LIC Agent’s Combination Products and LIC Warning!!

Earlier LIC agents used to sell the products which used to be same as of which LIC offers. Now LIC Agent’s Combination Products are so popular that there are many chances of mis-sold to you.

Recently LIC warned all customers stating as below.

LIC Agent's Combination Products

Long back I wrote a post on this subject (Refer:-LIC Agent’s Magic Plan Retire and Enjoy-Stay away). But after that LIC closed all its old plans due to the changes in IRDA Regulations. Hence, immediately there was a pause in such combination of plans.

Now again LIC Agents started to create such combination of plans and selling in different names.

LIC Agent’s Combination Products – How to identify them?

It is too easy if you cross check the product presentation your agent shares with you with LIC portal. Take for example the names of which I got it while searching for such plans.

LIC Agent's Combination Products Examples

Take one more example of such plan as below.

LIC Agent's Combination Products Examples 2

These are just two examples. There are many such LIC Agent’s Combination Products available in the market. Once you came across such names, then as I said above, the first thing is to cross-check with LIC portal or visit the LIC Branch and then you have to cross-check the names which these agents naming.

Usually, they put fancy names with highlighting the eye catching features.

LIC Agent’s Combination Products -Why agents selling?

This is the biggest surprise to many right? Usually, for agents, the yearly target is that they have to bring a minimum of Rs.1,00,000 fresh premium and complete 12 policies in their agency year.

Now knowing these terms, few software developers started to offer such combination of products whereby selling such combination product, agents yearly minimum target may be achieved.

These are nothing but LIC products. But they combine in different combination and show you some lucrative and eye-catching features.

Many buyers take such claims seriously and are in the trap of such products. They will come know after the issue of policy that they get bundle of policy bonds 🙂

Sadly LIC products are such illiquid products that neither you stop and get back money immediately or continue by facing your loss.

Many such plans are presented by considering the exaggerated bonus rates or taking into consideration your THIRST for tax saving. Hence, you easily turn into their trap.

LIC Agent’s Combination Products -Why they are BAD for you?

These are the products which are created by agents to fulfill their dream run of business growth. They never bother about your requirement. They simply lure you with the dream of being CROREPATI. But when and at what cost, they never bother.

Simple to say. One can become crorepati even by keeping more in a savings account which fetches him 4% return. But time to be crorepati matters. Hence, these products fail to beat the inflation and your real insurance requirement. But definitely, fulfill the dream of agents.

Hence, BECAREFUL from such products!!

46 Comments

  1. Hello Sir,
    Nowadays most of the people are saying it’s good to go with Pure Term Insurance product for 18+, I have taken a children’s money back policy to my son . Shall icontinue it or no…?
    Personally i have decided to discontinue, seeking your guidance. what’s the minimum number of years is to be completed to get back the so far paid premium after the tenure of the policy…

    Reply
      • Sir So far I have paid 3 years premium, if I discontinue will I at least get my paid premium after the tenure of the policy…?

        Also with that I had bought Jeevan Anand for myself , the same 3 year premium paid… Shall I discontinue this one also…?

        Sir, most of the people are unaware of Exit strategy for Endowment or money back policy, kindly inform all the readers about minimum number of years premium should be paid so as to get back the premium after the tenure of the policy.

        Reply
        • Dear Vinay,
          So far I have paid 3 years premium, if I discontinue will I at least get my paid premium after the tenure of the policy…? SADLY NO.
          Also with that I had bought Jeevan Anand for myself , the same 3 year premium paid… Shall I discontinue this one also…? IT IS UP TO YOU TO DECIDE. I ALREADY AIRED MY VIEWS.

          Reply
  2. But we can show the thousands of people who has been receiving Guaranteed Pension @12% in current situation”-FOR GOD SAKE, JUST SHARE THIS 12% GUARANTEED PENSION PLAN TO US….I GUARANTEE YOU THAT I WILL GIVE YOU AROUND 5,000 CLIENTS. CAN YOU PLEASE SHARE THIS 12% GUARANTEED PENSION PLAN WITH ALL OF US??
    7)”That’s the Giant LIC OF INDIA the only Financial Institute”-Come on…LIC is insurance company but not investment company ?

