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  • News From Press Here's why one should not fall for guaranteed life insurance plans

    Here's why one should not fall for guaranteed life insurance plans

    Source: Economic Times Mar 17, 2017

    Life insurance companies rule the roost in the last few months of the tax saving season. The flavours of the season are traditional life insurance policies -- endowments and money-back, for instance -- with guarantees thrown in. In a falling interest rate scenario, such guarantee works as a bait to entice those looking at life insurance for tax benefits. 

    Guaranteed life insurance plans are the mainstay of almost all insurance companies. In such plans, instead of declaring bonus, which can vary depending on the profits that the insurers make, insurers declare a 'guaranteed addition' (GA) or 'guaranteed return' in lieu of bonus. On the face of it, such plans appear attractive with lots of guarantees thrown in at different stages of the policy. After all, the maturity amount is guaranteed and so are the monthly payouts. 

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    1 Comment
    Prashant · 7 years ago `
    This is a false propoganda about traditional policies. Firstly returns are not the only criteria for all investors. Secondly if one goes for a pure term plan only than the total money invested and the returns from the other investment is to be calculated as a whole. Also everyone does not get term policy just because they want to. It's not that easy that you want insurance and you get it. Term is ideal for people with loans on their head. Now let's come to commissions. Why does it pinch companies to give commissions to agents eventhough they ate the ones who sell their products? They are the ones who are saying that commissions hurt investors which is not true bit it actually pinches them and they want the whole pie to themselves. That is why they are spreading false propoganda.

    Now let us come to the point. People buy the policies not because we push those products but its because they are comfortable with them. Also what about the manufacturers they manufacture a product keeping in mind the demand and not just because they want to sell and make money.

    Please ignore this article. It is nothing but a false propoganda
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