Is another ULIP a better option?

[Rajeev S]

I am thirty year old, married. I have one LIC of two Lakhs. I am looking to buy Life Insurance to cover my self. Is another ULIP a better option? If yes, which one is better? Please Guide.

[rohit]

You have not mentioned your earnings and other liabilities in the question. If you wish to choose ULIP route to cover insurance and also build wealth then you should take term insurance with an insurance company to cover risk for reasonably substantial value to protect ur present income to the family and invest rest of the money in a few well performing diversified equity fund of a mutual fund using Systmatic Investment Plan (SIP). Please keep your choice to 3 or 4 funds of good Mutual Fund. This way you are likely to have better risk cover and also be able to buld your wealth well. Investment in ULIP and Mutual fund has same risk. For term insurance you can consider HDFC SL, SBI Life, ICICI Pru or Birla Sunlife.