There are plenty of other ways to invest and save and I personally never
touch insurance plus investment products.
--srs (htc one x)
On 24 April 2013 9:11:57 AM [email protected] wrote:
A lot of the selling is by the local 'family friend' who moonlights as an
agent, or by the branch manager who has quotas. With 40% commissions,
selling ULIPs was irresistible. It's an easy sucker ploy, too- tell the
buyer that he pays 1 lakh, saves 33K on tax, and gets *at least* 1.5 lakhs
at the end. Most people anyway submit the receipts to their office HR guy
and are too clueless to check how much tax has actually been saved.
I have no sympathy for the 20 and 30 year olds who bought into this con,
and then learnt that (a) they were saving no tax because their 80C was used
up (b) found that they faced 100% surrender charges, etc (c) saw the value
of their units fall. A classic case of throwing good money at a bad product
thanks to this 'save tax' madness.
That said, this malaise has affected older people who've been suckered into
buying useless products (same principle should apply, but I do have a
little more sympathy for retirees who've paid money they can ill afford, to
scamsters). I have a 65 year old aunt, who does not need life insurance at
all, but who was bullied into buying some ULIPs because her local agent
shouted at her and said 'Don't you have value for 33K? Do you just want to
throw this money away"?.
SRS- I don't see why anyone should buy the money-back kind of insurance at
all. If you're risk averse, aren't there other ways to put money in
tax-saving instruments which have guaranteed returns and shorter lock-ins?
NSCs, Post Office deposits, etc?
Sent on my BlackBerry® from Vodafone
-----Original Message-----
From: Srini RamaKrishnan <[email protected]>
Sender: [email protected]
Date: Tue, 23 Apr 2013 15:40:43 To:
[email protected]<[email protected]>
Reply-To: [email protected]
Subject: Re: [silk] Migrant workers and bank accounts
On Tue, Apr 23, 2013 at 3:36 PM, Suresh Ramasubramanian
<[email protected]> wrote:
> While sophisticated investors might not want to mix insurance and
investment, it still remains an option - in several cases - for less
sophisticated investors, as long as they find a honest advisor who doesn't
missell to them.
It isn't just that - insurance premium is tax deductible I thought, or
something like that. At any rate the tax laws were a driver IIRC.
