Ask Value Research

Is it worth holding a ULIP with negative returns?

There is no point in holding on to an expensive, poor performing product

Is it worth holding a 10 year term ULIP policy which is giving negative returns?
- Anup Bhasin

No, it is not worth holding on to a unit linked insurance plan (ULIP). Exit from it to limit your future losses.

ULIPs charge hefty costs, particularly in the initial years, due to which your actual investment amount is much lower than the premium you pay. As a result, the residual investment is not sufficient to earn a considerable return for you even if the market is doing well.

This article was originally published on March 01, 2017.

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