I avoided ULIP from different bank agents. While I have been asked recently to invest SBI ULIP plan-smart privilege which seems good.
Plan 6 lakh/annum for min 5 yrs, 8 funds-free switches over + loyalty additions. Based on their brochure, I will get 1.15 crore @18% return in Midcap, 60.2 lakh @ 9% return on bond after10 yrs which suits my financial goal. However, I asked about an advantage of investing in ULIP than MF. He said tax-free & loyalty addition which returns their charges. Is it true and advisable to proceed as I have read your many blogs with regards to ULIP?
If he is showing indicative returns as 18% and 9% for equity and bond funds, then he will immediately lose the job as it is against IRDA rules to show such high indicative returns.
However, if he is showing the past returns, then do remember one thing that ULIP is a marriage between you and the company (irrespective of how the fund perform in the future). Also, the person who is selling you this plan may be out of the industry of Life Insurance company after a few years. Then to whom you contact if they do not generate even the half of this guy claiming?
Never trust these fellows. Do your homework and stick to the basics of NOT TO COMBINE INSURANCE WITH INVESTMENT.