Inflation adjusted maturity return from a traditional insurance plan

POSTED BY AK ON October 10, 2010 6:59 pm COMMENTS (2)

Traditional insurance products like Endowment Plans “offer the SUM ASSURED along with VESTED BONUS on maturity”. Said to be a NO RISK PRODUCT, is it worth subscribing to these plans, say for a term of 20-25 years, taking the rate of inflation into consideration ? Any historical data available in this respect on similar products offered by our LIC all these years?

2 replies on this article “Inflation adjusted maturity return from a traditional insurance plan”

  1. Manish Chauhan says:
    October 11, 2010 at 3:59 pm

    Ak

    You have asked a question which millions do not ask and get trapped in these endowment plans , Its not worth the effort, Endowment plans are known to give returns around 4-6% overall . So considering Inflation , they are strict NO NO

    manish

    Reply
    1. AK says:
      October 12, 2010 at 7:15 pm

      Thanks a lot Manishji, Let this reply (a Universal Truth applicable to most of the traditional insurance plans) open the eyes of millions of (as you correctly pointed out) our investor friends.

      Reply

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