About the plan
Pay regular premiums for 12 years & get double the premium amount for the next 12 years. To know more about the plan: Click here
Below table shows how it works. You pay Rs.1 lakh each year for 12 years (minus sign shows cash outflow) & in return you will get double the amount you pay for the next 12 years i.e. Rs. 2 lakhs per annum for the next 12 years.
Rate of Interest
Rate of interest on the investment comes out to be 5.94% compounded annually. Here cash outflow from the 13th year on wards is assumed to be reinvested in the fund.
BIG Question is; why to go for approx 6% rate of interest when you can get a 8% + rate of interest from investing in Public Provident Fund (Currently PPF Rate of Interest is 8.7%)
Clearly it’s a gain of 2% + on investment in PPF over this plan.
What about the Insurance cover !!!!
Get an Online Term Insurance plan, which is much more cheaper & can continue till you wish.
If somehow your agent is still able to convince you to invest in this plan, please feel free to drop a comment or write to me at firstname.lastname@example.org & all for your good I will make sure that you do not invest in it.
for any clarification, feel free to drop a comment 🙂
2. Impact of 1%