HDFC offering Infinia against investment - is it worth it?

[Lobogris]

According to you which one is better investment: Equity, Mutual Funds, ULIP, FD, Real Estate or others (name them)

In order of preference:
Real estate (at least 50% or more should be allocated here)
Equity (20%)
Mutual Funds (20% combined with equity)
FD (30 to 40% depending on intrest rates)
ULIP ( not great by itself but totally worth it if other benefits are accrued like Infinia). Ok for small amounts like under 5 lakhs per year.

 

[plastikman]

Not worth it.

 

[anirban.choudhuryanirban.choudhury is verified member.]

Eventually, I got it via a ULIP. I wish I had known about it earlier. Would have done so long time back.

Good for you
Now enjoy your Infinia 😂😂

 

[Lobogris]

Not worth it.

What isn't worth it?

 

[sjmajumder]

According to you which one is better investment: Equity, Mutual Funds, ULIP, FD, Real Estate or others (name please)

Depends on your age and your risk appetite.

I will go for 50-60% in Stocks, Equity MF, NPS and remaining 40-50% in secured instruments like govt/corporate bonds, PPF, SSA, Debt MF.

Bank FD and ULIP are loss making instruments compared to above.

Real Estate has not appreciated in recent years and also has liquidity issues.

 

[hysteriadoc]

Ask for ulip. 1 L pa ulip plan for infinnia would be a pretty good deal.

I recently brought a Ulip Plan from Icici via Au bank for Locker purpose (emergency requirement). I was given 2 options - 1 Lac for Garunteed plan & 2.5 Lac for Ulip. I chose Ulip. Paid 2.5 L as first year premium. From next year it would be monthly premium. 7 year payment for 12 year plan. I have taken Balanced Advantage Plan. About 15000 was deducted (mortality charges + various charges) and the rest 2.35 Lac was invested. I checked, if we take a term plan of 25 Lacs for 12 years term with 7 year pay - the premium comes to about 20000 per year. So, comparitively I am giving only 15000 per year out of 2.5 Lacs as mortality charges. I will close the plan after lockin ends after 5 years. Balanced advantage fund would give a return of atleast 9% Cagr after 5 years. Would be paying monthly premium with my Infinia Credit card and earning 3.3% RPs. The total sum after 5 years would be tax free. In anyways not better than Term plan + Mutual Fund. But, at the end satisfactory. Ulip is way better than 5-6% IRR Garunteed plan.

 

[Deleted member 9785]

I recently brought a Ulip Plan from Icici via Au bank for Locker purpose (emergency requirement). I was given 2 options - 1 Lac for Garunteed plan & 2.5 Lac for Ulip. I chose Ulip. Paid 2.5 L as first year premium. From next year it would be monthly premium. 7 year payment for 12 year plan. I have taken Balanced Advantage Plan. About 15000 was deducted (mortality charges + various charges) and the rest 2.35 Lac was invested. I checked, if we take a term plan of 25 Lacs for 12 years term with 7 year pay - the premium comes to about 20000 per year. So, comparitively I am giving only 15000 per year out of 2.5 Lacs as mortality charges. I will close the plan after lockin ends after 5 years. Balanced advantage fund would give a return of atleast 9% Cagr after 5 years. Would be paying monthly premium with my Infinia Credit card and earning 3.3% RPs. The total sum after 5 years would be tax free. In anyways not better than Term plan + Mutual Fund. But, at the end satisfactory. Ulip is way better than 5-6% IRR Garunteed plan.

omg ULIPs for a locker

 

[amitr29]

I recently brought a Ulip Plan from Icici via Au bank for Locker purpose (emergency requirement). I was given 2 options - 1 Lac for Garunteed plan & 2.5 Lac for Ulip. I chose Ulip. Paid 2.5 L as first year premium. From next year it would be monthly premium. 7 year payment for 12 year plan. I have taken Balanced Advantage Plan. About 15000 was deducted (mortality charges + various charges) and the rest 2.35 Lac was invested. I checked, if we take a term plan of 25 Lacs for 12 years term with 7 year pay - the premium comes to about 20000 per year. So, comparitively I am giving only 15000 per year out of 2.5 Lacs as mortality charges. I will close the plan after lockin ends after 5 years. Balanced advantage fund would give a return of atleast 9% Cagr after 5 years. Would be paying monthly premium with my Infinia Credit card and earning 3.3% RPs. The total sum after 5 years would be tax free. In anyways not better than Term plan + Mutual Fund. But, at the end satisfactory. Ulip is way better than 5-6% IRR Garunteed plan.

Mortality charges are over and above 15% deducted.For a vanilla term plan, In 20,000/- you will get cover for 1 crs, if you are between 30-35 yrs. What after 12 years? Your life cover will expire and you will end up paying higher mortality cost for a term plan, as you will be older. You should take a term plan of 30 years, so you are covered till 70 years.

