Investment & Insurance Related Discussions

[hiteshkkk1 327]

Hello Friends...

With this thread, I would like to start new discussion on the topic. Being in this field since last 7+ years, I have gained lot of experience in this field. I understand most of the people view these things with negative outlook but that is mostly because it is more mis-sold than sold.

To start with, I would like to contribute in this tread, over a period of time, some of the basics of Investments & Insurance & with fellow members posts, we can make this an useful thread for our community.

Before I begin, let me clarify some points..

1. Even though I am in this business, I dont intend to present myself as doing any sales activity. I would be glad to answer all the queries & would strongly recommend to buy or avail of service from your own town with somebody you personally know.(Josh wud surely vouch for this)

2. I would be discussing of certain products with its benefits. My sole intention to highlight certain product would be, because that product is actually very good, but very less known, due to low revenue generation for agents. Pls dont treat that too as any sales or marketing activity. In fact, if other members know of any alternative product, better than the one i mentioned, that would be for the good of this thread.

Let me start with Accidental Insurance.

There are 2 products which I am going to cover & are MUST HAVE for everyone from a chaiwala or an hawker to any crorepati.

Accidental Insurance products generally cover below events due to accidents only:

1. Death

2. Hospitalization expenses

3. Permanent or Temporary Disability

4. Total or Partial Disability

5. Daily Cash Benefit

Now, we may say that Death is already covered in my existing life insurance or for that matter hospitalization is covered in my existing health insurance cover. Then, why is this extra product needed.

In my view, buying accidental insurance is highly important due to below benefits.

1. Premiums are very less compared to full fledged.

2. Premiums are same across all age bands.

3. There are no medical tests required.

4. Pre-Existing diseases are not seen for here. By this, I mean, an person with diabetes cannot get most of health insurance products. But even he is prone to accidents. So, even he can opt for accidental insurance n his existing diabetes wound stand as hurdle.

5. Having accidental products in combination to existing mediclaim means in case of accidental hospitalization, you would use benefits under your accidental plan n keep your mediclaim claim-free so that you keep on earning no claim benefits. Also, many of u have floater policies. So, the sum insured from existing mediclaim is preserved for other illness / other members.

6. Term / Life insurance is costly n premium increases the later you start the plan. Also, in my view, in earlier years (25 to 45 yrs of age), probability of death due to accident is more than probability of death due to illness. So, it is always better to go to Term Insurance + Accidntal Death Insurance than to opt for more term insurance.

Now, I will cover some products here.

1. Bajaj Allianz Sankat Mochan : Product link : http://www.bajajallianz.com/Corp/health-insurance/sankat-mochan.jsp

This is a very good n low cost product in industry. I have been actively selling it n have good experience as regards to claim settlement. I am sure many of you must have not heard of this product since none of the sales person would sell you this due to very low ticket size n consequently lower commissions. But,in my view, this can be utilized in very good way.

In all there are 16 plans & all the details are covered in the link along with premium chart. I would advice you all to check Final Premium Risk class 2 for all the 16 plans. Generally risk class 1 is for low risk jobs. But, then since difference being so less, better to opt for class 2. Some times, even we our self do some high risk work. So, accidents in such cases may be denied if we have policy of risk class1. You will have to add 12.36% as service tax to get net premium.

Specialty of this plan is @ just 303/- rs (including all taxes) we get 2 benefits viz. 1. Accidental Death for 2 lacs & 2. Accidental Hospitalization for Rs. 1 lac.

This can be very good plan for our office boys or staff who are always on move. In case of any accidents, we do help them financially. But, if we plan properly then it is beneficial for us as well as person. I have been convincing my clients to take this plan for their whole team of 10-20 people.

Claim settlement of Bajaj is very good too.

I would suggest you to check all the plans n see for yourself as to what benefits you get. Everything is self explanatory. In case of any doubt, I would be glad to clarify the queries.

