I came to know this scheme a few days back through my roomie.
The scheme is available in all Banks and insurance agencies, but what marks the difference between this particular scheme and others ?? Read on..
Many might have come across "Whole Life Investment Plans" if you have are concerned with investment and insurance. But what i am referring here is Canara HSBC Bank plan for Whole life Investment plan. Other schemes have a minimum vesting period until the age of 50 years (most of them). So if you are aged 27 years, the minimum number of years you have to invet is 23 years.
In this particular Canara HSBC bank scheme, the minimum anumber of year is 5 years. That means that the scheme matures in just 5 years and not 23 years or more.
Here is a simple layout of what my friend had invested and the yield after 5 years.
Amount to be invested (annulay): Rs 50,000/-
Minimum number of years ( of investment) 5 years
Total amount invested: 5*50,000 = Rs 2,50,000/-
But upon maturity you will get an amount of whooping................................... 5 Lacs
That is double the amount you have invested. In other terms, if you have invested Rs 50,000 in a year, you are getting Rs 1,00,000 /- payable after 5 years time!
If the premium seems high for you to pay at a go, then heres a tip.
Tip: Go for a recurring deposit for say Rs 4200 per month for a year. While the term is over in a years time, you get the premium amount for the scheme, in return you earn the interest on the recurring amount.
Advantages:
1) Investment declaration
2) Can serve as both short term as well as long term investment, depending on ones terms
3) Might be the maximum yielding scheme known so far
Disadvantages:
1) Premium is high (50k/12 = 4167 per month)
2) You might need to open an account in HSBC Bank for beter transaction
3) Minimum balance for account opening/maintenance in HSBC is very high.
4) Tax deductible on interest amount
Courtesy: Room mate
Disclaimer: Please inquire the insurance agent before investing
