by Vinaya HS on July 1, 2010
in Finance
I first read about this pension plan in the ET dated June 22, 2010. I was intrigued. Basically, Reliance Life Traditional Golden Years Plan is a regular premium retirement plan that provides guaranteed return, which is declared at the beginning of every financial year during the product term. So far so good. But,
The minimum guaranteed accumulation rate [in other words, the return] will not be less than the savings bank deposit interest rate, as declared by the Reserve Bank of India.
WTF, mate? What kind of guarantee is this?
Next, I ran the numbers through this calculator — assumptions were 35 years policy/premium paying term and a monthly premium of Rs 6,000. Over a period of 35 years, you pay a whopping 6% of your total premium as Premium Allocation Fees and Policy Administration Fees. To further add insult to your injury, you also pay around 1.2% of the accumulated value at the end of each year as Account Administration Fees.
A guaranteed tension plan in my opinion.
My advise:
Over a period of 35 years, you’d do FAR FAR FAR BETTER simply by saving the same Rs 6,000 each month in a Public Provident Fund account.
What do you think?
by Vinaya HS on May 13, 2010
in Finance
Makes you poor and your agent/insurer rich.
Look what I found in my email.
A job (commission-based) that allows you to be your own boss. Life insurance consultant with LIC of India (part-time or flexi-time). The job involves prospecting, understanding life insurance needs, advising on suitable options and closing the sale. It’s a freelance marketing job with attractive commissions not only at the time of sale but also so long as policy is in force.
For example, let’s assume that you bring in a total of 6,00,000 worth of premium in a year. On an average you will earn 2,00,000 in the first year, 60,000 in the second and third years and 40,000 every year till maturity of the policies. Fantastic earnings isn’t it. The renewal commissions will form a steady stream of income. This is self employment without investment.
In the most happening Bangalore City also named Wealth Bowl of India. Come be a part of this sunrise industry growing at more than 20%.
If this interests you,
Call xxxx xxxxx,
Development Officer, LIC of India
Now you know what that money you earnestly put in that ULIP all these years is doing. It’s making you poor and your agent/insurer stinking rich.
Avoid ULIPs. I can’t say this enough times.