Worst is that in ULIP, you get higher of Sum assured or surrender value, in case God forbid something happens to you.

If you take MF and term plan combination, one gets death cover plus the MF market value. So, for a 1 crore cover and investment of 2.5 lacs in MF, it can be somewhere around 1 cr + 22-25 lacs . But in Ulip will be 25 lacs max

Not sure on this one, but if your premium is 2.50 lacs, isn't the return taxable?

 

[sjmajumder]

In order of preference:
Real estate (at least 50% or more should be allocated here)
Equity (20%)
Mutual Funds (20% combined with equity)
FD (30 to 40% depending on intrest rates)
ULIP ( not great by itself but totally worth it if other benefits are accrued like Infinia). Ok for small amounts like under 5 lakhs per year.

Although investments depends on one's personal choice and risk apetite, but still I will say if you are doing this DO consult a certified investment advisor because it is not looking right to me.

Reasons:
1. Real Estate is not doing well in recent years - especially residential, commercial is still ok. Don't go by the price of new properties, check their resell value and you will understand why I am saying this. Additionally there is liquidation concerns in real estate. Unless you have a large corpus (at least 5CR+) and you are doing this for diversification of portfolio, you should reconsider this. Even for large portfolios 50% in real estate may not be recommended.
2. If you are doing bank FDs, consider Govt/Corporate bonds and Debt MFs which yields higher interests with negligible risks.

 

[sjmajumder]

I recently brought a Ulip Plan from Icici via Au bank for Locker purpose (emergency requirement). I was given 2 options - 1 Lac for Garunteed plan & 2.5 Lac for Ulip. I chose Ulip. Paid 2.5 L as first year premium. From next year it would be monthly premium. 7 year payment for 12 year plan. I have taken Balanced Advantage Plan. About 15000 was deducted (mortality charges + various charges) and the rest 2.35 Lac was invested. I checked, if we take a term plan of 25 Lacs for 12 years term with 7 year pay - the premium comes to about 20000 per year. So, comparitively I am giving only 15000 per year out of 2.5 Lacs as mortality charges. I will close the plan after lockin ends after 5 years. Balanced advantage fund would give a return of atleast 9% Cagr after 5 years. Would be paying monthly premium with my Infinia Credit card and earning 3.3% RPs. The total sum after 5 years would be tax free. In anyways not better than Term plan + Mutual Fund. But, at the end satisfactory. Ulip is way better than 5-6% IRR Garunteed plan.

Hats off to the BM/RM, has a bright future.

FYI - Visit any PSU bank and they will give you locker (if available) for FD of 25-50K depending on locker size. For private banks too open SB with 25-50K MAB or equivalent FD. Some banks will even give you discount on locker with certain variants of their SB AC.

 

[anirban.choudhuryanirban.choudhury is verified member.]

Mortality charges are over and above 15% deducted.For a vanilla term plan, In 20,000/- you will get cover for 1 crs, if you are between 30-35 yrs. What after 12 years? Your life cover will expire and you will end up paying higher mortality cost for a term plan, as you will be older. You should take a term plan of 30 years, so you are covered till 70 years.

Worst is that in ULIP, you get higher of Sum assured or surrender value, in case God forbid something happens to you.

If you take MF and term plan combination, one gets death cover plus the MF market value. So, for a 1 crore cover and investment of 2.5 lacs in MF, it can be somewhere around 1 cr + 22-25 lacs . But in Ulip will be 25 lacs max

Not sure on this one, but if your premium is 2.50 lacs, isn't the return taxable?

Lastly, is Infinia giving points for Insurance premium?

Infinia gives max 5000 RP per day on insurance payments

 

[anirban.choudhuryanirban.choudhury is verified member.]

Hats off to the BM/RM, has a bright future.

FYI - Visit any PSU bank and they will give you locker (if available) for FD of 25-50K depending on locker size. For private banks too open SB with 25-50K MAB or equivalent FD. Some banks will even give you discount on locker with certain variants of their SB AC.

Next we will see even for opening a bank account , bank will ask people to do ULIPs.
And the worst part would be , there would be people defending that too 😂😂

 

[HumorSimpson]

Next we will see even for opening a bank account , bank will ask people to do ULIPs.
And the worst part would be , there would be people defending that too 😂😂

We are already closer to that. For higher variant of bank account, they do pester for ULIPs in the name of TRVs.

 

[anirban.choudhuryanirban.choudhury is verified member.]

