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.

 

[sonuyos]

Not sure how you said calculations are wrong

For magnus Burgundy I completely excluded your 2.5 per month spend on insurance from base and AEP.

I just calculated AEP on the remaining 2.5L spend
Which came at 26500 converted to 21200 accor points

And for infinia I calculated 113k under 5x and remaining 387k with base rewards that came as 15000 + 3875 + 12900 which comes at 31775 ,converted to accor at 15887 all accor points.

So I am not sure what permutation and combination you are planning to use on infinia thar gets you more accor points than Burgundy with or without current loophole that you have identified for insurance in your magnus Burgundy.


I am not sure about income tax notices so can't comment on that, but with an personal ITR of less than 37 lakhs you are having personal spends of 60L is indeed a matter of concern.
If your spends are non personal then it's not a matter of concern for IT , that's more of banks jurisdiction.

No no, infinia is like a safenet when MB/Reserve stops giving the insurance points.

Only for then I need it. Plus smartbuy.

 

[anirban.choudhuryanirban.choudhury is verified member.]

No no, infinia is like a safenet when MB/Reserve stops giving the insurance points.

Only for then I need it. Plus smartbuy.

But even if they stop which technically they should only give capped.

Your magnus Burgundy returns are much better than infinia.

Check my calculation I completely eliminating 2.5L of your insurance spends out of base and AEP and just calculating AEP on remaining 2.5L of your 5 lakh monthly spends.

 

[sonuyos]

But even if they stop which technically they should only give capped.

Your magnus Burgundy returns are much better than infinia.

Check my calculation I completely eliminating 2.5L of your insurance spends out of base and AEP and just calculating AEP on remaining 2.5L of your 5 lakh monthly spends.

No na.

Because the insurance funds won't be counted towards AEP so even if I spend 2.5lk on insurance in Magnus I am still gonna get only 9000p(1.5lk) + 17500p (1lk spend)

So regardless if I spend on Magnus or not I won't get that many points.

So better to.move the spends to infinia for insurance.

 

[anirban.choudhuryanirban.choudhury is verified member.]

No na.

Because the insurance funds won't be counted towards AEP so even if I spend 2.5lk on insurance in Magnus I am still gonna get only 9000p(1.5lk) + 17500p (1lk spend)

So regardless if I spend on Magnus or not I won't get that many points.

So better to.move the spends to infinia for insurance.

Yeah I get it, but even for that since you are not going to use amazon pay , for 2.5L insurance spends spread across 2-3 transactions you can earn 4100 accor points only through infinia, which doesn't seem worth for the opportunity cost that you would lose out on ulip.

More importantly , even if you want to move your insurance spends to hdfc, DCB Metal would be better choice than infinia as you would earn extra 30,000 points on quarterly milestones .

 

[Centurion_wala]

How is it different from Smart Protect plan?

It has no premium allocation charges, no policy admin charge and it doesn't even have any discontinuation charges - Which will be beneficial for @sonuyos

 

[Riya]

@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.

Dude you got free money? give it to me.... don't act stupidly for a credit card... locking in 2L for 5 years and getting even lesser after that is sheer madness....
rather put it in index and @ 15% it'll double and by that time the same card might be available more easily.....

 

[coolguy1]

@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.

ULIP - Investment
Infinia - Credit Card.

Never use the two in the same sentence.
If someone uses or asks you otherwise, run in the other direction.

 

[sonuyos]

Dude you got free money? give it to me.... don't act stupidly for a credit card... locking in 2L for 5 years and getting even lesser after that is sheer madness....
rather put it in index and @ 15% it'll double and by that time the same card might be available more easily.....

Did cost analysis.

2.15lk @15%

Will give me 3.75lk after 5yrs.

Wheras this will give me 1.64lk i.e. 2.11lk ka loss.

If I spend insurance exclusively using infinia it will give me 49500Rs Value via Accor first year and then 34750Rs value from the 2nd yr.

Total 188.5k. Which is 22.5k less than what I am investing.

I have decided to close all my HDFC cards, its a waste of time and energy. They don't deserve my banking. Gonna close my PMS as well with them.

 

[Riya]

Atleast someone knows English here... Good 👍

 

[sonuyos]

Atleast someone knows English here... Good 👍

Angrezi is overrated.

 

[Riya]

Angrezi is overrated.

Gosh!!!
By English I meant cost benefit analysis.... Mathematics....
Well Chuck it...

 

[sonuyos]

Gosh!!!
By English I meant cost benefit analysis.... Mathematics....
Well Chuck it...