Download Tax Saving Mutual Fund Application Forms
Invest In Tax Saving Mutual Funds Online
Leave a missed Call on
94 8300 8300
Insurance Advisor
The recent Allahabad High Court verdict in favour of a victim of misselling of an insurance product has once again turned the focus on the dubious sales pitches made by insurance companies and their intermediaries at the time of selling products.
Sure, the case relates to an era when insurers were busy making money selling Unit Linked Insurance Plans (Ulips) that offered huge commission to their salespersons.
Since 2010, the Insurance Regulatory and Development Authority (Irda) has taken several measures to curb mis-selling, but enterprising advisors still manage to con many unsuspecting insurance seekers.
Duped customers often complaining about the "promises" made by the advisor while explaining the details of the product. But by the time most people figure out about the broken promises, it is already too late. This is because redressal could be long drawn and often time consuming, as proving the "verbal" promises made by the salesperson could be extremely difficult.
In fact, you are likely to be told that you ought to have cancelled the policy during the free-look period if you found it to be unsuitable. Unfortunately, not many policyholders are aware of this 15-day window when you can return policies. You should never go blindly by the tall claims of the insurance advisor. Always remember that if the promise is too good to be true, there is always a catch. Here are a few too good to be true pitches that you might come across in your interaction with insurance players.
Claim: This bond is better than a FD What it implies:
The product is similar to FD and it assures returns Truth: Mostly it is an insurance product without any assured returns Walk into a bank to open a fixed deposit of five years or more, chances are that the official at the desk would ask you to go for a bond that offers better returns. Some distributors also tend to pass off traditional endowment plans that invest in secure government securities and debt instruments as tax-free bonds. They are presented as assured returns products to unsuspecting insurance-seekers. The investor who was looking to park his funds to earn interest ends up paying mortality charges for the life cover he probably doesn't require. The blow could be brutal for elderly individuals who get duped into buying Ulips or endowment plans where the mortality charges for their age bracket are steep.
Claim: You just have to pay the premium this year Implication:
It is like just any other one-time investment Truth: It is mostly an insurance product that requires regular premium. We are not talking about single premium products here. We are talking about regular insurance products sold on yet another tall claim. ULIPs are sold as not having any lock-in period and like a regular account in which one can pay premium and withdraw whenever the insured needs funds. Often, the policyholder realises that she has been taken for a ride only when she receives a reminder from the company about paying the premium. Lesson for you: don't skip reading policy brochures. Also, go only by what is written in the brochure, not the interpretations of your agent.
Claim: Switch to another policy and earn better returns Implication:
There is a better product that will give you superior returns Truth: The new product offers better commission to the advisor When your insurance agent tries to convince you to sell your existing insurance policy and buy a new "better" product, just must him the door. Look him in the eye and tell him that insurance product is not like investments and you don't buy and sell them periodically.
The only reason that the agent is trying to push the new product is the attractive return it fetches him.
Insurance products with investment component typically pay higher commissions in the initial years.
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
Leave your comment with mail ID and we will answer them
OR
You can write back to us at
PrajnaCapital [at] Gmail [dot] Com
---------------------------------------------
Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs
Download Mutual Any Fund Application Forms
---------------------------------------------
Best Performing Mutual Funds
- Largecap Funds Invest Online
- DSP BlackRock Top 100 Fund
- ICICI Prudential Focused Blue Chip Fund
- Franklin India Bluechip
- ICICI Prudential Top 100 Fund
B. Large and Midcap Funds Invest Online
- ICICI Prudential Dynamic Plan
- HDFC Top 200 Fund
- UTI Dividend Yield Fund
- Birla Sun Life Front Line Equity Fund
- Franklin India Prima
C. Mid and SmallCap Funds Invest Online
- Reliance Equity Opportunities Fund
- DSP BlackRock Small & Midcap Fund
- Sundaram Select Midcap
- IDFC Premier Equity Fund
- Birla Sun Life Dividend Yield Plus
- SBI Emerging Businesses Fund
- HDFC Mid-Cap Opportunities Fund
- ICICI Prudential Discovery Fund
D. Small and MicroCap Funds Invest Online
- DSP BlackRock MicroCap Fund
- Franklin India Smaller Companies
E. Sector Funds Invest Online
- Reliance Banking Fund
- Reliance Banking Fund
- ICICI Prudential Banking and Financial Services Fund
F. Tax Saver Mutual Funds Invest Online
1. ICICI Prudential Tax Plan
2. HDFC Taxsaver
- DSP BlackRock Tax Saver Fund
- Reliance Tax Saver (ELSS) Fund
G. Gold Mutual Funds Invest Online
- Relaince Gold Savings Fund
- ICICI Prudential Regular Gold Savings Fund
- HDFC Gold Fund
- Birla Sun Life Gold
H. International funds Invest Online
1. Birla Sun Life International Equity Plan A
2. DSP BlackRock US Flexible Equity
3. FT India Feeder Franklin US Opportunities
4. ICICI Prudential US Bluechip Equity
5. Motilal Oswal MOSt Shares NASDAQ-100 ETF
0 comments:
Post a Comment