Should you ditch ULIP for an equity fund + a term plan?

You might be familiar with a work colleague who lacks talent but is successful. If so, say hello to ULIPs, or unit-linked insurance plans (ULIPs). They are cut from the same cloth. Though marketed as a 2-in-1 investment wonder because ULIPs combine investing with insurance, they fall short on both counts. They are neither a great insurance plan nor a good investment option. Perhaps, this is why one of our readers wants to re-align her finances. While she did buy a ULIP six years back, she wants to know if she should exit the policy and look for better alternatives. Fortunately, she does have better options. Let's give you an inside look. Her current status She invested in SBI Smart Privilege ULIP six years back. The particulars of the policy are as below: SBI Smart Privilege ULIP Policy term 20 years Plan type Regular Annual premium

This article was originally published on September 05, 2023.