Infinia Infinia Against ULIP?

[sonuyos]

I got an offer from HDFC RM, saying I can get Infinia (I have no shot at getting it directly without waiting for like years. As it took them 8yrs to upgrade my Moneyback to Millennia card.)

If I go thru FD backed route it will be - 7.20% interest rate on 10lk fd. I straight up lose 5-7% on 10lk = 60k roughly every year.

They said to pay 2.1lk to get the card and of which I can surrender the Policy if I want after 1yr, and get back roungly 103-108k back.

In return they will give me Infinia Metal with a guaranteed upgrade (giving me in writing over email) to Infinia Reserve once the card launches.

Plus the card would be 3 yrs free.

Should I go for it?

Edit : Did not go with it. As many pointed out, the cost doesn't justify the card, especially after the 2:1 accor devaluation.

 

[shashankrt]

Not at all correct? What are you basing this on? ULIPs provide exactly the same return as most mutual funds but are tax exempt, leading to higher returns. Any fees, if charged, are fully refunded at the end of the term.

Not sure what analysis is your statement based on? Compare any index funds (leave aside other MFs which may be have even better returns) and compare with same initial investment. You will easily see ULIPs are worse than FDs. Compare actual returns and not returns mentioned in terms of percentages (as those are on net invested amount which is almost 70 percent of initial amount in case of ULIPS)

 

[Zacobite]

high action thread of the day.. full world tour.. OP really got us going

yes over and out on this thread.. not going anywhere. OP has all answers made up in his mind and is still asking Qs ..on and on....

 

[sonuyos]

yes over and out on this thread.. not going anywhere. OP has all answers made up in his mind and is still asking Qs ..on and on....

Khud ko hi quote karke khudko hi reply bhi de raha hai...wah

 

[sonuyos]

Not sure what analysis is your statement based on? Compare any index funds (leave aside other MFs which may be have even better returns) and compare with same initial investment. You will easily see ULIPs are worse than FDs. Compare actual returns and not returns mentioned in terms of percentages (as those are on net invested amount which is almost 70 percent of initial amount in case of ULIPS)

The major deterent is the fact that out of 2.1lk only 1.43lk goes towards ULIP cuz the 67k is deducted for riders.

And then of that 1.43lk only 1.1lk makes it to the fund after mortality charges, fmc, allocation charges & gst.

 

[Zacobite]

Khud ko hi quote karke khudko hi reply bhi de raha hai...wah

blah blah blah.... .proved my point 🤮

 

[Lobogris]

Not sure what analysis is your statement based on? Compare any index funds (leave aside other MFs which may be have even better returns) and compare with same initial investment. You will easily see ULIPs are worse than FDs. Compare actual returns and not returns mentioned in terms of percentages (as those are on net invested amount which is almost 70 percent of initial amount in case of ULIPS)

ULIPs are exactly like mutual funds. You pick the fund type and your investment goes into what is basically a mutual fund. You can change the allocation to a different fund whenever you so desire. So the returns are the same as most mutual funds. Only difference is that certain fees are deducted in a ULIP. These are fully refunded and often refunded 2x if you hold it to maturity. Yes, there is some loss due to the fact that slightly less principal is invested in the first year or two but the savings of 21% tax at the end make up for it.

 

[Lobogris]

The major deterent is the fact that out of 2.1lk only 1.43lk goes towards ULIP cuz the 67k is deducted for riders.

And then of that 1.43lk only 1.1lk makes it to the fund after mortality charges, fmc, allocation charges & gst.

I have no idea which fund or scheme this is. Mine is far better. In my case, 1.78 lakhs was invested and from second year, almost all will be invested. Even this amount charged in fees will be refunded 2x.

 

[sidp]

I have been filing ITR since I was 18. All my expenses are well justified to them, I obviously cannot reveal all my spends on public forum, but rest assured they are all genuine spends. Or else Axis would have canceled or suspended my rewards account 3 times over by now...lol.

Both are different issue. I am talking about itd notice.

Card Issuers care about if your spends are genuine or not. Are you gaming the system to benefit at their expense? Either through rotation or business spends. I never said you did that. That's why Axis is OK with it.

If you do business expenses on personal card or rotation, itd doesn't care. itd cares whether you are paying appropriate tax both at individual level or business level. You are saying most expenses are Insurance & travel. These are personal expenses.( unless you are a consultant & you travel a lot for work).

If you are spending 7-8 times your untaxed income, year after year, no ca/lawyer can explain those to itd. ( unless you have done proper stategy like taking debt against business interest & spending those) And know that once you get notice they will ask credit card statement and bank statement. So it is a rabbit hole. They will ask to explain each transactions. They will see you are traveling with family to tourist destination.

 

[techt]

Not sure what analysis is your statement based on? Compare any index funds (leave aside other MFs which may be have even better returns) and compare with same initial investment. You will easily see ULIPs are worse than FDs. Compare actual returns and not returns mentioned in terms of percentages (as those are on net invested amount which is almost 70 percent of initial amount in case of ULIPS)

Well said. The amount of charges are really high. Long back I took hdfc max nav guarantee fund.. The deadline for Mar31st was approaching and needed some tax saving fund and forced to buy it.

Even though in the span of ~10 years the NAV price doubled, the fund charges ate so much of the corpus that ,effectively I got 4% returns.

 

[sonuyos]

I have no idea which fund or scheme this is. Mine is far better. In my case, 1.78 lakhs was invested and from second year, almost all will be invested. Even this amount charged in fees will be refunded 2x.

You do realize that ypu get the 2x refund after 10yrs and only for the payment paid till total term - 10.

So if you took it for 40yrs u don't get the refund for 30th to 40th yr. Which is when the highest mortality and fund charges you pay.

 

[Lobogris]

You do realize that ypu get the 2x refund after 10yrs and only for the payment paid till total term - 10.

So if you took it for 40yrs u don't get the refund for 30th to 40th yr. Which is when the highest mortality and fund charges you pay.

No. The term is usually 25 years. Mortality charges are only incurred till the corpus reaches the sum assured level and only on the difference between the corpus amount and the sum assured. So if your sum assured is 50 lakhs, the moment your corpus reaches 50 lakhs, you pay zero mortality charge. In the interim, once your corpus is 20 lakhs, you pay on 30 lakhs which makes it lower each year. In any case, all these are refunded 2x. So in a 25 year plan, your mortality charge disappears after 8 to 10 yeats at a 8% growth rate even after all other charges. After 10 years, you start receiving 2x the mortality charges paid each year. Please research this thoroughly.

 

[sonuyos]

No. The term is usually 25 years. Mortality charges are only incurred till the corpus reaches the sum assured level and only on the difference between the corpus amount and the sum assured. So if your sum assured is 50 lakhs, the moment your corpus reaches 50 lakhs, you pay zero mortality charge. In the interim, once your corpus is 20 lakhs, you pay on 30 lakhs which makes it lower each year. In any case, all these are refunded 2x. So in a 25 year plan, your mortality charge disappears after 8 to 10 yeats at a 8% growth rate even after all other charges. After 10 years, you start receiving 2x the mortality charges paid each year. Please research this thoroughly.

I have researched it thoroughly for the plan I was served with. Which had mortality charges thru and thru.