Satirical Post by an redditor about ULIP and infinia

[MONEY]

Today came across a post on reddit by a user who was fedup by one of the notorious RM on reddit who honey traps innocent people with the greed of getting them infinia if they do investment.

 

[shivamk]

Stoodie balanc sheet and all ez also always wait till last day to sapply to check gmp and sub rates

Will keep this in mind, thanks!

 

[its_karan]

Let me buy HDFC shares

I have never seen a Retail seller in HDFC

Sabko bullish dikhta hai

 

[kshitij_0]

What if the policy is not a ULIP but a fixed investment plan. and I get the card within 30 days. Then I can cancel the plan. Right?

I believe. Once you apply for the card and they get you the approvals. Even if you have not received the card, you can cancel the investment. They are not going to take away those exceptional approvals.

You can't cancel any plan like that. Even if they allow, it will be a huge loss for you. I don't remember the calculations now but it could be like 30-50k for one Infinia card if you cancel immediately or in one month. And frankly speaking it's still better than keeping the amount for 10 years in a fixed or ULIP plan.
But both of the options aren't worth it as long as you can earn 10-25k per month through Infinia card at least.

But still if you want to try then do let us know your practical experience.

Also if anyone wants to know contact details of person in HDFC who does these things then I can give you their number as well. They have done all these things for multiple people.
Disclaimer- Not sponsored

 

[imdjay]

I don't remember the calculations now but it could be like 30-50k for one Infinia card if you cancel immediately or in one month.

Explain . .

 

[D₹V]

Today came across a post on reddit by a user who was fedup by one of the notorious RM on reddit who honey traps innocent people with the greed of getting them infinia if they do investment.

Ayo! real @SSV anna 😳

 

[Slayer]

Nice meme .

Ayo! real @SSV anna 😳

 

[Slayer]

Explain . .

Sem . .

 

[kshitij_0]

Explain . .

Abhi to main sab bhul gaya hun us time acche se calculate kiya tha. You can go through it, you will understand.

 

[imdjay]

Abhi to main sab bhul gaya hun us time acche se calculate kiya tha. You can go through it, you will understand.

through what.
I don't think free look period me cancel kerne me koi nuksaan hai.

• A refund of the premium paid less any expenses incurred by the insurer on medical examination of the insured persons and the stamp duty charges or;
• where the risk has already commenced and the option of return of the policy is exercised by the policyholder, a deduction towards the proportionate risk premium for period on cover or;
• Where only a part of the insurance coverage has commenced, such proportionate premium commensurate with the insurance coverage during such period;
• In respect of unit linked policy, in addition to the above deductions, the insurer shall also be entitled to repurchase the unit at the price of the units as on the date of the return of the policy.

 

[kshitij_0]

through what.
I don't think free look period me cancel kerne me koi nuksaan hai.

• A refund of the premium paid less any expenses incurred by the insurer on medical examination of the insured persons and the stamp duty charges or;
• where the risk has already commenced and the option of return of the policy is exercised by the policyholder, a deduction towards the proportionate risk premium for period on cover or;
• Where only a part of the insurance coverage has commenced, such proportionate premium commensurate with the insurance coverage during such period;
• In respect of unit linked policy, in addition to the above deductions, the insurer shall also be entitled to repurchase the unit at the price of the units as on the date of the return of the policy.

Karke dekho aap ek baar fir experience batana apna. Acche se tnc padh lena. Mujhe aadhe ghante me clear ho gaya tha loopholes kaafi. Utna time dena aap bhi ho jayega. Fir bhi sahi lagta hai to kar lena

 

[imdjay]

Karke dekho aap ek baar fir experience batana apna. Acche se tnc padh lena. Mujhe aadhe ghante me clear ho gaya tha loopholes kaafi. Utna time dena aap bhi ho jayega. Fir bhi sahi lagta hai to kar lena

D O N E

 

[kshitij_0]

D O N E

Keep updating us

 

[Riya Sharma]

D O N E

who did you contact for it?

 

[Lobogris]

What if the policy is not a ULIP but a fixed investment plan. and I get the card within 30 days. Then I can cancel the plan. Right?

I believe. Once you apply for the card and they get you the approvals. Even if you have not received the card, you can cancel the investment. They are not going to take away those exceptional approvals.

What is this obsession with always trying to game the system? You made a deal and commitment. They delivered their end. Wjy can't you keep your end of the bargain? It's understandable if there is some extreme hardship but to plan this beforehand is silly.

 

[Riya Sharma]

What is this obsession with always trying to game the system? You made a deal and commitment. They delivered their end. Wjy can't you keep your end of the bargain? It's understandable if there is some extreme hardship but to plan this beforehand is silly.

banks are always the enemy. If you can manipulate them into getting what you want without giving them business, you always should. All Banks are evil and should be treated as such.

 

[Lobogris]

Maybe... But if you can make good money from ULIP, then you can make much better returns from direct mutual funds... In any case ULIP is a Dreadful investment.

