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猬汻eality of Money Back Plans, Guaranteed Income, Endowment | Insurance + Investment? - YouTube
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HDFC Life Sanchay PLUS
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Something is wrong with it
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Let's change it
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Now, it is better
[Sanchay MINUS]
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Calculate Premium -
Something is wrong with it also
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Yes, it is better
[CALCULATE LOSS]
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Namaskar Friends,
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[Intro Music]
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Guys Welcome back to the channel
I am money-minded MANDEEP
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I am going to tell you a ninja technique
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You can burn your money
yourself using that technique
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The core plan is the same
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But companies have launched
different versions with different names
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You can find these plans in
every life insurance company
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For Example, Endowment Plan
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Even customers have to check the
meaning of this word using dictionary
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Companies decided to keep a name
which can attract more customers
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That's why they came with names like
GUARANTEED MATURITY
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Then Guaranteed Life-Long Income,
Double Income, Money Back Plan
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Sanchay MINUS, or
Assured Wealth Plan
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In which, everything is assured expect wealth
believe me
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Seriously, India is facing two main problems
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No. 1, Agents get high commissions up
to 25% when they sell these plans
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So, they have a good
motivation to sell these plans
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But that doesn't mean
those plans are good for you
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If the Relationship Managers of banks fail
to sell these plans and achieve their target
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Then they are mistreated and
they don't get incentives
[125]
The second problem is the lack
of awareness among customers
[129]
When someone uses words like
Guaranteed income or double income
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Then people are ready to invest
their money without further research
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Many people even feel proud after buying these
products that he/she is responsible for family
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But you have done nothing for your
family if you have bought any such plan
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You are not alone if you have any such plan
My father also has a such plan
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He has an endowment policy
continued form 2009
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I was not aware at that time
as I was in 9th class
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There was no such awareness
on Youtube also as it is today
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So, I can't blame my father but I can share
some shocking truth of that policy with you
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We have to face a loss of 1 lakh
because we discontinued that policy
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So, should I discontinue it with facing
a 1 lakh loss or should I continue?
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So, my point is clear. I am 100%
against these policies
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But I will explain all facts transparently
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Then we will discuss something which
will be very important for YOUR future
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But first of all, Let's understand what is
Endowment Plan, Money Back Plan
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Guaranteed Income, Double Income, etc etc
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These all plans are sold by
an insurance company to you
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That's why you will definitely get
a life insurance component in these plans
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They have made a combo by
adding Investment component
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Like Cold Coffee + Icecream
This is Insurance + Investment
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How this is deffernet then ULIP?
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I told you in the ULIP video that
your investment is market-linked
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This means you will get returns based
on the performance of that fund
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But here the amount you
will get is pre-decided
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As its name says Guaranteed
Income, Double Income
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You know from day 1 that
what you will get on maturity
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The agent will also add two other points here -
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No 1, this is tax-free income
No 2, this is guaranteed income
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But you will also get annual
bonus declared by the company
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That's why your amount will be
greater than guaranteed income
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Let's clear all points one by one
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First of all, let's discuss
Life Insurance Component
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As I have told you many times,
While taking a life insurance
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You have to ask one question to yourself
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How much amount my family
needs if I die tomorrow?
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This amount should be a minimum 10
times of your annual income after tax
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You must have a minimum of 1 crore life
cover if you earn 10 lakh annually
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It can be a maximum of up to 25 crore (25X)
Depending on the premium you can afford
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But a person must have a minimum of 1 crore
life cover if he earns 10 lakh annually
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So that his family can maintain the same
life style for the next 10 years if he dies today
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Family need not worry about
school fees or other expenses
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Let me show you the life cover which
you get in these endowment plans
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And the premium which you pay for these plans
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HDFC Life Sanchay Plus Plan
is here which is quite famous
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But this should be MINUS in the place of PLUS
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Minimum premium is 30,000
but let me type 50,000
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If I click on VIEW BENEFITS
then this indicates that
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My sum assured is 6.5 lakh if I pay
50,000 Rupees premium annually
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This is not a life cover
The company is doing this favor for me
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What will we do with this great amount??
