Insurance Help

ULIP as Retirement Plan

Posted by : pcspune

View full thread (27 messages)

Tracked by: 0 Boarder

Dear NITIN,

I have not studied much about Term Plans but I know Premiums of Following are Cheaper.

Please take Illustrations from SBILIFE,METLIFE,KOTAK & ICICI Prudential for Pure Term Insurance ( Without any Return) & then Take 2 Covers of 15 Lacs each.

I would Prefer ULIPS of IDBI & Metlife.

15000 per year in IDBI Wealhssurance for 5 years & Cover of 15 Lacs.
18000 per year in Metlife Smart PLUS for 5 years & Cover of 14,40,000

P.C.Sharma

...

In reply to:

ULIP as Retirement Plan

Posted by : Guest

Hi PCS

This is where I am in doubt.
Religare: 30L for 30 years: 8798 [7830 + taxes]
Birla: 30L for 30 years Dream plan 9005 (taxes included)

I havent seen any cheaper than Religare.
Can u suggest a term plan for me (31 years) where I may get a cover of 30L in 6-7k?
Or can u suggest a ulip i can invest in say for 15L and I take a 15L cover using term plan

Please help me...I am kind of confused.

Thanks
nitin

ULIP as Retirement Plan

Posted by : Guest

View full thread (27 messages)

Tracked by: 0 Boarder

Hi PCS

This is where I am in doubt.
Religare: 30L for 30 years: 8798 [7830 + taxes]
Birla: 30L for 30 years Dream plan 9005 (taxes included)

I havent seen any cheaper than Religare.
Can u suggest a term plan for me (31 years) where I may get a cover of 30L in 6-7k?
Or can u suggest a ulip i can invest in say for 15L and I take a 15L cover using term plan

Please help me...I am kind of confused.

Thanks
nitin...

In reply to:

ULIP as Retirement Plan

Posted by : pcspune

Dear NITIN,

Please avoid Gaurnteed Benifits Schemes.If you can get Term Insurance
Cover of Rs.30 Lacs in Rs.6000-7000, no need to pay 9000.

The Difference anmount may be Invested in MF & Returns may be FEW LACS after 25-30 years

Either PURE Term witout Returns or GOOD ULIP with Min.Premium & Max.Cover is advisable.

P.C.Sharma

ULIP as Retirement Plan

Posted by : pcspune

View full thread (27 messages)

Tracked by: 0 Boarder

Dear NITIN,

Please avoid Gaurnteed Benifits Schemes.If you can get Term Insurance
Cover of Rs.30 Lacs in Rs.6000-7000, no need to pay 9000.

The Difference anmount may be Invested in MF & Returns may be FEW LACS after 25-30 years

Either PURE Term witout Returns or GOOD ULIP with Min.Premium & Max.Cover is advisable.

P.C.Sharma...

In reply to:

ULIP as Retirement Plan

Posted by : Guest

Hi Raj/Ashal/PCS

I was myself in doubt and hence got the illustration from Birla folks.

As per Dream plan:
My age : 31
Cover: 30L
Years: 25
Premium: Rs 9005
Guaranteed maturity Benefit 25K

PAC: 0
Mortality charge: for 30L for 25 years is 6253 per year (constant)
Settlement period is 5 years after maturity:
@ 10% -- 283045
@ 6% 122315

My age : 31
Cover: 10L
Years: 25
Premium: Rs 4705
Guaranteed maturity Benefit 25K

PAC: 0
Mortality charge: for 10L for 25 years is 2229 per year (constant)
Settlement period is 5 years after maturity:
@ 10% -- 259642
@ 6% 116176

What do you think?

Thanks
Nitin

ULIP as Retirement Plan

Posted by : Guest

View full thread (27 messages)

Tracked by: 0 Boarder

Hi Raj/Ashal/PCS

I was myself in doubt and hence got the illustration from Birla folks.

As per Dream plan:
My age : 31
Cover: 30L
Years: 25
Premium: Rs 9005
Guaranteed maturity Benefit 25K

PAC: 0
Mortality charge: for 30L for 25 years is 6253 per year (constant)
Settlement period is 5 years after maturity:
@ 10% -- 283045
@ 6% 122315

My age : 31
Cover: 10L
Years: 25
Premium: Rs 4705
Guaranteed maturity Benefit 25K

PAC: 0
Mortality charge: for 10L for 25 years is 2229 per year (constant)
Settlement period is 5 years after maturity:
@ 10% -- 259642
@ 6% 116176

What do you think?

