APGLI/TSGLI- Why it is a wealth destroyer? (Telugu)
If you increase your APGLI/TSGLI premium, you may end up losing your wealth. Yes, it is true, I will explain in detail.
There is a misconception among Andhra Pradesh and Telangana Government Employees that APGLI/TSGLI will give 11.5% interest per year.
But that big mistake, I have proved that they are wrong, you can read in this article.
APGLI/TSGLI never said that It will give 11.5% interest on the premiums paid. You can find premium rates and bonus in this link. Click here
APGLI/TSGLI- Why it will destroy your wealth if you increase your premium?
So many Government Employees are increasing this life insurance premium over and above the mandatory limit. Yes, I agree these employees have to contribute a minimum contribution from their salary based on their salary.
Here comes the real problem, Few employees are increasing their premium subscription as high as Rs.10,000 per month. Even though the mandatory limit is only Rs.1,500.
Scenario -1)
Now take an example that you have to contribute mandatory of Rs.2,000 per month in APGLI/TSGLI, But you are contributing Rs.10,000.
At Present your age is 35 years. You have 23 years for your retirement( it differs from state to state).
Monthly Investment = Rs.10,000
Rate of Return = 6%( read article)
No. of Months left
for retirement = 276
Future value of
your investment at
58 years will be = 58,00,000( 58 lack rupees)
Scenario 2)
You are not increasing apgli/tsgli premium over and above the mandatory limit. Just continuing mandatory premium of Rs.2,000 and balance Rs.8,000 in an Investment Instrument where you will get 10% return per year.
Rs.2,000 Investment in APGLI-
Monthly Investment = Rs.2,000
No. of Months done = 276
Interest rate is = 6%
Future value at age 58 = 11,64,000( 11.64 lacks)—————(1)
Rs.8,000 Investment( Where you will get 10% return)…
Monthly Investment = Rs.8,000
No. of Months done = 276
Interest rate is = 10%
Future value at age 58 = 80,40,000( 80.4 lacks)—————–(2)
If we add both (1) and (2) we get value approximately Rs.92,00,000( 92 lack) which is much higher than the scenario 1).
So, it is very clear If you increase your apgli/tsgli premium over and above the mandatory limit, It will definitely destroy your wealth creation opportunity.
Life insurance and Investment should not be mixed.
Watch this viddo…
A Sebi Registered Investment Adviser will help you in minimizing your mistakes and maximizes wealth creation opportunities.
You can visit my website Paisa Helath for more details.
