For life insurance, term insurance is a simple, cost-effective and wise choice. But there are still many who want to put money in LIC’s traditional insurance plans like Moneyback policies and Endowment plans. But does it make sense to choose…
Read More ULIPs Vs LIC Traditional Endowment Plans – Which is Better?
From 2018 to 2021, ULIPs had become the favorite of many (mostly HNIs) because of the exclusive tax-free status they enjoyed when compared to the then newly announced LTCG taxation of mutual funds. But this was changed in 2021 when…
Recently, my thoughts on ULIPs and why they should be avoided (even by HNIs) were published on Morningstar (India). In this one, I try to clear the air about the recent change in taxation of maturity amount of ULIPs and why…
Read More Why ULIPs are not a great investment? (My column in Morningstar)
So after the new announcement in Budget 2021, that ULIPs will be taxed liked MFs if annual premium exceeds Rs 2.50 lakh and hence, ULIPs no longer offer the tax arbitrage that was pushed by ULIP sellers till now. Just…
Read More ULIP vs Mutual Funds: ULIPs lose tax arbitrage (Budget 2021)
The Union Budget 2021-22 has removed the disparity between taxation of ULIPs and mutual funds. At least to a very large extent. The Budget 2021 has withdrawn the tax-free status for maturity amount on fresh ULIP purchases if the annual…
Read More Maturity proceeds of ULIP with Rs 2.5 lakh annual premium to be Taxed
It is a no brainer that when it comes to life insurance, its best to purchase term insurance policies. By paying a very small premium every year (generally a few thousand rupees), you get a large life insurance cover. And…
Have you heard of life insurance ladders? Or laddering of life insurance in India? If yes, then great. If not, then this would be interesting for you. You will agree that life insurance requirements are fairly dynamic and different for…
Read More Laddering Life Insurance Policies – Is it Useful? (in India 2021-22)
Life vs Health insurance. Both are important for most people. So its actually not about health insurance vs life insurance. Rather it's about life insurance AND health insurance. And sooner or later, one should have both these insurances in one’s…
Read More Health Insurance or Life Insurance – Which to buy first?
Imagine you are the father of a newly born daughter. And since your spouse is a housewife and your parents are retired, you know you are the only one bringing money on the family’s table. Given your responsibilities and understanding…
The real purpose of purchasing life insurance is to avoid tragic stories like this. But many still wrongly feel, that life insurance is a waste of money. But luckily and thanks to our government’s tax-saving policies, they still end up…
You already know why life insurance is important. Atleast for common people like us who still aren’t rich enough to ignore it. After all, being underinsured and dying can be tragic for the dependents. But one of the major problems…
Read More Insurance requirements change with Age & Tax Benefits on Life Insurance
When it comes to buying life insurance for yourself, the best option is to go for a simple term insurance policy. Period. With that aside, your next question would be - which is the best term insurance plan to buy?…
Read More Confused with Different Types of Term Plans? Here is How to choose the Right Term Plan
Term life insurance is the most basic form of life insurance. And I can safely say that it’s the most effective and the best form of insurance. Why? Because it gives you a very high insurance coverage (sum assured)…
Read More Answers to 20 Important Questions about Term Life Insurance
When purchasing a life insurance, people get confused whether it is wise to have a cover till just the age of 60 or to keep it till 70 or even the age of 80-85. And then if the confusion wasn’t…
Rs 50 lakh or Rs 1 crore - these don’t seem like small amounts. But whether these amounts are enough (for life insurance) or not is another question. Most people are unable to calculate the right insurance amount. To be…
