How insurance company will play with you and even you wont be aware of it.

Hello readers, 

Wishing you very happy reading ☺️

How insurance company will play with you and even you wont be aware of it. 

I was going through one of policy name:

#Tata AIA Life Insurance Fortune Guarantee Plus. 

Here if in case policyholder die during policy term, then insurance company will be in benefit. Ie. Policy holders will be at big loss. Explained below. 

In this policy, company offers approx 6.25% for long-term (i.e 50 years). Income will be also tax free under 10(10d). This seems quite attractive. 

Lets take a case to brinfly precise week point of the policy:

Premium payment term : 12years

Policy Term : 15 years (12 +3).

Guranteed income: over 35 years after end of policy term.

I<-----12Y----+---3Y---->I<------35Y--------->I 


Age 30y

Annual premium - 1 lacs pa. 

In case of death during "POLICY TERM" (i.e. Upto 15th year in above case): company will return only "sum assured" which is 12 lacs. 

Lets assumes policy holder die in initial few years -- here obviously policy holder will be in benefit. 

Now assume policy holder die in 14th year. Then company will still refund only 12 lacs. 😂😂😂

👉👉If you invest 1 lacs pa for 12 years @6%pa then at end of 14th years, corpus will be--- more then 19.5 lacs.... Then why should we accept 12 lacs only????🤔🤔😛

Positive points in this policy: 

There are options to choose different policy terms and through that you can minimize above week point in your favor. 

Feel free to share, which opinion you are planning to choose. Based on that I will evaluate and help you to know exact IRR and Risk☺️. 

Further anyone should go for investment in insurance company or not. This topic I will cover in my upcoming blog. 


Thank you for your time. 


✍️✍️ By CA. Bibhuti Singh.

Comments

Post a Comment

Popular posts from this blog

Should Indian government evaluate the impact on vaccine supply in India due to Adar Poonawalla left India?

Hello reader, Wishing you very happy reading. Topic : Should Indian government evaluate the impact on vaccine supply in India due to Adar Poonawalla left India?  As we all know, Mr. Adar Poonawalla,  Chief Executive Officer of the Serum Institute of India, has left India with his family (wife, children) for London. In the mean while, also there is news that he has plan to set new manufacturing unit out side India. This plan has created a doubt in my mind from Indian perspective that whether his this move will have any impact on vaccine supply in India? As we know being Indian company, his success on developing vaccine is equally counted as success of India. So India have privilege of vaccine supply with this point of view. But Mr. Poonawalla's this move to left India for London, will any how impact on vaccine supply in India? This must be evaluated by Indian Government. He has claimed that he has left India because of getting threat from various people. Can this really be...
Read more