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.

 

[m4b]

I am afraid that the opportunity cost is around 33%+. The following table is based on the policy that my father bought 💀
I have considered a 23% annualized return for any fund.


I am not fully confident about these calculations, have to put more effort. Too many charges, I think I have excluded GST. Let the questions come so that I will be motivated to refine it. Tired rn, will revisit it in a few days. ChatGPT is also not functioning properly.

 

[m4b]

Ab humko btao kaha paisa daalein

wahi MF. not delivery

 

[Lobogris]

Actually I am not assuming at all and have given perfect calculation based on compounding. I agree, if someone desperately wants a credit card, then returns won't matter and if that is the reason that someone has invested in ULIP without caring about returns, then person should not spend time in justifying his action to others. Just be happy with your decision and keep swiping more and more to ensure that you get every buck for your money invested in a dud investment option.

I think you need to read all documents carefully and not fall for sales pitch. If you are in Mumbai, we can meet and have a beer and discuss this in detail. Trust me, It will be an eye opener for you.

My reply and figures are based on my policy documents and not a sales pitch. Those are actual facts. I have no reason to defend it. I am paying for it not someone else. So why would I care about whether someone else considers it a good or bad investment ? What I don’t understand is why people think it is ok for dozens of members to attack a ULIP with incorrect information but anyone explaining the facts is condemned for “defending “ it. I don’t live in Bombay and am actually abroad at the moment. Would definitely reach out to you when I happen to visit.

 

[Lobogris]

I am afraid that the opportunity cost is around 33%+. The following table is based on the policy that my father bought 💀
I have considered a 23% annualized return for any fund.

View attachment 63341
I am not fully confident about these calculations, have to put more effort. Too many charges, I think I have excluded GST. Let the questions come so that I will be motivated to refine it. Tired rn, will revisit it in a few days. ChatGPT is also not functioning properly.

Old ULIPs had much higher charges. Please look up the changes.

 

[Lobogris]

He will get actual NAV - however the assigned units will be less. Hence if he calculates NAV * assigned units it will be significantly less that his investment (i believe upto 20 percent less) AND this is the point which ppl investing in ULIPs completely fail to understand.

20 percent less investment means even to break even on actual investment, gains have to be more than 20 percent which may not happen in all years and thus causing a net loss. He will be lucky if he even gets 2 percent returns on ULIP if markets remain flat (which is expected due to the recent election results)

How did you calculate the 20 percent lesser return ? I have clearly explained that the mortality charge is only deductible till your corpus is less than sum insured and in the interim it is charged on the difference. So if your sum insured is 20 lakhs and your corpus has grown to 10 lakhs, you will be charged mortality charge on 10 lakhs. Next year if your corpus grows to 12 lakhs, you pay it on the remaining 8 lakhs and so on. In addition, these charges are refunded 2x after 10 years. Further, all allocation fees as well as FMC is fully refunded at maturity. Then add in the tax savings. The return might be about 5 to 10% lesser due to opportunity cost but the tax savings will make up for it.

 

[amitr29]

My reply and figures are based on my policy documents and not a sales pitch. Those are actual facts. I have no reason to defend it. I am paying for it not someone else. So why would I care about whether someone else considers it a good or bad investment ? What I don’t understand is why people think it is ok for dozens of members to attack a ULIP with incorrect information but anyone explaining the facts is condemned for “defending “ it. I don’t live in Bombay and am actually abroad at the moment. Would definitely reach out to you when I happen to visit.

Please see the commission paid by bank on these policies to Agents.Plus foreign trips plus parties in 5 stars etc. This is specifically for HDFC. I am sure you will agree that these charges will be indirectly borne by policy holders in the end.

I have no issues you defending but I feel few points that you have mentioned have fine prints and fine prints are where these ULIP's take us for a ride.