One big advantage that ULIPs have over equity mutual funds is that the maturity proceeds from ULIPs are exempt from tax. On the other hand, the long-term capital gains on the sale of equity mutual funds are taxed at 10%. LTCG on sale of debt mutual funds is taxed at 20% after indexation. In an earlier post, I highlighted why I still prefer mutual funds over ULIPs. I don’t deny … [Read more...] about If you are old, avoid ULIPs
LIC launched a new annuity plan LIC Jeevan Shanti in September 2018. LIC Jeevan Shanti comes in both immediate annuity and deferred annuity variants. A point to note is that LIC already has a very popular offering in immediate annuity space (LIC Jeevan Akshay VI). LIC Jeevan Shanti is quite like LIC Jeevan Akshay. The only major difference is that LIC Jeevan Shanti also has a … [Read more...] about LIC Jeevan Shanti: Single Premium, Guaranteed Pension (Features and Review)
A friend entered HDFC Life office to surrender an existing ULIP. He came out with a new one. Essentially, he surrendered his existing one and was convinced to purchase a new one. As I understand, the said friend was not satisfied with returns on this existing ULIP. They sold him a ULIP which had a fund with very good returns. Full marks to HDFC Life on salesmanship. ULIPs … [Read more...] about How Various Charges in ULIPs can damage your returns?
LIC Jeevan Akshay VI is one of the most popular plans from LIC. In fact, it is one of the very few plans from LIC that I do not dislike. LIC Jeevan Akshay VI is an immediate annuity plan. You pay a lump sum amount once and the insurance company pays you a pension for life. It does not matter how long you live. The insurance company will pay you the pension for life. Not just … [Read more...] about LIC Jeevan Akshay VI: All you need to know (Review)
Whenever I deride an insurance and investment combo plan, I get many queries about how to invest for your kids’ education. When you are planning for kids’ education, your biggest concerns are: Where to invest i.e. choosing the right product to accumulate funds for their education If something happens to you, your planned savings for the kid’s education must not … [Read more...] about How (not) to invest for Children’s education?
Senior citizens are soft-targets for mis-selling. Why? First, they may not be comfortable researching the financial products or may not have requisite skill/ resources to understand the product before buying. How many are comfortable researching a product online? Secondly, they may lack the physical and mental strength to get justice if they realize they have been mis-sold a … [Read more...] about 5 reasons why Senior Citizens should avoid Life Insurance Products
Most term life insurance plans give you an option to add a critical illness rider to your base plan. You have to pay an additional premium to get coverage for critical illnesses. A few life insurance plans have inbuilt critical illness coverage. We discussed LIC Jeevan Shiromani in an earlier post. SBI Life – Poorna Suraksha plan is different. It is a term insurance plan with … [Read more...] about Review: SBI Life Poorna Suraksha: A Term Plan with increasing Critical Illness Cover
Karthik (51) lives in Mumbai with his wife (Devani, 43) and two kids (Harsh, 12 and Ritika, 5). He realized the importance of adequate health cover a few years back and purchased a family floater of Rs 10 lacs. He realizes health care costs have been rising very fast in Mumbai. He thinks Rs 10 lacs may not be enough. He wants to enhance cover to Rs 20 lacs. He has heard of … [Read more...] about Use this smart Health Insurance Strategy to get higher cover at a low premium
LIC Single Premium Endowment Plan (Table no. 817) is a single premium non-linked participating life insurance plan. It is not a new plan. The plan has been around for a long time. A reader asked me to review the plan. So, here we go. LIC Single Premium Endowment Plan (Table no. 817): Review Minimum Entry Age): 90 days Maximum Entry Age: 65 years Minimum Age at … [Read more...] about LIC Single Premium Endowment Plan (817): Review
Many of us have more than one health insurance policies. And I receive a number of queries over e-mail and as comments in my blog post about discontent with claim settlements for two policies. Many have a grievance that the insurers did not settle as they expected and they had to pay the balance from their pockets. I had done a post on pros and cons of having multiple health … [Read more...] about How claim is settled in case of multiple Health Insurance plans?