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June 27th, 2009
by Manish Chauhan on June 27, 2009
{ 46 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
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