2. Bajaj Allianz Premium Personal Guard : Product Link : https://www.dropbox.com/s/oymxip3m4f13o2n/Bajaj%20Allianz%20Premium%20Personal%20Guard.pdf

This product is not available on website. But, you can avail it from any of Bajaj agents or by visiting their office personally..

Though all the details are covered in above PDF.

Specialty of this plan is @ just Rs.1994/- PLAN A, we get 6 benefits viz

a. Accidental Death : 10 lacs

b. Permanent Total Disability : 20 lacs

c. Permanent Partial Disability : as per table. For ex.compensation paid for loss of thumb is 20%. This means, if due to accident, a person loses thumb, company will pay 20% of SI i.e 10 lacs which comes to 2 lacs. Accordingly this % differs from part to part.

d. Temporary Total disability : Many times, after hospitalization we have to take rest for certain days as advised by doctors. This may lead to loss of income. The same can be compensated in this section. This section will pay 5000 rs per week till the person stays home due to his temporary disability like fracture in leg or hand or etc, due to which he cannot go to work.

e. Accidental Hospitalization : 2 lacs

f. Hospital Cash Benefit : This section will pay 1000/- per day till the time person is admitted in hospital, due to accident.

People can choose plan as per their requirements. Also, can add family members according to table. Do note, for higher plans, income proof is mandatory.

Again, I feel, we must have this plan along with standalone mediclaim. Probability of hospitalization due to accidents has been increased a lot now a days.

For the sake of this plan, snake bite or falling in bathroom is also an accident.

I hope I have been helpful with this thread. I would try to keep this thread live n give back to community by posting my views.

Other members are requested to comment their views, opinions, or ask any doubts.

[nitinmukesh123 11]

Thanks Hitesh for this information.

f. Hospital Cash Benefit : This section will pay 1000/- per day till the time person is admitted in hospital, due to accident.

In PDF it is mentioned as

Accidental

Hospital Cash

(Rs./30 days) 1000

Please could you also mention some pension plans.

Edited January 21, 2014 by nitinmukesh123

[KumaarShah 143]

Superb Initiative,

[hiteshkkk1 327]

Thanks Hitesh for this information.

f. Hospital Cash Benefit : This section will pay 1000/- per day till the time person is admitted in hospital, due to accident.

In PDF it is mentioned as

Accidental

Hospital Cash

(Rs./30 days) 1000

Please could you also mention some retirement plans.

That means Rs. 1000/- would be payable but for max 30 days...

So if person is in hospital for more than 30 days, even then, company will pay max for 30 days only...

[hiteshkkk1 327]

Thanks Hitesh for this information.

f. Hospital Cash Benefit : This section will pay 1000/- per day till the time person is admitted in hospital, due to accident.

In PDF it is mentioned as

Accidental

Hospital Cash

(Rs./30 days) 1000

Please could you also mention some pension plans.

Regarding pension plans, or for that matter any insurance + investment plan sold under attractive nomenclature like child plan or pension plan should be avoided. All these are high commission paying plans & in end dont give u IRR of more than 8%, which you can get easily in FD or PPF.

For pension, based on age / risk profile, combo plans can be made within mutual funds itself. Though they wont have any "PENSION" tag attached with their name, the returns generated can be utilised in form of pension.

Generally we go for hybrid mutual funds where in 70% is invested in equity n 30% in debt. These funds are conservative but still onver 5-10yrs horizon can give 12-15% returns. (but no guarantee).

And for pension, we do some tweaking. We purchase in Dividend option of some hybrid scheme say for ex. HDFC Prudence Fund, a top rated fund since 15+ yrs.

Normally this fund will give dividend in March every year. So, once Dividend is announced, we configure it in such a way that the dividend would automatically be transferred in a debt fund like HDFC Cash Management Fund(CMF), which again gives returns in 5-8% & is not affected by stock markets.

