Infinia Infinia Against ULIP?

[sonuyos]

I got an offer from HDFC RM, saying I can get Infinia (I have no shot at getting it directly without waiting for like years. As it took them 8yrs to upgrade my Moneyback to Millennia card.)

If I go thru FD backed route it will be - 7.20% interest rate on 10lk fd. I straight up lose 5-7% on 10lk = 60k roughly every year.

They said to pay 2.1lk to get the card and of which I can surrender the Policy if I want after 1yr, and get back roungly 103-108k back.

In return they will give me Infinia Metal with a guaranteed upgrade (giving me in writing over email) to Infinia Reserve once the card launches.

Plus the card would be 3 yrs free.

Should I go for it?

Edit : Did not go with it. As many pointed out, the cost doesn't justify the card, especially after the 2:1 accor devaluation.

 

[Lobogris]

I already talked to the agent who was selling me the ULIP, he also confirmed that the money won't be refunded for last 10 yrs. And also confirmed that it will be substantial.

I am done with this conversation, you can be as delusional as you like.

Great. Ignore the facts and then call the other person delusional. Before attacking someone and tarnishing a product, at least try and learn what mortality charges are and how they are applied.

 

[Zacobite]

My analysis is clearly presented. You guys are the ones making generalisations without any evidence whereas I have all the facts and formulas in front of me from various policy documents.

who said anything to you bro...your analysis is your POV and the other gent is on and on about his POV.. hence the comment about analysis paralysis in general.. Good luck with the facts and formulae

 

[Centurion_wala]

Once again, complete ignorance on ULIPs and how mortality charges are incurred. Let's say your insurance cover is 20 lakhs and you pay 2 lakhs per year as premium for 10 years and the policy is for 25 years. The mortality charge is applied on the difference between this 20 lakhs and the worth of your portfolio. First year, you pay 2 lakhs and the mortality charge would be on 18 lakhs. Next year, your corpus is 4 lakhs plus whatever gain it gets. So let's say it is 5 lakhs. Now, in the 2nd year, mortality charges would accrue only on 20 lakhs - 5 lakhs, which would be 15 lakhs. So these charges become zero or near zero after about 8 to 10 years, depending upon portfolio growth. No one normally chooses a 40 year policy but even if you did, you wouldn't be paying any mortality charges after 10 years or max 15 years if fund performs poorly.

@Centurion_wala as well.

Okay, not to argue with this delusional person but for everyone else reading this-

Ulips are a combination of Investment + Insurance. For the insurance component, the premiums are deducted from your fund value throughout the policy term. This is called the mortality charge. This is not dependent on your fund value but the insured person's age. Ab Bhai yahan kisi ki age Kam hote jaa rahi ho toh bata dena😂🤣 Tumhare mortality charges bhi future mein kam katenge🤣

 

[Lobogris]

Okay, not to argue with this delusional person but for everyone else reading this-

Ulips are a combination of Investment + Insurance. For the insurance component, the premiums are deducted from your fund value throughout the policy term. This is called the mortality charge. This is not dependent on your fund value but the insured person's age. Ab Bhai yahan kisi ki age Kam hote jaa rahi ho toh bata dena😂🤣 Tumhare mortality charges bhi future mein kam katenge🤣

Why are you engaging in name calling when I am having a reasoned discourse with you? You are completely incorrect. Mortality charges are 100% dependent on fund value. At least bother to check and learn. Mortality charge is applied on the difference between the sum insured and current fund value. You can see this in all policy documents. See below from HDFC Life:

In the case of ULIPs, a part of the premium forms the life cover while the remaining portion is invested in a chosen portfolio of market-linked funds to fetch returns. The life cover or the sum assured is payable in the event of the policyholder’s unfortunate demise within the policy term. Alternately, if he/she survives through the term, the total fund value is paid upon maturity of the policy.

So, in the event of the unforeseen, the insurance company needs to pay the sum of risk = (sum assured-fund value) out of its pocket. Mortality charges are deducted to compensate the insurer for the loss of this amount.
In the case of type I ULIP, the death benefit is payable as the higher of the sum assured and fund value. Hence, the higher the fund value, the lower the sum of risk.

 

[Centurion_wala]

Why are you engaging in name calling when I am having a reasoned discourse with you? You are completely incorrect. Mortality charges are 100% dependent on fund value. At least bother to check and learn. Mortality charge is applied on the difference between the sum insured and current fund value. You can see this in all policy documents. See below from HDFC Life:

In the case of ULIPs, a part of the premium forms the life cover while the remaining portion is invested in a chosen portfolio of market-linked funds to fetch returns. The life cover or the sum assured is payable in the event of the policyholder’s unfortunate demise within the policy term. Alternately, if he/she survives through the term, the total fund value is paid upon maturity of the policy.

So, in the event of the unforeseen, the insurance company needs to pay the sum of risk = (sum assured-fund value) out of its pocket. Mortality charges are deducted to compensate the insurer for the loss of this amount.
In the case of type I ULIP, the death benefit is payable as the higher of the sum assured and fund value. Hence, the higher the fund value, the lower the sum of risk.

My only reply -

 

[imdjay]

Why are you engaging in name calling when I am having a reasoned discourse with you?

Bro, Read your last posts. You called me obsessive.

