Insurance agents giving guarantee on ULIP’s

POSTED BY ullas.jhunjhunwala ON March 16, 2013 11:51 am COMMENTS (2)

Can insurance agents such as IndusInd banks give a guarantee on the returns of ULIP’s. IndusInd is giving in writing to my cousin that Aviva freedom life advantage will give a guaranteed return @ IRR of 8.2%. Is this legal and valid?

 

Thanks

Ullas Jhunjhunwala

2 replies on this article “Insurance agents giving guarantee on ULIP’s”

  1. Dear Ullas, writing on a plain paper? 8.2% IRR on what, the paid prem. or the invested prem?

    When the issue of the policy Aviva can not guarantee the return, how can a broker or distributor provide it? Please check the blow link & specially the downloaded brochure.

    http://www.avivaindia.com/Individual/Savings/~/media/Freedom%20Life%20Advantage%20Ver%2016%20Mail%20file.ashx

    Please read the disclosure & risk factors & it’s clearly written there that no guarantee is there. Please show it to your cousin. Do not force your research on him. Let him make a choice between true facts & false assurances. If your cousin do not care for his hard earned money, you should also not care a bit for his money. 🙂

    Thanks

    Ashal

  2. Insurers can provide projection @10% and 6% returns as mandated by IRDA. This no of 8.2% is fishy! Perhaps it is the historical returns of their conservative fund options. There will be disclaimer or fine print somewhere.

    In any you should stay away from ULIPs.

    Of course consider some agents fool people claiming 100% + returns 8.2% sounds comparatively tame!

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