Cash Value

LIC Child Fortune Plus (Plan no.194) Review

Life insurance is primarily designed to protect your dependents from financial disaster in the event of your death. LIC Child Fortune Plus is a unit linked policy. The needs of children go much beyond securing admissions in the best schools and exploring opportunities for education. What are your child’s needs? Marriage expenses foreign or higher studies Your child’s medical bills In case of your death then burial expenses After determining child needs, knowing the benefits and features of the policy are of main criteria: Premium can be paid subject to a minimum of Rs. 25,000 and thereafter in multiples of Rs 1,000/-. The Policyholder will have the option to choose any of the funds like Bond Fund, Secured Fund, Balanced Fund, and Growth Fund. Policy Term: Maximum policy term is 30 years or [25] last birthday of child or [75] nearest birthday of life assured, whichever is lower. If policy is not in force then partial withdrawals are not allowed. Partial withdrawal will be allowed subject to a minimum of Rs. 5000/-in the Policyholder’s Fund or 10% of single premium, whichever is higher. The policyholder can switch between any fund types during the policy term. You can pay your premiums…

Pension Plans in India ( SBI, HDFC) Review of Types, Advantages and Disadvantages

Most people don’t think of retirement when they are young and generally wake up when they are in their middle age. To plan effectively for retirement the insurance companies offer pension plans. After retirement, insurance companies generate regular income source to policy holder to ensure financial stability at old age. Basically life insurance is taken to cover any eventuality but pension plans are taken to cover the golden period after retirement. Pension plan helps you lead a hassle-free life after completing your working life. Types of Pension Plans Deferred annuity/pension: In deferred annuity the tenure is chosen by policy holder and pension does not start immediately for instance if you opted for 20 years of plan then pension will start after 20 years span. Often deferred annuity premium is paid in regular interval or as single premium. Immediate annuity/pension: In immediate annuity pension starts immediately that is after one year. In most cases immediate annuities are paid in single premium these are not much offered by insurance companies. With Cover Pension Plan: In this plan the sum assured is issued to the nominee in case of uncertainty. the individual receives pension till he is alive.In case of any bonuses the…

Pension Plans , ULIP

LIC Endowment Plus Policy Review (Table 14) of Benefits and Features

LIC Endowment Plus is a ULIP plan Launched by Life Insurance Corporation of India. This is a Investment and Insurance plan. Most people read about the share market trend and plan to invest. Endowment plans give such people an opportunity to invest in market and at the same time insure themselves for certain period. If the Life Insured dies within the policy tenure, the nominee would receive the Sum Assured or the Fund Value, whichever is higher. Different benefits offered by Endowment Plus are: Death benefit: the policy holder, nominee will receive Fund value or Sum Assured whichever is higher. Maturity benefit: policy holder will receive the amount as per fund value. Accident benefit option: you may opt for Accident Benefit equal to the amount of life cover subject to minimum of Rs. 25,000 and maximum sum assured of Rs. 50,00,00 taking all existing policies of the Life Assured with the Corporation. In case of death due to an accident, an additional sum equal to Accident Benefit Sum Assured shall be payable. Investment of funds: At any point of time endowment policy offers four kinds of funds to invest in. Funds range from conservative to aggressive, mostly for long run…

LIC , ULIP

LIC Jeevan Saathi plus – Complete Review

In any family, financial planning is always essential. If you are married or have a spouse and children ,it is essential to be insured. Everybody faces a situation in life where they want to protect their family in the face of calamities. LIC Jeevan Saathi Plus is a good plan for all married couples as it offers policy for both wife and husband. As it is a ULIP, it provides you with insurance and at the same time your money is invested in shares for returns. Well as the name says the both partners are insured by this policy. The person who is planning to take insurance is called PLA (principal life insured) and his/her spouse to be insured is called SLA (spouse life assured). As with most of the LIC plans , this policy also offers the option of paying premium in lump sum or can pay in regular intervals. In case of regular premiums, if the primary policy holder dies then all the future premiums are waived provided that all the previous premiums have paid on time. Features of LIC Jeevan Saathi 1. Partial Withdrawals: Primary life assured may en cash the units partially after paying the premium…

LIC , Life , ULIP

Child Insurance Plans in India – Complete List with Features, Benefits and Costs

People purchase life insurance for many different reasons. One among them is child insurance. Children’s life insurance plans are designed in such a way that they meet the needs of your children financially when the need arises. Parents, grandparents, and legal guardians can all purchase child life insurance policies. Childs life insurance is perfect for planning for the future because of the cash value the plan would accumulate. When you start a life insurance policy for a child, the coverage begins immediately. Also Read on how to Buy the Cheapest Life Insurance in India Why child insurance plan: It helps parents fulfill their most important financial responsibility towards their children even in their absence. When you are looking for child insurance plans you should determine what kind of future security you are looking at for your children. The top most priority of any parent is to provide their children with financial support for- college, medical, , marriage etc. For example in the case of education, it is to provide good education to your child at the right time in case of any uncertainties like death, disability, loss of job etc. Different types of children’s insurance plans ULIP In Unit-linked insurance ULIP the cash value of…

Child Plans , ULIP

Life Insurance Loans – Should you Take Them (Interest Rates) and are they Taxable

In credit crunch , obtaining loans is difficult. So, take a loan on your life insurance policy depending on your needs. As the owner of a life insurance policy, you can generally borrow the policy’s cash value and use the same for any purpose. Before you take a policy loan, be sure you understand the implications of the loan on the policy itself as well as any tax implications. How Interest Rates work on Insurance Loans The insurer will charge you interest on the loan. Generally, interest is not actually paid, but is added to the amount of the loan. Interest charged on a policy loan is not generally deductible for income tax purposes. Even though the loan might accrue interest, you will not have to make payments on it. Such a loan is not taxed as long as the policy is in force. For instance if a loan on life insurance policy is not cleared, then interest will be added to your loan amount and be subject to compounding that is you’ll pay interest on interest. What Happens when Interest + Loan Exceeds the Cash Value In case if your loan and the interest exceed the cash value of…

Life , Tax Benefits

Life Insurance for Senior Citizens in India – What, Why and How (Rates, No Exam)

Life insurance for the elderly generation has changed significantly over time. Many elderly people do not bother looking for good life insurance because they believe that no one would insure them, simply because of their age. However, it is not true as Senior citizens of different ages can get good deals in insurance and many find these policies to be truly helpful. As long as the insured does not die within two years, the policy pays out the full benefits. Also Read our Health Insurance for Senior Citizens in India Guide When acquiring this type of insurance as a senior citizen there are few advantages to think about: No health exams for the policy holder if he has a good health history Fixed cost premiums for the life of the policy if the insured lives more than two years from start of policy date. Guaranteed cash value if premiums are paid on time regularly. Whole life insurance covers you for life, and term life generally covers you for fixed term say 10 to 15 years. While taking insurance one should never be under pressure or haste as it will lead to wrong decision. Senior citizens should never decide instantly on…

Life , Term Insurance

Cash Value

LIC Child Fortune Plus (Plan no.194) Review

Pension Plans in India ( SBI, HDFC) Review of Types, Advantages and Disadvantages

LIC Endowment Plus Policy Review (Table 14) of Benefits and Features

LIC Jeevan Saathi plus – Complete Review

Child Insurance Plans in India – Complete List with Features, Benefits and Costs

Life Insurance Loans – Should you Take Them (Interest Rates) and are they Taxable

Life Insurance for Senior Citizens in India – What, Why and How (Rates, No Exam)

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