Thanks
Nitin...

In reply to:

ULIP as Retirement Plan

Posted by : pcspune

Dear Nitin,

I am not sure about your Information( 30 Lacs Insurance Cover for 9000 Per year from Birla with some Guarnteed ).

Please take Illustration from Company & understand correctly & then Go Ahead with Birla if you are Convinced.

I would Prefer Pure Term Insurance as the Cheapest if you are not Interested for IDBI / Metlife / Bajaj ULIPS ( which offer 90-150 Times(of Annual Premium)Cover.

If my Age is below 30 years,I will pay Rs.20000 per year ( if I can afford) & Take Cover of Rs. 30 Lacs from IDBI Fortis Wealthssurance ULIP.

Best wishes,

P.C.Sharma

term insurance writeup

Posted by : ashalanshu

View full thread (3 messages)

Tracked by: 0 Boarder

Dear harrpotter, Now a days, for almost all ages religare is the cheapest one, but it does n\\`t make sense to buy all plans from religare. In continuation to what dear ranjan had already told u, here is my take -

1. First calculate ur total cover requirement at present as per ur future liability position. Say home loan for next 20Y, Car loan for 5Y, Kids education, career & marriage expenses & provisioning for living expenses of ur family in ur absence.

2. suppose from the above calculation the total cover requirement is 50L as on today. Split this cover requirement, as per ur liability position. an indicative split -
10L cover for 30Y
15L cover for 25Y
15L cover for 20Y
10L cover for 15Y

3. after split is done, For the longest term policy, go for the cheapest one. In the above example opt religare (if it is the cheapest for ur age & other parameters) for term 30 & 25Y.
Opt 2nd cheapest plan for 20Y term & 3rd cheapest plan from 15Y term. In total out of ur 4 policies, 2 \\`ll be from a single co., the 3rd policy \\`ll be from another one & 4th policy from another one.

4. The reason for opting different insurance co. - U r paying prem. for financial security of ur loved ones. In case of claim if all policies r from a single insurer, & due to any reason if claim is rejected, it \\`ll be applicable on all 4 policies. In case of different insurers, there is a chance that if an insurer reject the claim on a ground, another may accept it.

5. While filling the form, put every possible details of urs for past history of family illness, ur job related risk factors if any, consumption of alcohal & tobacco etc. For the sake of ur family, plz. don\\`t hide any material fact which in future may become a cause of rejection of claim if there is a claim at all.

6. Regarding riders available with term plans, plz. don\\`t opt the same. It is better to have individual accidental policy or critical illness policy offered by General ins. co.

Thanks

Ashal ...

In reply to:

term insurance writeup

Posted by : harrpotter

Dear Gurus
i have been searching for the rite term insurance in this forum.
i saw gurus suggesting religare and others.
is there any do and donts that we need to verify before buying
or simply go to the one with the least cost ??

regards
Harrypotter

term insurance writeup

Posted by : RANJAN

View full thread (3 messages)

Tracked by: 0 Boarder

If you want a cover of say Rs 50 lakhs - split it up into 4 or 5 policies with different term say , 25 yrs, 20 yrs 15 yrs (2 policies)
Spread the policies with 2 or 3 insurance companies. Compare the rates and go for the cheapest ones. ...

In reply to:

term insurance writeup

Posted by : harrpotter

Dear Gurus
i have been searching for the rite term insurance in this forum.
i saw gurus suggesting religare and others.
is there any do and donts that we need to verify before buying
or simply go to the one with the least cost ??

regards
Harrypotter

term insurance writeup

Posted by : harrpotter

View full thread (3 messages)

Tracked by: 0 Boarder

Dear Gurus
i have been searching for the rite term insurance in this forum.
i saw gurus suggesting religare and others.
is there any do and donts that we need to verify before buying
or simply go to the one with the least cost ??

regards
Harrypotter...

