LIC Jeevan Umang is a non-linked participating whole life traditional life insurance plan. The meaning of whole life is almost literal. The plan matures when you turn 100. Let’s look at at some salient features of the plan and how LIC Jeevan Umang makes for an insurance and investment product. Salient Features of LIC Jeevan Umang Policy Maturity: At the age of 100 years (I … [Read more...] about Review: LIC Jeevan Umang
Met a cousin at a wedding in the family a couple of months back. He is a bright young boy, still in his teens. He had vague idea about what I did for a living. As it usually happens at family weddings, most of us have to bide time till the evening when the real festivities begin. There is never enough space to stretch your legs and sleep. With nothing to do, he began asking a … [Read more...] about How much do I need to Invest per month to accumulate Rs 1 crore?
There is a BIG difference between financial planning for retirement (accumulation phase) and financial planning during retirement (decumulation phase). Let’s look at what I mean. In this post, I will limit the discussion to investments. Financial Planning for Retirement (Accumulation Phase) During this phase, you are trying to accumulating funds for retirement. Quite … [Read more...] about Financial Planning For Retirement vs. Financial Planning During Retirement
One of the few things that I remember from induction training on the first day of my professional career many years back is a quote from a presenter that Expectation reduces Joy. From the perspective of a large software company, it was important to have employees with not too high expectations. However, even as an employee, it made a lot of sense. Your expectations about … [Read more...] about The Problem lies not with the Investment but with Investor Expectations
This has nothing to do with LIC. It has to do with the fact that LIC New Bima Bachat is a single premium plan. Review: Salient Features of LIC New Bima Bachat LIC New Bima Bachat is a participating traditional life insurance plan. It is a single premium plan. Policy Term: 9, 12 and 15 years No limit on Maximum Sum Assured. Survival Benefit For policy term 9 years: 15% … [Read more...] about Benefits from LIC New Bima Bachat Plan are taxable
The biggest financial risk during retirement is that you may outlive your retirement corpus. You may have planned really well and planned for the corpus to last till the age of 90 but you are fit for another 10 years by the time you turn 90. I have not even considered many unknowns and unplanned expenses in life. What do you do then? How will you provide for your basic … [Read more...] about When to purchase an Annuity plan?
With non-participating traditional life insurance plans, returns are known upfront. Unlike participating plans such as LIC New Jeevan Anand, the final outcome depends on annual bonuses and final bonus. There is no such concept in non-participating plans. The name (non-participating) itself suggests that the policyholders will not participate in the profits on the insurance … [Read more...] about Non-Participating Traditional Life Insurance Plans: Why this fixation with Sum Assured?
You invest Rs 10,000 on January 1 every year for 20 years. In the first case, you earn a constant 6% p.a. for the first 10 years and 12% for the last 10 years. In the second case, you earn a constant 12% p.a. for the first 10 years and 6% p.a. for the last 10 years. Will you end up with same corpus in both the cases? After all, Compounded Annual Growth Rate (CAGR) is same … [Read more...] about What is the difference between IRR and CAGR?
I have been getting many queries about the portals/websites/app investors should use to invest in direct plans of MF schemes. Good to see that the awareness about direct plans is increasing. And why not? It is foolish to invest in regular plans if you are a do-it-yourself investor. You are compromising on returns for no hint of advice. Even for those who need assistance, it … [Read more...] about List of Online Mutual Fund Direct Plan Platforms in India
There is no reason why a Do-it-Yourself (DIY) investor needs to invest in regular plans of mutual fund schemes. There are so many online direct plan platforms around that convenience is no longer an excuse for investing in regular plans. Therefore, it is almost criminal for a DIY investor to invest with say ICICIDirect. Even for those who need assistance in portfolio … [Read more...] about How to switch from Regular plan to Direct plan of a MF scheme?