My father is stuck with costly life insurance plans with no meaningful returns or death benefits. And there is nothing I can do about it.
My dad has paid lakhs in total premiums– all because some agents mis-sold him endowment plans to meet their sales targets.
Now, at this point, all that matters to him is a meaningful retirement income. But, some of these plans are so bad that if he surrenders them today- he would make way less than what he has already invested.
While some would give him returns only after he turns 70.
Honestly, he would ’ve been better off if he simply took his savings & put it under his mattress.
But unfortunately, he was mis-sold these policies promising ‘extraordinary returns’ by agents who are nowhere to be found.
This is why when we started Ditto, we decided not to sell endowment plans (even though some newer plans aren’t half as bad). Simply because there are better & cheaper alternatives.
If you’re looking for retirement income, check out investment options like NPS, Index Funds, Bonds etc. Maybe even Fixed Deposits.
But, for death benefits– please please consider buying a term insurance plan.
If you’re under 30 & fairly healthy– you can likely buy a term plan with a 1 Crore cover for around ₹ 10,000/year.
And if you are like my dad– well in your 50s– without dependents– you probably don’t even need a death benefit.
And keep your insurance & retirement corpus separate.
If you’re looking for a term insurance plan, you can always reach out to our advisors at Ditto Insurance (link in description).
They ’ll not only tell you whether you need one but also help you select the right plan based on your needs & budget.
This post was originally shared by Bhanu Harish Gurram on Linkedin.