Lame Finance: The Wealthsurance Foundation Plan — A True Financial Weapon of Mass Destruction

by Vinaya HS on April 1, 2008

in Finance

Thanks for visiting Capital Advisor. I frequently update this blog to cover various topics on personal finance such as investment strategies, financial products that you should buy and ones that you really should stay away from, financial calculators, emerging themes such as early retirement and financial independence, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

A full-page Page 3 advertisement in today’s Economic Times (Bangalore edition) introduces the Wealthsurance Foundation Plan from IDBI Fortis Life Insurance Co Ltd. Obviously, with such an honestly lame name (seriously, Wealthsurance!), it has to be a Unit Linked Life Insurance Product (ULIP) in disguise — and it is!

After a hair scratching/tearing analogy with pomegranates and human embryos, the scheme [or scam?] goes on to explain that

You can protect your Plan from death, terminal illness, 17 major diseases, 13 serious accidental injuries, or any illness requiring hospitalization. Thus your Plan is not affected by sudden financial demands caused by bad kismat.

Hilarious wording. And you’re doomed if you contract that 18th major diseases or suffer that 14th serious accidental injury. Thank God, they haven’t provided us a statistics table with age-ranges, major diseases, serious accidents, and their probabilities. I’d love to meet the actuary behind this scheme [or scam?].

The footnotes are worth highlighting:

  • IDBI Fortis Life Insurance Co Ltd is only the name of the Insurance Company and Wealthsurance Foundation Plan is only the name of the unit linked life insurance contract and does not in anyway indicate the quality of the contract, its future prospects or returns. [Ummm...then why should I buy this policy?]
  • The various funds offered under this contract are the names of the funds and do not in anyway indicate the quality of these plans, their future prospects, and returns. [Again...why should I buy this policy?]
  • IDBI Fortis Life Insurance Co Ltd has applied for the registration of Wealthsurance as a trademark with the Trademark Registry. [WTF mate?]

All said and done, here’s what the ad actually wanted to say:

Hand us the cash — right now. Watch us grow rich by consistently looting “management fees” from your Plan. Watch us washing our hands off any liability. Watch us waving goodbye. Thank you. Next customer please. Repeat.

Let me know if you’re brave enough to buy this policy.

Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 2 comments… read them below or add one }

Anoop April 1, 2008 at 7:37 PM

Mate this one really resembles the one policy by some ABN AMRO credit card policy which I told u about, that they will pay 90% fees crap in case of fatal accidents hahahaha… Again dude, they know the overall mentality of the public, not many are skilled as u and me and many dont analyze things before they take it up.. U find many of them working in today’s companies are order clerks, they can’t analyze they can only follow & many will be satisfied once they talk of Life Insurance crap..
I believe none can insure our life, we don’t get out of life alive anyway, so why save the shet for some piece of crap like severe injuries which is going to happen or some shet kinda stuff (its an uncertainity, shet may hit the fan or it may not)unfortunately all the things many do is fall goat’s to such piece of crap,like u once said that these days “we are young and we tend to ignore the negative aspects because we are very optimistic”, its only when shet hits the fan do we realize that some there is free cheese which looks fresh available in every mouse trap.

I definetely would not invest into any crap policy like the one above, I will only go for Medical insurance, where only some 20$ per month is cut from my salary every month, so even I have severe injuries its not going to cost me anything, coz still I would be spending is my money which is saved already as insurance.

Anoop April 1, 2008 at 7:44 PM

Have u seen this Amway concept? there marketting scam is so lame that it can never convince a youngster like u and me, instead it only targets less skilled people. it is so well planned and structured with all those inspirational speeches crap kinda thing, that people who started it are simply growing to maximum potential, but work behind there success is all due to these order clerks..Amazing concept..many dont understand that “Chain concept” of building team what Amway explains for there business to be successfull..

It is like saying if I receive an award ” Guys I dedicate this award to all of you as you are the reason behind my success but I still will enjoy all the benefits and credit”…

What a piece of hilarious crap? My dad’s been 8 years into this amway business, Shet hit the fan twice and he has now realized only to buy there products use them and throw them not market it..

Previous post:

Next post: