insurance Archives – Vipin Khandelwal

An MDRT tag of an insurance agent means nothing – beware!

June 5, 2017 by Vipin Khandelwal

The world of insurance sales is murky and it gets proven every day. Here’s one more.

A reader recently emailed to me that his son had taken up amongst other insurance policies:

New Endowment plan with profit : Sum Assured 14.95 lakhs, started 2016, yearly premium is Rs. 40,836

New Endowment plan with profit : Sum Assured 8.55 lakhs, Table &Term is 814 & 30, started 2016, yearly premium is Rs. 27,067

It has been told by the well known agent that, this is a “Magic plan for retire & enjoy” which is a combination of LIC plans specially researched to meet the objective of securing a financially independent life assured and his/her spouse on retirement. and the net annuity will increase every yr. to take care of inflation approx. @ 9.00%.

It is relevant to point out a few words from the message:

Well known agent
Magic plan for retire and enjoy
Securing a financially independent life assured

First things first. I was not sure about the well known agent thing. As I replied with my observations, he mentioned to me again that the agent was MDRT, USA.

He did so multiple times suggesting that he considered it as some sort of an certified authority, in this case, in insurance.

It’s time to break the myth.

Always trust your banker and other advice

April 1, 2017 by Vipin Khandelwal

The new financial year starts today. It is a day to make new beginnings.

Today, I would like to share with you all that I learnt about investing in all these years. It worked for me, I hope it works for you too.

Here’s myMaster List.

Remember, if an investment is not offering you a guaranteed return, then just ignore it. Risk is for losers. I need certainty.

Insurance – the investment mirage

July 4, 2016 by Vipin Khandelwal

Insurance continues to disappoint.

Every comment or email that I receive reflects the disillusionment with investment based insurance products, more specifically with “Pension Plans”.

The customer now wants to surrender these plans. Some are not happy with the returns, others don’t see the fit with their goals.

I wonder how millions of people were taken for a ride.

The answer is easy. Here’s a piece that you should read to know why? Insurance: All that is wrong with it and you!

The Pension Plan reality

In reality the pension plans are – “wolf in sheep’s clothing”.

What’s wrong with a ULIP?

February 25, 2016 by Vipin Khandelwal

There is a raging debate on ULIPs. Article after article is being published in favour or against a ULIP. Since this is the last leg of the tax saving season, the pitch has become even more shrill.

There was recently an article on ValueResearch about choosing ELSS vs ULIPs and there are angry comments on the article to the extent of accusing the writer of taking sides and not presenting a true picture about ULIPs. Both the camps, for and against, have made their points and it is difficult to ignore either.

If you are not truly aware of what a ULIP today is, you may want to first read another post here.

Now, let’s come to the real issues with ULIPs. What’s wrong with a ULIP?

Pension Plans: Wolf in sheep’s clothing?

November 2, 2015 by Vipin Khandelwal

I started investing in HDFC Pension Champion from Year 2010 for sum of Rs 1,50,000 per annum. I have completed 5 years of investment and I see the returns as of today is @ 8.02%. I stopped investing from this financial year, as the returns are less than the normal FD rates. I am thinking to invest in Mutual funds instead of ULIP.

I understand from your previous articles that, if I wish to surrender the policy no taxes to be paid and no reversals of 80C deductions as the invested period was 5 years.

The above note is what a reader (I will call him Rajesh) sent to me recently.

I believe that you or someone you know also owns a pension plan. We have a few lessons to learn here. First, some basics.

What are pension plans and how do they work? – The Sheep’s clothing

Insurance: All that is wrong with it and you!

September 15, 2015 by Vipin Khandelwal

I was aware that there was a lot of mis-selling happening with insurance products. I had heard horror stories in the media. I had seen my investor clients being made targets. At one time, an agent even tried to sell to me something that I really didn’t need.

For clarity, mis-selling means giving you a product that is not fit for your needs. For example, a ULIP (with a high degree of exposure to equities) is sold to a retired person who is looking for regular monthly income.

So, I knew about mis-selling but I had no idea to what extent this mis-selling was taking place, until I read this.