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June 27, 2009 · 109 comments
{ 106 comments… read them below or add one }
HI, I AM A MARINE ENGGR.,AM 43 YEARS OLD,AND WISH TO TAKE ENDOWMENT POLICIES,HAVE 2 KIDS,7 YEARS,AND 4 YEARS OF AGE,I WOULD LIKE TO HAVE A AMOUNT OF RUPEES ONE CRORE,BY THE TIME I AM 6O YEARS,OF AGE.KINDLY ADVICE ME.,ALSO LET ME KNOW,WHAT SHOULD BE THE THE RIGHT POLICY.TO BUILD UP TO THE AMOUNT.I HAVE MENTIONED.
Pawan
Why do you want to buy Endowment polocies.. do you know the return they provide in long run in % terms , you should use equity for your long term goals . Endowment policies is not the right approach .
to make 1 crore in by the time you are 60 yrs (in 17 yrs) you have to invest around 15,000 per month assuming 12% return. You might have to invest 30,000 per month if you go with Endowment policies or anything which gives around 6% return .
Manish
THEN.IN THIS CASE,WHICH INSURANCE POLICY,SHALL,I BUY,I WOULD LIKE TO MIX,INSURANCE WITH INVESTMENT,PS. ADVICE ME?
Pawan
Dont mix insurance and investment .. Take pure term cover through Term policy . You can choose out the companies yourself. . mix 2 in one .
Manish
HI THERE,I AM 43 YEARS,OF AGE,HAVE TWO KIDS,ONE IS 7YEARS,AND THE OTHER IS 4 YEARS,OLD,I AM INTERESTED IN BUILDING A CORPUS OF ONE CRORE,BY THE TIME I AM 60 YEARS,OF AGE,WHICH INSURANCE POLICY GIVES ME A MAX. COVER,SHOULD I MIX,UP INSURANCE,WITH INVESTMENT,WHAT SHOULD BE MY APPRAOACH,PS. GUIDE ME.?
Sir,
I am 53 yrs old Chem Engg working in the oil industry 4 the last 30 yrs (the last 8 yrs in Kuwait). This yr I plan 2 quit and go home. My asset allocation is at present 63% debt & 37% equity. I hv pure equity, balanced MFs,Bank FD’s, PPF, PO-MIS & LIC Annuity. I am now looking for some schemes that give me regular monthly income (hv exhausted the MIS limit). What is yr opinion on MIP’s of MF’s? Where else can I park som funds?
Thanks & Warm regrds
Nihar
your asset allocation seems perfect considering your age . Why dont you think about Senior citizen saving schemes also . you can use that to get some good monthly income with good return . You can also opt for some MIP from mutual funds , just that the returns from them will be volatile depending on equity allocation . So better go for something which is more stable over long term and have less standard deviation in returns . See valueresearchonline.com for details and comparision .
What is your age ? You dont have anything in real estate as investment ? because a good rental income can also be alternate to pension .
Manish
Dear Manish,
Is there any other option besides pension plans? One of my friend who is 44 and is looking forward to generate a fixed monthly income immediately from his accumulated savings. I know its not the best of ideas, but he wants to retire/ get rid of the job very soon. I was checking valueresearchonline.com, but did not find anything of the sort here. Is there any option where he can look forward for around 8% fixed monthly returns. To negate the effect of market fluctuations, he would be happy to stay away from equity.
Prasanna
He can look at Monthly income plans , These are debt funds which also have a small equity exposure . it will suit him.
Or better invest in Some stocks which have good dividend history
Manish
dear manish ,
u have a very broad analysis for the jeevan tarang plan wherein by facts and figures
u do convince everyone not to buy an endowment cum whole life plan but i would like to point out a few things
i am 28 yrs old i have a daughter who is 2.5 yrs old
i have received an illustration from a lic agent as follows
i shall opt for a policy in my childs name at age 2
by opting fort a 10 lac cover premium payble is coming to rs 48ooo/-
now comes the best part
*****the policy has even a premium waiver rider wherein if i die the policy shall continue for the entire period of 20 yrs and premeium shall be paid by lic
so if i do survive my kid shall receive a lumpsum bonus amount of rs 960000/-back in the 21st year of premium where my babys age would be 23 years
and she shall receive 55000/- i.e 5.5% annuity till death lets assume if my daughter does survive up to age 75 she shall receive a sum of rs 55000 for 50 yrs ie rs 27,50,000/-
and on death she shall receive rs 10,00,000/-
with all the sums guarnteed by the lic
dont u still feel its a better child plan than compared to any thing offerd by any company
in market
kindly be feel to respond on same
regrds khushal
mr Khushal
THe point is again the same . The premium waiver option is not free , everything comes with a cost and that cost is factored in your premium . I would again like to say the same thing , that you can create a better thing yourself . You can take term insurance upto a amount that incase you die , a lumpsum amount of 10 lacs can be used at the time of death and some part can be invested for long term , so that when the daughter is age 23 , she recieves a lumpsum amount again . I still dont see LIC JT performing better than MF + Term combo .