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Point no 1, If I need a 1 crore life insurance
cover then this is no where close to that amount
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Point no 2, this insurance is very expensive
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if you are 25 years old and you need
1 crore insurance cover in TERM PLAN
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Then you have to pay only
10-12,000 Rupees annual premium
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This premium is 5X greater than that
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There is a little modification
They are saying that
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I will get 12.5 lakh if I die at the age of 44
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And I will get 6.5 lakh if I die early
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How can someone decide
that when will he/she die?
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The reason behind increment in maturity cover with
age is not that they are increasing your life cover
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This is increasing because this is a combo
plan which also includes investment
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So, the amount which your family will
get depends upon the age you die
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This is my father's endowment plan of MAX LIFE
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Its annual premium is 20 thousand rupees
But its cover is only 2.14 lakh rupees
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This is not a life cover but a favor
which company is doing with us
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If you are thinking that why life
insurance is so expensive in these plans
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Its answer is - GREED
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As the IRDA Guidelines, companies have to
pay a minimum 10X cover of annual premium
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The company will give a cover of 2-3 lakh
if the company is charging 20,000 premium
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But maximum cover in their hands
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So, they will not give enough cover
even after charging a high premium
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The conclusion of the insurance component
can be explained in only one word - CHHEE
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Now, let's discuss the investment
component of Endowment Plan
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Let's take an example of
Max Life Guaranteed Income Plan
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As their illustration, if someone pays
a premium of 1 lakh till 12 years
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Then he will get 1.31 lakh from the 13th year
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He will get 2.62 lakh from the 18th year
(Double of Previous)
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In the last year(21nd Year), he will get a
2.62 lakh and 2 lakh rupees additionally
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You invested 12 lakh rupees and you are
getting a return of 21.70 Lakh till maturity
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Two points are noticeable here
One - the amount is fixed here
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You already know that how much
you will get in 13th year or 17th year
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And secondly, your money will be doubled
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People love the feeling of doubling the money
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But you should think about the rate of return
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You should know the rate by which your
money is growing in any investment
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You have to calculate Internal
Rate Of Return (IRR)
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We have to use EXCEL to calculating IRR
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I have entered -1 Lakh for the years 1 to 12
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Because I am paying 1 lakh every year
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I have entered +1.31 Lakh in my 13th year
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I have entered 2.62 Lakh 18th year onwards
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In the last year (22nd year), I have entered
2.62 Lakh + 2 Lakh as mentioned in the plan
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Now, we will use a formula
I will write = IRR
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And will enter the first cell and the last cell
The first cell is D2 and the last cell is D23
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You will be surprised as you will enter this formula
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Because you will know that your money
will grow with a rate of only 5% in this plan
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Even FD is better than this
which has not any Lock-In
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I will disclose the truth of surrender
value if you close this plan in the middle
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This is a joke with the name INVESTMENT
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Let's see another plan
HDFC Sanchay MINUS
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There are 4 options in Sanchay MINUS
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Guaranteed Maturity, Guaranteed Income,
Life-Long Income etc
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You can check the IRR of
these plans to know the truth
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Let me calculate it for the
Guaranteed Maturity Plan
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You have to pay a 1 lakh annual
premium for the first 10 years
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I have entered -1 Lakh for the first 10
years as I am paying this amount
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I will get nothing from the year 11th to 19th
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That's why I have entered 0 here
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I will get 22.72 Lakh rupees in the
20th year. So, I entered the same
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I again used the IRR Formula
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And this money is growing with
an annual rate of only 6%
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Let us discuss Max Life Assured Wealth Plan
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If you pay 1 lakh premium
each year for the first 5 years
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You will get 7.51 Lakh in the 10th year
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This money is also growing with the rate of 6%
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There are some plans in which your
money grows with the rate of 4.4%, 4.8%
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BTW, this Max Life Plan is known as
ASSURED WEALTH PLAN
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They have transformed the meaning of the name
