When you are planning to ringfence your assets/finances from adverse events, the two most common insurances that come to mind are Life Insurance and Health Insurance. Life Insurance provides compensation to the family if you are not around. An adequate life insurance cover safeguards your family should ideally cover all your outstanding loans, provide for financial goals and … [Read more...] about Disability Insurance: Missing piece in your Financial Planning
You are aware of the health benefits of health insurance. But, are you aware of the tax benefits of health insurance? Do you know that you can claim tax benefit for payment for preventive health checkup too? Are you aware there are exemptions/deductions available for medical expenses incurred under specific cases? In one of the earlier posts on how to save income tax, I had … [Read more...] about Health Insurance Tax Benefits under Section 80D (From FY2019)
LIC has recently launched a new moneyback plan: LIC Bima Shree (Plan 848). The plan is quite similar to LIC Jeevan Shiromani, that was launched a few months back. There are only a few differences (or those that I could see). LIC Jeevan Shiromani has an inbuilt critical illness plan. LIC Bima Shree does not have it. With LIC Bima Shree, you can purchase critical illness … [Read more...] about LIC Bima Shree (Plan no. 848): Middle class’s LIC Jeevan Shiromani
If I were to ask you to add 17 five times, you would swiftly do the calculations in your head and give me the answer “85”. It is easy to add or multiply smaller numbers. 17+17 = 34 + 17 =51 + 17 =68 + 17 =85 However, if I were to ask you to, “What is 17 raised to the power 5?”, would you be able to answer this question without a calculator or at least pen or paper? As a … [Read more...] about Don’t let the numbers fool you
Many financial advisors ask clients/friends/family to purchase health insurance plans at an early age. The reason is that you are able to lock-in your health conditions. Any illness that happens after your initial purchase of plan does not affect your insurance premium. Therefore, purchasing health coverage at a younger age may help keep your premiums low at an old … [Read more...] about How Health Insurance Companies can easily trick customers?
Budget 2018 proposed long-term capital gains tax on equity investments. The very next day, the insurance companies were out with advertising campaigns highlighting the tax advantage of ULIPs over mutual funds. Well, mutual funds and ULIPs compete for investor money. And it is not unfair on the part of insurance companies to highlight any demonstrable advantage that they may … [Read more...] about After tax on LTCG, are ULIPs better than Equity Mutual Funds?
LIC Jeevan Shiromani is a traditional money back plan. It has a flavor of both participating and non-participating life insurance plans. You get certain guaranteed benefits (known upfront) and certain benefits are linked to the investment performance of LIC. Let's look at some of the salient features of the plan and see if you should invest in such a plan. LIC Jeevan … [Read more...] about Review: LIC Jeevan Shiromani (Benefit, Features, Returns): Should you invest?
IRDA released its annual report for FY2017 in the first week of 2018. We have the claims settlement data for various life insurance companies for 2017-2018. Clearly, higher the claim settlement ratio, the better it is. However, as I had discussed in my post on claim settlement ratios for FY2016, the claim settlement data hides more than it reveals. Insurance companies … [Read more...] about IRDA Claim Settlement Ratio of Life Insurance Companies for FY2016-2017
You purchased a pension plan many years back. The plan is about to mature. You get a call from the insurance agent/salesperson that you can use the pension plan proceeds to purchase a Unit Linked Insurance plan. What will you do? I have received quite a few similar queries over the last few months. Perhaps, this always used to happen. Just that I got aware because of the … [Read more...] about Maturing Pension plans and purchasing new ULIPs
When we talk about Unit Linked Insurance Plans (ULIPs), the detractors point to higher charges that lead to lower returns. On the other hand, the proponents point to the favourable low-cost structure that came into existence after IRDA revised Unit Linked Regulations, 2010. Both seem to have a valid point. Higher charges do eat into the returns. On the other hand, the new-age … [Read more...] about In a ULIP, you pay more for the same life cover as compared to a Term plan (Mortality charges)