    If really LIC is announced 12% guaranteed pension lan, iam ready to invest 1 crore. Iam RIA (regd.Investment advisor), really i am not aware of 12% guaranteed pension of LIC.
    I wil suggest to my clients.

    Reply
  3. It is so much fun reading these comments. Dear Basu, how dare you take a jibe at the giant of this country…The LIC. Do you know how LIC has become such a giant over the years. It has come to this stage by ignoring such fools like you and also expecting that the public will always remain fools for eternity. It grows its tentacles day by day feeding on people’s foolishness. I myself took 3 LIC policies at the start of my job, and I repent it till now, as everybody knows what happens when you leave a policy before maturity. Better continue. They started their term plan only to save their business from going out of their hand. If somebody is looting you in daylight, it is LIC. And about these agents commenting here, they are the partners in crime. So when someone questions their livelihood, it is expected to get comments like these. They are baffled, only to know that if everyone just understands the meaning of insurance, their game is over. I can only relate this situation with a recent news of Gurmeet Ram Rahim Singh & his followers. Now the public is intelligent to understand who is who.

    Reply
    • Deepak-It is common for me whenever I write about LIC 🙂 I appreciate your views and sharing.

      Reply
  4. I do have a different opinion on this, I do agree with Basavaraj ji that if wealth creation is the main goal and disciplined is maintained term plan+equity market is the best approach for long term. But at the same time, I do feel lic products have a market even if there are agents who do use dubious steps. Btw agents are in the market to make money so expecting them to not keep their own benefit on top is asking for too much similar to all other platforms, planners etc who will have some kind of bias towards a product. Coming back to lic, there will be always people who put more importance on security, stability and assured returns and are low risk takers – if they are happy with the returns and think they can’t live thru the ups and downs of managing portfolio, market situation etc then yes they should go for such products. I do agree if a product is sold as assured return product and is not so in reality then it is a fraud – if the agent says it will get them guaranteed return of x% and that is what is in the plan and customer is happy then why not?

    Reply
    • Vin-I completely agree. But do you feel these agents make clients understand the product feature and return perfectly? I am not saying all want equity. There are few who are comfortable with 5% returns. If they know this much return and entering into such products, then we don’t have rights to say NO. However, such investors % is very small. If that was the case, then LIC might not have issued this warning against its own agent fraternity.

      Reply
  5. Now~a~Days You can not make any person fool.

    People having blindly trust on LIC which is prior to Your professional qualification CFP.

    When somebody may died early who became to help their family CFP or Life Insurance Agent.

    Life insurance is always for longer time. You can not forget your retirement planning.

    Agent may not miss sale to their client for few persentage of commission.

    What is CFP ? Please explaim it. Common person may not known / familier the word CFP.

    Reply
    • Kaushal-Cool down brother 🙂 Who is negating the importance of INSURANCE??? Me?? NO….Now regarding Life Insurance Agent’s help, may I know the ratio of attrition LIC agents? Refer THIS. In such situation, how can I rely on that my insurance agent is in the same profession throughout the so called LONGER TIME? May I know how you are connecting Retirement with Life Insurance?
      “Agent may not miss sale to their client for few persentage of commission.”-They why your OWN LIC came up with SUCH WARNING TO PUBLIC? If agents not miss-selling, then you must all SUE LIC than showing your anger on me 🙂
      I am not here to explain what is CFP, but definitely for how LIC agents works 😛
      Cool down…Blame your LIC for this warning but not me brother 🙂

      Reply
    • Kaushal,
      When someone died early who helps the family? Only Life Insurance helps not the Agent. In fact if the agent gets to know the family has a lump sum in their hand, they will be the first to approach the family for more ridiculous LIC investments thus spoiling what’s left with the family.
      LIC agents are the lifelong sinners destroying wealth of many families

      Reply
  6. These negative msgs to this article is doing more harm to LIC than the article. Be constructive people, show some justification against this article. Just condemning this article without proper justification will convnce nobody.

    Reply
    • Deba-They don’t have any valid points to share. Because LIC itself warning people against it’s own agents fraternity.

