Firstly I would like to say. Please please not to choose the policy if you value your money.I have chosen the policy on suggestion of a friend. He works as a SBI agent. Premium is 48000 annually. I was misguided by him that I can withdraw money after 5years at 8% ROI. I didn't even go through policy details which is a big mistake. After 3 months I come to know that his statements are completely false. I have to continue paying premium till 3 years to attain surrender value. The surrender value is very very less than the premium paid. If we keep paying the premium for 15 complete years, the returns are very less taking inflation into consideration. In my example, for 15 years, I pay premium around 750000. Returns are as below
Sum assured:6lacs
Bonus: max 2.5lacs(because for 3 years bonus credited is around 50k only)
So totally 8.5lacs
Even if I put amount in savings account or FD the returns would be at least double in course of 15years.
At policy holders death or 100th birthday, an amount of 5lacs is given. The worst policy ever. People invest in this on brand value. On my experience, I strongly suggest don't club insurance with investment. Instead we can go for good term insurance which offers very high coverage at low premium(Eg: For 4k annual premium, 50lacs death coverage). We can invest rest of money in other wealth growing plans.
