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?
Many of us realize that investments and insurance shouldn’t be mixed. You will get low life cover and poor returns, especially with traditional life insurance plans. If you are young and make such mistakes, you still have time to make up for such mistakes. However, if you are retired or closer to your retirement, the hit to your finances will be much bigger. It is not just … [Read more...] about You may not need Life Insurance during Retirement
While everyone complains of tricks played by insurance companies or its agent during the sale of life and health insurance plans, we do not hear (or at least I haven’t heard) about similar things during sale of motor insurance. Well, motor insurance has its own set of tricks. For instance, nobody wants to sell third party insurance. If you call customer care, they will … [Read more...] about You Do NOT have to rush to renew your car insurance by March 31
A Participating life insurance plan, as the name suggests, participates in the profits of the insurance company. So, if you hear about simple reversionary bonuses, final additional bonus, and loyalty additions, you are most likely looking at a participating plan. LIC New Jeevan Anand is a Participating, non-linked life insurance plan. Clearly, the benefits are not guaranteed … [Read more...] about PFP Primer: Participating and Non-Participating Life Insurance Policies
Recently, I watched an advertisement by a leading insurance company where the company offered to provide emotional counseling and financial planning services to the family member in the event of demise of the policy holder. You can watch the ad on Youtube. By the way, contrary to the impression you may get, the services do not come free of cost. Now, the pertinent … [Read more...] about If Insurance Companies were to offer Financial Planning?
I am not saying that you should not purchase health cover for your parents. You should. It is your responsibility to ensure quality health care for the family, including your parents. All I am saying is that you should purchase separate plan for them rather than including them in your family floater plan. I am aware that some of the plans are sold with the “added advantage” … [Read more...] about Do not include parents in your Family Floater Health Insurance Plan
Many of us realize the importance of adequate health coverage in our insurance portfolio. Without adequate health cover, a prolonged hospitalization can deplete your resources quickly and affect long term financial health. In this post, let’s look at some of the common myths surrounding health insurance plans. Some of the myths prevent us from purchasing a health plan in the … [Read more...] about Six Health Insurance Myths Debunked