The insurance regulator manages to tie itself up in circles... yet again... and again
A w
eek ago, Business & Economy, our group publication, after investing in specific schemes over a period of two years, carried an exposé on how ULIP schemes were running a near “rock shocking” racket! B&E mentions, and we quote, “Rs.1,500 added per month (at 0% interest) over a period of two years equals Rs.36,000... But if one were to ask certain top-of-the line insurance companies running the ‘so called’ innovative Unit- Linked-Insurance-Plans (ULIPs), it hilariously amounts to Rs.34,758!!!” B&E further adds, “Imagine the irony of how hordes of MF investors must have been bamboozled, this at a time when the Sensex grew from 9,000 to 15,000 during the same two test years (in which B&E tested the MF schemes).” ULIPs were supposed to be a logical route for life insurance investors to invest in the stock markets. Unfortunately, due to the ridiculous result of some complicated taxes and charges spread over a period of two years, a ULIP investor, as shown above, ends up being better off adding his investments at home in a cash deposit rather than investing in such schemes.
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Source : IIPM Editorial, 2008
A w
eek ago, Business & Economy, our group publication, after investing in specific schemes over a period of two years, carried an exposé on how ULIP schemes were running a near “rock shocking” racket! B&E mentions, and we quote, “Rs.1,500 added per month (at 0% interest) over a period of two years equals Rs.36,000... But if one were to ask certain top-of-the line insurance companies running the ‘so called’ innovative Unit- Linked-Insurance-Plans (ULIPs), it hilariously amounts to Rs.34,758!!!” B&E further adds, “Imagine the irony of how hordes of MF investors must have been bamboozled, this at a time when the Sensex grew from 9,000 to 15,000 during the same two test years (in which B&E tested the MF schemes).” ULIPs were supposed to be a logical route for life insurance investors to invest in the stock markets. Unfortunately, due to the ridiculous result of some complicated taxes and charges spread over a period of two years, a ULIP investor, as shown above, ends up being better off adding his investments at home in a cash deposit rather than investing in such schemes.For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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