This kitty in cash management can be used as pension. We can even schedule withdrawals to be processed automatically every month on certain date for certain amount.

I have attached a sample back tracking of same fund for same process for last 10 yrs.

As you can see in attached working:

1. Rs. 10lac was invested in HDFC Prudence Dividend on 01/01/2003.

2. The fund declared dividend in July 2003 which was transferred to CMF

3. We started withdrawal of 10k (i.e. 1 % of 10 lacs) as pension from CMF on 1st of every month.

4. Now, before this balance in CMF gets exhausted, prudence gave next dividend in March 2004 & so on, every year.

5. As we come down, total 126 months have passed & we have got 10k every month. So total pension received till date is 12.60 lacs.

6. Even then, the residual amount remaining in prudence as well as cmf combined as on 01/01/2014 is around 41 lacs.

7. All the returns mentioned above are again efficient with tax point of view. I can answer any particular query in this regard as explanation may go too long n confusing.

This actually works better than any other pension plan in the country. But then, you should have acceptance to stock market risks. This may have been not worked or may not work in future as shown. But, probability of this going negative is very least.

To sum up, I would suggest combination of debt n equity mf, if planned well, can be best pension plans. You can add some investments in debentures which are going on @ 12% n they have option to pay interest monthly.

prudence dtp.pdf

Edited January 21, 2014 by hiteshkkk1

[rahujas 16]

Great job to start this thread.

I hope this thread provides a lot of information to us on insurance products.

Please cover online tem insurances of different companies in this.

[hiteshkkk1 327]

^^ Will surely come to it in future..

[sujit_k 141]

Hitesh bhai, i am looking to invest a small amount of money to makee it tax free.. which plan should i go for ?

[digitalnirvana 646]

I am currently hospitalized since last week and must stress the need for hospitalization cover and mediclaim - medical expenses are extremely high

Good thread OP, voted up

I will read in more detail later but for the moment could you please advise on

- mediclaim (struggling to get cover for my parents who have just turned 60 and have diabetes/cardiac disease background)

- pet (dog) insurance (very popular abroad but almost unknown here)

[luvrit 15]

i ll jus add some more....

Term Insurance is something i ASK all my business associates, seniors, juniors, friends and all.....

I believe this is the most effective and most economic insurance policy. it covers pure risk and they dont return the premium paid and hence very cheap. For age 35, Rs 1 cr policy for 20 years duration is between 10k to 20k p.a. for different cos. if u take endowment or any other traditional policies, premiums would be in excess of 1 lakh for sure and then after 10-15-20 years they wud return money which generally works out interest rate of 6-7%.

better would be buy term policy and rest u invest in tax free bond which currently gives u 8.5-9%. or invest in PPF

second investment avenue is PPF. three main advantages: one is tax free, two is almost RISK free, three is: this PPF fund can not be attached by any one. this means that even if one is declared bankrupt, court can not seize this account and u need not legally pay from this account. one can invest max. Rs 100000 a year. current rate is 8.7% tax free (changes every year) .

Rs 100000 a year for 20 years can create wealth of Rs 49 lacs. (see calculation and assumption in attached file)

in India, where there is no social security, this is one of the best avenue in my opinion.

Hope u like this. Thanks

ppf magic.xlsx

Edited January 22, 2014 by luvrit

[PKC19 11]

Hitesh Bhai as mentioned by Luvrit can you suggest some good term insurance policy thinking of getting one since some time now.

This is a very good invective hope you don't issues with me sharing on a FB group as group is for travelers for the accident linked insurance.

[catch148 16]

Grt initiative Hitesh bhai.

I also have lil know-how of insurance. members having ANY doubt on Non-life insurance ( General Insurance) products, the please let me know. I will be happy to add value.

Regards

[hiteshkkk1 327]

Hitesh bhai, i am looking to invest a small amount of money to makee it tax free.. which plan should i go for ?

