Yesterday I got a call from their call center where they offered 13% net return on their "Guranteed Money Back Plan - Life Insurance". If I took a 15 Year Policy with a Premium Paying Term of 10 Years and paid my premiums for three years and then surrendered my policy; then they claimed to get all my premium paid back plus get an additional 39% and not to forget all tax free under Section 10 (10D).
Before meeting the adviser at my home I thought of doing some research as the offer seemed too good to be true. I went to the website and tried to get an online quote/schedule. I was surprised to find that if I surrendered the policy in the 3rd year all I got was 20% - 30% of the total premium paid.
I called back the agent and challenged him with this info, he still tried to fool me by telling me If I surrendered the policy in the 3rd year then Reliance would pay me the following amounts in the 3rd year (all in my bank account):
i. The surrender value
ii. 40% of the 1st year insurance premium (as agent discount cause this is a direct sell - no agent involved)
iii. 5% extra discount in premium if I got my wife registered as a nominee
iv. Amount showing as "Fully paid up" as per formula mentioned in product brochure
v. Guaranteed Loyalty Additions as showing in the "Quotation"
What is more they even called me at 7 in the night claiming that the call is from a recorded line and stated the same offer. The lady on the line even told me that when the executive comes to my place I need to make the payment there and then else the offer would not hold. This is like a forced offer.
This is a very big scam being run directly by the company and its representatives. It is pathetic - I am sure they must have scammed so many people so far.