On a serious note , there should be a complaint against this shady tactics of banks to push sale a investment instrument against a completely different benefit.
I think which goes against the guidelines

 

[Deleted member 9785]

On a serious note , there should be a complaint against this shady tactics of banks to push sale a investment instrument against a completely different benefit.
I think which goes against the guidelines

show commision and fees and XIRR on ULIP plan - The Mint

 

[SSV]

On a serious note , there should be a complaint against this shady tactics of banks to push sale a investment instrument against a completely different benefit.
I think which goes against the guidelines

That is why they specifically asks
“ were you offered / promised,any other product in return for ULIP while taking the ULIP on a recorded line “ .. they cover their bases..
they are following their RBI guidelines strictly in this case, we all know why… 😀 🤣 🤣

 

[shashankrt]

I recently brought a Ulip Plan from Icici via Au bank for Locker purpose (emergency requirement). I was given 2 options - 1 Lac for Garunteed plan & 2.5 Lac for Ulip. I chose Ulip. Paid 2.5 L as first year premium. From next year it would be monthly premium. 7 year payment for 12 year plan. I have taken Balanced Advantage Plan. About 15000 was deducted (mortality charges + various charges) and the rest 2.35 Lac was invested. I checked, if we take a term plan of 25 Lacs for 12 years term with 7 year pay - the premium comes to about 20000 per year. So, comparitively I am giving only 15000 per year out of 2.5 Lacs as mortality charges. I will close the plan after lockin ends after 5 years. Balanced advantage fund would give a return of atleast 9% Cagr after 5 years. Would be paying monthly premium with my Infinia Credit card and earning 3.3% RPs. The total sum after 5 years would be tax free. In anyways not better than Term plan + Mutual Fund. But, at the end satisfactory. Ulip is way better than 5-6% IRR Garunteed plan.

Well above calculations are not correct.
1. Like @amitr29 mentioned in below post - 20K premium will easily get you 1 Cr + term insurance (without any riders) and even more if you have better relationships with insurance companies.
2. MF investments will get way higher returns (more than double on annual growth and may be 5 times on CAGR)
3. Upfront ULIP charges will NOT be returned if you close your policy in 5 years. If you want to close your policy you need to close it this year itself by converting to single premium 5 year lock in plan. Else just cancel the policy if its in free look period OR stay with it till maturity.
4. ULIP are better only compared even more horrible endowment plans - otherwise its net loss especially if its only taken for a locker.
5. 9 % CAGR is only if markets exceed 20% in returns - else ULIPs will have miserable returns.
6. Also please get clarity on taxation. If its even 1 Rs more than 2.5L then all returns are TAXABLE.

Mortality charges are over and above 15% deducted.For a vanilla term plan, In 20,000/- you will get cover for 1 crs, if you are between 30-35 yrs. What after 12 years? Your life cover will expire and you will end up paying higher mortality cost for a term plan, as you will be older. You should take a term plan of 30 years, so you are covered till 70 years.

Worst is that in ULIP, you get higher of Sum assured or surrender value, in case God forbid something happens to you.

If you take MF and term plan combination, one gets death cover plus the MF market value. So, for a 1 crore cover and investment of 2.5 lacs in MF, it can be somewhere around 1 cr + 22-25 lacs . But in Ulip will be 25 lacs max

Not sure on this one, but if your premium is 2.50 lacs, isn't the return taxable?

 

[imdjay]

I recently brought a Ulip Plan from Icici via Au bank for Locker purpose (emergency requirement). I was given 2 options - 1 Lac for Garunteed plan & 2.5 Lac for Ulip. I chose Ulip. Paid 2.5 L as first year premium. From next year it would be monthly premium. 7 year payment for 12 year plan. I have taken Balanced Advantage Plan. About 15000 was deducted (mortality charges + various charges) and the rest 2.35 Lac was invested. I checked, if we take a term plan of 25 Lacs for 12 years term with 7 year pay - the premium comes to about 20000 per year. So, comparitively I am giving only 15000 per year out of 2.5 Lacs as mortality charges. I will close the plan after lockin ends after 5 years. Balanced advantage fund would give a return of atleast 9% Cagr after 5 years. Would be paying monthly premium with my Infinia Credit card and earning 3.3% RPs. The total sum after 5 years would be tax free. In anyways not better than Term plan + Mutual Fund. But, at the end satisfactory. Ulip is way better than 5-6% IRR Garunteed plan.

In my early days, I too had taken a ULIP 1L/yr for 5 years payment. in the 7th year, the fund value was around 9.5L. I understand this return was somewhat OKAY for someone who has no knowledge about proper investments. and that too tax-free. So it depends.

 

[Zacobite]

this is it

next round of rbi / ITD clamp down.. selling of points.. what is going on.. everyone seems to be asking for trouble!

 

[shashankrt]

next round of rbi / ITD clamp down.. selling of points.. what is going on.. everyone seems to be asking for trouble!

Point selling has been going on since last few years and unless someone make serious money - I doubt RBI or ITD will be interested. Point selling is anyway difficult to track.