|
|  |
|
|
|
| |
| Oct 09, 2013 4:57 pm |
|
re: re: re: re: Insurance Rip off !! |
| Nagaraj Nayak
| |
Hi,
Couple of points which I have come across & used....
1. Have you heard of "Allocation points"?
Allocation points is the amount of money invested in the fund & the amount siphoned off as administrative charges. this is very easily available right before signing up. A simple question on allocation points & the agent will have to show you the material about this.
Reliance is well known for this. A ULIP plan can have 90% as administrative charges in the first year & only 10% into the fund. The second year, it can be 50/50 & the third year the investment into fund can go upto 80%.
What does this mean? If you have paid a premium of 1 lakh, the investment in the first year is only 10k. Remaining 90% goes to administrative charges - commission, insurance coverage... the list can go on.
So first lesson if you dare to invest in ULIP fund instead of term insurance. Check on the allocation points.
BTW, there are ULIP funds with administrative charges as less as 10% also. But an agent will not sell it:-)
2. Invariably the agent claims a lot of stuff... Just ask for a mail or list down the claims by the agent.. ask for a mail of his manager & get a confirmation... the distilled story that finally comes out will paint another picture
3. Insurance agents get a commission of 35% in the first year & subsequently 3% to 5% for each yr you pay the premium. If you negotiate properly, the agent will let go of his 1st year commission.. so typically you pay 65% of your premium the first year & the agent will pay the remaining part from his pocket only to get it back...
It's a game... nothing wrong in being one up I feel.
Private Reply to Nagaraj Nayak (new win) |
|
| |
|