wealth by stating a 7.5 lakh amount as wealth
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As this logic, This is neither a good
insurance plan nor a good investment plan
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Some people may think that
this investment is tax-free
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We will get a deduction in 80C
Its returns are also tax-free
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If your return is already very low and
you also have to pay a tax on it
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Then people will not buy this product
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Secondly, this investment is
considered under the debt category
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You get indexation benefit in debt
investment if you hold more than 3 years
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We have explained in this video
You can watch for more details
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If your money has grown with such a
pathetic rate that it even can't beat inflation
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Then your payable tax will be zero
after implementing indexation benefit
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So, if your return doesn't beat inflation
then anyway you will not pay the tax
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If it is about Section 80C, then watch
this video to know about all benefits
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Let's see surrender and lock-in in my father's policy
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Its annual premium is 20,000 Rupees
We are paying it for the last 10 years
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This means we have already paid
the premium of 2 Lakh rupees
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I will get only 85K Rupees
if I surrender it today
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It means I have to face a loss of 1.15 Lakh
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I have to bear the loss of half of my own
money because I can't wait till maturity
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Some people may attract towards
bonuses of these policies
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Let me reveal the black truth of bonuses
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Suppose you took a 20 years policy
Suppose bonus was declared in 10th year
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But you can't get that bonus in
your bank account on that day
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That bonus will be in your policy and you
will get it on maturity after 10 more years
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So, if you even get a 5-10K Bonus than
you can't touch it for the next 10 years
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You may think that you will get a return on this
money or this will be invested somewhere
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Your 5K bonus declared in the 10th year will be
same 5K in the 20th year when you will get it
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The power of that money would have
been decreased due to inflation
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So, you are not creating wealth.
You are destroying it on purpose
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People even feel proud after
investing in such policies
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They feel proud because they
took a life cover for their family
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Secondly, they think that they are investing also
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They feel responsible after securing
their family's future in such a way
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This thought is being planted in your mind
by showing these emotional pictures
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They are conveying a message that these
people are happy because they took this policy
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You are not doing right
by buying these products
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When free education is available on YouTube
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Then you won't have anyone
else to blame but yourself
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If you realize in the future that you
have done nothing for your family
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Let me tell you the exact loss
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After 10 years of taking the policy, if
you realize that we have done wrong
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You are ready to invest 1 lakh rupees
in such plans (Means 8.5K Per month)
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Let's consider the monthly investment of 8,000 rupees
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Monthly Investment - 8,000 Rupees
Rate of Return - 12%
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12% is expected with a good mutual fund
You can do it 11 or 10 if you disagree
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I am doing SIP for 10 years
You will invest around 9.5 Lakh in 10 years
[802]
You will get 18.5 lakh rupees
Means you doubled your amount in 10 years
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You get the same amount in
these plans after 20-22 years
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You are in an 18.5 Lakh loss if you are
invested in these plans for only 10 years
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Let me keep this 18.5 Lakh amount as it is
I will not invest it further
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I will keep it as it is for the next 20 years
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The amount will be near 1.80 Crore
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Your total investment duration was 10 years
You invested only in starting 10 years
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You didn't invest for the rest of 20 years
Still, your amount will be 1.80 Crore
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If you have invested in any
endowment plan for 10 years
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And then you realize that you have done wrong
then you can't create such a big amount now
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Because you have less time now
And you can't invest more now
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As you have responsibilities as house
expenses, the study of children, etc
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You have lost crores if you lost 10
years because TIME IS MONEY
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I am discontinuing my father's
policy because TIME IS MONEY
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I am doing it even after I
have to bear a loss of 1.15 LAKH
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As I have already lost the opportunity
of investing money for 10 years
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Now, I don't want to lose it
for further 10-15 years
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That amount can grow rapidly
if I invest it in a good option
