Three Kinds Of Life Insurance - And How They're Mis-sold

The problem with this article is that it says agents which means that All the agents always missell these products. Which is completely wrong. It's the banks and brokers who actually missell. People go for fds and bank people convert them into insurance by telling them that they will get 12% and in fd only 8%.Also banks say that if you want facilities or loans you have to buy insurance. And brokes actually cheat people by saying that they give their policy details and they will get bonus if they buy a particular policy from them.

Now let's come to the main point. Because of RIA regulation ULIP will without a doubt give a much better return since investors will have to shell out fees. Any which ways ulips would give superior returns compared to mutual funds because of the investment pattern and style.

Now let's come down to traditional plans. No matter how much you make an investor understand, they are not comfortable with volatility. Secondly they want something guaranteed. Bank fd gives 7 to 7.5% now before tax with only 1 lakh guarantee. Insurance plans giving 5% anyday scores because they are tax free. Even debt funds are volatile so customers opt for traditional plans.

Term plan is a very good idea but not all are eligible for term plan. Since they need sufficient income for the company to consider taking risk and everybody is not so healthy so that they will get term plan.

One should not look at the surrender value because one does not buy plan to surrender.

Opacity will now come in mutual fund industry since RIAs will not show plans with their advisory fees so investor will never realise the real return because he or she Will not calculate returns after charges to RIAs.