Comments on: ICICI Return Guarantee Fund http://www.mohanbn.com/icici-return-guarantee-fund my experiments in life Mon, 06 Sep 2010 14:25:42 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Shweta http://www.mohanbn.com/icici-return-guarantee-fund/comment-page-1#comment-13205 Shweta Wed, 30 Jun 2010 10:47:19 +0000 http://www.mohanbn.com/?p=657#comment-13205 I had invested 50k in the RGF in January 2009, with ICICI Pru. In fact, after speaking to another friend of mine who works for Infosys and is also an agent, I soon realised that with the huge charges that ICICI has, getting a return of 50% over the first premium is a stupid maistake, since they already cut over 20-25% as allocation charges. So I will only be left 37000. In five years after mortality charges this will only be like 35000. If it grows by 50%, it will only be 51000. So a profit of 1k is bad in 5 years time. I immediately switched to Growth and RICH funds, and luckily my money is now over 72000. Also, I saw that the RGF value has only increased by 10%. So, it is important that we dont trust whatever the selling person says. Try to find on your own , or get a good agent. I for instance have an agent, who is an engineer and works for MNC, and reluctantly sells policies helped me a lot in making right switches. So Icici is not bad, but u have either to get complete knowledge, or get in touch with someone who has experience and knowledge. Note that a good agent/seller will always:- 1. Ask you for monthly/quartely premium frequency. Because it helps reduce the loss and maximise your profit. But bad agents will force you to deposit one time because they get more commission on one time payment. 2. Ask you to invest for more than 10 years or long period. A bad agent will tell u to do it for a minimum period, and ask u to buy new policy after 3/5 years. 3. Will make you a complete plan for your financial needs, like children education and buying house and car. He will also recommend u invest in MFs. But a bad agent will tell u that MF is risky and do only ULIPs 4. Will give u complete brochure and details. A bad agent will only explain to you on paper and try to extract huge premium. Also, remember that if you are saving for your child's education, a certain amount needs to be calculated and invested. This will not be the same as ur pension policy premium or simple life insurance premium. So do some calculation of find a good agent. Try to find in your office if they know someone who is good and educated, not some one who is desperate to earn money and knows nothing. And Mohan, thank you for your article, but I have had 3-4 long and short term policies with ICICI since early days after I started working, and I got really good return. I put in every month 5000 in around 2004, i.e 3lac+ till now and my money has grown to more than 7 lac + . I was also lucky that I invested in the right fund which grew heavily. Also, it is important that you switch if u are not doing on monthly basis, but it is not so much required if you do SIP ,i.e monthly. I had invested 50k in the RGF in January 2009, with ICICI Pru. In fact, after speaking to another friend of mine who works for Infosys and is also an agent, I soon realised that with the huge charges that ICICI has, getting a return of 50% over the first premium is a stupid maistake, since they already cut over 20-25% as allocation charges. So I will only be left 37000. In five years after mortality charges this will only be like 35000. If it grows by 50%, it will only be 51000. So a profit of 1k is bad in 5 years time. I immediately switched to Growth and RICH funds, and luckily my money is now over 72000. Also, I saw that the RGF value has only increased by 10%.

So, it is important that we dont trust whatever the selling person says. Try to find on your own , or get a good agent. I for instance have an agent, who is an engineer and works for MNC, and reluctantly sells policies helped me a lot in making right switches. So Icici is not bad, but u have either to get complete knowledge, or get in touch with someone who has experience and knowledge.

Note that a good agent/seller will always:-

1. Ask you for monthly/quartely premium frequency. Because it helps reduce the loss and maximise your profit. But bad agents will force you to deposit one time because they get more commission on one time payment.

2. Ask you to invest for more than 10 years or long period. A bad agent will tell u to do it for a minimum period, and ask u to buy new policy after 3/5 years.

3. Will make you a complete plan for your financial needs, like children education and buying house and car. He will also recommend u invest in MFs. But a bad agent will tell u that MF is risky and do only ULIPs

4. Will give u complete brochure and details. A bad agent will only explain to you on paper and try to extract huge premium.

Also, remember that if you are saving for your child’s education, a certain amount needs to be calculated and invested. This will not be the same as ur pension policy premium or simple life insurance premium. So do some calculation of find a good agent. Try to find in your office if they know someone who is good and educated, not some one who is desperate to earn money and knows nothing.

And Mohan, thank you for your article, but I have had 3-4 long and short term policies with ICICI since early days after I started working, and I got really good return. I put in every month 5000 in around 2004, i.e 3lac+ till now and my money has grown to more than 7 lac + . I was also lucky that I invested in the right fund which grew heavily. Also, it is important that you switch if u are not doing on monthly basis, but it is not so much required if you do SIP ,i.e monthly.

]]> By: Shekhar Bandaru http://www.mohanbn.com/icici-return-guarantee-fund/comment-page-1#comment-12528 Shekhar Bandaru Thu, 27 May 2010 16:52:16 +0000 http://www.mohanbn.com/?p=657#comment-12528 Still, I will not consider it as a change of policy. Either you have to forefeit/loose all the money paid as premiums till now on the first policy, or continue paying for both the policy. If anyone are already trapped into it, then 2nd option is better. Lesson Learnt: Change of policy is not possible under any circumstances in any company :-) Still, I will not consider it as a change of policy.
Either you have to forefeit/loose all the money paid as premiums till now on the first policy, or continue paying for both the policy.
If anyone are already trapped into it, then 2nd option is better.

