Would you buy a financial product claiming to double your money? Before you get tempted, take a closer look at the product. The money will sure get doubled, but the question to ask is: after how many years? If this money is coming to you after, say, 15 years, it will translate into a net return of just around 5%.
In the absence of market discipline that ensures companies have a standard and simple format, the onus is on the buyer to understand a product, especially a bundled insurance plan because of its complex design.
While there is some information available, such as the fund performance of unit-linked insurance plans (Ulip), that’s not enough. Here are three questions to ask before buying a plan.