Annuities are simple products. You pay a lump sum amount to the insurance company and the insurance company guarantees you an income stream for life. These plans have a few variants too. You can go with or without the return of the purchase price. You can choose where your spouse continues to receive the pension after you. You can select immediate annuity or deferred annuity … [Read more...] about HDFC Life Pension Guaranteed Plan Vs. LIC Jeevan Shanti
LIC Jeevan Saral has been in the news lately for all the wrong reasons. The Supreme Court dismissed public interest litigation (PIL) filed by Money Life Foundation requesting the recall of LIC Jeevan Saral policy. By the way, the PIL was dismissed because SC opined that the Money Life foundation has no locus standi in this matter. While the last word is yet to be written in … [Read more...] about What went wrong with LIC Jeevan Saral?
IRDA, the insurance regulator, announced a few changes to product structures of life insurance plans through its latest regulations on Linked and non-linked life insurance products. ULIPs are linked products while traditional insurance plans are non-linked products. Here are some of the prominent changes. #1 Minimum Sum Assured goes down in ULIPs As per IRDA Linked … [Read more...] about New Life Insurance Rules: Lower Sum Assured in ULIPs, Better returns but Higher tax
Myth 1: The entire life insurance premium is eligible for tax deduction. Myth 2: The payouts from the life insurance policies are always exempt from income tax. Reality: You may not tax benefit for the life insurance premium paid. Moreover, the payouts from the life insurance policies may not be tax exempt either. There are a few conditions involved before you enjoy … [Read more...] about Misconceptions about Life Insurance Tax Benefits; Insurance payouts can be taxable too
The Finance Minister presented the final budget for FY2019-2020 on July 5, 2019. Here are the key highlights of the budget. Income Tax slabs unchanged; Surcharge increased for the rich There has been no change in the income tax slabs. There is a sharp increase in surcharge for those earning more than Rs 2 crores. We must understand the impact of the surcharge … [Read more...] about Final Budget 2019: Taxes for the Rich, Benefits for Buyers of Homes, Electric Vehicles
Over the last couple of weeks, I had interesting discussions with a relative and a client. Given their requirements, I had asked them to purchase term insurance plans. However, they couldn't reconcile with the fact that they wouldn't get anything back if they survived the policy term. I am sure they are not alone. Just the thought that you won’t get anything back if you … [Read more...] about Term Insurance plans with Return of Premium Benefit: Worth it?
In one of our previous posts, we had reviewed a traditional plan from HDFC Life Sanchay Plus. In this post, let’s look at another popular traditional plan, HDFC Life Super Income Plan. Traditional plans are opaque, provide low life cover and poor returns. Therefore, I do not hold a very high opinion of traditional life insurance plans. However, before writing off any … [Read more...] about Review: HDFC Life Super Income Plan: Makes sense?
Many people don’t trust insurance companies. You may pay the premium for many years but still can’t be sure if the insurance company will return the favour when you make a claim. This is a prominent reason why many choose not to purchase insurance despite being fully aware of the risks of staying uninsured. Insurance companies haven’t done themselves proud either. There is no … [Read more...] about Your Health Insurance claim won’t be rejected after 8 years
No parent wants to compromise on their child’s education. In fact, child education is one of the most prominent goals for almost all my clients. Many readers write with their queries about investing for their kids’ child education too. Many want a one-stop solution for their kids’ education. For this reason, many ask about the “Best Child plan” or the best child plan from … [Read more...] about Review: SBI Life Smart Champ Child Insurance Plan: Is it good enough?
ICICI Prudential Future Perfect is a traditional life insurance plan. A part of the maturity amount is guaranteed while the other part is variable and linked to the investment performance. In a way, it is a hybrid product where it retains some features of both non-participating and participating traditional plans. Let’s find out more about ICICI Prudential Future Perfect and … [Read more...] about Review: ICICI Prudential Future Perfect Plan: Not so perfect