Max New York Life Insurance policy - Capital Builder (ULIP with 15 year term).
This policy was sold to my father Col. Gopal Kanal in May. Commencement date of the policy was 11-05.
Life insured under this policy is mine. Annual Target Premium under this policy is Rs 50, 000 with semi-annual mode of payment.
This policy was sold to my father by Shree Ganesh Corporate Services ltd (Code: 223769).
At the time of selling this policy the agent did not inform my father that its a ULIP. And also no product brochure was shown to him.
In terms of details or information only thing that was shared was that, if you give Rs 30, 000 as ATP for next three years, then at the end of third year
you will receive Rs 1, 20, 000 and that there will be no surrender charges from third year onwards. No information regarding the various charges was shared like:
Premium Allocation Charges (which is 30% in year 1 and 10% in year 2)
Policy Administration Charges (2% of Summ Assured, SA is 5, 00, 000)
Fund Management Charges (agent himself has selected the fund without informing)
Currently the fund value of this policy is around Rs 60, 000. After investing Rs 1, 00, 000 there has been a negative growth of around 40% while whate was promised by the agent was around 33% of positive growth by the end of third policy year. Considering the current fund value I think only a miracle can convert a negative 40% growth rate to a positive 33% growth rate.
And agent ha
Considering the fact that the insurance agent did not even disclosed the basic nature of the product (ULIP or Traditional), this is a clear case of misreprestation of facts or I can say mis-selling.
After paying Rs 1, 00, 000 total premium, if we surrender our policy today we will be getting approximately Rs 35, 000 at the end of the third year.
0 comments