and the amount of premium that is increased per month is insane, put that money in sip , continue with normal term plan and you'll end up with a much much larger corpus
It's only for people who Think "Term Insurance" is a wastage. Not for young risk takers. I have a normal term insurance for me and my mom and have made an SIP for the additional 29k I was supposed to pay. But my Dad had his reasons not to do so, so he went forward with this one.
So true. No a days these wanna be financial influencer just want to create reels without even having zero knowledge on the topic... Amount of time spent on plot >> amount of time spent to research about the topic
Such policies are actually costlier If you pay 12K annually for regular term plan, money-back term plan costs 2x, i.e. 24K All you get in money back term plan is the premium paid, but it's more logical to pay 1K in regular and invest another 1k in equity mf. Return are 2.5x compared to money back insurance plans
Term plan with ROP, Return of premium is actually loss of money. You could just sip that amount in any good small cap mutual fund, add a normal term plan and get a lot times more than what these plans can offer.
@@alleviateyoga i protect smart by ICICI PRUDENTIAL, without return of premium option. Take 125 month claim amount pay out option, not single pay out and get critical illness rider added to it.
Premium is double for zero cost insurance.it’s same if you take normal insurance with low premium and put same amount as SIP. After 25-30 years. We will get more money as return compared to zero cost insurances pay back
I didn't knew you started doing promotions too. The extra which would be invested for money return after maturity will be hell lot more than the original amount invested.
If we select Return of premium option, it will ask for more premium or opt to pay for more years. If we invest the difference in outside (even with fd rate) we get double amount than they offer.
I agree, premium return plans costs almost double, and that Money is locked till maturity period and you get the same amount back after maturity. It's like a mutual fund with 0% return. Also with rising inflation (in September 2022 it rose to 7% approx) that money will be kaccha badam after a maturity of 20 or 30 years. This is how company fool common people. Also think what will they do with so much money, they will also invest it somewhere and generate money. We become so greedy that we don't see the other picture. If you are earning a good amount of money to pay almost double the premium, instead invest the same amount (extra from original premium without money back plans) in an index mutual funds which generally gives around 12% returns, and in 20-30 years period of time. You would create most likely double your invested amount. This is why financial education is so important.
@@IFennecYouCODM I think you lost purpose of term insurance and drifted away totally into investment. Index funds didn't provide coverage if someone dies.
@@NecromancerTO bruh I am saying about that premium return plans costs almost double which is totally absurd. I wrote if you have are earning good, then invest the extra amount that you are going to pay for premium returns plans. Please read carefully.
Yes usually what you can eran in 10 years that should be your cover so if you die that amount will help your family and yes return of premium is best plus accidental cover plus incremental increase and above all medical package all together combined is needed when you have a home loan
But the premiums compared to normal ones are high bro…instead we can sip the extra premium charged for zero cost term policy,through this we can get more than what we pay..i know that you know this..
This still means the money you invest in the policy will not earn anywhere near the interest it would earn if you had invested in let's say an SIP instead.
But the amount invested in early stage for an late stage recovery would be more than if you go yearly premium and the inflation at the end of 25 years would be more making it non useful.
No actual finance guy ever suggests money back term plans. Just because your get only the premium paid minus taxes, doesn't mean they're zero cost. You're paying nearly double today. Instead take regular plan & invest the rest.
1. If you invest that 10% in the market, over 35 years even Index funds will give you 12% returns which is 23% higher than what this scheme will return. 2. After 35 years, the total value of what you will get is only 15 to 20% of what you pay, considering inflation.
There are no free lunches. What about cost of money over the period of 20-25 years? Premium is adjusted against return of premium value after expiry of term insurance
The return of premium doesn't make sense at the age of 75 or 85. Why pay more premium today to get that premium back when its value and need both will get diminished drastically.
Hello sir, Thanks for advice. Sir which index mutual fund is better than ELSS INDEX FUND? Because it's ETT. End of plan govt charge 10% ELSS total amount. To avoid this which index mutual fund is best. Please Suggest sir.
Pure vannila policy is always the best when it comes to term insurance. But yaar.. Not surprised.. When someone sponsor a great amount. It's okie to promote anything 😀 Ps: Although learning many useful things from the channel..Need to be very careful in following anyone blindly
But it will cost you more , take a term insurance without any money back and just invest the difference of regular vs 0 term insurance and invest in any index fund then you will get far more greater returns . Pls do calculate by yourself and you will be surprised .
