invest Rs 9,910 in a portfolio that earns 12 per cent annualised returns or Rs 7,390 in a portfolio that earns 15 per cent annualised returns. Likewise to achieve your retirement goal of accumulating Rs 3 crore in 30 years, you need to invest Rs 8,500 in a portfolio that earns 12 per cent annualised returns or Rs 4,290 in a portfolio that earns 15 per cent annualised returns.



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