Yes , all this takes effort , but if one wants a single policy to perform everything , then it comes with a cost and JT will offer that happily because thats how they make money .
What do you think ?
Manish
hi manish,
I wanted to know how would “mahindra satyam” stock perform in 2010.
Is this a right time to go for it.
Sourabh
I am not sure if I can help on that . I am not following stocks there days . But to answer your question , the best thing would be that you list out the reasons on why you feel it can perform and then we can brainstorm on that. just getting a yes or no will be fruit less . atleast for long term learning .
Manish
Sir, I am 23 years old & earn just about 20000 per month. Which is the best place to invest for me. Should I invest in monthly SIP. Which SIP will be better for me?
Harpreet
thanks for your first comment on this blog . There is nothing like best place to invest, its all about your risk appetite and time frame and return expectations . You can look at http://www.jagoinvestor.com/2009/08/list-of-best-equity-diversified-mutual.html for long term investments . Dont take ULIP’s please .
Hey Manish,
I came to know about your site from one of my friend. It is really interesting. Its a one stop for all the financial queries.
I would like to know if you know anything on the “Max Mangal Life insurace”, it is a endowment policy for which i have to pay for 6 years and the insurance is covered fo 12 years. I had to take this policy without knowing any details about this, as the Barclays finance company said this is mandatory for approving any loan
, not sure how far it is correct. But as I was running out of time, i opted for it.
I just want to know, is this a good one to keep or stop paying the premium for the Next years.
Thank you in advance,
Narasimha
Narshimha
I dont think it has anything good in it . its a regular endowment plans and we hate them at this blog here
. So try to get out of it and utilize your money in better way , see if they have left any less pain ful exit door for you or not .
I cant imagine this that they said its “mandatory” to buy this plan for loan approval . These can not be mandatory and if it is then make sure you never deal with this company again . its un ethical , complain to that company ombudsman and escalate to consumer court of not a faithful service
Manish
Hi,
I am looking for a policy for long term but unable to decide which one to go for. Could you please assist with the following terms:-
My Age: 24 years
Duration: 10 – 15 years
Premium: 60,000Rs p.a
Could you suggest which policy to go for and what returns will I get after maturity. Please let me know if you require any further information.
A kakkar
you should invest in Equity mutual funds through SIP of Rs 5,000 per month , see some funds : http://www.jagoinvestor.com/2009/08/list-of-best-equity-diversified-mutual.html
Manish
What is NPS (New Pension Scheme)? How & where to open it? How is their returns?
Regards
Mahesh
There is a NPS article written , check that article , see archive page OR search .
manish
Please review the merrits and demerrits of the Monthly Income Plan from Metlife
Mahesh
Cant do it on demand right now . I will do it some time in future.
Manish
Dear Mr. Manish,
This is Hardik. I would realise after registering in jagoinvestor that I should ask u about my financial plan.
1.) Now I m 24 years old. I m mechanical enginner. After all expenses, I m saving monthly 15000 rps. Here I m writing my saving for ur need into calculation. According to my annual income I m paying premium/annum 50,000 rps. in ICICI Prudential(Life stage pension plan) since last 2 years. If i will stop this plan after 3 years, I will get following benefits:-
a.) Lifecycle based Portfolio Strategy: a unique and personalized strategy to create an ideal balance between equity and debt.
b.) 100% allocation: of your money in the asset class of your choice.
c.) Additional allocation of units: More than 100% allocation to funds on premium payment from the sixth policy year onwards.
d.) Five pension options:provide you the flexibility to choose a pension plan as per your needs.
e.) Tax-free commutation:up to one-third of the accumulated value on vesting (retirement) date.
So, my question is that Shall I continue this plan after 3 years as per agreement and policy of this plan.? I know if I will continue after 3 yaers I will get more benefit but how.? I don’t know that. If your answer is yes, at what age I should stop this policy to get more benefits.
