HDFC Life Sanchay par Advantage plan

[pandeyji]

My RM is pushing me this plan for tax savings. Generally I avoid this kind of insurance plans but I would like what this community think of these plans.

 

[Karthik:]

Please send policy documents with cash flow patterns and let us know your tax bracket.

 

[pandeyji]

Tax bracket: 30% I would have to pay 2 lakhs per year for 6 years and I will get 48k per year. I can surrender any time after 7 years. I'll also get a life insurance of 25 lac. I don't have to pay anything after 6 years but I will keep getting 48k for next 40 years until I surrender

 

[Karthik:]

If maturity is also Rs.12 Lacs which is amout invested, then CAGR on this is 3.56%, just few basis points higher than savings interest rate. You get life cover, still I think it's not a best option. If you don't know what CAGR is, it can simply be equated with FD rate. i.e you get 3.56% return on this compounded annually. You might end up not beating even inflation. They are trying to steal your money. In short if you don't know about the product they are offering, try to be away from it. They always sell wrong product. This is why I hate their so called RM who is supposed to work for us in buying right product but work their own incentive and bank. Worst bank ever.