The ULIP Formula
Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Letters to Editor, MF - Letter to Editor, Mutual Fund
It was quite nice to know how to exit the traditional life insurance policies such as endowment. But how should one exit ULIP policies and how does the new tax norm affect the ULIPs?
- Ram Suryavanshi
Editor Responds
You cannot exit from a ULIP before its lock-in period which is typically five years. From the tax viewpoint, the latest change announced in the budget will certainly affect ULIPs with higher premiums. Hence, if you were committing your funds towards ULIP with an investment perspective and trying to save on tax, ELSS is a better option.