best insurence plan for kid’s future

POSTED BY Ashubham ON June 17, 2012 7:01 pm COMMENTS (11)

Hello,

I have an Endowment LIC policy combined of three plocies completeing in 30,35 and 45 years respectively. Basically this was for retairement need. Now I want to insure my kid who is about 6 month old now and I was suggested by my insurere LIC Jeevan Ankur. Can you guid me if the plan is fine. I don’t have any term plan yet and don’t want to go with term plan as it does not give any return after completion? Also if you can suggest what the best helth plan for me? I am 29 year old, maried with a kid and have income about 7 lac per/anum. Basically looking for plan’s for tax saving as well as insurence benefit for my case.

Plese suggest?

11 replies on this article “best insurence plan for kid’s future”

  1. CJ says:
    July 12, 2012 at 12:17 pm

    You can go for online plans : Aviva / ICICI / HDFC

    Reply
  2. Ashubham says:
    June 19, 2012 at 12:02 am

    Thanks for your input Ashal, I got to know through another thread of this forum to check for claim settlement ratio. Thanks All guys!

    Reply
  3. Ashubham says:
    June 18, 2012 at 5:12 pm

    Thanks Ramesh and Kapil for the valuable info. Will dig around and choose the best!

    Reply
  4. Ashubham says:
    June 18, 2012 at 4:27 pm

    I meant which company has low premium for coverage of 50-70 lac for 30 years. for term plan.

    Also I have a doubt regarding chosing the PPF vs any insurence policy in terms of returns? Can you give me a little calculation? Sorry I am not very familiar with this field so quit confused what to choose. I have been told by an LIC agent that with Jeevan Ankur plan I’ll get about 2.5 times of invested money in 15 years and other benifit as per plan. Please suggest?

    Reply
    1. Kapil says:
      June 18, 2012 at 4:46 pm

      Stay away from such agents. They are not interested in your returns, rather their own commissions and targets.

      Term Plan for insurance and PPF + MF for investment are the best tools. This has been discussed numerous times on this forum. Look for archives and read/understand them fully before investing anywhere.

      Reply
    2. Ramesh says:
      June 18, 2012 at 4:51 pm

      Online plans = Aviva / Aegon Religare / ICICI / Kotak.
      Offline – Kotak / ICICI / HDFC.

      2.5 times your total investment in 15 years means a compounded annual growth rate of 11.5% each year. Which is not possible. Period.

      You need to do two things:
      1. Get rid of such an agent, and find yourself an ethical one (For starters, ask him how has he arrived at the calculations of the invested money, and share here, if you do not understand the calculations). By IRDA mandate, insurance plans CANNOT tell you that above 10% total returns (minus the charges). Anything above that is plain illegal and obviously unethical.

      2. Increase your knowledge about finances and investments. It does you (and by extension your family and near-dear ones) no good if anyone (that agent, me, anyone else on this forum, etc) tells you anything and you do not know whether to believe it or not. Go through the many threads in this forum and learn things.

      If you want to invest in your child’s name, there are some specific MF which can chosen in their name. But which one is better depends upon your understanding the basics.

      Ramesh

      Reply
    3. Ashal Jauhari says:
      June 18, 2012 at 5:40 pm

      Dear Ashubham, either restrict your cover to 50L Rs. or go for 1Crore Rs. The reason is high sum assured discount ‘ll make your cover cheaper for 1C SA than 70-75L SA.

      There are so many online term plans to chose from –

      ICICI, HDFC, Aviva, Aegon Religare, Metlife, Kotak

      Above is an indicative list & not the order of preference. If you ‘ll discuss this with some other person, the next question from you may be – claim settlement ratio of these cos. v/s the big daddy LIC.

      I’ll wait for your response.

      Thanks

      Ashal

      Reply
  5. Ashubham says:
    June 18, 2012 at 11:20 am

    Thanks Ashal

    What you will suggest the best term insurence plan now a days for 35 years?

    Reply
    1. Ashal Jauhari says:
      June 18, 2012 at 1:04 pm

      Dear Ashubham, can you define “the Best Term plan”? It ‘ll help me to cater your need.

      Thanks

      Ashal

      Reply
  6. Ashal Jauhari says:
    June 18, 2012 at 8:51 am

    Dear Ashubham, can you answer a blunt question? from the following, Which option is favorable to you?

    1. You are dead & a term plan is providing 25L or 50L or crore Sum assured to your family.

    2. You are dead & your investment oriented policies are providing some 3-5-7L Rs. as claim amount.

    3. Your Kid is dead & that child policy is providing some 2-3-5L Rs. to you & your family.

    4. You purchased a term plan & invested the remaining amount in a simple product like PPF or bank FD, you are still alive & there is a good corpus in PPF or FD at the end of term of your choice.

    Thanks

    Ashal

    Reply
  7. Manish Chauhan says:
    June 17, 2012 at 7:11 pm

    Ashubham

    Lets ask some questions .

    1. Will you buy the term plan if it returns your money back at maturity ?

    2. What returns are you expecting from any investment policy where you invest ?

    Manish

    Reply

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