ULIP as Retirement Plan

Posted by : ashalanshu

View full thread (27 messages)

Tracked by: 0 Boarder

Dear nitin, As u r trying to cover ur loan liability specifically, plz. opt term plans but with a change figures.

1. 15L for 20Y from religare
2. 15L for 15Y from TATAAIG/Kotak.

In case of home loans, people generally try to close it early. The average tenure of loan completion in India is only around 7-8 years.

If due to rising interest rates, u r unable to repay ur loan within this 7-8 year term, in all probability, u \\`ll repay it by 12-13 years.

So it make sense, to have 2 policies only, as having a higher sum assured in policies \\`ll also save u some bucks & over all less paper work & legwork.

Plz. don\\`t couple ur insurance requirements for loan with investment. Birla Dream plan is not a worth of due to high running cost. Plz. do note mort. charges in Birla r also on higher side. so over all Dream plan doesn\\`t make sense.

Thanks

Ashal ...

In reply to:

ULIP as Retirement Plan

Posted by : Guest

Are u referring to HDFC Young Star Plus II?

Can I go for it even if I dont have a kid?
Its allocation is 40% every year....isnt that less?

I need your help.
I have a loan of 30L
I was planning to take decreasing cover of
10L for 10 yrs (Religare 2K pa term)
10L for 20 yrs (SBI 2610 pa term)
10L for 30 yrs (HDFC 3550 pa term)

I saw Birla Dream plan of 9K for 30L for 25 yrs (so got tempted)
I am 31 yrs. What do u suggest?

Thanks
Nitin

ULIP as Retirement Plan

Posted by : pcspune

View full thread (27 messages)

Tracked by: 0 Boarder

Dear Nitin,

If you want High Cover,avoid HDFC Youngstar.
You can take it even if you DONT have KIDS.

For High Cover I would Prefer METLIFE/IDBI/Bajaj Allianz Unit Gain GOLD ( Maximum Cover with Minimum Premium ).

You wait for 1-2 weeks because some more ULIPS are Expected in Oct.2008.

Please TAKE ILLUSTRATIONS FROM COMPANIES for same PREMIUM & SAME COVER & Compare them before taking any ULIP.

P.C.Sharma ...

In reply to:

ULIP as Retirement Plan

Posted by : Guest

Are u referring to HDFC Young Star Plus II?

Can I go for it even if I dont have a kid?
Its allocation is 40% every year....isnt that less?

I need your help.
I have a loan of 30L
I was planning to take decreasing cover of
10L for 10 yrs (Religare 2K pa term)
10L for 20 yrs (SBI 2610 pa term)
10L for 30 yrs (HDFC 3550 pa term)

I saw Birla Dream plan of 9K for 30L for 25 yrs (so got tempted)
I am 31 yrs. What do u suggest?

Thanks
Nitin

ULIP as Retirement Plan

Posted by : pcspune

View full thread (27 messages)

Tracked by: 0 Boarder

Dear Nitin,

I am not sure about your Information( 30 Lacs Insurance Cover for 9000 Per year from Birla with some Guarnteed ).

Please take Illustration from Company & understand correctly & then Go Ahead with Birla if you are Convinced.

I would Prefer Pure Term Insurance as the Cheapest if you are not Interested for IDBI / Metlife / Bajaj ULIPS ( which offer 90-150 Times(of Annual Premium)Cover.

If my Age is below 30 years,I will pay Rs.20000 per year ( if I can afford) & Take Cover of Rs. 30 Lacs from IDBI Fortis Wealthssurance ULIP.

Best wishes,

P.C.Sharma
...

In reply to:

ULIP as Retirement Plan

Posted by : Guest

Hi PCS

I know this may be wrong thinking....but heres a question:

If I take 30L for 30 years...
HDFC 3550 - 10L for 30 years
Reliagare 2000 - 10L for 10 years
SBI 2610 - 10L for 20 years

Total: 8.5K for 30 years (decreasing) with tax
Birla Sunlife - 9000 for 30L for 30 years
and guarantee 75K after maturity

I get 30L for 30 years (instead of decreasing)
and rate is nearly same (500 Rs more)

What do u think?