      Reply
  7. CFP means Certified for Foolishing People. This people has taught by their trainer that investment means Buy Cheap online Term Insurance (where claim always in doubt) and invest in SIP. I am sure this people doesn’t know products of LIC very deeply and nowadays they are very jealous looking at Investment in Crores of Rupees in LIC OF INDIA whether it is single or Regular.
    Are you want to prove the person who has taken a Jeevan Anand Plan of 107 Cr & paying a Regular Premium of 9.80 Cr. is he Fooled?
    He also must have consulted a team of High Level CA.
    BUT as per balance portfolio Professional Financial Consultants are doing CDR 1st and then investment in SIP. But I think CFP people not doing CDR of Clients.
    There is no example of single person who has done his child’s education / daughters Marriage or Guranteed Pension Planning thru SIP. But we can show the thousands of people who has been receiving Guaranteed Pension @12% in current situation .
    That’s the Giant LIC OF INDIA the only Financial Institute which supports Share Market in critical condition, so the SIP of MF can take the breath.
    Salute to the such Institute I.e. LIC OF INDIA_ Leader of India in Progress and proud to be part of this.
    PEOPLE get peace of mind here.

    Reply
    • Amol-1) “CFP means Certified for Foolishing People”-Thanks!! 🙂 I can’t change your thoughts and I know it hurts agents fraternity 🙂
      2) “investment means Buy Cheap online Term Insurance (where claim always in doubt)”-Change your knowledge that TERM INSURANCE is not INVESTMENT but a risk mitigating life insurance 🙂 So you mean to say if one buy online term insurance with LIC, then claim always in DOUBT?? You are indirectly doubting your own LIC dear 🙂
      3) “Are you want to prove the person who has taken a Jeevan Anand Plan of 107 Cr & paying a Regular Premium of 9.80 Cr. is he Fooled?”-I am not saying he is FOOL, but he is very well known how to divert his money 🙂
      4) May I know how you do the so-called CDR, let the whole world no your secret brother 🙂
      5) “There is no example of single person who has done his child’s education / daughters Marriage or Guaranteed Pension Planning thru SIP”-If you are living in a well and claiming it is bigger than the sea, then it is not my fault but YOUR’s.
      6) “But we can show the thousands of people who has been receiving Guaranteed Pension @12% in current situation”-FOR GOD SAKE, JUST SHARE THIS 12% GUARANTEED PENSION PLAN TO US….I GUARANTEE YOU THAT I WILL GIVE YOU AROUND 5,000 CLIENTS. CAN YOU PLEASE SHARE THIS 12% GUARANTEED PENSION PLAN WITH ALL OF US??
      7)”That’s the Giant LIC OF INDIA the only Financial Institute”-Come on…LIC is insurance company but not investment company 🙂
      8) I also salute to LIC, because I am also an AGENT since 15 years!! HAPPY?? 🙂 I never degraded LIC. Am I??

      Reply
    • Wow. This is the stupidest message I have ever seen in support of LICs products.
      Let truth be said. Over the years, LIC has given millions of people below average returns in exchange of a so-called peace of mind in ‘getting money back’ and ‘government security’.
      No doubt it made all the money for an army of agents, who are ready to support LIC in every way.
      I would go so far as to call this a ‘fraud’. Open your eyes, fellow investors.. There are many greener pastures available for investment today.

      As always, thanks for pointing out LICs (and their agents’) poor product quality, dear Basu. Keep up the good work.

      Reply
      • Maturity under
        Plan 112-25-16
        ( Jeevan Shree
        For Term 25 & PPT 16) finalized – *20,87,500*
        (for 5lac SA).
        Which was Projected *18,12,500*
        *Projected Loyalty was 750 whereas declared 1300*

        *Means *Rs.2,75,000/-* *More Money…..*

        *LIC Announced More ( 15%) than what LIC was projecting…….*

        Proud of LIC….

        Reply
        • Punit-May I know this 15% return calculation? Can you show me how you arrived at and please use IRR function? May I know when LIC projected earlier on this plan?? Don’t throw the shots in AIR 🙂

          Reply
    • Amol, Punit, etc
      LIC just declared bonuses for the last year. They announced in May that they will pay 40% more bonuses this year but I can’t see even 1% more bonus in any of their plans.
      Now tell me who is fooling who.
      This is called public fraud.
      Down with LIC.

