#NRImoneyclinic #Investment #Insurance
DO NOT CLUB INVESTMENT & INSURANCE – WHY ?
Assumed Reasons:
You Cannot Buy Large Insurance
Money In The Plans Cannot Generate Decent Returns
What Is The Truth ?
INSURANCE INDUSTRY 1955- 2000
Monopoly Of LIC
Dominated By Endowment & Money Back Plans
Insurance Was A New Concept
People Bought Insurance To Save Taxes
Term Insurance Was Not Acceptable
Without Money, Can’t Buy Big Insurance
Investment Earned Less Than Bank FDs
Colossal Erosion Of Money Value
DO NOT CLUB INVESTMENT & INSURANCE
This Statement Was VALID for the Period 1955 to 2000
INSURANCE INDUSTRY 2000 – 2010
Insurance Industry Was Opened To Private Players
Private Insurers Were Trying To Gain Acceptability
Innovation Of Industry Through Introduction Of ULIPS
Bull Markets Of 2003 to 2007 Helped ULIPS
ULIPS Had Severe Design Defects
Regulators Were Very Lenient
Mutual Fund Industry Was Under Developed
2008 – 2010 – Brought Out Ugly Side Of Faulty ULIPS
DO NOT CLUB INVESTMENT & INSURANCE
This Statement Was VALID for the Period 2000- 2010
MUTUAL FUND INDUSTRY 2006 – 2018
Took Cues From Success Of ULIPS
Made Best Use Of The Design Defect Of ULIPS
Coined The Term Investment Separate Insurance Separate
Single Handedly ResponsibleFor Term Insurance Popularity
Tax Structure Was Almost Same For Equity Funds & ULIPS
INSURANCE INDUSTRY 2010 – 2000
Regulatory Tightening Of Products Like ULIPs
Expenses Brought On Par With Mutual Fund Schemes
Long Term Nature Of Product Was Stressed
Insurance Industry Came Out With Cost Efficient Products
Guaranteed Return Endowment Plans Hit The Market
Industry Competes With Both Banks And Mutual Funds
BUDGET PROPOSALS 2018
Equity Mutual Funds Came Under Capital Gains Tax
Debt Funds Were Already Under Capital Gains Tax
ULIPS & Endowment Plans Both Enjoy Tax Advantage Now
ULIPS Can Easily Compete With Mutual Funds On Long Term
Endowment Plans Can Now Easily Compete With Banks
DO NOT CLUB INVESTMENT & INSURANCE
This Statement Is HALF TRUTH For The Period 2010- Till Now
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Our Website: www.nrimoneyclinic.com
Whatsapp: 00971 55 548 4472