Big banks like HSBC in ahmedabad is malpracticing these things since almost 2003 , by selling out the TATA AIG policies . The so called financial advisors (who are crooks) never reveal to customer that how mych they are axed (approx 35 % for first year and 15% for second year).
I am of the firm opinion that all ULIP products from Indian financial market should be closed down.
To the new investors, my advice is to keep the insurance (term-plan) and investment 100% seperate.
As far as financial planners concerned they are not on the investors side, they are more comission mongered at the cost of policy, which they are getting from new investors.
A mature investor will never , never buy a ULIP.
I would ask any one who is interested to workout on both strategy differently and then try to figure out what is worth. I am sure ULIPs are in no way worth.
Maulik Suthar. (Lecturer and Individual investor) Gandhinagar , India
