Investment-linked Life Insurance Schemes Are Taking Advantage of You

My friend Shilla called up distraught and shocked. As part of portfolio consolidation, she had surrendered some endowment insurance policies but got to know that she will not even get back her principal, despite the fact that she has held the policies for a lot more than 10 years. She was befuddled as to how it is possible to reduce her money despite long-term holding with a “safe” institution.

It is sad to see investors lose their hard-earned money as a result of mis-selling of life insurance-cum-investment policies in India. Unscrupulous agents, lack of transparency from insurance companies and a regulator who is not seen as employed in the interest of the policyholders are accountable for this sad situation.

If she surrenders the policies now, she’ll get back Rs 13.42 lakh, due to penalties for early withdrawal.



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