Most mutual fund schemes have not performed well since the start of 2018. This is broadly in line with the overall performance of the markets. Over the past few months, I have started receiving interesting queries from clients/readers. This happens more with clients who have started investing recently, i.e in the last 2-3 years. Should they start investing in ULIPs and … [Read more...] about Read this if you find merit in ULIPs and traditional plans over mutual funds
traditional life insurance plans
Your life insurance needs are not static. Your life cover requirement keeps changing during your life. Your life cover need increases when you assume additional responsibility (marriage or birth of a child). On the other hand, it decreases as you achieve your financial goals or your savings for the goals grow. For example, your outstanding home loan will keep going down … [Read more...] about A Life Insurance Ladder can Save you Money
In one of our previous posts, we had reviewed a traditional plan from HDFC Life Sanchay Plus. In this post, let’s look at another popular traditional plan, HDFC Life Super Income Plan. Traditional plans are opaque, provide low life cover and poor returns. Therefore, I do not hold a very high opinion of traditional life insurance plans. However, before writing off any … [Read more...] about Review: HDFC Life Super Income Plan: Makes sense?
ICICI Prudential Future Perfect is a traditional life insurance plan. A part of the maturity amount is guaranteed while the other part is variable and linked to the investment performance. In a way, it is a hybrid product where it retains some features of both non-participating and participating traditional plans. Let’s find out more about ICICI Prudential Future Perfect and … [Read more...] about Review: ICICI Prudential Future Perfect Plan: Not so perfect
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
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!!!
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
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?
A few days back, I watched a commercial by LIC promoting its children’s plan. The two plans promoted were LIC Jeevan Tarun and LIC New Children’s Money Back Plan. I had reviewed LIC Jeevan Tarun in an earlier post and found it to be an utterly stupid product. Though I do not expect LIC New Children’s Money Back plan to be any different, I will still review this product to … [Read more...] about Don’t invest in LIC New Children’s Money Back Plan
Traditional life insurance plans are opaque, offer low life cover and provide guaranteed poor returns. Insurance companies try to package products in new ways to get investors to invest in these plans. A traditional life insurance plan, especially a participating plan, is so opaque that it becomes difficult to assess how the investment performance of the insurance company … [Read more...] about No parent should purchase LIC Jeevan Tarun