ULIPs are expected to maintain the uptrend, with more and more insurers innovating and finding the best investment proposition for their customers.
Most investors tend to identify ULIPs as synonymous with traditional endowment plans.
Long-term capital gains were tax free in the hands of the investor before Budget 2018.
Your life insurance policy can be your lifeline if you avoid these mistakes…
ULIP is a combination of investment and insurance.
V K Sharma, chairman, LIC said that while their Ulip product performed well, their focus will be on traditional products. "At the end of the day, our policyholder interest is supreme and their returns should not be impacted," he said.
In a move that makes insurers more accountable while investing Ulip funds in the market, the Insurance Regulatory and Development Authority of India has asked the companies to disclose finer details related to investments.
The current financial year has already seen 72 new products being developed in the life insurance industry, according to the country‘s insurance regulator.
Child plans are no different from other endowment and money back policies except for their names. After deducting agent commissions and administrative charges, the premiums invested in safe debt options offer sub-optimal returns, about 6-7 per cent.
Insurance companies have chosen to invest heavily in government securities, even as IRDAI has permitted investments in new instruments
When you focus too much on returns on risk ignoring your requirement, there is a fair chance that you may be mis-buying.
Speaking to CNBC-TV18 Ashvin Parekh, Managing Partner, Ashvin Parekh Advisory Services, said that in insurance companies one is looking at growth. R Sreesankar of Prabhudas Lilladher commented on ICICI Pru's IPO.
These seven blunders cost a lot. If you take a note of them early in your life, there is a high possibility that you will achieve financial freedom.
The Corporation had set a target of Rs 31,000 crore of new premium income this fiscal year and its Chairman SK Roy said the optimism comes from the fact that the Corporation has been witnessing growth in sales since December
Decide your financial goals first and identify your needs. It is best to compare the policies and identify the best suited one.
ULIP offers a combination of the insurance and investment to the policyholder.
New guidelines ensure that there is a cap on charges which ensures better returns for insurance buyers. Also the insured is expected to take a long term view on his investments, which means higher accumulation of wealth.
There are statutory provisions in place to ensure that insurance buyers do get post-sales service. Insured persons can take the right steps to resolve their complaints or service requests.
Buying a child plan is more of an emotional decision than a financial one. However, it may not be worth it, given the low cover and low return they offer.
Watch the interview of Gajendra Kothari of Etica Wealth Management with Sumaira Abidi and Reema Tendulkar on CNBC-TV18, in which he explained about tax savings instruments, Equity Linked Savings Scheme and Unit Linked Insurance Policy.
What is important is to review your policy periodically, understand its features and tax benefits and keep a long term view.
Life insurance products lead to problem of plenty for most individuals. However the issue can be sorted out easily if one knows his real needs and how to address them with right products.
Insurance products offer to protect yourself against unforeseen risks. Insurance policies also offer tax benefits on premium paid. One should choose right insurance plans that suit his needs.
Instead of worrying at the last moment it makes sense to prepare yourself now. This ensures that you not only save tax but meet your financial goals in life.
Many insurance buyers end up buying ULIP with the sole intention of saving income tax. However it costs a lot if you cannot pay your premium for the minimum stipulated time period.