the flow just continues…

A friend called me to say he is buying a new life insurance policy. Luckily he called me before he signed the cheque. I asked him why did he have to buy a policy – his son and daughter have just completed good top class education and are in nice jobs.

Well the whole thing started because his manager called him and sought a meeting. He had all the print outs of all the policies that he had bought from one particular life insurance company. My friend flipped and asked him “How come you have all my statements, when I actually bought these from somebody else”

Without a convincing answer…they went ahead.

The RM told him “Sir your endowment plans have both MATURED” – as you have paid for 3 years. Moreover the NAV of the units is also attractive at about 67, so please surrender it” and then you can use the same money to buy a new policy which is available at a nav of 7 (you see markets have fallen, and will soon go up)..blah, blah…

My friend has a pretty high IQ in pharma, training, retail, and almost an apologetic IQ in finance.

Luckily unlike other friends, HE called before signing the chek!

I asked him to chill out. Like in most circumstances, for this guy also inaction was far, far, more profitable than such stupid action as suggested!

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  1. Ravinder Makhaik

    Subramoney, how one can be conned into buying junk, from the wealth one has created thorough painful savings is exemplified well through this incident.

  2. My bank which does not let me sleep regularly haunts me with life insurance plans – and I am beyond life insurance – it gets me to my wits end. However when I read the Fortune article about my bank, I was convinced that they will now get more aggressive with T Party distribution. It is the easiest way to increase topline TODAY without worrying about Cap Adequacy, and the Indian regulator is still not as vigilant. The other products where they might get more aggressive is the lending at the bottom of the pyramid – again an unregulated market with shylockian rates. Now I know why my bank does not sleep – the guilt keeps them sleepless

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