By Andy Mukherjee
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
(Any opinions expressed here are those of the author and not of Thomson Reuters)
Most ULIPs (unit-linked insurance plans) are far better compared to traditional insurance plans. They are more flexible, more transparent and have the potential to generate bigger returns. But insurance sales do not necessarily follow simple logic. There are a variety of reasons why traditional plans are likely to fare better.
Matteo Renzi’s Plan A is to push through domestic reforms, hope the European Central Bank manages to get inflation ticking up, and keep his fingers crossed the Italian economy stops shrinking. But if this fails, a mega wealth tax, debt restructuring and/or exit from the euro beckons.
By Jeffrey Goldfarb and Robert Cyran
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.