      Reply
  8. Basu, when critics start crying foul and you get lots of hate message it indirectly means you are getting popular!!
    keep up the good work of guiding the financially illiterate population at large.
    and for all the foul mouthed people out there (LIC agents), instead of personal attacks why don’t you educate all of us and prove which amongst the LIC policies are really beneficial to the public at large!!!

    Reply
    • Sevan-Thanks for your endorsement 🙂 When it comes to Life Insurance, I only suggest Term Life Insurance.

      Reply
  9. There is no such warning from LIC. Stop fooling people.

    Reply
    • Ankit-But if I share the same warning, then for few it irritates 🙂

      Reply
  10. Dear Basavaraj,
    Very good Job,
    I agree with you, really I appreciate you,
    But can you told me what is “Daal”? & How many types of material make it —Plz reply as soon as possible.

    Reply
      • Dear Basu if u can’t understand “DAAL” ……
        U never understand LIC’s combo plan Just like Kanyadan or Dream Carorpati Plan…………
        U continue write blog against KANYADAN PLAN & DREAM CROR…..
        it’s awesome topic really i enjoying it.

        It’s very very Important that u do earliest (as soon as possible) Mr. Amol Sharma combo Plan…
        Then u r wright any blog against Kanyadan and Dream Carorpati Plan ok.

        “”CFP””

        Reply
          • Sorry! u can dig…..

            I can’not waste my time…

            So thank you…

            Reply
              • He is talking about Toor Dal, Urad Dal, etc…
                May be he is running a grocery store.

                Reply
                • Pradeep-I understood and that is what told him that LET ME DIG 🙂 It shows their frustration and we can’t do for that!!

                  Reply
  11. I don’t know how did you get the degree of CFP! (No one is going to verify by the way)

    Before writing anything, proper knowledge of the subject is must.

    People who have less/no knowledge in this regard are vulnerable to your post because you have showed of your degree. Otherwise your content is all rubbish.

    I regret that I wasted my time in reading and even replying to this blog.

    Reply
    • Ankit-EXPECTED such comments whenever I write against miss-selling 🙂 It is not my own view, but LIC also felt and hence come up with WARNING. Then do you (seems to be an agent) be offensive with LIC also?? Also, do one must have CFP to understand LIC’s warning and how agents selling such modified versions?? Thanks for visiting my blog. But don’t waste your time in reading 🙂

      Reply
      • Basu,
        I enjoy these articles especially when the anguished LIC agents read it and start commenting crap. A lot of fun indeed for us reading.
        Please invite more agents to come and comment. I want more fun ha ha ha.

        Reply
        • Pradeep-You see more offensive comments. You just enjoy their defensive style 🙂

          Reply
  12. Dear Basavaraj Tonagatti,

    After rwading Your article. I am surprised that today everybody having smart phone and all most everybody is familier with Google. The life insurance agents are tied channel of any life insurance company.

    They are mostly sale life insurance policy to their natural market not unknown person.

    every person having some dignity. The person who sale combination is trying to satisfy customer need. Now~a~days each medicine come with different drug combination who act fast other then normal drug.

    i am not doctor sir but a common man who is having common sence.

    if you really educate people then share the information regarding combination of plans. How it works.

    All the Best for Writting.

    Reply
    • Kaushal-If the SELLING IS TO SATISFY the customers, then LIC might not be DARED to issue such notice right?? This is also the common sense right 🙂

      Reply
  13. You are presenting a 1 of a case study which you are generalising on all LIC agents who toil hard on the field, unlike you sitting somewhere writing all this without any justification, most of whom are MDRT.

    LIC performance speaks louder than anyone’s words.

    Please review this organisation on licindia.in and than write ill.

    Reply
    • Amit-It is not MY OWN WARNING but the LIC’s OWN WARNING TO PEOPLE 🙂

      Reply
  14. beautiful explanation.

    Reply
  15. When a rat tries to dig on a mamoth, it means he is looking to gather fame and limelight in a short span. Mamoth does not care, the presence of rat because of its size and thinks that let rat do whatever it is doing, as it is it’s bread and butter.

    Enjoy writing dear Basavaraj ji..

    Reply

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