2.) In my family, total 4 members including me. I m earning member only. I have medical insurance from my company. So, for my family I want to invest some amount in health insurance or mediclaim. So, which insurance policy or mediclaim will be better to cover whole family.? and why it is better.? FYI, Monthly I can pay 4000-5000 rps. as a premium in this case.
3.) Now u know that how much amount I m saving monthly, but still I have other amount 10,000 rps. that I m getting every month from house which is given on rent. Don’t think that my saving is 10000 + 15000= 25ooo rps. Don’t mix up. I want to keep this 10000 rps. as hidden amount from my family and all. So, what excellent plan shall I do on this amount that can become very huge amount after medium or long term..?
I m looking forward to get response soon.
Regards,
Hardik.
Hardik
ULIPs are generally missold with this pitch that its a 3 yrs policy, but stopping it before 10 yrs will prove to be very costly . better stop if you dont know how to use ULIP’s
Regarding health Insurance , its your personal need and you should compare at apnainsurance.com
Regarding your 10k extra income , better invest in equity funds for long term .
get a financial planner for detailed planning .
manish
Hi Manish,
) and planning to invest the money saved (figuratively) in MF+PPF. Now for term assurance I have zeroed in on SBI Life Shield, Metlife Suraksha Plus, and ICICI pure protect. I’m 33 years old and 6 months into marriage… Kindly suggest the good one for a cover of 25 lakh rupees. Thanks in advance.
Keep up the good work! After enlightment from reading ur posts on endowment policies, I have surrendered my Money Back and Jeevan Anand from LIC, (the SV was paltry, to say the least
vazanth
you can use any one , choose one with lowest cost .
Manish
sir, I am taking max tax rebate u/s 80c . my wife is also a assessee & I want to take fresh life insurance policy on my life whose premium will be paid by from my wife a/c & can she take tax rebate on that premium u/s 80c ,pl confirm the status in above respect,tks
Ritesh
Yeah . thats possible
Sir,
I am 31 years old . One lic agent persues me to take Jeevan Tarang in the following way. SA 20 lac for 20 years premium of 96440/- per year. if i live upto 80 years the i get about 22 lacs bonus ( taking present bonus rate of LIC) at my 52 yrs age and 1,10000 per year for 29 years that also total 31,90,000 and after my death my family gets another 20 lacs.
in term insurance for 25 lacs is 10,350/- if i place rest 86,090/- ( 96440 – 10,350 ) in ppf then after 15 yrs i get 20,52,701 /- (@70,000) after 15 yrs and another 4,43,515 after another 5 yrs ( by investing @70,000/- in another account when first account expires) . investing 15,000/- in the same way i get 4,39,865/- and 95,039/- So in ppf i get total 29,26,542/-
is jeevan tarang truly better or i am getting fooled? Pls help. Regards
Pijush
I think PPF would work out better and why PPF, go for equity . look at Jeevan tarang analysis review post on archive
Manish
hi manish
I am a 31 year old working lady. I was just hunting about ‘how to plan my investments and where to spend’ when coincidentaly I came across the site jago investor.com. its really good and the way you answer the queries is also very informative and enlightening. I have a small question and would really appreciate your feedback. as of now I just have one policy which is an endowment policy of LIC with a small premium of 5000 per year. I have just paid one premium till now. after reading your articals I realized that its not a good option. anyways I earn 31000 per month. as I am unmarried yet, so no family responsibilities till now. I want to invest my money with purpose of increasing it. please suggest me the best way. how else should I plan my money? suggest some good equity funds. my own knowldge says HDFC 200, reliance growth and sbi blue chip are good ones. but would like your suggestions. I will also invest in PPF. but when it comes to insurance plan I am really confused as to go in LIC or some private ones. please help. also suggest me some artical giving information on how to handle SIP at the time when market is totally down.
Kavita
You should stop your policy as you have just paid 1 premium , you will benefit in long run .
You should be investing in simple things like Balanced funds through SIP or ETF’s and take a decent cover with term insurance, the problem is not LIC, its endowment plans , you can take term plans with LIC if you wish
SIP in down market should be continued , actually we do SIP to make sure we dont try to time the market and keep investing in all markets .
