Senior citizens have come a long way. They are from a time when technology was still in its infancy stages and most gadgets we use today didn’t exist. Many senior citizens aren’t tech-savvy and aren’t interested much about things. That makes them, easy targets for sales personnel and other people who make money out of the confusion of senior citizens regarding various things. That’s why we have mentioned how not to lose hard earned money to buy policies that senior citizens don’t even need. Moneymindz, India’s First Free Online Financial Advisory
1. ULIPs are not suitable for senior citizens
Ulips invest in Mutual Funds, which aren’t a safe investment avenue for senior citizens as they have limited money for them. This demands the high cost of money and has a lock-in period of five years before which you cannot exit. If you are younger, have sufficient funds, and can handle risk, ULIPs( Unit Linked Insurance Plan) is a great option. But senior citizens need regular income, so investing their money in ULIPs isn’t a good idea.
2. Senior citizens should not go for single premium plans
There are three modes of payments in traditional plans- single, regular, limited period. Single plans mean paying a lump sum for the entire term at a time! Moreover, single premiums are often mis-sold as FD(Fixed Deposit) with higher deposits and tax advantage. Senior citizens and anyone with limited money cannot and should not go for that. Moneymindz, India’s First Free On call Financial Advisory
3. Insurance products should not be purchased from banks
Insurance products are sold in banks due to bancassurance tie-ups with insurance companies, resulting in mis-spelling many times. Their target is senior citizens as they are having some post-retirement funds and are looking to invest while being less informed about investing avenues. Insurance Online Financial Advisory, MoneyMindz. The retiree trusts the bank official, who doesn’t give anything in writing and signatures are taken on policy documents only for the insurance policy to be sold as an investment promising high returns. Then the policy document is sent after the free-look period and the bank doesn’t take accountability due to the signature on the document and no evidence of mis-selling.
4. Senior citizens should not opt for “guaranteed return” policies
Senior citizens don’t need life insurance. Life cover makes sure the family or dependents of the deceased don’t suffer financially. Most retirees aren’t working and have no dependents, so they don’t need life covers. But they are sold “guaranteed return” plans and cheated. These plans are for the long term-over a decade- and have low returns like 5%, but the premiums are very high. So seniors don’t need this. Smart Financial Advisor, Kuber Mindz
We live in a world where the naïve are easily taken advantage of and backstabbing is common. So be careful of what you do, whom you trust and how you handle important things. You can always trust us. Visit www.moneymindz.com or give a missed call to 022-62116588