Thanks
nitin

ULIP as Retirement Plan

Posted by : vvrk

View full thread (27 messages)

Tracked by: 0 Boarder

Dear Nitin,
Per what you have said, Birla Sunlife is offering insurance cover equal to 333 times annual premium. So for Rs.9000 you are getting a cover of Rs.30 Lakhs.

I am not sure if your policy will sustain for 30 years. For this you will need to get an illustration for the Birla ULIP and check for how many years the policy will be able to sustain based on 6% and 10% returns.

Thanks,
Raj...

In reply to:

ULIP as Retirement Plan

Posted by : Guest

Hi PCS

I know this may be wrong thinking....but heres a question:

If I take 30L for 30 years...
HDFC 3550 - 10L for 30 years
Reliagare 2000 - 10L for 10 years
SBI 2610 - 10L for 20 years

Total: 8.5K for 30 years (decreasing) with tax
Birla Sunlife - 9000 for 30L for 30 years
and guarantee 75K after maturity

I get 30L for 30 years (instead of decreasing)
and rate is nearly same (500 Rs more)

What do u think?

Thanks
nitin

Posted by : vvrk

View full thread (2 messages)

Tracked by: 0 Boarder

The simplest insurance is a pure Term Plan. But I am not sure if any company out there offers Rs.2 Lakhs term insurance cover.

Alternative 1:
Since your insurance requirement is very less, and if you can afford a one time contribution of Rs.40,000, then I would advise you to put the money in DWS Tax Saving Fund. You can claim tax exemptions under Section 80 C and also get insurance cover of Rs.2 Lakhs. You need not have to pay any more premiums towards this.

Alternative 2:
For a monthly investment of Rs.2,000 I would advise you to start a Century SIP in Birla Sunlife Frontline Equity Fund. This will give you an insurance cover of Rs.2 Lakhs but only from the third year.

Alternative 3:
Invest in Metsmart Premier/Plus ULIP. Opt for a monthly premium of Rs.1,000 and this should provide you insurance cover of Rs.2 Lakhs.

May I ask how you determined you need an insurance cover of Rs. 2 Lakhs. Did you use an Human Life Value calculator?

Thanks,
Raj


...

In reply to:

Posted by : raochandu

i am 46 age,wife,2 childern below 16 years .i want coverage for 2 lac.what is the best insurance company in term of premium

u;ip

Posted by : vvrk

View full thread (2 messages)

Tracked by: 0 Boarder

Technically speaking, all ULIP\\`s have a lock in period of a 3 years. After three years you have the freedom to withdraw your investments.

The taxation angle is slightly different. If you claimed tax exemptions on the premium contributed towards your ULIPS, then you need to stay invested for 5 years. If you redeem before 5 years, then the premium paid for the last 3 years = 30,000 x 3 = Rs.90,000 will be added to your current years income and hence taxed at your current tax slab.

For those who have not claimed any tax exemptions from ULIP premiums can close there ULIP\\`s after three years without any penalty.

Hope this clarifies.

Thanks,
Raj...

In reply to:

u;ip

Posted by : ashu2006

I have purchased ICICI PRU ULIP of prmium 30000/- p.a. in june 2006. at that time lockin period was 3 years & my policy document also say so.

Now i want close my ULIP after completion of 3 years in april 2009. But someone said that now lock in period is 5 yrs and thserefore closing of ULIP will lead to tax exemption of previous yrs to be added to my taxable income.

kindly advice. The lock in applicable at the time of purchase of ULIP is applicable or at the time redemption/closing si applicable.
regards.

u;ip

Posted by : ashu2006

View full thread (2 messages)

Tracked by: 0 Boarder

I have purchased ICICI PRU ULIP of prmium 30000/- p.a. in june 2006. at that time lockin period was 3 years & my policy document also say so.

Now i want close my ULIP after completion of 3 years in april 2009. But someone said that now lock in period is 5 yrs and thserefore closing of ULIP will lead to tax exemption of previous yrs to be added to my taxable income.

kindly advice. The lock in applicable at the time of purchase of ULIP is applicable or at the time redemption/closing si applicable.
regards....

Posted by : raochandu

View full thread (2 messages)

Tracked by: 0 Boarder

i am 46 age,wife,2 childern below 16 years .i want coverage for 2 lac.what is the best insurance company in term of premium...