Manish
Hi manish.keep up the great work….i am newly married aged 28..earning 37k/month….is it wise to look for a pension pplan from now on….
i have zeroed in on SBI unit plus 3 pension plan…is it a good one…
i had earlier thought about NPS..but due to max 50% equity exposure and taxation on withdrawl i did not go for NPS…PLEASE SUGGEST A GOOD PENSION/ANY OTHER FUND OTHER THAN PPF/SIP’s for MF[which i already plan to have]…
Prabhu
As per the new Tax code (revised) , NPS is now totally tax free and at maturity , no tax will be there , see my latest article .
Dont take pension plans . better invest in mutual funds
Manish
Hi Manish,
Thanks…As for my Retirement plan,can i go for NPS/PPF/BOTH.
I am really confused..i have a plan to take a SBI LIFE SHIELD Term Insurance.Is it Good one.I have to save 82k/annumn for my tax planning.What policies can i go for to save for my tax.Please help
Prabhu
It not a simple thing to tell . It will depend on lot of things like your risk appetite , your current status , your future requirement and your expectations .
What kind of comment do you need on SBI shield ?
Manish
Regarding SBI Sheild i want to know whether it is a good plan or not..
My Risk appetite is high…My expectations will be a ggod monthly income after my retirement
Prabhu
SBI Sheild is a pure term plan from SBI , you dont get anything at maturity , its a pure life cover plan , You can go for it
Manish
Dear Manish.
Hi its Dbyash………My question is regarding the Jeewan Tarang policy of LIC.
I have a LIC Jeewan Tarang Policy for 15 yrs terms and qtry premium given Rs.6226/-and sum assured value is 350000/-. I am allready paid for its 4 yrs allmost. Now not able to pay premiums because of some problem and wants to stop and take my money back. So please tell me howmuch we get back my money.
Dear Manish
My quiries is regarding the Jeewan Tarang policy of LIC.
I have a LIC Jeewan Tarang Policy for 15 yrs terms and qtry premium given Rs.6226/-and sum assured value is 350000/-. I am allready paid for its 4 yrs allmost. Now not able to pay premiums because of some problem and wants to stop and take my money back. So please tell me howmuch we get back my money.
With Thanks & Regards
Dbyash
Dbyash
Unfortunately , you are in a very bad state, as the the policy , if 3 yrs premium has been paid and someone wants to stop the policy and get the money back , they will get around 30% of (total premiums paid excluding first year premium) , which means you will get just 30% of your 2nd + 3rd + 4th yrs premium ,which is nothing but around 22-25k .
Manish
Thanks Manish……for your reply. I also have other one policy with LIC : LIC’S CHILD CAREER PLAN WITH PROFITS,
TABLE AND TERM 184 23 18 .
SUM ASSURED RS. 500000/-
YEALY PREMIUM RS.25658/-
Premium given allready 3 yrs.
I want to know your suggestion and advice over this child policy. Am I go with continue with this policy or not. Please give your valuable suggestion.
Thanks & Regards
Dbyash
Believe me , all the LIC policies are same with minor differences , you should check my review on jeevan tarang on my bl0g and take similar dicision on your policy
Manish
I AM HAVING TROUBLE, WITH MY TWO POLICIES, WITH LIC,ONE IS OF LAST YEAR,AND, THE OTHER ONE IS OF THIS YEAR, MY POINT IS, WHY SHOULD I PAY THE PENALTY,IT IS THE DUTY,OF THE AGENT,AND, ALSO, LIC, TO REMIND ME IN TIME,NOW I WANT TO APPROACH THE CONSUMER FORUM,SHAL, I,AND, AM I RIGHT IN MY DECISION?
Pawan
I dont think so , You are the owner of policy and its you who has bough the policy and its your interest to keep it going , why should be a company responsibility to bug you for premium , its their corporate responsbility but not a compulsion , I am sure if you are interested in the policy , you will make sure you pay premium on time, if you are not, then reconsider your seriousness , What do you say ?
Generally Companies send notice anyways to customers and also agents let you know . Even if its not happened , you cant legally do anything . At the end, its you who are responsible for your policy .
Manish
Generally it is recommended to save 6 months expense in a FD. If I keep it for 3 years then I understand then I need to pay tax. My question is how and where is this tax deducted? Is this deducted by the bank automatically at the time of maturity?
Please advice.
Thanks
Sunil
Sunil
Tax on FD is there for every time frame, it has nothing to do with 6 months or 3 yrs . The Tax is to be paid by you when you pay taxes at the end of the year , Banks will cut TDS and pay to govt if your interest is more than 10k .
Manish
Thanks Manish. So does that mean I need to pay the tax even if the interest paid is less than 10K (even if bank does not deduct it?)