Lesson Learnt: Change of policy is not possible under any circumstances in any company :-)

]]> By: Uma shanker achanta http://www.mohanbn.com/icici-return-guarantee-fund/comment-page-1#comment-12522 Uma shanker achanta Thu, 27 May 2010 10:37:59 +0000 http://www.mohanbn.com/?p=657#comment-12522 Thank you sekhar for the information. In fact I visited the ICICI office and spoke to their agents and was astonished to hear a different story from the horse mouth When you change the policy there is another lock in period of 5 years which comes into effect The policy would be considered as new and not taken as transfer from policy to another policy You can withdraw funds for the next 5 years The premieum what you pay for the new policy would be considered as a fresh one Hence guys take care. Visit the offices and do not listen to the Franchisee agents and end up in trouble regards Uma shanker achanta Thank you sekhar for the information. In fact I visited the ICICI office and spoke to their agents and was astonished to hear a different story from the horse mouth

When you change the policy there is another lock in period of 5 years which comes into effect

The policy would be considered as new and not taken as transfer from policy to another policy

You can withdraw funds for the next 5 years

The premieum what you pay for the new policy would be considered as a fresh one

Hence guys take care. Visit the offices and do not listen to the Franchisee agents and end up in trouble

regards
Uma shanker achanta

]]> By: Shekhar Bandaru http://www.mohanbn.com/icici-return-guarantee-fund/comment-page-1#comment-12516 Shekhar Bandaru Wed, 26 May 2010 18:58:07 +0000 http://www.mohanbn.com/?p=657#comment-12516 As far as I know, no company allows change from one policy to another policy. What they allow is, change of fund (like from growth to balanced/protector, etc) within same policy. If you listen to the agents, you'll end up paying/maintaining 2 policies simultaneously. I have read about such cases regarding ICICI. Please refer to the terms in your policy document you received for exact details. As far as I know, no company allows change from one policy to another policy. What they allow is, change of fund (like from growth to balanced/protector, etc) within same policy.
If you listen to the agents, you’ll end up paying/maintaining 2 policies simultaneously. I have read about such cases regarding ICICI.
Please refer to the terms in your policy document you received for exact details.

]]> By: Uma shanker achanta http://www.mohanbn.com/icici-return-guarantee-fund/comment-page-1#comment-12351 Uma shanker achanta Wed, 19 May 2010 09:07:09 +0000 http://www.mohanbn.com/?p=657#comment-12351 Today I got a call from the agent asking me to switch my existing policy to the new policy with a return gurantee. I asked her what is the returns in % and she gave me as 15% with a premieum amount to be paid is Rs 15000 for one year which comes to Rs 1000 + monthly. I have asked them to call me back after a day or so Any comments on this regards Uma shanker achanta Today I got a call from the agent asking me to switch my existing policy to the new policy with a return gurantee. I asked her what is the returns in % and she gave me as 15% with a premieum amount to be paid is Rs 15000 for one year which comes to Rs 1000 + monthly.

I have asked them to call me back after a day or so

Any comments on this

regards
Uma shanker achanta

]]> By: Akhila http://www.mohanbn.com/icici-return-guarantee-fund/comment-page-1#comment-12138 Akhila Wed, 12 May 2010 15:35:52 +0000 http://www.mohanbn.com/?p=657#comment-12138 yeah it is a really nice note. of course i need more positive comments. i want 2 spend 20k p a up to 10years n i want it 2 b matured around tats period. can u suggest me which icici plan should i go for? n i need max returns..... yeah it is a really nice note. of course i need more positive comments. i want 2 spend 20k p a up to 10years n i want it 2 b matured around tats period. can u suggest me which icici plan should i go for? n i need max returns…..

]]> By: harish http://www.mohanbn.com/icici-return-guarantee-fund/comment-page-1#comment-8201 harish Sat, 20 Feb 2010 13:00:46 +0000 http://www.mohanbn.com/?p=657#comment-8201 please tell some policies that gives maximum at maturity time(5 to8)years please tell some policies that gives maximum at maturity time(5 to8)years

]]> By: Mohan http://www.mohanbn.com/icici-return-guarantee-fund/comment-page-1#comment-7156 Mohan Wed, 20 Jan 2010 03:44:29 +0000 http://www.mohanbn.com/?p=657#comment-7156 Shubha, thanks for sharing the details. The calculations part is well described in comment # 14 on this article. Please go through and let us know if you still find any difficulty in understanding it. Shubha, thanks for sharing the details. The calculations part is well described in comment # 14 on this article. Please go through and let us know if you still find any difficulty in understanding it.

]]> By: Mohan http://www.mohanbn.com/icici-return-guarantee-fund/comment-page-1#comment-7155 Mohan Wed, 20 Jan 2010 03:39:12 +0000 http://www.mohanbn.com/?p=657#comment-7155 Your comment makes me review more products :) Your comment makes me review more products :)

]]> By: Mohan http://www.mohanbn.com/icici-return-guarantee-fund/comment-page-1#comment-7154 Mohan Wed, 20 Jan 2010 03:38:42 +0000 http://www.mohanbn.com/?p=657#comment-7154 Thanks for your comment Giridhar. I am glad this article was useful to you :) Thanks for your comment Giridhar. I am glad this article was useful to you :)

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