LIC has come out with a new packaging. The reason I say this is that the product is not too different from older ones but comes with a new name. The plan was launched early September 2017 and will be available for 270 days from the date of launch. Why? I have no clue. In my opinion, it is a marketing gimmick. Scarcity may shore up demand. As I have mentioned before, I have … [Read more...] about Stay away from LIC Jeevan Utkarsh
LIC New Jeevan Anand
With Traditional Life Insurance plans and ULIPs, your Age affects the returns
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
Review: LIC Jeevan Umang (Plan 845)
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 (Table no. 845) Policy Maturity: At the age of … [Read more...] about Review: LIC Jeevan Umang (Plan 845)
Benefits from LIC New Bima Bachat Plan are taxable
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
Non-Participating Traditional Life Insurance Plans: Why this fixation with Sum Assured?
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?
PFP Primer: Participating and Non-Participating Life Insurance Policies
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
Time is Money and Life Insurance Companies exploit it!!!
Will you prefer to receive Rs 100 today or Rs 100 five years later? Will you prefer to receive Rs 10,000 today or receive Rs 100 per month for the next 100 months? The answer is quite clear to all of us. Rs 100 today is better than Rs 100 five years later. You can invest Rs 100 at 6% today and end up with Rs 133 five years later. And you would prefer to receive Rs 10,000 today … [Read more...] about Time is Money and Life Insurance Companies exploit it!!!
The Problems with Endowment plans
In my many posts on traditional life insurance plans, I have tried to make simple excel models to demonstrate that the traditional life insurance plans make for poor insurance and investment products and that such plans should be strictly avoided. In this post, I will demonstrate why endowment insurance plans are bad without using any excel model. In this post, when I use … [Read more...] about The Problems with Endowment plans
What’s wrong with LIC New Endowment Plan?
I have reviewed many traditional plans in this blog. The conclusion was same in all the cases that the plans were strictly avoidable. In this post, I will review LIC New Endowment Plan (814) and see how it fares against a simple combination of term plan and Public Provident Fund (PPF). LIC New Endowment Plan (Plan no. 814) is a traditional participating non-linked life … [Read more...] about What’s wrong with LIC New Endowment Plan?
All you need to know about Loan against LIC policy
I do not like traditional life insurance plans and always advise readers to stay away from such plans. Traditional life insurance plans provide low life coverage and poor returns. But what about those who have already purchased such a plan? Should such policyholders surrender the plan? Well, not always. If you have already purchased the plan, surrender of the policy may not … [Read more...] about All you need to know about Loan against LIC policy