Actually TAX FREE is confusing when it comes to investments. Let me clarify..

1 is TAX FREE at the time of entry.

2nd TAX FREE at the time of maturity

I am not sure which one are you referring. So, I will explain all the 3 cases.

Investments done in instruments approved under Sec 80C can be considered for INCOME TAX exemption. The max limit for this is 1 lac. So, if your annual taxable income is say 4 lacs & you invest 1.5 lacs in 80c approved investments, you will get exemption of max 1 lac n u have to compute tax as per 4 lacs.

Now, 80C instruments as available are :

1. PPF - Lockin 15 yrs. Someone expert in PPF can give more insight.

2. ELSS Mutual Funds - Lockin 3 years - means u cannot withdraw before 3 yrs from date of investment, at any cost.

3. Tax Savings FD - lockin 5 yrs n at current interest rates

4. Life Insurance (Endowment / Term / ULIP)

5. Contributions to Provident Fund

6. Principal component of home loan

Anyone looking to take benefit under sec 80c, i would recommend to 1st go for term plan. Then add total investments / contributions towards PF and Home Loan principal. Now, whatever amount is required to complete 1lac, can be divided between PPF & ELSS. So for ex. your residual amount that you have to invest in 80C come to 60k then u can invest 10-15k per year in PPF & rest in good ELSS funds by way of monthly SIP.

This ratio of PPF vs MF can be decided depending upon age of investor. In earlier ages i.e 25-35, one can keep higher allocation to MF n then later on higher allocation to PPF.

Some of the good ELSS funds are 1. Franklin India Tax Shield 2. ICICI Pru Tax Plan 3. HDFC Tax Saver

Now, coming to 2nd part, i.e. TAX FREE at the time of maturity, if you are referring this, we will discuss below.

Investments in :

FD are taxable as per tax slabs

Debt Funds are taxable under heads Short Term Capital Gains if held less than 1 yr n taxable under heads Long Term Capital Gains if held for more than 1 year.

In case of STCG, you have to pay tax as per slabs

In case of LTCG, you have to pay tax @ 20% after indexation benefit or 10% on total profit, whichever is less.

Equity Funds are also taxable under heads Short Term Capital Gains if held less than 1 yr n taxable under heads Long Term Capital Gains if held for more than 1 year.

But, STCG for equity funds is 15% irrespective of slab &

LTCG in case of equity funds.

So, to answer your question, if you are seeking tax free returns, you can choose any equity fund n preferably choose SIP mode. Hold them for 1 yr n then they are tax free.

Also, let me add, dividends in MF are paid from out fund itself. That means, after payment of dividend, our fund value comes down by that amount. But then those dividends are tax free. So, my advice would be to opt for dividend plan in any equity mf investment. Be it ELSS or non ELSS. Also apply for Dividend sweep plan to any debt fund. By this, we are automatically booking profits every year n the amount is invested in safe investment earning 8%.

If dividend is taken as payout in bank, 99% chances are we end up using that amount for useless things.

Some top rated funds you can choose are

Aggressive - (Risky but may give good returns in 10+ yrs horizon)

1. HDFC MidCap

2. ICIC Prudential Discovery

3. Birla Sunlife Mid Cap

4. Reliance Small Cap

Diversified - (Stable funds with 5+ yrs horizon)

1. HDFC Equity

2. ICICI Prudential Dynamic

3. Franklin India Prima Plus

4. IDFC Premier Equity

Conservative (preferabley large cap or hybrid with 3+ yrs horizon)

1. HDFC Prudence

2. ICICI Pru Focused Bluechip

3. Franklin India Bluechip

4. Birla Sunlife Frontline Equity

Invest in any of the above funds based on your horizon n hold them for good time. You will get tax free return for every particular installment that is held for 1 yr.

