LIC has launched a new life insurance plan, LIC Bima Jyoti (Plan 860). LIC Bima Jyoti is a non-linked, non-participating, limited premium payment life insurance plan. Let us review this plan and see if you should invest. LIC Bima Jyoti (Plan 860): Salient Features Non-linked: It is not a ULIP. It is a traditional life insurance plan.Non-Participating: This means that you … [Read more...] about LIC Bima Jyoti (Plan 860): Review
The Budget 2021 changed the way Unit Linked Insurance Plans (ULIPs) will be taxed. This reduces the difference between the taxation of mutual funds and ULIPs. Let's find about how ULIP taxation has changed. What is the new rule about ULIP taxation? If you buy a ULIP on or after February 1, 2021 and the aggregate annual premium of such ULIP (ULIPs) exceeds Rs 2.5 lacs … [Read more...] about How ULIPs will be taxed? (After Budget 2021)
The Finance Minister presented the Union Budget 2021 today. Here are the key highlights. #1 Income Tax Slabs remain unchanged No changes have been made to the income tax slabs. No additional tax benefits have been announced either. #2 Interest on EPF becomes taxable in certain cases Current Regulation: Interest on your contribution to EPF account is exempt from … [Read more...] about Budget 2021: Highlights: Changes to EPF, ULIP taxation
A close friend pinged me about ICICI Pru Assured Savings Insurance Plan and asked if it was a good plan to invest. Let’s find out. ICICI Pru Assured Savings Plan: Salient Features ICICI Prudential Assured Savings Insurance Plan is a traditional, non-linked, non-participating plan.Non-linked means the plan is not a ULIP.Non-participating means this is not a … [Read more...] about Review: ICICI Pru Assured Savings Insurance Plan: Should you invest?
SBI Life has launched a new traditional life insurance plan, SBI Life Smart Future Choices plan. In this post, let’s find about this plan in detail. We shall also see if you should invest in such a product. SBI Life Smart Future Choices: Salient Features Non-linked, Participating Life Insurance PlanIt is Not a ULIP. It is a traditional life insurance plan.2 variants: … [Read more...] about Review: SBI Life Smart Future Choices: Should you invest?
The interest rates have been going down over the last year. If you are an investor who relies on interest income to meet expenses, this is not a happy scenario. In this post, I will demonstrate how you can smartly use annuity plans to increase your income without risk even in this low-interest rate regime. This is more applicable to retirement portfolios. Before we move … [Read more...] about How Retirees can generate high income without taking much risk?
LIC has launched a new deferred annuity plan, LIC New Jeevan Shanti (Plan 858). This replaces their existing deferred annuity plan, LIC Jeevan Shanti (Plan 850). A brief background. LIC Jeevan Shanti had started as both immediate and deferred annuity plan in 2018. Its immediate annuity variant was withdrawn in August 2020 with the launch of LIC Jeevan Akshay VII. Now, … [Read more...] about LIC New Jeevan Shanti (Plan 858): A New Deferred Annuity plan from LIC: Review
In Budget 2018, Long term capital gains tax on equity mutual funds was introduced. Prior to the change, the LTCG on sale of equity mutual funds was exempt from tax. This change brought an interesting taxation arbitrage. Taxation of maturity proceeds from Unit Linked Insurance Plans (ULIPs), offered by insurance companies, was left untouched and the maturity amount from ULIPs … [Read more...] about Tax-Free ULIPs vs. Mutual Funds with LTCG tax: Which is better?
LIC has launched a new immediate annuity plan LIC Jeevan Akshay VII (Plan 857). Moreover, the immediate annuity variants of LIC Jeevan Shanti (Plan 850) have been withdrawn. Thus, LIC Jeevan Shanti becomes a pure deferred annuity product. In this post, let us find out about LIC Jeevan Akshay VII in detail. While I have covered the basics of an annuity plan in another … [Read more...] about LIC Jeevan Akshay VII (857): Review: New Immediate Plan from LIC
Mis-selling is not uncommon during the sale of financial products. Many of us buy investment products with a false impression of the product. While salespersons/advisors are the culprits, we, the investors must share the blame too. We rely too much on the illustrations and pamphlets shared and do not care to look beyond those fancy documents. Advisors/salespersons, on their … [Read more...] about SBI Life Smart Elite: How do you mis-sell the plan?