Monday, June 03, 2013

What to look for in a Retirement Plan offered by an insurance company

 have analyzed several "retirement plans" launched by life insurance companies recently. 

They have the following features:
a) no life insurance cover, i.e. on death only a refund of premuim
b) a yield or IRR of 2% to 3% over the very long term
c) a heavy penalty, in some cases more than 50% of the savings, on termination 

The consumer can get a much better deal by investing on their own. 

I will be writing a new PDF book to explain the features of this plan and what to look out for. In the meantime, consumers should avoid buying this plan.

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