What is Idiotic and fishy behind Insurance + other Benefit plans

After consistently paying Jeevan Saral premium for last 5 years, I suddenly opened my excel sheet and found that it is not worth paying any more. Jeevan Saral (Jeevan Saral LIC Plan) is a insurance plus investment scheme by LIC, India's largest insurer. I got similar investment cum insurance offer from HDFC, called money back plan. I will put all such schemes which offer insurance plus investment benefit in one basket including ULIPS and call it FISHY IDIOTIC SCHEMES.  There are following reasons you should avoid such schemes and not to club your safety with returns:

1. They underestimate the value of insurance coverage: You take any such scheme and you will find that insurance coverage after death is far less than any term plan. For an example Jeevan Saral offer 7.5 Lac of death claim for an annual premium of 36 thousands, where as life term policy of worth 12 thousand annual premium offers 1 crore of life coverage. Similarly policies from HDFC or ICICI. 
2. You do not buy helmet to get return, selling it after 5 years: Accident is accident and insurance is insurance. There is nothing heroic about wearing helmet or buying insurance. You do it because you do not want to die or leave your family in mess after your death. How can you expect a return out of it! Death is worst thing will happen to you and your family but less coverage is worst than this, because they have to survive. Do not leave your family under-covered. 
3. No bond can replace PPF for PENSION: If you consider 15 years of debt instrument, PPF is best thing happen for an Indian after tax return. Currently it is giving 8.6% tax free return and historically it is few basis point higher than Government issued AAA rated bonds. But these bonds are taxable where as PPF is not. None of the insurance schemes are giving 8.5% return in 15 years of horizon and no one can guarantee any such return in 25 to 30 years of horizon except government bond. Every one else is speaking a LIE. Even they can not guarantee their existence (ROFL).  
4. ULIP is biggest fraud in equity market and insurance: Significant portion of your money go on paying insurance agents, fund managers, insurance company's snacks. In first years it is as high as 40%. Rest of the money will be invested in some business (listed company). Now you think that which business will give you return of 20%+ accumulation to cover this loss and make you in profit. What if market become sluggish for 5 years like 2008 to 2012. LIC will invest in government companies for sure as it is government's largest bailer. So why do not I select a better fund manager than LIC?
5. Government has passed a bill that LIC now can invest up to 30% in equity: Even if you are not buying ULIP, LIC will buy governemnt company from 30% of your investment. Now two problems arise, first LIC's credit rating would go down. Second, given the level of innovation and skill sets in government companies, would you think that they will even sustain for next 20 years!   
6. RETURN! RETURN!! RETURN!!! You can not shit where you eat, and vice-verse. So you can not expect return from your insurance and you can not expect insurance from your investment. So buy term plan for your insurance which will cover all your family's future need. And do SIP in 3-4, 5* rated mutual fund for your investment. Now choosing a fund manager is in your hand, and you can get a good return from India's underdeveloped economy in next 15-20 years. Even you can choose to prepayment your costly home loan on regular basis. 
7. These schemes are for poor people of India: Someone who is poor in education and in resources can opt this scheme. Also these schemes may be good for small saving people, but definitely not for a person who pay 20 thousand plus EMI on home loan. Your insurance adviser can go up to an extent where he will say that "its human nature not to save, and spend what ever one earns unless a GODman like LIC adviser do not arrive and forcibly make you to invest". I believe that I am not taking to these kind of irresponsible people. 

So next time when your insurance adviser show up, do not slap him and behave nicely but debate with him. Make an excel sheet to prove your point and tell him that you know about term policy and mutual fund. Sell me these products not those which gives you 25% of brokerage from my hard earned money. Period.