Skip to main content

Buy Insurance

Invest Mutual Funds Online

Download Mutual Fund Application Forms

Buy Gold Mutual Funds


Needless to say, there are a large number of them out there —victims of mis-selling of insurance products by unscrupulous agents or officials at distributor banks. The Insurance Regulatory and Development Authority (Irda), on its part, has brought in several regulations to curb the menace of mis-selling.


The insurance watchdog has come up with a draft standard proposal form for life insurance policies. This is in addition to the proposed guidelines on need-based selling released in January this year. The form, if enforced in the current format from September 1, will require the agents to list out various personal and professional details of the insurance-seekers' life before recommending them a suitable life insurance policy.
The latest move comes as a welcome relief for policy holders since the form would try to capture and relay to the insurance company the exact need and position of the prospective policyholder and thus reduce to certain extent mis-selling that was rampant till sometime ago. The form provides for a need-based assessment of the individual in terms of: reason for seeking insurance, monthly inflows and outflows, ability to save and the reason for choosing the product.


However, you don't have to pass on the entire responsibilities to Irda and insurance companies. Since it is your money and precious time that would be wasted if there is a problem with the insurance product, you can keep a few pointers in mind to ensure that you don't fall prey to the outlandish sales pitches.


Always remember that life insurance is always bought to replace your income and secure your dependents financially in your absence. Therefore, no matter what your agent or bank may say, focus on protection rather than investment.


This apart, you need to take into account your risk appetite, which also happens to be a key parameter to be considered by agents as per the new proposal form while recommending a policy.

Life Stage


If your career has just taken off and you do not have dependents or an education loan, you may not need life insurance at all. In such a case, a health insurance should suffice. Or you can add a personal accident policy. You may look at increasing this cover or buying investment-cum-insurance policies, which insurance advisors will typically suggest then, as you get married and plan a family.

 

However, don't forget to evaluate other investment options, like mutual funds, before buying such plans. Senior citizens looking at investing their retirement funds could consider staying away from life insurance altogether and look for safer avenues like senior citizens' savings scheme, fixed deposits or well-performing debt mutual funds.

Income And Expenditure

The new standard proposal form also moots detailing the insurance-seeker's current as well as projected income and expenditure – over a period of up to 30 years. You can roughly estimate your future expenses to help you make the right purchase. Include your living expenses, in addition to the present value of education, health and travel expenses. While estimating future expenses, you need to incorporate living expenses as well as the cost of any aspirational goals for your children or other imperative goals.

Assets And Liabilities

Instead of simply giving in to agents' persuasion to buy a high-value policy, compute the exact amount of life cover you need. The requirement for a person's insurance cover is dependent on the wealth available for the dependants in case of the life assured's demise visà-vis the present value of future expenses of the family.


To compute this figure, you need to subtract the value of your liabilities from that of assets, except your residence since it cannot generate income. To this figure, add the present value of the expected income of your spouse (if earning) till retirement to obtain the present worth of the kitty available for your dependants. The difference between the present value of future expenses (as computed earlier) and the available corpus will represent your insurance requirement.


This calculation will provide a more accurate picture than the thumb rule that prescribes a life cover of 100 times the monthly income.

Plan Retirement Carefully

Some life insurance products – traditional as well as unit-linked pension plans – are aggressively sold as ideal retirement-planning tools. These are a strict 'no-no' for senior citizens as they need immediate access to regular income. Others should assess non-insurance products like equity mutual funds and public provident fund, too, before taking a call. Charges, returns, taxability and exit barriers should be the main determinants.

 

Our chief apprehension about pension plans is that they are not tax-efficient, as the annuities are taxable. Besides, most traditional pension products offer returns in the region of 5-6%. That is why we are not gung-ho about pension products from life insurers.

---------------------------------------------

Invest Mutual Funds Online

Transact Mutual Fund Online

 

Download Mutual Fund Application Forms from all AMCs

Download Mutual Fund Application Forms

 

Best Performing Mutual Funds

    1. Largecap Funds:
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    3. Mid and SmallCap Funds
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    4. Small and MicroCap Funds
      1. DSP BlackRock MicroCap Fund
    5. Sector Funds
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    6. Gold Mutual Funds
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

 

Popular posts from this blog

ICICI Pru Mutual Fund Dividend

ICICI Prudential Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( Rs /unit) ICICI Pru Capital Protection Oriented Ser V Plan B-D 0.03611325 ICICI Pru Capital Protection Oriented Ser V Plan B Direct-D 0.03611325 ICICI Pru Balanced Advantage Direct-DM 0.06 The record date has been fixed as February 08, 2017. ------------------------------ ------ Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 4 Tax Saver Mutual Funds for 2017 - 2018 Best 4 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. BNP Paribas Long Term Equity Fund Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave y...

What is Financial Freedom?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)     There were many things common between our Freedom fighters. All had the Single vision (Free India), common goal (independence) and had a disciplined and focused approach. They were ready to do anything and everything and had made so many sacrifices to see India free . But the road to freedom was not easy .They had faced lot many hardships, went to jail so many times and even confronted physical and mental torture from the British. There was one more thing which proved to be an advantage to our fighters that most of them were professional lawyers. The knowledge of legal issues and its impact on our country at large has helped them counter various bills and proposed new laws by the then government. It is due to their continuous effort that we are able to achieve the goal of Independent Indi...

Hidden Bank Fees

  What Banks Hide From Customers Imagine after a peaceful and exciting holiday you receive your bank statement with steep charges. You then rush to your bank and start confronting staff members and to your dismay, you come to know that the high end debit card was charged very heavily. Wouldn't this cause damage to your finances? So remember, the world outside is full of deceptive and double cheating people. Unethical practices are always used by company sales person in order to meet the target. Credit card companies, mutual funds and bank institutions always play dirty tricks to lure customers and the practices are rampant. So here's how you should be careful while dealing with your banks: High End Debit Card Charges While opening an account with a bank you opt for a debit card with minimal charges. But later on when you upgrade your card and opt for high end debit card the annual charge rise by a good amount. Though such a card has slew of features but it all comes at a high ...

Updating a minor PAN card upon becoming adults

  Updating a minor's PAN card once they become adults A PAN card issued in the name of a minor does not contain the minor's photograph or signature, and therefore, cannot be used as a valid proof of identity. Once a minor PAN card holder turns 18, the relevant changes must be made in the PAN records. A new card is then issued bearing a photograph and signature. Application The applicant is required to fill up the "Request for new PAN card andor changes or correction in PAN data" form. The form can be filled up online by accessing NSDL's Tax Information Network website and clicking on the online PAN application tab. Information The applicant must mention the existing PAN number in the application and check the `photo mismatch' and `signature mismatch' boxes, and submit the online form. The form must also be printed out, signed by the applicant, and submitted along with two photographs. Documents Identity and address proof in the form of a copy of the app...

Partial withdrawal from PPF

  Public Provident Fund (PPF) account has a lock in period   If you opened a PPF account to meet your retirement needs,, think twice about withdrawing from this fund before retirement. But provided it's an emergency here are the rules. Public Provident Fund (PPF) account has a lock in period before which you cannot withdraw your money.   The partial withdrawal is allowed after the completion of 6 financial years . This means that you will be allowed a partial withdrawal from 1 April 2017. The maximum partial withdrawal allowed is the least of the following: 50 percent of the account balance at the end of fourth financial year, 31 March 15 50 percent of the account balance of the end of previous financial year, 31 March 17.   There's a loan option available on your PPF account between the fourth and the sixth financial year. You can obtain a loan of up to 25 per cent of the balance in your account. However, this will attract interest of 2 percent more than the prevailing ...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now