I am currently hospitalized since last week and must stress the need for hospitalization cover and mediclaim - medical expenses are extremely high

Good thread OP, voted up

I will read in more detail later but for the moment could you please advise on

- mediclaim (struggling to get cover for my parents who have just turned 60 and have diabetes/cardiac disease background)

- pet (dog) insurance (very popular abroad but almost unknown here)

Thats a very good question. Many of my clients are stuck in getting coverage for their parents. For 60+, I have 2 options which i suggest for my clients.

1. Star Health Senior Citizen Red Carpet

No tests needed. Only limitation of this product is company will pay 70% of claim amount for all claims n for pre-existing diseases (PED), claim amount is 50%. So in your case, claims related to diabetes n cardiac would be paid only 50%.

2. National Insurance tailor made product with Bajaj Capital

This is most suited for such cases. You pay premium as per your age n your parents are covered in your premium Again no tests needed & claims paid 100%. Known PED covered after 4 years. Premiums are very reasonable. Only catch is you should be existing customer of Bajaj Capital. So, what you could do is, buy any liquid fund for 10k with them, get the policy, redeem the fund. This is 1 time process. Renewals would be easy. You can check Bajaj Capital branch in your city. If you are unable to hunt, let me know I will guide you.

Will let you know about pet insurance. Just tell amount of insurance that you require.

i ll jus add some more....

Term Insurance is something i ASK all my business associates, seniors, juniors, friends and all.....

I believe this is the most effective and most economic insurance policy. it covers pure risk and they dont return the premium paid and hence very cheap. For age 35, Rs 1 cr policy for 20 years duration is between 10k to 20k p.a. for different cos. if u take endowment or any other traditional policies, premiums would be in excess of 1 lakh for sure and then after 10-15-20 years they wud return money which generally works out interest rate of 6-7%.

better would be buy term policy and rest u invest in tax free bond which currently gives u 8.5-9%. or invest in PPF

second investment avenue is PPF. three main advantages: one is tax free, two is almost RISK free, three is: this PPF fund can not be attached by any one. this means that even if one is declared bankrupt, court can not seize this account and u need not legally pay from this account. one can invest max. Rs 100000 a year. current rate is 8.7% tax free (changes every year) .

Rs 100000 a year for 20 years can create wealth of Rs 49 lacs. (see calculation and assumption in attached file)

in India, where there is no social security, this is one of the best avenue in my opinion.

Hope u like this. Thanks

Rohit bhai... That was perfect.. But I guess your calculation is incorrect. The final amount should be 52.45 lacs. I think u forgot to calculate interest on investment amt for that year. I may be wrong. Pls recheck.

If we leave this attaching thing, i guess if we have holding period of 15 yrs, we should go for riskier investments i.e MF than investing in PPF just for 8.5%. It hardly beats inflation.

Though its just my view n there must be some allocation to PPF. (I dont have any for myself though)

Hitesh Bhai as mentioned by Luvrit can you suggest some good term insurance policy thinking of getting one since some time now.

This is a very good invective hope you don't issues with me sharing on a FB group as group is for travelers for the accident linked insurance.

I would suggest you to go for any online term insurance. They are pretty cheap. You dont need any agent n end up saving commissions.

Aviva has 2 plans n 1 is payment of full sum assured at occurrence of event & other one is payment of sum assured in staggered manner.

I think the 2nd one is good. The dependents can get continuous payouts at regular intervals.

Here is the link :

Aviva i-Life Aviva i-Life Secure

Other options to consider are

HDFC Life Click2Protect

Birla Easy Protect - This is not available openly but thru agents. check with some birla agent.But still, premium is cheaper than HDFC. Let me know your details like

DOB

Smoking Habits

Required Sum Assured. I will give u amount from my agent portal.

[drabhayshah76 7]

Please avoid Star Health Insurance. The maximum claim rejections are from Star.
Better to go for Bajaj Alliance or any Govt. Insurance Company.

[ami1 237]

Good topic guys !

