Popular Insurance Plans Reviewed. #PKBOLA

Money-back policies may sound like a great deal, but are they really worth it? In this video, we dive into the world of insurance and discuss why money-back policies may not be the best option for you. We’ll also look into solutions and alternatives to consider when it comes to investing in insurance.

Additionally, we shed light on how agents sell these policies and what to watch out for when dealing with them.
So before you invest your hard-earned money, watch this video to learn more about the
downsides of money-back policies, the alternatives, and how to navigate dealing with agents.

To help you plan your finances, we have also provided some useful tools that can assist you in making informed decisions.

DOWNLOAD the sheet mentioned below to use the Endowment IRR Calculator -
Steps:
1. Open the sheet
2. Go to the File menu
3. Download - Microsoft Excel (.xlsx)

00:00 - Introduction
02:08 - This is how they sell you wrong insurance
07:10 - Why are these policies bad for you?
07:45 - What is an Endowment policy?
08:05 - How are Ulips different from Endowment policy?
08:38 - Reality of insurance coverage
13:05 - Do this before buying any policy
16:00 - Reality of Bonus in money-back plans
16:50 - Reality of 0 tax in Money-back policies
19:14 - Always buy this Insurance plan
19:30 - Become financially smart with these tools
20:47 - Conclusion

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[manishkumarmnv]

I m job holder age 32 year. In 2019 i purchase LIC (life insurence+ sum assured) after 4 year watching some youtuber, i realised that i m burning my money. then i surrender my Lic( दिल पर पत्थर रखकर)😮 and got approx 65 percent my money..then i purchase 1 pure term insurance.. 1 Elss MF( for tax benefit) and rest of money in direct stocks(15 returns now).... Thank u some genuine youtuber like Pranjal sir and LLA channel.. jo डूबने से बच गया।😂🙏🙏

[satishkumargajbhiye]

बहुत अच्छी जानकारी।
आप ने term और endowment का फ़र्क़ बताया, लोगों ने समझा व एंडोमेंट को मना करने लगे। लेकिन ठगों ने नया तरीक़ा अपनाया है। वे अब ये नहीं कहते कि यह एंडोमेंट पॉलिसी ले लो, बल्कि वे बताते हैं कि हमारा एक बहुत अच्छा इन्वेस्टमेण्ट प्रॉडक्ट आया है। उनकी ज़बान से इन्शुरन्स, एंडोमेंट ज़ैसे शब्द ही नहीं निकलते। लोग फिर फँस जा रहे हैं।

[gopaladitya]

Hats off sir ji
Labour law advisor wale mandeep ji ne bhi is par video banaya tha 2 saal pahle।
Bahut achha samjhaya hai apne bhi

[kishorghumade]

एकदम सही, एजंट अपना फायदा पहिले देखता, सही जाणकारी.

[Bhartiya]

In Apr'21, I bought one LIC policy but in next few months I saw one video of yours where you explained how to calculate the return of such policies. To my surprise when i checked the return on my policy, it was merely 6.5 percent. So i went with ur suggestion, keeping in mind the same premium amount, I bought one term insurance which gives me same assured amount + add on coverage on accidental death or any physical disability + critical illness included. And bought the mutual fund with monthly SIP.

The only loss that occur to me was the premium amount that i already paid to LIC, which is around 50k, but now when i look at the return from mutual funds, all loss recovered.

So go for best term plan available and invest the remining amount in any of the investment plan you like.

[debashishbhattacharya]

Thank you Pranjal Bhai for your valuable information 👍

[Vivek.Parmar]

My viewpoint and an interesting analogy… 🤔

I think that a common man who is not so financially literate has a different perspective when purchasing such policies. Let's understand by example. Suppose there are 2 plans.
1. Term plan - 20 Rs per month premium & 1 Lacs sum assured in the case of death
2. Endowment plan - 100 Rs per month premium, only 10k sum assured in the case of death & 1k monthly income for 10 years

Now let's understand how a common person think. Suppose if I have 200 Rs.
Case 1: 2 people come to me and ask: gives us 100 Rs each. And we will give you 10% interest after 1 year. Means I'll get 220 Rs
Case 2: 1st person will give me 25% return & 2nd person will give 0 % return. So after 1 year I'll get 225 Rs.

By seeing above case, it seems that one should go with 2nd option. You're getting more interest, but people would choose 1st option. Because according to their mindset, they should get something out of each portion of their total amount. They don't see the overall return.

Now if you try to explain this person for our insurance case. As explained in our original example, endowment plan was of 100 Rs. Let’s split into 2 portions: 20 + 80. One can buy term plan at 20 Rs & can increate SIP in index mutual fund using remaining 80 Rs. The return would be much higher in this case. But people would think, why we should give 20 Rs to term plan company? If nothing happens to me during policy duration, then we won’t get anything back? That 20 Rs premium will be of no use.

Some people who don’t know stock market would argue that it is not safe. Endowment plan gives us guaranteed return but here we may lose money if we invest in equity. Which is not true in 99% case if we take horizon of 30-40 years. Index would give 12-15 % return atleast which is quite higher that 3-6 % in endowment plan.

