Term Plan vs ULIP vs Traditional: Which One Truly Fits Your Needs?
They all walked out smiling—feeling secure, proud, and a little relieved.
But here’s the twist: They all think they made the smarter choice.
And maybe… they did. 🤷♂️
🎯 Let’s Talk Reality
There’s this idea floating around online and in drawing room discussions:
“Term insurance is the smartest. Everything else is a scam.”
But you know what?
Real life is messier. And so are money decisions.
They all are salaried, in their early 30s.
One had a pure term plan with ₹1 crore cover.
The other had a ULIP—smaller life cover, but a growing investment fund inside.
The third had lowest of all, lowest insurance, lowest return.
At first glance, you'd think:
🟢 Term guy = smart
🟡 ULIP guy = fooled
🔴 Money Back guy = least intelligent
But wait.
The term plan buyer never actually invested the difference he saved.
The ULIP buyer? Disciplined SIP within the ULIP, never touched it, stayed invested.
The money back one -- also started and continued SIPs in mix of equity funds, balanced advantage funds and ULIP, later invested in stocks directly and also took a term insurance plan after he got married.
Fast forward 10 years:
One had solid protection but little corpus.
The other had protection and a decent fund.
The third had enough protection, decent fund and a well diversified portfolio.
So—who got it right?
That? Not so simple. 😅
🧠 Something I Wish More People Knew
Not everyone sees money the same way.
Some people want:
🧮 Clarity – “Let me separate insurance and investment.”
Others want:
🔐 Simplicity – “Just give me one product that handles both.”
Take it step by step, as and when life requires. Never get swayed by external influences—noises and hypes.
✅ Term insurance is amazing if you invest the rest.
✅ ULIPs can work if you understand what you’re getting into.
But here’s the problem...
🚫 Most people don’t really know what they’ve bought.
They go with what sounds safe.
Or what a colleague recommended.
Or what the relationship manager sold.
That’s not wrong.
It’s just… incomplete.
👀 Seen This Happen?
- 🔹 Someone buys a term plan… but never starts an SIP.
- 🔹 Someone buys a ULIP… then breaks it in Year 3 for “emergency.”
- 🔹 Someone buys term plan... invests in mutual funds through SIPs, dissolves all, lapsed insurance, rejected sips from banks due to insufficient funds.
- 🔹 Someone relies only on endowments or child plans… thinking they’ve “covered” insurance.
These are not rare cases.
I see them every month. In apartments, tea stalls, verandahs. Across families from Behala to Barrackpore.
And you know what?
It’s not stupidity. It’s not greed.
It’s confusion.
It’s convenience.
It’s the fear of asking too many questions.
💬 “Smart financial choices don’t come from picking the best product.
They come from knowing why you picked it—and what it can and cannot do.”
📝 A Quote to Remember
“All financial tools work—when the person using them knows what they’re trying to build.” 🛠️🏡
❓ Real Questions I Get Offline
Q: Is term insurance always the best choice?
🟢 If your only goal is to protect your family in case of your death—yes. But only if you also invest the savings somewhere else.
Q: Are ULIPs a bad idea?
🟡 Not always. They’re like combo meals—convenient, but only if you understand what’s included and what’s not.
Q: What if I already bought the “wrong” one?
🔄 You’re not stuck. Many people tweak their plans later. You just need an honest review. Offline, of course.
🤝 Soft Close
If you’ve ever wondered whether you made the “right” choice—you’re already ahead of most.
Because asking why you bought something is the first step toward actually owning it.
🪑 No pressure.
But if your policy papers feel more like a puzzle than a plan—maybe it’s time we had a real conversation.
Face to face. No judgment. Just clarity.
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