I have 2 queries:-

1. Critical illness Rider:-

I need a recommendation for a good life cover / term insurance policy with Critical illness rider ? (i.e. in case of being diagnosed with a critical illness like Heart Disease, Cancer, Kidney or Liver issues or such things, you get the full Insured amount and the cover terminates. This doesn't have any link to the cost of treatment etc)

With the advancements in Medical Tech, and our current lifestyle & environment, I think the highest probability is that one will NOT DIE but rather become Bed/Wheel Chair ridden. In which case you may be unable to work etc and would neither get the Life Cover amount since you are alive (even if barely)

I had taken HDFC Life term policy quite some time back when the agent had offered a Critical illness rider for just a 2-3K pa etc cost (on around 18k pa life cover cost) but I declined at that time thinking he is just trying to sell up.

After a few years when I realized it is important, they told me the rider can't be added on later. So now I am thinking of getting a new policy and stopping my previous policies.

2. Multiple Life Cover Term Policies:

I have a very old LIC term insurance policy for a smaller cover amount which I had taken at the beginning of my career.

Later I took a HDFC policy for a more appropriate amount but the old LIC one also continues.

Now, I don't remember if I had disclosed that I have LIC policy at time of buying HDFC policy. Will that matter at time of Claim settlement ?

If yes, then will cancelling the old LIC policy fix the issue now OR should I cancel both policies and take a fresh one to avoid later issues ?

[hiteshkkk1 327]

^^^

Actually critical illness plans are already available with general insurance companies...

Life insurance companies added them as riders..

So if you didn't opt then, you can buy stand alone plan from any gic..

Being associated with bajaj allianz gic, icici Lombard gic n star health, I've compared plans with these companies n bajaj seem to be best..

Check details here http://www.bajajallianz.com/Corp/health-insurance/critical-Illness.jsp

The site has sum insured upto 10lac only. But it is available upto 50lacs. If you can pm your date of birth n required sum assured, i can reply with premium amount n then you can approach any bajaj office and buy the same. You'll also need to submit your income proof.

Icici lombard details are here : https://www.icicilombard.com/health-insurance/Critical-care-brochures.html

But it is available only up to 12 lacs.

Star does not have critical illness plans...

Regarding your multiple covers, i guess since your existing plans are taken long back, their premiums must be very high.. So i would suggest you, at the time of renewal, just before 1 month, you can buy new plan n i m sure premium would be less than what you are already paying..

I just checked today, aviva has started 1 more plan named ilife secure. It will pay 10% of sum assured at the occurrence of event n rest payable monthly for next 15 years. This is better than lump sump payout i guess though I'm yet to do full research.

Just check the site.

Sent from my SCH-I535 using Tapatalk

[luvrit 15]

Hitesh Bhai as mentioned by Luvrit can you suggest some good term insurance policy thinking of getting one since some time now.

This is a very good invective hope you don't issues with me sharing on a FB group as group is for travelers for the accident linked insurance.

For term policy, i myself as Birla Sun Life HNI term, which is offline

one of my frds have taken HDFC Click2protect online, where premiums are really low. For online plans, claims might be an issue. so i prefer good old method: go thru agent who is in full time business

[luvrit 15]

Hitesh bhai, i am looking to invest a small amount of money to makee it tax free.. which plan should i go for ?

Actually TAX FREE is confusing when it comes to investments. Let me clarify..

1 is TAX FREE at the time of entry.

2nd TAX FREE at the time of maturity

I am not sure which one are you referring. So, I will explain all the 3 cases.

Investments done in instruments approved under Sec 80C can be considered for INCOME TAX exemption. The max limit for this is 1 lac. So, if your annual taxable income is say 4 lacs & you invest 1.5 lacs in 80c approved investments, you will get exemption of max 1 lac n u have to compute tax as per 4 lacs.

