Archive for July 3, 2007

Its old wine, and not at all vintage

Publication: DNA, Mumbai;   Date: July 21, 2009;    Section: Personal Finance;   Page: 6

LICs Jeevan Amrit endowment plan may be asking for too much

Endowment plans generally have very long premium paying tenures. But, Jeevan Amrit from the Life Insurance Corporation (LIC) offers covers for terms of 10-30 years, where a policyholder is required to pay a premium for just 3, 4 or 5 years.

The endowment assurance plan is clearly aimed at those who do not want the bother of having to pay premiums over a longer duration. The premium payable during the first year is higher than the premiums payable in subsequent years. For example, if you opt for a cover of Rs 10 lakh for 25 years at the age of 35 (see table), and take a 5-year premium schedule, the premium paid in the first year is Rs 83,890 and Rs 20,970 per year during the remaining four years, which adds up to Rs 1,67,770. In years 6-25 no premium needs to be paid.

» Read more..

Cut realty weightage, rejig portfolio

Publication: DNA, Mumbai;   Date: July 9, 2007;    Section: Personal Finance;   Page: 6

Thats the prescription for DNA Money reader Rahul Shah

I have done things in an ad hoc fashion and I am not sure if I have done the right thing,” Rahul Shah rued. A 37-year-old corporate executive, he lives in Mumbai with his wife Seema and 2 children, Ananya and Ashish.
“I just want to secure my future,” he told me. “I want to ensure that I am able to provide my children with the best possible education, provide for their marriage, buy a house and ensure a sound retirement. In case something happens to me, I would still want to ensure that all these goals are addressed in my absence.”
We discussed his financial details and goals. » Read more..

Say, what all do you need to be happy?

Publication: DNA, Mumbai;   Date: July 3, 2007;    Section: Personal Finance;   Page: 6

LICs Jeevan Anand certainly cant help you buy all that
The other day I got a call from my uncle who wanted me to invest in what he thought was a fantastic product from the Life Insurance Corporation of India (LIC). I politely declined, but he was in my house the next morning with the forms filled and just waiting for my signature. The product in question was Jeevan Anand, a plan that offers the combined benefit of endowment and whole life policies.
A typical endowment policy combines savings and protection. A portion of the premium goes towards covering your life and the balance after policy expenses goes towards investments. This kind of policy combines savings (because money is given to you on maturity) with some protection (your nominee gets the sum assured if you die during the premium paying term). Your risk cover ceases on maturity of the policy. » Read more..