I have been too busy of late, that reflects in no post for sometime. But a call from a friend of mine on a new insurance plan for Women ensured that I must write about it before the “Smart Women” were taken for a ride.
This plan is basically a bundled product. It combines insurance with mutual funds. In the product brochure it says very clearly, “IN THIS POLCY, THE INVESTMENT RISK IS BORNE BY THE POLICY HOLDER”. One does the same when one invests in Mutual Funds.
Secondly, in this plan, for a 40 year old woman, the sum assured is 10 times your premium. And premium should be between Rs24000 to Rs100,000. Implying you are insured for 2.4 Lacs to 10 Lacs depending on what you pay .The policy term varies from 10 to 15 years. Implying that you will pay premiums upto 50 or 55 years. One requires actually insurance after 55yrs of age.
The plan is trying to sell policies under three heads of Classic,Premier and Elite and all playing upon the sentimental issues with women like pregnancy complications , congenital defects in child etc etc and wavering of premium if identified with such things. Pray Milady, why are you buying insurance at 40 if it is for saving, go and directly invest in HDFC Balanced or Top 200 Mutual Fund scheme rather than buy this plan.
And if you want insurance only, and if you are enamoured only by HDFC , go and buy a term cover plan of HDFC. It will be as cheap as Rs 1600 per year for 10 years with sum assured of Rs 10 Lacs. The balance Rs 98600 which you save by not investing in HDFC Smart Woman Plan, you can invest in a good mutual fund. And get more money then what the policy gives you.
So my advice to all the “Smart Women” is please DO NOT FALL for the ad lib. Go enjoy life, have a Starbucks Coffee (it is refreshing !!) and put your money through your financial planner into a term cover and mutual funds.