When a banker aged 58 buys a UNIT LINKED PLAN…do you feel sorry for him or say ‘well all your life you did to your clients did you not?’.

A banker spends all his life dealing with legal documents, he knows the value of the signature that he puts on the paper, correct?

He is shown the illustration (which he signs), he knows he will have to pay for 30 odd years, he knows life insurance is a long term commitment, he knows if it is a market linked product – the nav will fluctuate. He buys a policy with his eyes open. Well, at least that is what a court, or ombudsman will believe .

Let me tell you what I think.

A banker aged 58 bought a unit linked plan in the year 2008. He paid a premium of Rs. 50,000. Most of this was lost as charges. Very little of this went into investing. It hardly mattered where the Rs. 10,000 got invested. It got invested in equities.

Then in 2009 he was again asked to invest Rs. 50000. He panicked and said ‘please put half of it in debt instruments’. It was put in debt. He did not care what happened.

In the year 2011 he realised that he had paid for 4 years – 50k*4=200k.

Now he wanted his money (after all like everybody he believed that 3 years is long term, is it not?).

Metlife said “We will give you Rs. 143,314”. He cried murder. ‘I should at least get my principal back said the retired BANKER’.

Bad luck Mr. Banker there are no CAPITAL GUARANTEED complete equity investments. Sad. It cannot just be created….