It is a good writeup. But a few pts need clarifications from author. 1. Many people have started ULIP pension schemes in view of 80CCC Itax benefit(merged since fin yr 05-06 in overall 1 lak limit of 80C). Many of this lot have completed mandatory lockin of 3 yrs and are contemplating abandoning the stream surrendering these pols. When the author advices them to continue till maturity what is the penalty the ins co will levy to send back the amt after selling accumulated units at prevailing NAvs(be it eq or debt or hybrid ins funds the polholder has opted). 2. Its not clear why the author gives reco to put exrtra investible cash into ULIP(in Equity funds or Debt/cash funds) with TopUp facility.Because there are several demerits in this like you pay prem.allocn charge upto 2%(absent in MFs from 1/1/2008 if done through MF serv centres or online).Also therer is a lockin of 3 yrs for topup prem.in ULIP (no such lockin in MFs, at worst an exit charge of 1%, if taken out before 1 yr). Only merit being you can increase your Sum assured (SA) at a later date which can always be done later also by withdrawing from Mfs etc. The writer may clarify what are his intentions in asking readers to do topup
