A close friend pinged me about ICICI Pru Assured Savings Insurance Plan and asked if it was a good plan to invest. Let’s find out. ICICI Pru Assured Savings Plan: Salient Features ICICI Prudential Assured Savings Insurance Plan is a traditional, non-linked, non-participating plan.Non-linked means the plan is not a ULIP.Non-participating means this is not a … [Read more...] about Review: ICICI Pru Assured Savings Insurance Plan: Should you invest?
traditional life insurance plans
SBI Life has launched a new traditional life insurance plan, SBI Life Smart Future Choices plan. In this post, let’s find about this plan in detail. We shall also see if you should invest in such a product. SBI Life Smart Future Choices: Salient Features Non-linked, Participating Life Insurance PlanIt is Not a ULIP. It is a traditional life insurance plan.2 variants: … [Read more...] about Review: SBI Life Smart Future Choices: Should you invest?
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
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?