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
If you purchase a product that provides poor/inadequate returns, you will get poor returns. If you purchase two of those products, you will still get poor returns. Or is there a chance that you can get good returns? There is no chance. 2+2=4, and not 5 (unless you believe in magic) Therefore, if you bundle two or more low return traditional life insurance plans, you will … [Read more...] about Stay away from LIC Retire and Enjoy and other bundled products
When you are planning to ringfence your assets/finances from adverse events, the two most common insurances that come to mind are Life Insurance and Health Insurance. Life Insurance provides compensation to the family if you are not around. An adequate life insurance cover safeguards your family should ideally cover all your outstanding loans, provide for financial goals and … [Read more...] about Disability Insurance: Missing piece in your Financial Planning
You are aware of the health benefits of health insurance. But, are you aware of the tax benefits of health insurance? Do you know that you can claim tax benefit for payment for preventive health checkup too? Are you aware there are exemptions/deductions available for medical expenses incurred under specific cases? In one of the earlier posts on how to save income tax, I had … [Read more...] about Health Insurance Tax Benefits under Section 80D (From FY2019)
LIC has recently launched a new moneyback plan: LIC Bima Shree (Plan 848). The plan is quite similar to LIC Jeevan Shiromani, that was launched a few months back. There are only a few differences (or those that I could see). LIC Jeevan Shiromani has an inbuilt critical illness plan. LIC Bima Shree does not have it. With LIC Bima Shree, you can purchase critical illness … [Read more...] about LIC Bima Shree (Plan no. 848): Middle class’s LIC Jeevan Shiromani
If I were to ask you to add 17 five times, you would swiftly do the calculations in your head and give me the answer “85”. It is easy to add or multiply smaller numbers. 17+17 = 34 + 17 =51 + 17 =68 + 17 =85 However, if I were to ask you to, “What is 17 raised to the power 5?”, would you be able to answer this question without a calculator or at least pen or paper? As a … [Read more...] about Don’t let the numbers fool you
Many financial advisors ask clients/friends/family to purchase health insurance plans at an early age. The reason is that you are able to lock-in your health conditions. Any illness that happens after your initial purchase of plan does not affect your insurance premium. Therefore, purchasing health coverage at a younger age may help keep your premiums low at an old … [Read more...] about How Health Insurance Companies can easily trick customers?
Budget 2018 proposed long-term capital gains tax on equity investments. The very next day, the insurance companies were out with advertising campaigns highlighting the tax advantage of ULIPs over mutual funds. Well, mutual funds and ULIPs compete for investor money. And it is not unfair on the part of insurance companies to highlight any demonstrable advantage that they may … [Read more...] about After tax on LTCG, are ULIPs better than Equity Mutual Funds?