In that case what would be best saving instrument for covering my my 6 months expense?
I was planning to save it against my father’s name as he is a senior citizen. Not sure if that is a good idea.
Regards
Sunil
Sunil
Dont think so much about tax when it comes to emergency funds , its just for liquidity not for growth , so you should be more concerned about safety and availibility of the money for short term . There is no such thing which will save you tax in short run .
Investing in father’s name does not save you , as per tax clubbing rules , the tax is to be paid by the person who actually pays for it , however there are some ways you can avoid paying the tax , by gifting the money etc to your father .
Manish
Thanks a ton Manish. Its just that after coming across this site, I have starting thinking in these lines…
No doubt it has been an eye opener for me and as they say better late than never!
Accordingly, I am going to close 4 LIC policies this month when I go to my native place. I have also started Term insurance and Health insurance for my family and parents. I have started SIPs in HDFC top200 and UTI dividend yeild. Some more to follow shortly.
The other doubt I have is that I am hoping to get an amount of say 3 lakhs when I close my LIC polices. I have an HDFC home loan with outstanding 12.5 Lakhs (10.75 % ROI). Does it make sense to part-pay the loan OR say invest in some of mutual funds?
Is there any logical way to arrive at the deicision?
Regards
Sunil
Sunil
The best logical way to arrive at the decision would be to do a cost analysis of both cases and see which one helps you financially . If you dont pre-pay your loan , do you have ability to make more returns than what you are paying to home loan company .
Apart from financial reasons , you can also look at emotional reasons to reducing the debt and feeling less tension .
Manish
Sorry to ask but this is a mathematical question which I am trying to find an answer:
If I am falling under 20% bracket and say I am getting a benefit of 1,50,000 on House loan at 10.75%, Can I say I am effectively paying the home loan at 8.75%?
Is my understanding correct?
Regards
Sunil
Sunil
Yea .. if you deduct the tax expention part then yes your effective interest outgo would be less only , but only rely on that , what if tomm the tax exemptions are gone
Manish
Hi Manish,
I have to invest Rs.25000/- for saving tax. Please suggest me the best place to invest this amount. I am planning to invest in PPF. I already have insurance for 1 lac from LIC(for which i am paying 8500/- per annum). My age is 26, unmarried and have my parents as dependants.
Kalai
the only thing which I can suggest for you at the moment is Term insuance , the biggest and only reason for it right now is that you are so severely underinsured . What will your parents do if you die tomm .. 1 lac is what they will get, do you have any idea what that means !
Better cover your self with term insurance asap for appropriate amount. tax saving is a by product of this , but not that main factor to decide what you have to buy
Manish
Hi Manish,
I have SBI subh nivesh policy with whole life option and having two riders ( disability + death) in it.
Terms = 5 years
Premium = 30k pa
Total sum assured = 1.16L
In event of death/ permanent disability = 1.16 L
If I pay for 5 years then total premium paid is 1.5L
returns = 1.16L + bonus
returns is less than the premium paid.
Can you please suggest ?
I have paid three quarters installment = 22.5 k (7.5k each )
Should i go further or stop the policy? If i stop the policy then, is there any way to get the paid premiums back.
Actually i was misguided by agent and facing problems now.
Sonu
Looks just like the regular policy from LIC . Bad one !
More than the returns , I can see other concern here .. Your Premium is higher than the Sum Assured here per year , As per IRDA rules you cant claim tax deductions under sec 80C and also the maturity amount will NOT BE TAX FREE! . Because thats possible only when premiums are less than 20% .
Even iits not the case , The tax deductions wont be available once DTC comes into affect from 2012 as its only allowed if premiums are less than 5% of SA
Better close it and use your further premiums in some better place .
Manish
Manish
Hi,
I just come across your articles today. Excellent articles. I read the review of jeevan tarang policy. I wanted to ask you about my husband’s policy. He is 35 yrs. old
He took the jeevan tarang policy last year(2010) for 4lakh for 15 year tenure. premium per year is Rs.7115.
we paid two year premiums. Is it good to hold it for the hold ? Can you suggest some good ones?
Priya
The first thing you need to ask is “Is 4 lacs good insurance cover” ? will it be enough for family incase of some unwanted situation ?
Take a term plan and invest through mutual funds .
Manish
Hi Manaish,
Thanks for the reply. Is there a way to get out of this jeevan tarang policy now. If yes, how? If no, what can we do now?
