I regularly write against mixing investments and insurance. I highlight issues in the cost structures of various investment and insurance combo products. Regular readers would know that I like mutual funds for investments. However, I must concede that the mutual fund companies do not really smell of roses. I have written about many issues with their intent and communication to … [Read more...] about Mutual Funds: The Expense Ratio Trick
LIC has launched a new online term plan, LIC Tech Term Plan (Plan 854). It is a purely online plan and you cannot buy it from an agent. Due to this reason, this is cheaper than other term life insurance plans offered by LIC. If you have been planning to buy a term plan (or you need to purchase a term insurance plan), then you can add this plan from LIC as part of your … [Read more...] about LIC Tech Term (Plan 854): A New online term plan from LIC
The Reserve Bank of India has issued a circular dated September 4, 2019, making it mandatory for all new floating rate loans from October 1, 2019, to be linked to an external benchmark. This applies to all floating rate retail and MSME loans. What does this mean for you if you are an existing borrower or plan to take a new loan? Before we jump on the new announcements, … [Read more...] about Home Loans from October 1, 2019, to be linked to External Benchmark
If you are a home loan borrower, I am sure you have been frustrated by your bank not passing the interest rate cuts to you. Every new iteration of loan benchmark (PLR, Base Rate, MCLR) gives you renewed hope, but nothing seems to change. Now, there is enthusiasm about Repo rate linked home loans. Though I am optimistic, we will see how this pans out. While we are worrying about … [Read more...] about How a Negative Interest Rate Home Loan would work?
There are limits to human memory and attention and it is not difficult to miss basic steps in a task. Therefore, a checklist can be extremely useful. A checklist breaks down a complex task into a series of steps. You can follow the steps as mentioned in the checklist (READ-DO checklist) or you can confirm that the steps mentioned in the checklist have been followed … [Read more...] about The Financial Checklist
Annuities are simple products. You pay a lump sum amount to the insurance company and the insurance company guarantees you an income stream for life. These plans have a few variants too. You can go with or without the return of the purchase price. You can choose where your spouse continues to receive the pension after you. You can select immediate annuity or deferred annuity … [Read more...] about HDFC Life Pension Guaranteed Plan Vs. LIC Jeevan Shanti
LIC Jeevan Saral has been in the news lately for all the wrong reasons. The Supreme Court dismissed public interest litigation (PIL) filed by Money Life Foundation requesting the recall of LIC Jeevan Saral policy. By the way, the PIL was dismissed because SC opined that the Money Life foundation has no locus standi in this matter. While the last word is yet to be written in … [Read more...] about What went wrong with LIC Jeevan Saral?
The Union Budget 2019 brought good news if you were planning to purchase an electric bike or car on loan. A new section 80EEB was introduced to provide deduction up to Rs 1.5 lacs on the interest paid on electric vehicle loans. Car loans are medium value and short (or medium) term loans. Given this peculiarity about car loans, how much tax savings does this section really … [Read more...] about Tax Benefit for Electric Car Loans under Sec 80EEB: What are the real tax savings?
IRDA, the insurance regulator, announced a few changes to product structures of life insurance plans through its latest regulations on Linked and non-linked life insurance products. ULIPs are linked products while traditional insurance plans are non-linked products. Here are some of the prominent changes. #1 Minimum Sum Assured goes down in ULIPs As per IRDA Linked … [Read more...] about New Life Insurance Rules: Lower Sum Assured in ULIPs, Better returns but Higher tax
You have some cash in hand because of the recent annual performance bonus that you received. You have not yet decided how to use that money. You have no credit card or personal loan which needs to be settled at a high priority. You only have a home loan but you are not planning to part prepay it because you will lose out on tax benefits. This is a common refrain among home … [Read more...] about Do not Overestimate Tax Benefits on Home Loan Repayment