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”

Tags: ,  

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.

Which One to Choose – Endowment or Money Back?

  • Easypolicy
  • 17 Oct 2014

Insurance companies have tailored insurance policies in different formats in an effort to customize their offerings to the needs of large variety of customers. Endowment insurance plan and money-back insurance plans are among the more popular formats in which insurance policies are available. Many potential customers who look to buy an insurance cover/investment plan find it difficult to decide the best insurance option for them and how the various options differ.

Essentially, the differences are not as difficult to comprehend as they appear. Before we dwell into the differences, let us first know the similarities between the two. Both endowment plans and money pack insurance plans are investment insurance product. They guarantee a return on the investment you make. In case you die during the Term of the Policy they offer you the sum Assured as death benefit. If you continue to live throughout the policy term, you will be provided the Sum Assured as Maturity benefit.

The difference in the two investment plans essentially arises from the way they distribute back the sum assured to the insured. An Endowment Plan would pay the entire sum assured only after the term of the policy is over. A money back plan instead would distribute the sum assured in parts or installments. The payments are staggered over the policy term. Money back plans are ideal for those people who are looking for regular flow of funds to tide over various expenses like child education, marriage etc.