Hi Manish,
Thanks for the reply.Sorry. I was wrong in the earlier qn. The quarterly premium was 7115. Is there a way to get out of this jeevan tarang policy now. If yes, how?
If no, what can we do now?
Priya
You are in bad situation, you will be able to get uout of it only after 3 yrs, if you stop payment before 3 payment , you will get 0 .
But the problem is , if you surrender it even after 3 yrs ,you will get peanuts :
http://www.jagoinvestor.com/2009/10/what-to-get-rid-of-your-junk-insurance.html
Hi, it is a great and knowledge sharing web. thanks for this one.
i am 22yrs. started earning 6 months. in my family totally 5 including 2 younger bro’s. not a wealthy family. My dad didnt take insurance or saving to any one. so i want to put money in insurance for my dad(51) and mom(45) as first thing. since they dont have life cover. i can pay yearly 20000 as premium.suggest me two good policies one from some good companies and another one from LIC.
Guruprasath
Are you looking for insurance as pure cover or investment vehicle ?
Insurance cover for my parents. but after reading the blog life cover if i do for 20 years for 2- 5 lakhs it is not worth. so i am asking you can i go for life cover or term insurance + any options. i can pay maximun premium of 20000 – 25000. i need to your guidelines.
Guruprasth
I can see you are confused betweem life cover and term insurahce, both are same , infact term insurnace is a way to take life cover , You first decide how much insurnace you want to buy , the premium would be high because of parents age .
Manish
Hi Manish,
I have seen the imaximize plan from Aegon Religare. can you please advice me on this. i am planning to take it for my father. he is 52. he dont have any protection or savings. this plan provides upto 72(i.e.,if i take for 20 years). At maturity it gives 6-10% returns. if i pay 25000 for 20 years. at the time of death they will be giving sum assured or fund value or 105% premium paid. whichever is higher. if maturity occurs i.e, age of 72 they will be giving sum assured or fund value or 105% premium paid. whichever is higher. as per their quote 6% returns wil be of around 6.37lakhs and 10% returns will be of around 10.37lakhs (note:my total investment is 5lakhs).
Whether this is a good plan for my father it covers both.PLS advice.
And they are giving two options death option1 and option2. i understood what is this options are. But suggest me which one i can go for. Thanks in advance
Thanks & Regards
Guruprasath G
Hi Manish,
Its really very good to read your posts. They are quite an eye opener in most cases. I had taken Aviva’s Freedom Life plan in the year 2005 paying an yearly premium of 50K. This was one of the tax saving instruments as well. Now, I have realised that it was a real bad choice (though it quite late…I have invested approx 2L in the policy) and I want to withdraw this amount. Please suggest where should I put the lump sum which I withdraw from Aviva. for long term savings.
Also, now I would also like to take a tax saving instrument (preferably SIP) through which I can save income tax in place of this policy.
Thanks & Regards
Upasana
I have replied you on email
Manish
Hi Upasana,
I saw this thread on jaagoinvestor. If you dont mind, can you share the feedback that Manish shared with you on Aviva Freedom Life Advantage plan?
Thanks,
Animesh
Hi,
I am working in abroad. My age is 37yrs. I would like to have monthly pension Rs . 12000 at age of 60yrs (Retirement age). For this can you suggest which best LIC Pension policy for tenure 20 yrs
Hemant
Dont you think 12k at 60 yrs will very low ? It would be same as getting 1-2k today ! .
Manish
Hi
I’m paying 30k in Jeevan Anand policy of LIC. The period is 25 yrs. Is it good to continue or is it better to discontinue after 3yrs. I’m confused…
Please suggest
Stalin
what is the confusion you have ? Did you do IRR analysis ?
Manish
Hi, I want to invest a lumsum ammount of Rs 15L. I do not want to invest in Mutual Fund since I have already invested in MF. My plan is to start a PPF Account in State Bank Of India and invest Rs One Lakh per year for a term of 15 years in this PPF account and keep the balance ammount in Fixed Deposite. From this FD, each year I can invest Rs 1 L in PPF for 15 years. Is it advisable to do such kind of investment in PPF and pay thru FD route ? Pl advise.Thanks in advance.
