Prajna Capital - An Investment Guide

Term insurance may not be the most-marketed product by life cos, but it’s a must-have in today’s risk-prone lifestyle WHEN was the last time your insurance agent sold a term plan to you? It’s not a very popular policy among agents, as their commission in absolute terms is low because of the low-premium. Just as agents have their self interests in mind while selling, you need to make your own decision about your insurance needs, which are unique to your family. COST ADVANTAGE A term plan is pure protection. It is the cheapest type of life insurance policy. But what you see might not be what you get, most insurers have a range of health parameters for standard rates. If any of your health parameters — weight, blood pressure for instance fall outside this range, you will pay more. For some companies, the standard range is very narrow. EARLY BIRD GAINS A 30-year-old will pay 15% more premium than a 25-year-old. At 40, the premium is double of what is applicable for a 25-year old, points...

SINCE their launch, Unit Linked Insurance Plans ( ULIP ) have been a complete rage; but that's not the case now. This year, thanks to the slowdown, insurers are seeing lower premium income compared to last year. So to maintain the spark in ULIPs, insurance companies are trying to entice buyers by offering guaranteed returns on ULIPs! How's that possible? Let’s decode. As of now three insurance companies are offering guaranteed ULIPs. SBI Life Insurance Smart ULIP Birla Sun Life Insurance Platinum Plus II Tata AIG Life Insurance InvestAssure Apex Unlike non-guaranteed ULIPs, these newly launched plans shield you from the downside of the market by assuring guaranteed returns. These plans are like investing in fixed income products that offer secured returns. Workings of the plan: These plans are structured into four phases. Subscription phase: During this phase, the plan is open for a limited time only. For instance, SBI’s Smart ULIP is open for a period of one year. Premium ...