Life Insurance

The Same Old ‘Highest NAV’ Trap

Birla Sun Life Insurance has launched ‘BSLI Platinum Advantage Plan’. One of the professed advantages of the BSLI Platinum series is that it safeguards against the possible downsides of the equity market through a guarantee of highest daily net asset value (NAV) over seven years. The new Plan also offers choices like enhanced sum assured option and riders that allow customers to increase their financial security at a nominal additional cost.

navReliance Life Insurance has also announced the launch of a new unit-linked insurance plan (ULIP). The Reliance Life Insurance Highest NAV Advantage Plan offers guarantee on maturity with the highest NAV per unit achieved during the entire 15-year policy term.

Either there is a dearth of innovative ideas, or highest NAV products are garnering good business from risk-averse investors. V-Secure has consistently mentioned that highest NAV guarantee products will fetch poor to average returns, because the only way to get guaranteed returns is to first protect the principal amount and this is possible by primarily investing in bonds.

For more logon to VIVEKSHARMA.CO.IN

Categories: Life Insurance

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