Meaning in a span of 25 years, as term insurance premium the person would have paid about Rs.10,00,000/- as premium and if he survives the plan, nothing comes back to him. There are different plans today in the market which will cater to such needs and still give a decent return at the end of the plan period. But for a set of people who want only the rebate, why should an advisor tell about these plans and waste his time?
3. The returns from other plans are on the investment made while insurance bonus is on the sum assured.
Assume that you will put aside Rs.30,000/- as deposit for a period of 25 years with about 5.5% compounding rate of interest. The returns at the end of the plan period is about 16.20 lakhs. Now the same money if you were to invest in an endowment plan, you would get a life cover of Rs.7lakhs. On this, taking the same bonus rate of 5.5% the returns at the end of the period would be about Rs16.60 lakhs. Plus the loyalty additions at the end of the plan period.Also, once the policy matures and the sum is paid, the life cover continues till death. At death, the sum of Rs.700,000/- is paid again, which means money paid twice.
