So, here is my story.
I had gone to the bank to get a statement for my wife for passport renewal purpose along with our 1 year old daughter. Now this guy appears out of nowhere and helps us fill in the forms etc. All very good.
Then he just asks me casually if I would be interested in any child plans. I politely say “no” and move out. Now I had to go back to the bank today to get the statement and the same guy walks in, recognizes me and asks if I have changed my mind about child plan.
I say “no thank you”, but the loads are too high. He says “No, the load is only 4% (for 8 years which he conveniently forgot to mention) and then it’s 1% thereafter. I say ok,fine,but returns are not good enough. Putting the same money in Mutual funds will give me more returns. He sheepishly says “Sir, but should some eventuality happen — he was not willing to say “If you die” ….I say I have a term insurance to cover that 🙂 ” — i also told him I have read a lot of how to create my own child plan 🙂 — I could see a smile on his face on finding a knowledgeable investor , but he hid it….
Final push from him – but sir, you cannot move funds between different schemes in Mutual funds. I wanted him to taste victory, so I just ignored when I could have easily said “I can manually move it based on performance”
So my question is — why the big push for child plans….Do companies make as much money as from ULIPS? This is not really a question than to share my experience.
So my question is…why the big push for child plans