Publication: The Times Of India Mumbai; Date: Apr 22, 2008; Section: Your Money; Page:40
WHO would buy a product which has a minimum 35% cost in the first year and 5% from second year onwards, with a return of only 5-6%? You’d think not many sane people would do it. Yet, time and again, countless people buy such products for the wrong reasons,likesaving tax, forced savings, and investment. You guessed it—I’m talking about traditional life insurance policies.
Traditional insurance products such as endowment and money-back policies have for long escaped the cost scrutiny that most financial products are subjected to. These products, from LIC or private insurance companies, are sold with a strong emotional pitch, and people who buy it seldom think about what they are getting into. Rarely do they pay attention to what kind of cover they are getting, such is the single-minded focus on what they’ll get back at maturity.