Making you kids forever. Review on Bajaj Allianz General Insurance

If you are innocent you will fall for it. Per Annum 7.05% interest rate on the amount you invest is the silver lining. They say its guaranteed return. I say FD is also guaranteed, its also gives 7-8% returns and any time we can with draw.

The deal for Bajaj is, its charging you 300% to 400% more mortality charges than the market rates. For example the market rate for Rs 10 Lakh term policy for a 30 year old is around 3000/annum or less. But Bajaj charging 12, 000/annum. There you go, If you want to invest 1 Lakh per annum in Bajaj Invest Plus Premeir, and take 10 Lakhs Insurance cover, you earn interest only on 88, 000/-. Rest Rs 12, 000/- goes to Bajaj. Actually you should be earning on Rs.97, 000/- at least. Its extremely lucrative deal for Bajaj. Agents will never reveal this fact but they harp on returning 70% of the mortality charges at the end of the policy, but remember you are paying 300% to 400% more mortality charges. Even if they return you the 70% still they would have charged you more than the market rates. Also they save interest on the excess mortality charges you paid. Agents say you can stop paying any time after 3 years but they hide the fact, hefty penalties if you stop(discontinue) the policy payments even after 3 years.

I still see Mutual Funds are best to beat inflation. Take insurance only to cover your life. So only take term insurance policies. All these funny policies like Unit Linked and Savings linked (endowment) insurance policies are for Insurance agents to live and insurance companies to make hefty profits.