This is second post for answers to Questions asked to me in “Ask a Question” Section . The First Part of Question Answer section is Here . This section has questions and answers related to topics like GOLD , Real Estate , Term Insurance , Mutual Funds , “hiding Information from Insurance Company” . See the questions ans answers below .
Other alternative i would suggest is buy it every quarter with 25% money each time . Equity have risk and hence you are going through the time when you should be calm and control your “mind” which is concentrating too much on Losses No point in stopping this policy and taking a new one , because any ways you will declare this to other insurance provider . Only in one case you will benefit , if new insurance provider has the premium less than LIC , which i think many will have , do your investigation .
. However I dont see any issue in regular jobs . Go ahead .
Well.. you have done 95% of the job by choosing to take term insurance , now to Find the best one is just 5% , because in a way its not too important .. I like SBI and Religare .. you can go with others also . . Riders are your choice , you pay extra if you take them , they are not free .Divide the policy in 2 atleast , If you are too emotional with LIC , you can have it as one of the insurers .. But there is no issues like Public or private companies.. read my article on this .
DSP Blackrock Fund : EXCELLENT funds , Keep it , increase the exposure
SBI Magnum Global Fund : RISKY and seems to be fine (its a midcap fund) , decrease the exposure
Fidelity Tax Advantage Fund : Good , Continue
Fidelity India Special Situations Fund : Its a new fund , STOP this and take some old Winner
You entered at bad time , dont worry its normal .. Review your Mutual funds (you may use my suggestions if you want , Take your call , i am not responsible) and prune out the bad ones and continue with the good one , Equity performance very good if you keep continuing investments and give it some enough time to it to perform . .
You should inform them about this as soon as possible , Premium of Life Insurance depends on the Risk involved and Right now , The company is charging premium based on your information , If later they come to know that this information was hidden from them , the claim can be rejected and It will be a right thing from companies point of view , You should inform about this , Your Premium May or may not be revised . Even if its revised , its ok .. . Thats a fair thing
{ 6 comments… read them below or add one }
Good Job
For question 2, I will try to answer. there is vast difference in real esate market in india and US. US real estate market is far more developed, banks, FIs have so many products for housing loans. In india we have plain vanila loan concept. Since in US connectivity is good rental business is good. in india only area in city are good for rent where real estate is touching high sky. in US doesnt matter for people on where they rent that house just that it should be at driving (30-40miles) from work location. What Rich dad tells us to use FIs money to invest in housing and put it on rental. difference is your profit or buy a house from forclosure and do a refinance on that house which will give you profit upfront.
This types of forclosures on not present in india. I hope this helps why rich dad talks about real estate always
Hi Manish,
You suggest splitting term policies in atleast 2, i was wondering for this split. Is this for in case you think of terminating one later you can do it or some other reason.
Thanks,
Vijay
My bad, you have answered this in your “Great tips in Personal Finance”, pl. ignore.
and thanks for this wonderful site and ton of information.
Vijay
ok , i saw your reply later now
.. I hope its answered