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I still have my future's 10-15 years
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I will not take any life or term insurance
for my father after closing it
[887]
As I have already told you many times that
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Term insurance is useful for the
people who have dependents
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But I am a single child of my parents
and I am self-dependent
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It means no one is dependent on my parents
so they don't need a term insurance
[902]
I can invest the amount which I
would have paid in term insurance
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That's why I always advise you to
think that what you actually need
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If there is any dependent on you
and you need a life insurance
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Then you should go with term insurance
which is the best insurance product
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Secondly, you are becoming old with time
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If you want to take a term plan after 10
years then your premium will be high
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Final question - What should you
do if you don't buy these plans
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The process is simple. Your
priority should be family's security
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Your family should get enough
money if you die today
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So, your priority should be to take
term insurance for yourself
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Because it is the cheapest
life insurance in the world
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You can get a 1-1.5 Crore cover by
paying a Rs 10-15K annual premium
[952]
Then you need health insurance
As diseases don't come with an invitation
[956]
Our lifestyle has changed a lot
and hospitals bills are very expensive
[961]
So, we need financial help at that time
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Then your priority should be
to have an emergency fund
[967]
So, you can get a financial
support if you lose your job
[971]
You should have a separate fund which should
have money equal to your 6 months salary
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You just need to keep that money
You can do an FD or put it in a liquid fund
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Then you should prefer diversified investing
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Always prefer diversified investing and don't
hesitate to pay money to professionals for it
[990]
Invest your money in various options like
stocks, mutual funds, Debt, NPS, etc
[997]
But your some portion of the money
should be invested in stocks
[1000]
Some people disagreed in the last video
that how can I expect a 12% return
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This can be less or more than 12
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You have a 0% chances of earning
20% return if you don't invest
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If you have done diversified investment then you
don't need to worry if you get only a 7-8% return
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As your entire money was not invested in
that option. You have diversified your portfolio.
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That's why you should invest some
money in stocks and mutual funds
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I am giving you the link of 2
discount brokers in description
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One is ZERODHA and another is UPSTOX
Both are India's best broker in my opinion
[1036]
In fact you have to pay 0%
brokerage on equity delivery
[1041]
You can indirectly support us if you
open Demat account using our link
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You can open an account within 24 hours
The entire process is paperless
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You should buy 1-2 shares after opening
your account using your savings
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Because you will learn better
when you will invest yourself
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Free knowledge is available
on YouTube so use that
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Officially video is completed and you can go now
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But I have to talk with you about a serious point
and I would appreciate it if you will listen
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An agent comes to you. Most probably
he is your close friend or a relative
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He sells you such plan and
you blindly trust on him
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Ideally, you should trust as he
is your close friend/relative
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But you should understand that
it is his job and he will sell plans
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This is not always true that
he always wants to loot you
[1096]
The sad reality is that being an insurance
agent in this country is very easy
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There is a 1-hour exam and you can easily clear it
[1103]
At the time of these fresher's training
They get specific instructions that
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Don't sell term plan because
the commission is very less
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So, they lie that term plans
are useless for customers
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That's why they teach them to sell
Endowment, ULIP, Money-Back, etc
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Because the commission is high in these plans
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These words are not mine. This is the
real-life experience of an insurance agent
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Who commented about this and
he left his job after 4 months
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This means if your relative comes to
you as an agent to sell these plans
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It doesn't mean that he wants to loot you
but he doesn't know the reality of these plans
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That's why he choose these plans
also for himself and his family
[1143]
I request you that don't trust
blindly on anyone including me
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You should verify all the information
which I have told you today
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Learn to calculate returns, read about
finance, research about it
[1161]
Always ask good questions to the
people on whom you trust
[1167]
That's why I am always thankful to the people
who comment their doubts and criticize
[1171]
I also include their comments in the video
[1174]
I don't want that LLA should be a
channel on which people trust blindly
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Don't trust blindly. Learn from
here but do your own research.
[1184]
Let's meet in a new video
Let's connect on Instagram
[1194]
Thanks for watching,,,,,By
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