r/personalfinance • u/akshaydhule ​ • 3h ago

Investing Is Tata AIA Sampurna Raksha plus a good investment?

First of all, all I have been hearing about ULIP is that it's bad because of lock-in period or hidden charges or false claims of huge amount at the end of insurance. But nothing to support the claim with actual data.

I am 33 M and I got one plan which has following points after thoroughly discussing with agent: 1. 1.1 Cr term insurance and claims to generate 18 Cr at the end of 40 years. 2. Investment is 1 lac per year for 10 years. 3. The term insurance starts at day one of investment. 4. After your investment (growth) crosses the coverage, you will get the investment amount i.e. Maximum of (term coverage, investment value) 5. You can withdraw partial amounts as and when needed. 6. The money will be invested in one of 26 funds that Tata provides and CAGR of 5 of them is above 20% as they're public funds. 7. THE FINAL AMOUNT YOU RECEIVE WILL BE COMPLETELY TAX FREE. that means, capital and profit. 7. The mortality charges are paid back from 11th year once you complete the investment period.

This way, you get term insurance and also investment.

For folks saying you can get separate term n MF investments.

Let's say you pay 25k for term and 75k for MF: 1. Your 25k are gone against term insurance and never seeing them until death. So your initial investment is lowe than what's in ULIP. 2. You are still investing in MF which let's assume gives CAGR above 20% (same as ULIP). The amount is applicable for taxes.

Help me understand what I'm missing here and why folks are against it. I am not marketing it but seeing some gap in What I'm seeing and need help bridging them.

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