Hi, There is one addition in my query. I want to invest a lumsum ammount of Rs 15L. I do not want to invest in Mutual Fund since I have already invested in MF. My plan is to start a PPF Account in State Bank Of India on my 4 year daughter’s name and invest Rs One Lakh per year for a term of 15 years in this PPF account and keep the balance ammount in Fixed Deposite. From this FD, each year I can invest Rs 1 L in PPF for 15 years. Is it advisable to do such kind of investment in PPF on my 4 yr daughter’s name and pay 1 L per yr thru FD route ? Pl advise.Thanks in advance
Ashish
You can do this , i dont see an issue , but for such a long term , you should not be heavy on debt instrument ,you will not be able to fight inflation , better have some mix of balanced funds and FD+PPF
Manish
sir, i am 34 years old, i have one kid and my annual income is 6 lacs per Annam. i am planning for saving or invest 1 lac per year for my kid future. please suggest me what to do with good planning.
M Srinivasulu
If you need a plan in just one para , then i would say take a term plan and do SIP’s in good mutual funds else go for proper comprehensive financial plan
Manish
sir, i don’t need a plan in just one para. give me the full detail planning. i will give my full financial details. present my savings was 1.7lacs per year. in that 70000/- in ppf, 1 lacs in insurance policies( lic policies). my kid age was just 10 months. i am interested to save at least 1 lac per annum for my kid future. so, please give me the rightful suggestion and good comprehensive financial plan.
Full comprehensive planning has a fees . You can have it here : http://www.jagoinvestor.com/services/financial-planning
Or you can ask your questions on our forum : http://www.jagoinvestor.com/forum/
Dear Manish,
1. I have SBI unit plus III Life Saver policy- ULIP (Paying Term 30 years). I have paid the first two premiums of 1,00,000/- each. My next due date is nearing. Should I stay in this policy or surrender it and opt for Term Plan+MF SIP + PPF for long term. I know that I may loose certain amount while I surrender this policy, but I would like to build a corpus for my Daughter’s Higher Education & Marriage.
2. Similarly I have Lic’s Jeevan Saral Policy with a premium of Rs.60000/- yearly. Three Premiums paid. Term 30 years & Assured amt Rs.18,50,000/- and Insurance of 12,50,000/-. Should I stay in this policy or surrender it and opt for Term Plan+MF SIP + PPF for long term. I would like to build a corpus for my Daughter’s Higher education & Marriage.
Eagerly awaiting for your reply.
Regards with seasons greetings,
Roy
Roy
1. What is the charges for the 3rd premium andn what are companies policy for surrender before 3 yrs ? Have a look at the policy documents . You can start term + MF , but first have a look at these points
2. Surrender this one .. The amount which you saying as Assured , is that SA or someone said that you will get the SUM ASSURED ?
Manish
Is there any article/ info for FD vs Debt instruments in the blog?
Nothing specific for comparision between FD and other debt instruments ..
You can ask your question here
Manish
I had so far put money for ‘safe’ portfolio part in FDs…However was thinking of investing in debt market…Please let me know if its the right market time to go for it…also would like to know other investors point of view on same
Sanghmitra
I am not sure if you meant debt market or mutual funds in equity .. FD is already a debt product (safe) .. so do you want to try equity markets now ?
Manish
debt fund , i was referring to
OK , in that case .. its a good time to get into debt funds as the interest rates are very high
Manish
Hi Manish !
I bought I-Pru Life Time Super in August 2006. Paying monthly Rs. 1500, totalling Rs. 99,000 at present. However my FV is the same as total premium paid even after 5.5 years :p
I don’t want to continue the policy but atleast before surrender, return should be somewhat higher..
Plz suggest..
Regards
Sanghmitra
Sanghmitra
Your policy has high admin charges in start and now you have already paid it .. better not to continue it
Manish
who said ULIP is good in long-term :p
Sanghmitra
It can be … depends on how you use it ..
Hi Manish,
What is your view on the Aviva Life Sheild Advantage which is like a term policy where your premiums are refunded at the end of the term. For 25 lacs for 30 yr term the premium is about 11425 for 35 yr male.
Also my mother was sold the jeevan Adhar policy(for disabled people, as my sister suffered from mental retardation) by an agent some 15 years back and she was told that very good bonus will be added to her money and will be paid at maturity. Now it is going to mature next year and when she wnated to know how much will she get she found out that its a policy like a term policy, money is paid to the beneficiary after the death of the insured. She works with in UBI and had already planned well for her insurance, was this policy mis sold to her or is she misguided still.
