recently I have been approached by Kotak representative, and he was advising me to invest in Money back policy. He was suggesting me that I will almost double the money, If I break the policy at the end of 4th year. He showed me the spreadsheet and he said the same copy will be printed in bond sheet.
There where two illustration in the spreadsheet (Benefits at lower rate & Benefits at higher rate)
Below is the illustration which he showed at lower benefit rate (worst case scenario)
Policy amount : 5Lakhs and term for 20 years.
My Age : 31
1st year premium : Rs 35,000 (apx)
2nd year premium : Rs 35,000 (apx)
3rd year premium : Rs 35,000 (apx)
4th year premium : Rs 35,000 (apx)
So total premium I would have paid is : Rs 1,40,000.
According to the Kotak people, If I break it at the end of 4th year, I will get (Accumulation amt + Surrender Value + 30% of total premium from 2nd year)
which is (109,800+ 104,300 + 31500) = 245,600 (min guaranteed).
Can someone please advice whether its true? Is it good to invest in this plan? Is this much returns is possible in 4 years? Is it a safe short term investment ?