The topic of this post may seem odd, given what I regularly write about ULIPs. I advocate mutual funds over unit-linked insurance plans (ULIPs) and for good reasons. I do not deny bias though. I wrote a detailed post comparing mutual funds and ULIPs and showing why I prefer mutual funds over ULIPs, despite ULIPs enjoying far superior tax treatment as compared to mutual … [Read more...] about How to select the Best ULIP (Unit Linked Insurance Plan) for your portfolio?
Many of us have more than one health insurance policies. And I receive a number of queries over e-mail and as comments in my blog post about discontent with claim settlements for two policies. Many have a grievance that the insurers did not settle as they expected and they had to pay the balance from their pockets. I had done a post on the pros and cons of having multiple … [Read more...] about How claim is settled if you have two Health Insurance plans?
The need for adequate health cover is not lost on many. However, selecting a health insurance plan that suits your requirements sounds daunting to a lot of people. There are many parameters to be considered before you select a health insurance. Not just that, health insurance plans come in many variants i.e. individual, family floater, top up, super top up and so on. One of the … [Read more...] about How Room Rent Sub-limit can affect your Health Insurance claim?
One big advantage that ULIPs have over equity mutual funds is that the maturity proceeds from ULIPs are exempt from tax. On the other hand, the long-term capital gains on the sale of equity mutual funds are taxed at 10%. LTCG on sale of debt mutual funds is taxed at 20% after indexation. In an earlier post, I highlighted why I still prefer mutual funds over ULIPs. I don’t deny … [Read more...] about If you are old, avoid ULIPs
LIC launched a new annuity plan LIC Jeevan Shanti in September 2018. LIC Jeevan Shanti comes in both immediate annuity and deferred annuity variants. A point to note is that LIC already has a very popular offering in immediate annuity space (LIC Jeevan Akshay VI). LIC Jeevan Shanti is quite like LIC Jeevan Akshay. The only major difference is that LIC Jeevan Shanti also has a … [Read more...] about LIC Jeevan Shanti: Single Premium, Guaranteed Pension (Features and Review)
A friend entered HDFC Life office to surrender an existing ULIP. He came out with a new one. Essentially, he surrendered his existing one and was convinced to purchase a new one. As I understand, the said friend was not satisfied with returns on this existing ULIP. They sold him a ULIP which had a fund with very good returns. Full marks to HDFC Life on salesmanship. ULIPs … [Read more...] about How Various Charges in ULIPs can damage your returns?
LIC Jeevan Akshay VI is one of the most popular plans from LIC. In fact, it is one of the very few plans from LIC that I do not dislike. LIC Jeevan Akshay VI is an immediate annuity plan. You pay a lump sum amount once and the insurance company pays you a pension for life. It does not matter how long you live. The insurance company will pay you the pension for life. Not just … [Read more...] about LIC Jeevan Akshay VI: All you need to know (Review)
Whenever I deride an insurance and investment combo plan, I get many queries about how to invest for your kids’ education. When you are planning for kids’ education, your biggest concerns are: Where to invest i.e. choosing the right product to accumulate funds for their education If something happens to you, your planned savings for the kid’s education must not … [Read more...] about How (not) to invest for Children’s education?
Senior citizens are soft-targets for mis-selling. Why? First, they may not be comfortable researching the financial products or may not have requisite skill/ resources to understand the product before buying. How many are comfortable researching a product online? Secondly, they may lack the physical and mental strength to get justice if they realize they have been mis-sold a … [Read more...] about 5 reasons why Senior Citizens should avoid Life Insurance Products
Most term life insurance plans give you an option to add a critical illness rider to your base plan. You have to pay an additional premium to get coverage for critical illnesses. A few life insurance plans have inbuilt critical illness coverage. We discussed LIC Jeevan Shiromani in an earlier post. SBI Life – Poorna Suraksha plan is different. It is a term insurance plan with … [Read more...] about Review: SBI Life Poorna Suraksha: A Term Plan with increasing Critical Illness Cover