Need suggestions on investment and LIC Policy

POSTED BY Jaspreet Singh ON December 27, 2012 6:48 pm COMMENTS (11)

Hi ,

I am beginner in IT world and getting 3 Lac Annually. As my age is also 25 years and i want to take good and sound decision for my future regarding investment or insurance. I dont have much knolwedge about these concepts. I have gone through some LIC policies like TERM PLAN , JEEVAN ANAND etc. So i just want to know that what will be good for me at this point of time if i want to have good secured life + good returns also. Or some of my friends were recommending me Mutual Funds and SIP. So where i can go ? Please help

11 replies on this article “Need suggestions on investment and LIC Policy”

  1. vaitheswari.k says:

    Good Evening….
    i am vaitheswari from tamilnadu…. my father passed away from last year by road accident… he missed our diving licence… i dnt know the licence number even i didnt have xerox copy also.. lic officer said you give original licence then only amount will be forward otherwise you didnt get the amount… any other way its possible to get amount for me if possible means please reply my mail id vaithecgm92@gmail.com thanking you

    1. Hi vaitheswari.k

      I suggest that you now take the RTI route. You can file the RTI and ask your queries to them. THey are bound to reply you on your queries.

      Its a bit long cut, but works well

      Manish

  2. Anup Samanta says:

    When we are deposit rupees in the bank then bank send SMS alert . we are getting same SMS alert when we are deposit rupees premium for Insurance company.

    1. Hi Anup

      So whats the question ?

  3. Most of the difference is because online plans don’t have to pay to agents. Second difference is online plans assumes the subscriber is health conscious and uses a different set of underwriting rules. There is not widespread approval of this method within the insurance industry,

    Therefore personally I don’t have a lot of faith in online plans. When I got my term plan from LIC there was only one online player, I am comfortable with LIC so I went with it, also I could afford it and have a good group cover from my permanent employer

    If you can afford LIC plans go ahead. Please remember that most financial advisors today recommend online plans because they are cheap since most cannot or don’t want to pay for offline plans.

    What they advise and it does make sense as I mentioned above if the form is filled up honestly then claim cannot be rejected, I think this is very reasonable advise.
    Finally it comes down to your trust and comfort level with the insurer. Term is obtained for family not for us. So I will go with a plan and do everything to ensure if I die my family should not suffer either to get the money or run from pillar to post to fight with the company or insurance ombudsman

    The idea that LIC is safe stems from the fact that LIC does not reject claims in which data was withheld and its investigation is not so severe in most cases. Which is why you are advised to be truthful in form filling with any company

  4. Jaspreet Singh says:

    I had word with my friends also. Their experience with other companies like AVIVA is very bad. So everyone just talks about LIC .

  5. Jaspreet Singh says:

    Yes i am agree LIC plans for TERM Insurance is very expensive as compared to other. As i have seen LIC Term of 1 Cr , 35 years premium cost me around 30,000 per year and on the other hand AVIVA or RELIGARE cost 7156 Per year. Why so much big difference is there ? And can we rely on Private companies like these as compared to LIC ?

  6. You need to be insured for an amount which will take care of your current expenses and offer your family some amount of money which can be invested for say your childs education etc. if you die immediately.

    I have a comprehensive insurance calculator in my website which you could use. Dont be scared by nos.

    Most people typically need to be insured for at least a 1 cr and upwards. If you die 70 lakhs will be used for monthly expenses (this will increase with inflation so the total amount will last for a fixed amt of time, say until your children go to a job).
    Rest will be invested toward other goals.

    LIC plans are very expensive. If you are honest in filling the form and insist on a medical test before the policy is issued any online term provider should be good.
    You can use websites like policy bazaar to compare. Choose someone you are comfortable with

  7. Jaspreet Singh says:

    Thanks for kind help.

    I also want to know that if i want to go for TERM plan then as per the inflation and money value is concerned after 30-35 years, then for how much amount i must get insured ? i think at least 75 lac if i am not wrong ? Only then it will be some fruitful at that time . And secondly as per my knowledge is concerned i think LIC is the best one for getting this insurance because of its trust and reliability, Any Suggestions ?

  8. Buy an online term insurance policy (you could compare products in polciybazaar or other such sites). Dont rely on your company health insurance and get an individual mediclaim and keep increasing the sum assured each year as per your affordability

  9. Your friends are correct. Don’t mix investment and insurance. The only insurance products you need are pure life insurance (term insurance) and mediclaim. Latter on you could add accident policy and critical illness insurance as when you can afford all premiums.

    Get first two products first and
    spend as little as you can, invest as much as you can in diversified mutual funds. You could also start a PPF and put a little something there. You could start with balanced funds like HDFC prudence to understand how they behave.

    you can refer to this guide for choosing mutual funds
    http://freefincal.wordpress.com/step-by-step-guide-to-choosing-a-mutual-fund/

    be clear about your financial goals and start thinking about planning for retirement and how much you need to save for it,

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