So I had this high-level thought to explain to such people. I haven’t had a chance to put these figures in actual premium calculator to conclude whether it will be feasible but you should get some basic idea by reading this…

So as I said earlier in our hypothetical example: 100 Rs for endowment plan & 20 Rs for term plan

What if we divide 100 Rs like this…
100 = A + B + C + D
A = Term plan premium (20 Rs in our example)
B = RD premium
C = SIP in equity MF
D = Remaining amount

So basically can we divide a relatively high premium of endowment plan into 4 component such that we can…
- A: Buy term plan of same Sum assured what endowment plan was offering using A amount
- B: Invest in Recurring deposit and get fixed return what endowment plan would provide
- C: Get additional return by investing C amount in index MF SIP
- D: Still some amount remains which we can invest in either A, B, C as per our preference.

The idea here is divide & conquer. If you try to argue with those LIC agent why endowment plan is better then they would give dozen cons of term plan. So here we are dividing large endowment plan to small chunks and still able to get all those benefits what endowment plan was offering.

So let’s put random values in above equation …
100 = A + B + C + D
= 20 + 50 + 20 + 10

Endowment plan was giving me 10k death sum assured. I got it by paying 20 Rs in Term plan. But I don’t trust in private companies like HDFC, ICICI, etc? What if my family don’t get amount after me? No worries! You trust LIC. Right? Then choose LIC’s Tech Term over endowment so your trust issue got resolved.

Endowment plan was giving me 1k every month after 10th year. So By investing B (50 Rs) I am also getting 1k. But I don’t trust private banks. No worries. You have SBI & Post office as govt optins. Safe options & guaranteed return.

Till now, we covered all benefits of endowment plan. Now everything else are extra perks. I would invest 20 Rs in index MF. Which will give me 13% return. What if someone tells you if market crashes! You can reply… Hey even if you get 0% return here, still you’re not losing anything. Because A + B covers what you were getting in endowment plan.
Still we have 10 Rs left as D. Which we can invest either in A, B, C. Depending on what is my requirement. For example, let say if I need more cover. I would invest in A and instead of 10k, I would get 20k death cover.

Now question is whether is it possible to divide endowment premium in A + B + C + D? That’s I’m leaving on you to calculate 😊

[rajeshrout]

Sir ji...u r a worst Insurance Seller but an awesome financial educator...

[adityakothari]

I am adequately covered thru term plan and have a sizeable equity portfolio, hence in order to diversify gradually to fixed income category and with an objective to lock-in a higher interest payout today, i choose to go for 'Guaranteed Returns plans' by TATA AIA where I am getting a tax free returns of 7% (including GST on premiums paid), for 30 yrs alongwith return of premium at end of 30th

[rajhgandhi]

🙏 dil say thank you ❤️ ye he baat may as a ex-insurance employee logo ka samjana chata tha par aap nay iski video bankar mare kaam aasaan kar deya ... Sab kao kul ke share Karu ga ye video ❤❤❤❤❤❤❤

[lawrencesequeira]

I am half way through your video and I felt the urge to like it.... you have nailed it man. Too good an explanation and simplified it for us. Thanks again bro

[ujjwalprasad]

Very very informative knowledge thank you sir for giving reality of some insurance plan ❤😊 ye kahi nhi pata chalta hai itna details me sirf pranjal sir se reality pata chalta hai

[sgeorge]

This depends on person to person.
For someone who wants certainty in life and can sacrifice huge returns with risk. Can go with these plans. Please note these schemes do give 5-6.5 % return. If someone is guaranteeing this for the next 40-50 years it’s not bad. I live in US, for me 5% is much better than 1% return I would get in US

[karanborana]

Which term insurance and health insurance you have taken for your family and why. Without any filters, please make a video on this sir. It will be really great.

[mahendrathapa]

Yes, absolutely serve to society.. Financial Education provider...!!
Many of people's dream theirs dream for family.. you give torch light to Financial GOAL.¡
KEEP IT UP...❤

[santu]

One correction, Indexation benefit has been removed in Debt mutual fund from this financial year.

[milanchaurasiya]

sir apki point sab theek hai.
but mere kuch question hai uska answer please dena..
1) jinka believe mutual fund or direct stock par nahi hai unke liye best way invest karne ka hain life insurance mai hain. mera mana hai.
2) Aur jinka age 50 above hai unke liye term policy lena bekar hai life cover ke liye kyuki premium bahut zyda ho jata hai..
so please ek video esh par bnaye jishe ki hum jaise log apne parents ka bhi sahi way me invest kar sake..
jisko meri baat sahi lagi hai please comment like kare aur sir tak yeh baat le jaye.. jishe ek aur video knowledgeable bnaye..
Thank you in advance 🙏

[amolpatil]

Very Good Video, exactly what middle class man thinks and how he thinks and get dumped into such policies. Its an eye opener for me.
Thanks,
Amol

[shubhankarghosh]

Sir, two questions I have.
1. Monthly or Yearly income is not fixed for entire 15/20 years then how to take it into account?
2. Indexation is only applicable in land? Why not in other items like gold, consuming products, and all. Because price of those are equally increasing day by day like land.
Thank you for this video.

[sachinjain]

बहुत सही स्क्रिप्ट बता दी आपने पॉलिसी सेल करने के लिए मैं एलआईसी में नया नया ज्वाइन हुआ हूं। आपकी ये स्क्रिप्ट बहुत काम आयेगी। अगर हम इंश्योरेंस नहीं बेचेंगे तो कोई और बेचेगा और लोग खेरीदेंगे ही। और हमको भी तो अपना घर चलाना है ना तो कोई भी धंधा छोटा नहीं होता और धंधे से बड़ा कोई धर्म नहीं होता।