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?
traditional life insurance plans
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 earlier posts on traditional life insurance plans, I have tried to make simple excel models to demonstrate that traditional life insurance plans make for poor insurance and investment products. 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 the term … [Read more...] about Problem 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 investment performance of insurance company translates … [Read more...] about No parent should purchase LIC Jeevan Tarun
Regular readers of this blog would already know that I have no love lost for traditional life insurance plans. I have written many posts advising readers to stay away from traditional life insurance plans. In an earlier post, I had reviewed LIC New Jeevan Anand, a participating non-linked endowment plan. In this post, I will review LIC New Money Back Plan-25 years, a … [Read more...] about LIC New Money Back Plan provides guaranteed poor returns
When you talk about financial planning, making good financial decisions is as important as avoiding bad ones. This applies to your decisions for saving taxes too. In this post, I will discuss some of the common mistakes investors commit during the tax–saving season. Following are the tax-saving mistakes you will do well to avoid. Act in haste This applies not just to your … [Read more...] about Common Mistakes to avoid this Tax-Saving season