Tag Archive | "Investment Insurance"

How to Make Diwali prosperous?

  • Easypolicy
  • 02 Nov 2016

We are here at the most beautiful time of the year when this month of Kartika brings along all the major festivities. The soothing whether this month carries with it adds to the bliss of celebrating Dussehara and Diwali. Diwali marks the beginning of the New Year according to the Hindu calendar; it is also associated with prosperity and wealth. The festival of Diwali is called as the festival of lights and hope. People celebrate it by exchanging gifts and buying gold on Dhanteras, the festival celebrated two days prior to Diwali. This tradition is very long and to trace its existence is very difficult, it is being passed on by generations.

Gold has been bought as a sign of prosperity but how much sense does it make in buying gold from investment expert’s point of view? In his latest interview India’s star investor, Rajesh Jhunjhunwala said that investing in Gold or jewelry should be the last priority. For youngsters he advised that as soon as possible they should invest in a house as getting a house is a big worry in urbane India. Buying a house is the biggest satisfaction and provides loads of security for the individual and his/her family. Rajesh, whose portfolio is estimated to be more than INR 20,000 crore, being a man of stocks laid emphasis on buying a house first because till the time you don’t have a shelter owned by you, life would be much unsecured.

If you have secured your house, then you should invest in mutual funds or ULIPs. If you haven’t started investing you must begin immediately. To be rich and prosperous one needs financial education, i.e. how to play with money so that it grows. I was reading a book by Robert Kiyosaki, the author of the famous bestseller ‘Rich Dad Poor Dad’; according to it the biggest obstacle in the path of becoming rich and prosperous was that people don’t know how to invest money. Moreover, all the conventional education we get is aimed to enhance our employability but does not impart business building skills.

This Diwali season take a pledge that you’ll learn investment skills and spend time with a good investment advisor. No one can become rich till one is dependent on his own labor to earn money. Also, to secure your family you should invest in life insurance plans, particularly a Term insurance plan because in a Term plan with relatively lesser Premium you get a big financial cover for your family that ensures their continued financial prosperity even when you are not with them. Thus, to make Diwali prosperous some smart planning needs to be done, yes, Lakmshi Poojan will show its effect, no doubt but a different form of Lakshmi Poojan i.e. smart investments should also accompany deity worship in your journey towards prosperity.

In the advent of attainment of prosperity Risk planning should also be done, an important thing in this aspect is to get all the important insurances get done as briefed in the paragraph above. Also, it calls for diversifying your portfolio so that if some investments flunk they could be compensated by the income from others. You must have read this famous quote by the most successful investor in the world, Warren Buffet that “Don’t put all your eggs in one basket”

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A Quick and Easy Method to Get a Cheap Investment Plan

  • Easypolicy
  • 27 Sep 2016

The idea of multiplying our money is very fascinating as well as intriguing. Anyone who understands the concept of time value of money wouldn’t like to keep idle cash with him and would always be on a look out where money could be invested to draw highest returns at minimum risk. A popular investing theory called Modern portfolio theory (MPT) lay guidelines on how risk-averse investors can construct portfolios to optimize or maximize expected return on a given level of market risk. It’s a general industry rule that when expected returns are high the Risk on investment would also be high.

Having a diversified portfolio is always recommended to hedge risk by spreading it over large number of investments. So the loss suffered on some investments shall be compensated by the profits in others. An icing on the cake when we talk of a perfectly constructed investment portfolio is to include investments plans of life insurance companies. Such plans not only employ your money in growth funds they also provide you a life cover. Thus, these plans act as a two birds with a single arrow scheme.

Among life insurance plans, Endowments and ULIPS can be seen as attractive investment options.  Endowments are also called traditional plans. The purposes people invest in these plans vary from person to person.  Some invest in such plans to get security, some for growth and additional earnings. Based on certain factors people make a decision whether they want to go for ULIPS or endowments. ULIPS are comparatively more flexible and give the investor the opportunity to choose the stocks in which he wants his money to be invested. ULIPS provide a transparent cost structure and one knows how much of the Premium is invested in the underlying assets and how much are the allocation charges & fund management charges. Such cost disclosure is not present in case of endowment plans. Also the freedom to enhance life cover which is provided in ULIPS is absent in endowment plans, the sum Assured and premium remain fixed in endowment plans.

