Yes, your age at the time of purchase affects the return that you earn in investment and insurance combo products such as traditional life insurance plans and ULIPs. Everything else being same, lower the age at the time of purchase, better will be your returns. It is best to understand this with the help of examples. Let’s first start with a traditional plan. How your age … [Read more...] about With Traditional Life Insurance plans and ULIPs, your Age affects the returns
SBI cut interest rate of saving bank account from 4% p.a. to 3.5% p.a. in July 2017. After SBI, a few other banks have followed suit and cuts savings bank interest rate to 3.5% p.a. What should you do? Relax. There is nothing you can do. Learn to live with it. Frankly, resisting this change may not be worth your time. In the informal discussions, I was part of, people … [Read more...] about Savings Account interest cut to 3.5% p.a. What should you do?
Is IRDA trying to solve a wrong problem? Recently, I read excerpts of a speech from an IRDA member at a summit organized by CII in an article. I will copy a portion of the article below. //////////////////////////////////////////////////////////////////////////////////////// India is one of the lowest commission paying countries in the world, said Nilesh Sathe, Member … [Read more...] about The Bizarre Commission logic by IRDA
What your health insurance plan will not pay for? It is not difficult to understand the value a health insurance plan adds to your insurance portfolio and the financial life. However, are you aware that there are treatments/scenarios that your health insurance plan may not cover? You may have to fund the entire or partial cost from your pocket. Such a need may arise due to … [Read more...] about Top 10 Exclusions under your Health Insurance Plan
If you read personal finance section of business newspapers or personal finance magazines, you will realize the mis-selling is rampant in Indian financial services sector. Product suitability is conveniently sacrificed to earn high commissions. Poorly structured upfront incentive structure is one of the foremost reasons behind mis-selling. Sales target or income pressure is … [Read more...] about How Written or E-mail communication with Banks and Financial Institutions can help?
In this post, let’s discuss the new developments in National Pension Scheme (NPS). Introduction of Karvy as CRA A CRA does not back-office work and performs administrative and customer service operations. In addition, it interfaces with different entities in NPS system. Earlier, NSDL was the only Central Record-Keeping Agency (CRA). In January 2017, PFRDA allowed Karvy as … [Read more...] about NPS Updates: A new CRA and Shift to eNPS is now allowed
Pradhan Mantri Vaya Vandana Yojana (PMVVY) was launched in May, 2017 to provide a long term income option for senior citizens in the country. This assumes importance in the wake of low interest rate scenario we find ourselves in. Fixed deposits are getting renewed at lower rates. This poses problems to those senior citizens who rely on interest income to meet regular … [Read more...] about All you need to know about Pradhan Mantri Vaya Vandana Yojana (PMVVY)
When it comes to financial planning, many of us focus mainly on investments. Insurance portfolios do not always get as much importance. This is surprising because getting your insurance portfolio right is even more important than getting your investment portfolio right. Why? If you go wrong with your investment portfolio, you can still take corrective action and make amends. … [Read more...] about Getting your Insurance Portfolio right is extremely important
Good and Services tax (GST) came into force on July 1, 2017. Let’s look at the impact introduction of GST will have on your insurance premium. Before the introduction of GST you had to pay Service Tax at 15% (including Swacch Bharat and Krishi Kalyan Cess) on your insurance premium. From July 1 onwards, you will have to pay GST at 18%. Here are a few things that you must … [Read more...] about How GST affects your Insurance Premium?
Last week, I came across an advertised from SBI Mutual Fund in ET Wealth where the AMC extolled the virtues of Systematic Withdrawal Plan (SWP) from an equity mutual fund. Through an illustration, SBI AMC tried to demonstrate how a SWP from an equity fund is a better choice than fixed deposit for regular income. One of the excerpts in the ad was “Traditional Saving … [Read more...] about How SBI Mutual Fund is misleading Investors through its Advertisements?