Now, 80C instruments as available are :

1. PPF - Lockin 15 yrs. Someone expert in PPF can give more insight. (strictly not lock in of 15 years. u can withdraw money in between. there are conditions applied, which i dont remember off hand. but best would be not to withdraw)

2. ELSS Mutual Funds - Lockin 3 years - means u cannot withdraw before 3 yrs from date of investment, at any cost.

3. Tax Savings FD - lockin 5 yrs n at current interest rates

4. Life Insurance (Endowment / Term / ULIP)

5. Contributions to Provident Fund

6. Principal component of home loan

Anyone looking to take benefit under sec 80c, i would recommend to 1st go for term plan. Then add total investments / contributions towards PF and Home Loan principal. Now, whatever amount is required to complete 1lac, can be divided between PPF & ELSS. So for ex. your residual amount that you have to invest in 80C come to 60k then u can invest 10-15k per year in PPF & rest in good ELSS funds by way of monthly SIP.

This ratio of PPF vs MF can be decided depending upon age of investor. In earlier ages i.e 25-35, one can keep higher allocation to MF n then later on higher allocation to PPF.

Some of the good ELSS funds are 1. Franklin India Tax Shield 2. ICICI Pru Tax Plan 3. HDFC Tax Saver

Now, coming to 2nd part, i.e. TAX FREE at the time of maturity, if you are referring this, we will discuss below.

Investments in :

FD are taxable as per tax slabs

Debt Funds are taxable under heads Short Term Capital Gains if held less than 1 yr n taxable under heads Long Term Capital Gains if held for more than 1 year.

In case of STCG, you have to pay tax as per slabs

In case of LTCG, you have to pay tax @ 20% after indexation benefit or 10% on total profit, whichever is less.

Equity Funds are also taxable under heads Short Term Capital Gains if held less than 1 yr n taxable under heads Long Term Capital Gains if held for more than 1 year.

But, STCG for equity funds is 15% irrespective of slab &

LTCG in case of equity funds.

So, to answer your question, if you are seeking tax free returns, you can choose any equity fund n preferably choose SIP mode. Hold them for 1 yr n then they are tax free.

Also, let me add, dividends in MF are paid from out fund itself. That means, after payment of dividend, our fund value comes down by that amount. But then those dividends are tax free. So, my advice would be to opt for dividend plan in any equity mf investment. Be it ELSS or non ELSS. Also apply for Dividend sweep plan to any debt fund. By this, we are automatically booking profits every year n the amount is invested in safe investment earning 8%.

If dividend is taken as payout in bank, 99% chances are we end up using that amount for useless things.

Some top rated funds you can choose are

Aggressive - (Risky but may give good returns in 10+ yrs horizon)

1. HDFC MidCap

2. ICIC Prudential Discovery

3. Birla Sunlife Mid Cap

4. Reliance Small Cap

Diversified - (Stable funds with 5+ yrs horizon)

1. HDFC Equity

2. ICICI Prudential Dynamic

3. Franklin India Prima Plus

4. IDFC Premier Equity

Conservative (preferabley large cap or hybrid with 3+ yrs horizon)

1. HDFC Prudence

2. ICICI Pru Focused Bluechip

3. Franklin India Bluechip

4. Birla Sunlife Frontline Equity

Invest in any of the above funds based on your horizon n hold them for good time. You will get tax free return for every particular installment that is held for 1 yr.

I am currently hospitalized since last week and must stress the need for hospitalization cover and mediclaim - medical expenses are extremely high

Good thread OP, voted up

I will read in more detail later but for the moment could you please advise on

- mediclaim (struggling to get cover for my parents who have just turned 60 and have diabetes/cardiac disease background)

- pet (dog) insurance (very popular abroad but almost unknown here)

Thats a very good question. Many of my clients are stuck in getting coverage for their parents. For 60+, I have 2 options which i suggest for my clients.