Since endowments or traditional plans are debt based investments, they are considered to be less risky and thus, more suitable for people who are 45 plus. Investors of ULIPS fall in lesser age bracket as the risk element is high as they are market linked plans and returns depend on the performance of the underlying asset. Under ULIPS you get the opportunity to switch between the fund options. No such option is available in case of endowments. When you are deciding your investment portfolio it is highly recommended that you take advice from a professional financial advisor.

The construct of your portfolio should be well balanced in order to optimize growth for a given amount of risk. When you have decided which investment plans to go for, you then should compare investment plans of various insurance companies to get the plan with most attractive features and that too at most competitive prices. There are over 20 life insurance companies operating at the present and each sells a differentiated life insurance product to remain competitive in the market. Do not just invest in the company’s product of whose advertisement you see most on the TV. DO a little in depth research as its affects are going to be for a long Term in your life. These days online comparison of insurance plans on various web aggregator websites is very popular. Online plans are cheaper as no middlemen in the form of agents are involved. Youngsters these days feel safer in online transactions than offline ones. Based on your comfort level with the computer you may decide whether to g for online purchase or offline mode.

Insurance – a Small Investment For a Big Future Protection

  • Easypolicy
  • 27 Jul 2016

Unfortunate, isn’t it? Despite the increasing number of players in the market and India being the second largest populated country, the numbers present a dismal figure. The life insurance market has seen a revolutionary change in terms of innovation and creativity. Plans which have great new feature, good benefit structure, lower charge structure and a host of features are being offered and yet the penetration shows a downward trend!The numbers depict a continued fall in the penetration rate over the last 6 years and it is a wake-up call for us.

Why ‘us’ you might ask. Well, it is we who shirk away from insurance and contribute to its downward penetration trend. But why do we do so? Is insurance a disposable product?

Life insurance, contrary to popular beliefs, is one of the most important investments one can make if one wants to secure one’s future. We all make investments with the sole view of earning good returns but what about securing our future? Imagine the scenario when the bread-winner dies prematurely, will his investments be sufficient to provide for the family’s living expenses over the years? Only life insurance can solve this because this is the only product which promises a lump sum benefit in the event of unfortunate death.

When we talk about life insurance, the Term insurance plan offered by life insurance companies come to the forefront when the motive is future financial security. A Term Insurance plan is the only plan which allows a substantial Coverage against a very low Premium outgo.

So, if you want a big future security in terms of finance, buy a Term Insurance Plan. Why? Let’s see:

·         Income Protection – term insurance plans form the essence of life insurance. They come very cheap and cover the Insured against untimely death. The premiums against the value of the coverage granted are affordably low making the plans light on the pocket. In the event of death, the large benefit which accrues under the term plan compensates the family’s financial loss and thus protects them against the loss of income of the earning member

·         Cheap – I repeated it over and over and don’t mind saying it again! Term insurance plans are very cheap. For a high cover of Rs.30 to Rs.50 lakhs, the premiums amount in Rs.8000 to Rs.10, 000. Thus, they are very small and pocket-friendly investments which provide a very good protection.

·         Liability protection – loans are trending nowadays where every need can be funded by a loan. As attractive as it may sound, loans involve repayments and repayments involve a steady source of income. If the bread-winner dies, besides the loss of income, the family also gets burdened with the outstanding loan repayments. Having a term plan is the answer to this problem as well. The benefits which accrue under the plan can be utilized to pay off the debt burden. The plan thus, provides protection against liabilities too. 

·         Peace of mind – when our future is secured, our emotional stability is also ensured. A term plan, besides providing financial security, provides mental security too because we know that our finances, assets and liabilities are protected from any contingency caused due to untimely death. And as experts say, peace of mind is something which cannot be bought, but when we talk about the financial aspect of the statement, a term plan delivers a spot on result.

All said, it wouldn’t be wrong to sum up the entire discussion in a single line which reads – Term insurance is a small investment for a big future protection. If you still have a bit of cynicism remaining concerning the cost factor, lay your mind to rest. Here are some of the premium rates of term insurance plans offered by some leading insurers.

Assumed – age of the Policyholder is 35 years, Sum Assured is Rs.50 lakhs and Term is 30 years.

Is the premium too high? Isn’t it a small investment? Isn’t the protection big?

I hope your cynicisms are laid to rest. A term plan is an inevitable weapon in your investment arsenal which would protect your financial future and should not be given a miss. After all, which other investment avenue promises such benefits?