Big lobby meeting in Delhi of the life insurance industry with @nsitharaman
@FinMinIndia today. Industry very upset with the Rs 5 lakh premium policies getting taxed on exit.
Industry should just answer one question:
@FinMinIndia today. Industry very upset with the Rs 5 lakh premium policies getting taxed on exit.
Industry should just answer one question:
Why should concessions be given to an industry that destroyes retail savings? How do they destroy savings? Ask them to share the persistency rate of 10, 15, 20 year policies. Early surrenders attract huge costs to policyholders. They do not even get their capital back.
The blue line is your investment in a typical endowment plan. The orange line shows you what you get back should you stop funding your policy.
Even if you have just one premium left that you do not pay, you don't get your money invested back. This is destruction of savings.
Even if you have just one premium left that you do not pay, you don't get your money invested back. This is destruction of savings.
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