PLease advice,
thanks
Meera
Dont take that aviva plan , its return of premium term plan which does not make sense as per me , here is the reason : http://www.jagoinvestor.com/2009/04/return-of-premium-term-insurance-is-it.html
Coming to your Jeevan Adhar policy questions , sadly , it really does not have maturity benefits , so when policy matures , your sister will really not get anything back , THe real benefit of the policy is only one death , in which case again only 20% of SA + guaranteed additions (really good at 10%) + Bonus will be paid on death and rest 80% will be used as pension .
Note that this plan motive is to secure the handicapped interest only and hence its designed like that . I dont want to comment on “misselling” part , because even a lot of LIC agent know know the features in detail , so in reality the agent might have thought that this policy had maturity benefit , but you sister never thought of putting 5 minutes of her time and confirming that it really has it or not . TRUST comes at a cost , i would say and she will have to pay for it . Overall the premiums must have been much lesser than what it is for other policies ..
Manish
Hi Manish
Congrats on your efforts to educate the common people on financial matters. JI is a very informative site and helps people get better control over their financial health.
I am writing to get some perspective from you on the medical insurance front. I have heard some people recommend New India Assurance. But I guess the reasons given (No care for shareholder) should equally hold true for all PSU insurance companies, right? Companies like United India & Oriental seem to be scoring well over New India in terms of following parameters:
• Premium loading in case of claims for New India Assurance (upto 200%) is higher than United India Insurance (upto 200% but only if 3 or more claims filed in 2 years) and lowest for Oriental Insurance (maximum premium loading is 20%)
• All three seem to be big PSU insurance companies.
• Also once there is a loading on premium, New India Assurance never reduces the premium while Oriental reduces it for every no claim year.
• For a 4 member family floater, both United India and Oriental Insurance work out almost 20%-30% cheaper than New India.
• However, ET Wealth rates ‘service’ of New India as well as United India as 4-star while that of Oriental Insurance as 1-star.
However, I do believe that most important parameter remains the claim settlement history of an insurance provider. I already have a employer provided health insurance and am taking this new policy only as a backup and am planning to continue with the same insurer for a long time. In light of this information, would you still recommend New India Assurance over others? Looking forward to know your view on this. Would be really grateful for your help.
Regards
Piyush
Wait, I will get some one from medimanage.com to answer this .
Manish
Hello Piyush,
We have our reservations on any service ratings for PSU Insurance Companies.
Here is why:
The entire sales (thru Intermediaries) and service (thru TPAs and Intermediaries) of PSU Insurance Companies is outsourced. The service experience in case of PSU is therefore a function of the agent or TPA you have.
Retail Customers do not have a choice to choose TPA, and hence your intermediary/adviser/broker is the linchpin of your experience with a PSU Insurance Company.
There is no uniform rating that can be created for PSU insurers, unless there is a single TPA across the Insurance Company divisions.
This is precisely the reason we have regularly impressed upon readers the importance of a good unbiased and experience insurance advisor.
When you are buying a PSU product, you need to ensure you find the right advisor (unbiased, health claims experience – a must) with a good setup.
Mahavir Chopra
Dear Manish Sir,
Your every artical is very excellent, I am 34 year Now i want to take a term plan so please suggest me which company plan is best.
Plz tell me for hdfc click2protect plan is sutaible for me or other.
Thanks in advance
Rita
Rita
You have options like Aviva , Kotak , HDFC .. go for any one which you feel you are comfortable with
Dear Manish Sir,
Thank you very much for your suggestion. I want to share some problem with you that my husband is no more. I have 9 year son & 4 year daughter. I am working in a private firm & my salary is 15000.00 PM. I want to invest 5000.00 pm & I have 2 lac Rupees in my bank a/c. So it is requested to you please help me that where & which fund I invest for my children. i want invest 2 lac in FD, is it right decision.
Plz help me sir,
Thanks
Rita
Rita
You need security of money , but at the same time you need good growth of your money , I would suggest keep some money in FD , but also start some SIP (1-2k per month) in a good equity mutual fund from long term point of view.
Manish
Hi Manish
I have invested in Fidelity Advantage Tax Fund. As per current news, fidelity AMC is selling its India business, so what should be our move?
Either to continue with investments in Fidelity Advantage Tax Fund or to stop the future investments in fidelty funds?
Vikrant
I m not sure about the exact step which will happen now , but you could be rest assured that your money is safe . In worst case , you will have to liquidate the units and take back the money, but wait for the communication from Fidility
Manish
sir i am 30years old ,working in govt .sector& my salry is 35000.i have child of 5 months old ,looking for his future investment .i am totally confused with lic plans &private company plan plz guide me