Archive for September 10, 2009

Banking on parental anxiety

Publication: Business Standard, Mumbay; section Product Analysis; Date September 13, 2009

Child insurance policies on offer are still inferior to pure term policies.

It’s hard to miss the Religare Star Child Plan advertisement on television, where a child is playing a guitar like a rock star. Like most life insurance commercials, this one also hits right on the emotional side of the brain and makes people take note of the product. The product in question is Religare Star Child Plan, a Unit Linked Insurance Plan (Ulip). Its brochure says it’s a Ulip with Invest Protect Option that safeguards your returns and your child’s future. What exactly is this product and is there anything unique in it?
The plan begins with a pitch that your dream has always been to see your children outshine your dream. Life is uncertain and in the event of your untimely death, this plan assures a lumpsum payment and waives all the future premiums till maturity. Isn’t it a similar feature that a lot of child insurance plans already have? Most life insurance companies also have products that offer a similar feature.

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The attraction of ncds

Publication: Business Standard, Mumbai;   Date: Sep 6, 2009;    Section: Markets & Investing;

Non-convertible debentures have some real benefits over fixed deposits.

The spate of interest rate cuts in the past several months has left fixed income investors with very few options. Rates offered for the traditional favourite, bank fixed deposits, have been hovering in the region of 5-7.5 per cent, based on the tenure of the deposits and the type of bank. Investors have been looking for better alternatives to fixed income instruments. One such that promises to deliver is a Secured NCD (Non-Convertible Debenture).

A non-convertible debenture is a debt instrument with a fixed tenure issued by companies to raise money for business purposes. Unlike convertible debentures, NCDs can’t be converted into equity shares of the issuing company at a future date.

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