Yes, your age at the time of purchase affects the return that you earn in investment and insurance combo products such as traditional life insurance plans and ULIPs. Everything else being same, lower the age at the time of purchase, better will be your returns. It is best to understand this with the help of examples. Let’s first start with a traditional plan. How your age … [Read more...] about With Traditional Life Insurance plans and ULIPs, your Age affects the returns
Is IRDA trying to solve a wrong problem? Recently, I read excerpts of a speech from an IRDA member at a summit organized by CII in an article. I will copy a portion of the article below. //////////////////////////////////////////////////////////////////////////////////////// India is one of the lowest commission paying countries in the world, said Nilesh Sathe, Member … [Read more...] about The Bizarre Commission logic by IRDA
What your health insurance plan will not pay for? It is not difficult to understand the value a health insurance plan adds to your insurance portfolio and the financial life. However, are you aware that there are treatments/scenarios that your health insurance plan may not cover? You may have to fund the entire or partial cost from your pocket. Such a need may arise due to … [Read more...] about Top 10 Exclusions under your Health Insurance Plan
When it comes to financial planning, many of us focus mainly on investments. Insurance portfolios do not always get as much importance. This is surprising because getting your insurance portfolio right is even more important than getting your investment portfolio right. Why? If you go wrong with your investment portfolio, you can still take corrective action and make amends. … [Read more...] about Getting your Insurance Portfolio right is extremely important
Good and Services tax (GST) came into force on July 1, 2017. Let’s look at the impact introduction of GST will have on your insurance premium. Before the introduction of GST you had to pay Service Tax at 15% (including Swacch Bharat and Krishi Kalyan Cess) on your insurance premium. From July 1 onwards, you will have to pay GST at 18%. Here are a few things that you must … [Read more...] about How GST affects your Insurance Premium?
One of the first questions that many have on their minds while short-listing a life insurance policy is whether insurance company will pay up if the policy holder dies. The greatest worry is if, after so many years of paying premium, the insurance company will reject the claim and leave your family high and dry in times of such emotional stress. No surprise many trust … [Read more...] about Claim Settlement Data of Life Insurance Companies: Hides more than it Reveals
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
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
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?
A few days back, I came across a shocking instance of wrongful termination of health cover by a leading private insurance company. I consider this wrongful termination of the coverage based on the events that have unfolded before me. In light of greater information, I may change my opinion. However, at the moment, I do believe the insurance company is at fault in this … [Read more...] about How Apollo Munich Health Insurance tricked my client?