Recently A representative suggested investing in the IDBI Fortis Wealth Assurance plan for 10 years duration @ 1 lakh per year . He said the returns where 32 lakhs at the end of 10 years assured. The plan is a investment ULIP with critical illness rider covering major illnesses ,risks which I want covered. What do you suggest?
He spoke of Assured Fixed Returns,Entire amount of your premium goes into investment options as 100% of your premium is allocated to investment options of your choice (No premium allocation charge),
Hi, Can you ask the representative to give you some document supporting his claim for this assured return. If he can give the proof than I will ask each and every member of Traderji to invest in this scheme ASAP.
Why so? Well to get 3200K at the end of 10 year with 100K investment per year, your investment has to earn sweet 22.22% return per year. And we all know that with even long term equity investment, this is quite high target.
So I am confident that he can not provide any such document. I have gone through the product brochure and it does not guarantee the return at the end of term.
After negating this assured part, there is not much left in the scheme. This is just like any other ULIP scheme with some variation here or there.
I am not fan of ULIP's. The biggest stumbling block for me is charges (which will be 10%+ for first 5 years in this scheme), transparency and liquidity.
If you want to invest in market indirectly, then best way is MF. There are so many themes available. Its transparent. Based on theme you know where they will\are investing your money. You can get out whenever you want. And best charges are low.
As for the CI, risk cover etc, best way is Term Insurance.