ULIP hoax: Make Rs 6 lakh in six years

HOW TO SAVE: ULIP is a combination of plain life cover with a component of investment.

ibnlive.com is on mobile now. Read news, watch videos
be a Citizen Journalist. Log on to m.ibnlive.com NOW!

Top Headlines

Top Videos

Most Popular

• I took calculated risks for higher growth: Pranab  

• Udayan's View: Budget 2009, a game of patience 

• A study in comparison: Education budget up Rs 7K cr 

• Face The Budget: Political response to Budget 09-10 

• The verdict: CNN-IBN panelists rate Pranab's Budget  

• Reform hopes dashed, market watchers feel let down  

• I-T exemption limit raised | FBT rolled back | Taxes and you 

• Pranab skips two paras of Budget speech, apologises 

• Bengal benefits, Mamata and Pranab budget for their state 

• Income tax limits raised; farmers, exporters get sops 

• Watch: Dalal Street reacts to the Budget 

• Budget: Pranab's chance to create his own legacy 

• FM has done a fairly good job: Narayana Murthy 

• Budget to focus on social spend, growth 

• Education reform will be for all Indians: Sibal 

• The Budget That Isn't: Cyrus gears up for Budget 

• EVMs are tamper proof, says Election Commission 

• Watch: Railway exams disrupted in Mysore, Banglaore 

• Watch: Maneka writes to PM over threat to Varun's life 

• One-upmanship: Sonia, Pawar in foodgrain politics 

• Life saving drugs, LCDs cheaper; Set-top-box costlier 

• Buy that big car: SUVs, petrol trucks to cost less 

• Defence budget unchanged; Army gets lion's share 

• Minimum Rs 30 lakh needed to be called wealthy 

• TAX BREAKS, WELFARE SCHEMES IN COMMON MAN'S BUDGET 

• Common man gets a treat, over 15 schemes 

• Health budget up by Rs 4,000 cr, 6 new AIIMS in cities 

• Bengal benefits, Mamata and Pranab budget for their state 

• Full text: Union Budget 2009 

• Software industry gets tax benefits for one more yr 

Photogallery

Find us on Facebook | Join IBNLive community

Stay ahead with G-Talk Buddy | Click now!

Angelo Mathew works as an assistant editor in a media company. He has a hectic schedule and spends long hours in office.

A complete techie, this 23-year-old has a passion for cars and knows about every brand in town. But the same passion (or interest) does not mirror when it comes to his investments.

Simply because his dad insisted (on the agent's recommendation), he bought a life insurance policy-- a unit linked insurance plan (ULIP). It would save him tax, the agent had said!

Now, the only thing that Angelo understood about the ULIP was that he would make Rs 6 lakh in six years! Thanks to his insurance agent, Angelo wrongly believed that a ULIP is a tool to make fast cash.

What's the premium outgo?

He pays an annual premium of Rs 30,000 every year and has paid three premiums so far. Today, he is left with less than Rs 60,000. Thanks to two things which the agent never told him:

Charges