Folks,
Here’s my situation:
I invested Rs. 2, 00, 000 per-annum in the life-insurance policy under the enhancer scheme (don’t even ask why I invested so much). Now, it’s been almost 6 months since I paid my first premium and the value of the policy is Rs. 68, 500 (down by Rs. 1, 31, 500 - courtesy administration charge of Rs. 1, 30, 000 upfront followed by monthly charges of approximately Rs. 1, 600). To make matters worse, I was told by the BirlaSunLife people that these monthly charges (Rs. 1, 600) will be applied during the lifetime of the policy, except the second year of the policy, when these charges would go as high as Rs. 6, 000 per-month.
Now I need to make a decision on whether I should continue with this policy or not. So, I have a few questions that I’d really appreciate you folks take time to answer:
Some believers out there (including Birla Sun Life customer service reps) have said that this policy would pay out well in the long term. So, is there anyone out there who has had this policy for long periods (in excess of 5 years or so)? And if yes, what has your experience been with the policy? Are there any hopes that things would look any better?
Does anyone know if the insurance agent who contacted me will get a cut out of the investment I made? I read somewhere that the insurance agent will get about 30% commission on my investment (something like Rs 60, 000). Is there any truth to this? I’m asking this for some personal record-keeping.
Is there anyone out there who has some experience in invetment tools? If yes, do you, sir/ma’am, think this policy is good in any as an investment tool (not just a life-insurance).
Your answers will be very helpful to me in determining if I should continue with this policy gulp down the bitter Rs 2, 00, 000 hit.
-Jai