ULIP query - fund value reduced almost Rs.9000 less?

[Rahul]

Hi Rahul.. Thanks for the reply

We can't say I lost the bargain as I haven't close my ULIP. One thing I would like to ask - Is if we keep a vision of 6 or 10 years, how will we able to contain the inflation? Will or returns cover the inflation risk?

If you take long term view that equity had outperformed all other asset class. If you check the past performance it will come around 15-20%, which is more than inflation (6-10%). Risk is there and you cannot predict future return but I would take risk and invest in MFs to keep my assets grow.

[GURU]

Please remember that ULIPs are structured such that it is beneficial only if invested for more than 8-10 years. If you have paid 3 years premium for ULIP, you can surrender the policy and the insurer will pay you the fund value. Post 3 years the charges are lesser and therefore you build up units at a lower cost. I would suggest, if possible (as per terms of the policy) stop paying premium after 3 years and use cover continuance option till 5th year or take premium holiday and then surrender the policy in 5th year.