Clarification on investment product

Personal finance
1

Hello Guys today I came across some retirement plans on Policy Bazar and I wanna ask you guys how legit it is

it sounds too good to be true you’re paying 10k a month for 10yrs and getting 20L+ p.m from when you’ll be aged 60yrs till perpetuity.
@Ditto_Insurance
For security reasons the name and contact number is fake.
But this kinds of returns sounds too absurd to be true what is the catch behind all this or is this pure misselling?

2

Its Ulip - market linked, not guaranteed.

Rs 10,00,000 compounded at a healthy 18% for 40 years accumulates to ~75cr

3

They’re showing it as guaranteed monthly income with 100% capital safety

4

Read the disclaimer. “Clearly” mentioned there in “tiny” letters - NOT GUARANTEED :slight_smile:

5

Screenshot (63)
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So you’re telling on a healthy market
Someone who’s 20 yrs today invests 10k p.m. for 20 yrs can get 4.2L p.m after he turns 50 as shown here?

6

LIC has an equivalent product, the reason I am saying is because last Saturday the LIC agent came to my house and was not leaving until i heard all their new plans.

After a while I told her what I understood and then she cared to leave. The name of the plan is Jeevan Umang

7

Okay will se it and see what I can understand out of it :slight_smile:
Thnx @viswaram @VijayNair

8

Accumulated corpus will be ~9cr if the cagr is 18%.

9

and as long as you’re withdrawing money less than than of the growth rate you’ll never run out of money
with a 9cr corpus and a growth rate of 18% one can withdraw up to 1.6cr p.a which is about 13.5L p.m
Now I’m understanding how are these numbers coming :slight_smile:

10

I guess its better to do the investments directly rather than via ULIP. But who will have the discipline to invest 20000 every month for 15 years ?

11

Yeah that’s a thing to see
I calculated a bit and anyday it’s better to take a term plan for insurance and invest the difference of premium between ULIP and term plan yourself rather than going for ULIP :slight_smile:
But disciplines a factor.

12
  1. I have not checked numbers and not looked at links, but yes compounding can work very well.
  2. 18% is maybe its too optimistic these days. We don’t get so much anymore in index for long periods. Its more like 10%-15% and it can be lower for long periods too. Equity is volatile, it all looks good in long term but one needs to prepared to hold through tough phases in short term.
  3. Don’t ignore inflation. Real returns will be your returns - inflation. Inflation compounds too. At one time lakhpati was rich - not today.