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If someone were to tell you that your money will grow @ 17% p.a. and your Rs. 1 lac investment will become Rs. 3.5 lacs in next 8 years, would not you get greedy? And what if it is told to you that such Highest NAV Guaranteed ULIPs are guaranteed by one of the biggest financial institution LIC of India, it would be Icing on the Cake and a “Never Miss Opportunity”. But everything that sounds so good, if looked deeply may reveal something else. Someone rightly said “the big print give it and the fine print take it away”. Such is the case with LIC’s new insurance plan – Wealth Plus.
Game Started in 2007

Every year during the last quarter of Financial Year, insurance agent finds new ways to misguide people and make them invest in policies based on false assumptions and promises. Let us take example of year 2007 when LIC launched one of its most famous policy “Money Plus”.

During the launch, pamphlets were distributed in all the nook and corner of the country showing high returns. Eg., Invest Rs. 1 lac for next three years and get Rs.3.38 crores after 20 years at a return of 25% p.a. Based on such exuberant returns shown on a pamphlet and false promises made by agents, thousands and lakhs of investors all across India invested their money.Not only people invested their savings but there were many instances where smaller households sold their jeweleries and other personal belongings as they were told that LIC is guaranteeing such high returns.
What LIC have to say

Later when the news of wrong selling was brought to the notice of LIC management, LIC states that such assumptions are unrealistic and false. Investors should not be misguided in the name of LIC. On a letter dated February 12, 2007 to all the Zonal Manager and Sr. Divisional Managers, Managing Director of the LIC Mr. Mathur, himself writes that “The unethical practice of circulating such pamphlets to misguide the public and get business is betraying the trust we built-in the last 50 years.” . See the Letter Below.

How Agents are Misselling LIC’s Wealth Plus
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