4% or 8% returns on insurance

This is something that you commonly see in almost all the illustrations when someone is selling you insurance. The agent selling the policy will say that you don’t need to check the 4% column and you can directly check the 8% column.

4% and 8% returns on the illustration are something mandated by the IRDAI whereof 1st December 2019 to prevent misselling. This means that your return is not guaranteed and it can be even 1% or 10%. This step has been taken by IRDAI specifically to show guaranteed and non guaranteed returns separately.

You may even raise a complaint with IRDAI if an agent says that 8% is guaranteed. I faced a similar situation but I preferred to ignore that agent. He was from reputed Bank and I didn’t fall for the trick.

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