New Delhi: Chartered Accountant Meenal Goel asserts that investors can earn 12 percent returns by investing in a pre-owned insurance policy. According to Goel, purchasing a pre-owned insurance policy is similar to investing in a fixed-income option that yields higher returns.

Goel explained in a LinkedIn post how someone can legally assign their life insurance policy to another person under Section 38 of the Insurance Act when they can’t continue paying their premiums. Goel says that the new investor who has purchased the pre-owned insurance policy will continue paying premiums and get the maturity benefits. "Because these policies are transferred at a discount to their final value, the effective return can go up to 9–12% annually," she wrote.

Goel has cautioned investors against missing

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