The good side of the endowment plans which can be used smartly
To maximise the benefits, you should ask your insurance agent to pass on some cash benefit to you by paying first two premiums. This is a negotiable deal you can broke with the agent.
Kindly note that endowment plan should be bought only for long term like 20 years and above. Endowment plans attract heavy penalty on missing due dates for premium, surrender pre-mature and may close the policy if policy-holders consecutively misses premium payments. Also, it is an illiquid inveatment as one cannot withdraw the investments before its maturity or policy-holder’s death. If one doesnt continue paying premium upto atleast 3 years, the investors will not get any return on the investments. Also, this may give very low or no inflation adjusted return given India’s average inflation rate is about 5%.
Dont be a financial fool – a suggestion on April Fool’s day!
Few days back I came across a news report on Rahul Dravid being conned by an entity on investments. A firm promised him more than 40% return on investments and duped him of crores. While I don’t feel surprised when I hear my housemaid or my neighbor aunty are miss-sold a chitfund or endowment plan, Rahul Dravid, the ace cricketer known for his perfect calculation on field being conned, came as a big shocker to me. Shocked to know that a person who is a millionaire or even a billionaire on his own right who can afford a personal Charterd accountant or even a team to take care of his finances can fall in this trap. The point to note here is anybody can fall into this trap. These frauds in the name of ponzi, misselling wrong products and false promises has been existing since long. It is likely to continue in some form or the other. The point we should focus here is to catch it before it traps us. These wrong investments have a patern to it. If we learn the pattern and ask few questions, we can save ourselves from being cheated and a lot of mental agony along with it. Let me give you some points to ponder over.
So, take few steps and varify –
5. Call on that toll-free no. – It takes few minutes. Whichever financial product you are buying, in the brochure you will find a customer care no. Call up and verify the commitment s your broker made it you. Tally the benefits. If it suits you and if it completely match, you are quite safe.
Plan your Life Goals with ULIP. Chapter 2 – How to invest
- Option to take maturity in installments
- Return Enhancer benefit
- Return of life cover charges at maturity
- Choice of 4 investment portfolio strategies to meet your financial goals
- Unlimited free switches between funds, choice of eight (8) funds to achieve your financial goals
- Tax benefits under section 80C
Life is all about goals, with discipline, we can reach there with ease!
Edelweiss ULIP Rewards the Policyholders for Making Disciplined Investment and Staying Invested
Highlights of the plan
Waiting Period in health insurance policies
In past I have written about Top 10 common exclusions in health insurance policies, In this post I would like to bring to your notice about the #waiting #period in any health insurance policy. With series of new and old health cover plans in this category from basic to elite health plans, health insurance companies design the health covers keeping in mind the cost it needs to bear the risk. More the risk for the company more will be the premium for the product. Companies decides health insurance rates depending on the health cover as well as the individual’s health profile. So, while buying a health policy, choosing the cheapest option available may leave you in a lurch as it may have maximum exclusions and waiting period. Unlike features, exclusions and waiting periods are stuffed in the terms and conditions section and only available in the download section at the bottom of the insurer website. Pull that out.
Waiting period for maternity cover – Many insurance policy doesn’t cover maternity in the benefits list as it is not an emergency. However, few company offers it as fixed benefit plan as an additional option within the health policy fir extra premium. However, maternity benefits plan have a waiting period of 9 months to 48 months. So, buying policy early in life can help get this benefit as well.
Plan your life-goals with the new age ULIP!
- < >EdelweissTokioLife- Wealth Ultima is bundled with insurance cover with investment options of equity, balanced and bond funds
Policy Term and Premium Paying Term as per your need:
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Policy Term ranges from 10 years to ‘till age 100’.
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Premium Paying Term* ranges from 5 years to ‘till the end of the policy term’
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Policyholders also have a choice to switch portfolio in funds o his/her own
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ULIP’s are a good choice as they allow an investor to choose market tools to invest in, and change their choice depending on how the market turns
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The approximate cost per year based on the tenure chosen
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Policy term – Minimum 10 years of maximum 100-entry age
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Entry age – Minimum 0 years to maximum 70 years
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Policy payment term – Minimum 5 years, maximum 70 –entry age or 100-entry age (depending on the policy chosen)The disciplined approach
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Systematic monthly (Investment) plan – This feature gives the investor the freedom to invest a pre-decided amount monthly in the plan. It helps to address the short-term volatility of the market and rupee cost averaging of the investment
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Systematic transfer plan – Based on requirement one may choose to protect their investment by systematically transferring the profit amount into less risky bond funds, which can be done with target profit booking/ life stage and remaining duration analysis, one also have a choice to self-manage the portfolio
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Withdrawal – Retirement planning through SWP – Often we are worried about accumulating wealth, seldom we think on how to manage and withdraw investments in a logical manner. SWP in #Wealth-Ultima gives an opportunity to the investor to choose SWP after 10 years of lock-in period, wherein investor can withdraw the specific number of units according to his choice (Monthly/quarterly/semi-annually/annually) to fund their sabbatical/ retirement or just a second income. This unlike pension products don’t attract tax enjoying the triple tax benefit under section 80cSpecial features of the products
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Double indemnity benefit under Little Champ benefit – Little champ benefit aiming to protect the future of a child is taken by one parent and can be started at ‘0 years’. In the case of the death of parent, the future premiums are waived but the plan continues for the child. Top-Ups – you may choose to top-up your investment flexibly
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Reduction / Increase in policy payment term allowed
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It pays to stay – “Additions to the fund”
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Loyalty additions – Loyalty Additions will be added to the Fund Value at the end of every Policy Year, starting from the end of sixth Policy Year till the end of the Premium Paying Term
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Booster additions – added to the Fund Value at the end of every fifth Policy Year starting from
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end of 10th Policy Year till the Maturity Date of the Policy
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Guaranteed additions – Guaranteed Additions are added to the Fund Value at the end of every Policy Year, starting from the end of sixth Policy Year till the Maturity Date of the policy
My take – I also introduced this product to Sheena and she found that ULIP is one of the most cost-effective investments cum insurance tool for a long term horizon. The product offers dual benefit of investment and insurance, which makes it a complex in nature. Also, the product demands long-term disciplined approach and commitment. Looking at the above two points, it is prudent to consult a financial advisor and insurance company to make an informed decision. You must ask the advisor about the product features, lock-in period, policy charges and all benefits.If the investment is made with thorough understanding, one can enjoy maximum benefit.Please visit the website and download the product brochure for better understanding.Thanks to Edelweiss Tokio Life Wealth Ultima, it gave Sheena a chance to fulfil her dreams!
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