Worst Financial Products in India

Investment + Insurance = Worst product.

What I mean to say is any product which is a combination of both Investment and Insurance can never be a good product. Because Insurance will cost money to you, Investment charges will be separate and less amount will go towards actual investment hence it will be a costly product. Never mix insurance with investment or buy any financial product which is the combination of insurance and investments.
Understand your insurance and investment need for insurance Term Insurance is the good product and for Investment mutual fund is the ideal product.

Below are the lists of such product which is combination of investment and insurance. These products are very costly so avoid such products.

• Whole life insurance plans
• Money back insurance plans
• Pension / retirement plans
• ULIPs (Unit Linked Insurance Plans)
• Child future plans
• Any INVESTMENT CUM INSURANCE product

ULIPs and other similar products are costly and gives you life cover of 5-10% of annual premium which nothing compare to term insurance. Term insurance gives you enough life cover with low premium, so take term insurance and invest the difference in mutual fund.