It's not good to assume things without properly researching the matter. In fact, a ULIP, if held to maturity will often beat a mutual fund. In the case of this HDFC ULIP, a person holding it till maturity (25 years) will actually receive around 10 lakhs more than a comparable investment in a mutual fund. I have done detailed calculations keeping in mind a 12% return on both and after deducting all charges. All mortality charges are refunded 2x (double the amount charged) from 10th year to the 20th year. All other charges including the allocation charge and fund maintenance charge are also full refunded at maturity. So if you hold it till maturity, the 2x refund and the 10% tax savings will enhance your investment. However, if you close it before then then you would be slightly worse off. In brief, ULIP is bad if you close it early especially before 10 years are up. It's not meant for a person of limited means who only has a couple of lakhs to spare each year and no savings and assests. It is meant as a supplement for people with other, more substantial investments in equity, FDs etc where a couple of lakhs a year isn't a very large amount for you. That's the target customer for Infinia anyway.

 

[Centurion_wala]

It's not good to assume things without properly researching the matter. In fact, a ULIP, if held to maturity will often beat a mutual fund.

Can you please stop defending ULIPs? Now just read my post for next few minutes.

In the case of this HDFC ULIP, a person holding it till maturity (25 years) will actually receive around 10 lakhs more than a comparable investment in a mutual fund

I'm sure you are talking about the Smart Protect Plan. Right? No way you're receiving 10 lakhs extra.

All mortality charges are refunded 2x (double the amount charged) from 10th year to the 20th year.

First wrong fact. Mortality Charges are cut throughout the policy term. But they'll refund you first year's mortality charges only after 10 years and consecutively for next year's. (1->10) (2->11) (3->12) This means you won't get mortality charges refunded for 15th to 25th year (last 10 years where the charges would be the highest) because your policy would've matured thereafter.

All other charges including the allocation charge and fund maintenance charge are also full refunded at maturity.

No. You're again wrong here. Only 2x of premium allocation charges of the first 3 premiums you pay will be refunded from 10th to 13th Year. So if your PPT is 10 years, you would never get refund of 4th to 10th year's premium allocation charges.

Now, pull out your policy doc or illustration and you could find something called a Policy Admin Charge which will be applicable from 6th year to 25th year. You'll have to bear 6000 every year for 20 years which is 1.2L. I can bet that you wouldn't find a single line in your Policy doc which mentions that this charge would be refunded. Bcoz guess what? It won't be.

So if you hold it till maturity, the 2x refund and the 10% tax savings will enhance your investment.

Good joke 🤣

However, if you close it before then then you would be slightly worse off.

Agreed 💯

I will mention some more points but first I need to know if it's worth the effort. If you disagree with any of my point, you can post your version of the policy doc here.

 

[imdjay]

Keep updating us

It's already done bro.

What is this obsession with always trying to game the system? You made a deal and commitment. They delivered their end. Wjy can't you keep your end of the bargain? It's understandable if there is some extreme hardship but to plan this beforehand is silly.

Bhai. mere case me, they did miss-selling. Details me nahi jaa sakta but they promised something which was not true.

I was 90% sure it wasn't possible, but I waited until I got my card to confirm. After verifying everywhere, I decided to cancel.

If I had received what was promised, it would have yielded more than a 40% ROI, and I would have invested all my money in that plan. @WandereR

 

[kshitij_0]

It's already done bro.


Bhai. mere case me, they did miss-selling. Details me nahi jaa sakta but they promised something which was not true.

I was 90% sure it wasn't possible, but I waited until I got my card to confirm. After verifying everywhere, I decided to cancel.

If I had received what was promised, it would have yielded more than a 40% ROI, and I would have invested all my money in that plan. @WandereR

Ok so please explain what was the total transaction and total PnL?
Did you get the card first? Please explain the process in brief with data. I am also interested in that if I don't have to lose much.

 

[diptarkaroy]

Can you please stop defending ULIPs? Now just read my post for next few minutes.

I'm sure you are talking about the Smart Protect Plan. Right? No way you're receiving 10 lakhs extra.

First wrong fact. Mortality Charges are cut throughout the policy term. But they'll refund you first year's mortality charges only after 10 years and consecutively for next year's. (1->10) (2->11) (3->12) This means you won't get mortality charges refunded for 15th to 25th year (last 10 years where the charges would be the highest) because your policy would've matured thereafter.

No. You're again wrong here. Only 2x of premium allocation charges of the first 3 premiums you pay will be refunded from 10th to 13th Year. So if your PPT is 10 years, you would never get refund of 4th to 10th year's premium allocation charges.

Now, pull out your policy doc or illustration and you could find something called a Policy Admin Charge which will be applicable from 6th year to 25th year. You'll have to bear 6000 every year for 20 years which is 1.2L. I can bet that you wouldn't find a single line in your Policy doc which mentions that this charge would be refunded. Bcoz guess what? It won't be.

Good joke 🤣

Agreed 💯

I will mention some more points but first I need to know if it's worth the effort. If you disagree with any of my point, you can post your version of the policy doc here.

Very correctly explained
I also did a detailed calculation of their smart protect plan
It was no where close to the potential return of an average mutual fund

For a very high spender, who can earn a handsome 20-25k each month from Infinia , that might make some sense