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Do not mix Insurance and Investment

Insurance gives financial protection to dependents in the event of death of bread-earner...

I am planning to invest Rs 2000 per month in Aegon Religare Imaximise ULIP plan. I have heard both, good and bad reviews about Aegon Religare. Could you please suggest what should I do?
- Satya

Aegon Religare Imaximise is a new ULIP launched after September 2010. The policy has a lock-in of five years, which means you would have to incur a penalty if you withdraw your investment before completing five policy years.

We do not recommend you to invest in this policy as it's a Unit Linked policy that combines insurance and investment. Investing in such products is not a good idea as you do not derive the maximum benefit of either insurance or investment.

A systematic investment plan in mutual funds would serve your need better. If you are investing for a longer duration say ten or more years, you may select good mid cap funds using 'Fund Selector' tool on our website. However, the type of fund would depend on your risk appetite.

Once you get a taste of investing in mutual funds, you may diversify your portfolio to include more risky funds based on your risk appetite and objectives. For life insurance, we recommend plain Term Insurance plan which is the cheapest and best life insurance available in the market.