Sunday, December 22, 2013

Is an insurance plan with guaranteed payout of 135% good?

"Invest 1 lakh per annum for six years and get 1.35 lakhs guaranteed returns for the next 6 years" or "An insurance plan with guaranteed payout of 135% of premium amount". The offer sounds nice, especially with all the negativity surrounding ULIPs and inconsistent performance of ELSS plans. Anyone yet to think about filling up investments for the 80C quota for this year, would really be tempted.

So is it good?

As always, there is no good and bad here. But one needs to do own calculations to see if it is the best suited and whether it provides value for money.