Insurance Vs Investment

I appreciate the candid remarks about investment cum insurance policy in your cover story. My only query is, when everyone says it is not a great product, why does RBI allow banks to sell it. Shouldn't there be some norm about financial products sold to investors, specially NRIs, as we get taken for a ride due to our lack of information about India and its products?

- Bhavna

Editor Responds:

A product can be great or worthless depends upon his user. Although investment cum insurance policy is not suitable for some active investor who understands different investment products and their pros and cons, it’s definitely useful for someone who procrastinates investment but is prompt while managing risk and taking insurance policy. Therefore, RBI or any regulator can only guide about disclosures and rest depends upon individual investors to decide whether to buy a product or not.