Before attacking someone and tarnishing a product, at least try and learn what mortality charges are and how they are applied.

You did the same with me, Without knowing my situation, you judged me and said some harsh words.

I read the entire thread, and it was you who first became rude and started speaking nonsense to others, all while being confined within your self-righteous ego.

 

[Shin-Chan]

lets not go around 1:1 conversation and keep discussion generic.


my 2 cents are: A person X can invest in ULIP at lets say upper bound generating 10% while he is knowledgeable or resourceful enough to invest same amount and generate 18% for 2L rupee opportunity loss for year 1 is ~16K and year 2 is 32K and so on.


While a person Y do not have same resources or knowledge can not generate similar returns for them getting Infinia for ULIP makes more sense.


Cheers !!

 

[Lobogris]

Bro, Read your last posts. You called me obsessive.


You did the same with me, Without knowing my situation, you judged me and said some harsh words.

I read the entire thread, and it was you who first became rude and started speaking nonsense to others, all while being confined within your self-righteous ego.

Ok. Focus on the material that I posted. It shows that what I had stated about mortality charges is correct. They reduce with increase in fund value and eventually disappear when the fund value equals the sum assured. So start by conceding that you were wrong about this.

 

[Lobogris]

lets not go around 1:1 conversation and keep discussion generic.


my 2 cents are: A person X can invest in ULIP at lets say upper bound generating 10% while he is knowledgeable or resourceful enough to invest same amount and generate 18% for 2L rupee opportunity loss for year 1 is ~16K and year 2 is 32K and so on.


While a person Y do not have same resources or knowledge can not generate similar returns for them getting Infinia for ULIP makes more sense.


Cheers !!

This is the exact point of the misunderstanding. If a person wants to invest and hold for say only 5 years, then what you said is correct. However, if a person holds the ULIP till maturity, the there is no loss. In fact, you can even be ahead due to the tax exemption.

 

[Riya]

50-80 = 5-6lk a month. Of which half is just insurance, that's the main reason, lmao. I have so many insurance that if I don't think Term plan, I will still be good. Especially now that MB stopped giving Insurance points.

Dude you are bluffing just to check TF reactions and opinions....
Noone pays 3 L per month on insurance itself...
That means you make atleast 1 Cr per annum and have zero savings after paying taxes...
And a crorepati guy struggling for a Card is even more surprising as bankers drool over them...
So it can't be the case...
Clearly some facts are being hidden

 

[_ayush]

This is the exact point of the misunderstanding. If a person wants to invest and hold for say only 5 years, then what you said is correct. However, if a person holds the ULIP till maturity, the there is no loss. In fact, you can even be ahead due to the tax exemption.

just post the policy document which you took or atleast a screen shot where it mentions about the mortality charges and end the discussion 🤣

 

[sonuyos]

lets not go around 1:1 conversation and keep discussion generic.


my 2 cents are: A person X can invest in ULIP at lets say upper bound generating 10% while he is knowledgeable or resourceful enough to invest same amount and generate 18% for 2L rupee opportunity loss for year 1 is ~16K and year 2 is 32K and so on.


While a person Y do not have same resources or knowledge can not generate similar returns for them getting Infinia for ULIP makes more sense.


Cheers !!

We just not gonna talk about MF then? :3 😛

 

[sonuyos]

Dude you are bluffing just to check TF reactions and opinions....
Noone pays 3 L per month on insurance itself...
That means you make atleast 1 Cr per annum and have zero savings after paying taxes...
And a crorepati guy struggling for a Card is even more surprising as bankers drool over them...
So it can't be the case...
Clearly some facts are being hidden

You'd be surprise.

 

[Centurion_wala]

just post the policy document which you took or atleast a screen shot where it mentions about the mortality charges and end the discussion 🤣

He won't do that😂 I've already posted the part where information about mortality charges is mentioned and it is taken from the official policy doc itself-

My only reply -View attachment 56128

 

[HumorSimpson]

Congrats this thread is approved by World Economic Forum

 

[Riya]

You'd be surprise.

Enlighten me... 😄

 

[HumorSimpson]

Enlighten me... 😄

Riya needs diya 🪔

 

[sonuyos]

Enlighten me... 😄

Nah, I am good.

 

[sonuyos]

@SSV @Riya @techt @Shin-Chan

Got Offer from RM.

Get 2.12lk Premium ULIP, 5yr lock term.

After 30 days or before 2nd Premium (i.e. next 1yr)

Surrender the ULIP.

After lock in Period of 5yrs, you get 165k back.

Essentially making -6.4% IRR, but also getting FYF Infinia, so about -5.07%.

Over 5yrs, it will cost me roughly 1lk, after adjusting for inflation (not even counting loss of opportunity.

 

[SSV]

@SSV @Riya @techt @Shin-Chan

Got Offer from RM.

Get 2.12lk Premium ULIP, 5yr lock term.

After 30 days or before 2nd Premium (i.e. next 1yr)

Surrender the ULIP.

After lock in Period of 5yrs, you get 165k back.

Essentially making -6.4% IRR, but also getting FYF Infinia, so about -5.07%.

Over 5yrs, it will cost me roughly 1lk, after adjusting for inflation (not even counting loss of opportunity.

If you want ULIP for only one year .. it is just a waste of money.. I would not recommend it all ...