Endowment Policy A Waste of Your Money?

[vishal412]

Up to a few months ago,ULIPs were being pushed in a big way. An insurance product that helped you also invest in the equity markets, in a single contract, was being touted as a dream product come true.

Research was done and efforts to educate the investor have since rubbished these claims of godliness. Stories of this high commission product that had not yet even proved itself, with unscrupulous agents hard-selling them to unaware customers who didnt even need these policies, made news time and time again.

Regulators stepped in, and ULIPs are now recovering from the bad press, quietly. Advisors are reluctant to really sell ULIPs, for fear that the client now knows that he will be getting a bad deal, and will not trust the advisor anymore. And lack of trust is one of the worst things that can happen to an advisor from his client.

So advisors are now selling traditional plans. Once again they are insisting that traditional plans are excellent, there is no market risk, the maturity value is assured, and everybody must have these policies.

Read more:
Is Your Endowment Policy A Waste of Your Money?

 

[taurus27]

ULIPs are the biggest fraud perpetrated on the aam admi by the insurance industry. It is shameful that IRDA allowed this day light robbery by the insurance cos. Atleast now, people are wising up. People should understand and appreciate that insurance should never be mixed with investment - the mixture is too much to digest!!