1. Star Health Senior Citizen Red Carpet

No tests needed. Only limitation of this product is company will pay 70% of claim amount for all claims n for pre-existing diseases (PED), claim amount is 50%. So in your case, claims related to diabetes n cardiac would be paid only 50%.

2. National Insurance tailor made product with Bajaj Capital

This is most suited for such cases. You pay premium as per your age n your parents are covered in your premium Again no tests needed & claims paid 100%. Known PED covered after 4 years. Premiums are very reasonable. Only catch is you should be existing customer of Bajaj Capital. So, what you could do is, buy any liquid fund for 10k with them, get the policy, redeem the fund. This is 1 time process. Renewals would be easy. You can check Bajaj Capital branch in your city. If you are unable to hunt, let me know I will guide you.

Will let you know about pet insurance. Just tell amount of insurance that you require.

i ll jus add some more....

Term Insurance is something i ASK all my business associates, seniors, juniors, friends and all.....

I believe this is the most effective and most economic insurance policy. it covers pure risk and they dont return the premium paid and hence very cheap. For age 35, Rs 1 cr policy for 20 years duration is between 10k to 20k p.a. for different cos. if u take endowment or any other traditional policies, premiums would be in excess of 1 lakh for sure and then after 10-15-20 years they wud return money which generally works out interest rate of 6-7%.

better would be buy term policy and rest u invest in tax free bond which currently gives u 8.5-9%. or invest in PPF

second investment avenue is PPF. three main advantages: one is tax free, two is almost RISK free, three is: this PPF fund can not be attached by any one. this means that even if one is declared bankrupt, court can not seize this account and u need not legally pay from this account. one can invest max. Rs 100000 a year. current rate is 8.7% tax free (changes every year) .

Rs 100000 a year for 20 years can create wealth of Rs 49 lacs. (see calculation and assumption in attached file)

in India, where there is no social security, this is one of the best avenue in my opinion.

Hope u like this. Thanks

Rohit bhai... That was perfect.. But I guess your calculation is incorrect. The final amount should be 52.45 lacs. I think u forgot to calculate interest on investment amt for that year. I may be wrong. Pls recheck. ( you r right. ... so corpus grows . my assumption was that i invest on las day except for first year. but generally ppl invest at begining of the year)

If we leave this attaching thing, i guess if we have holding period of 15 yrs, we should go for riskier investments i.e MF than investing in PPF just for 8.5%. It hardly beats inflation.

Though its just my view n there must be some allocation to PPF. (I dont have any for myself though)

Hitesh Bhai as mentioned by Luvrit can you suggest some good term insurance policy thinking of getting one since some time now.

This is a very good invective hope you don't issues with me sharing on a FB group as group is for travelers for the accident linked insurance.

I would suggest you to go for any online term insurance. They are pretty cheap. You dont need any agent n end up saving commissions.

Aviva has 2 plans n 1 is payment of full sum assured at occurrence of event & other one is payment of sum assured in staggered manner.

I think the 2nd one is good. The dependents can get continuous payouts at regular intervals.

Here is the link :

Aviva i-Life Aviva i-Life Secure

Other options to consider are

HDFC Life Click2Protect

Birla Easy Protect - This is not available openly but thru agents. check with some birla agent.But still, premium is cheaper than HDFC. Let me know your details like

DOB

Smoking Habits

Required Sum Assured. I will give u amount from my agent portal.

[drabhayshah76 7]

Dear Hiteshji,

How is Aegon Religare?

I am asking because there are many positive reviews about it on www.mouthshut.com

Regards,

Dr.Abhay Shah

[hiteshkkk1 327]

Dear Hiteshji,

How is Aegon Religare?

I am asking because there are many positive reviews about it on www.mouthshut.com

Regards,

Dr.Abhay Shah

The basic principle before choosing any term plan would be its claim settlement performance. Now, since aegon religare being new & with very small customer base, it is yet to prove itself on this front. Mere satisfactory performance upto policy issuance is not the true indicator.

So, as you can see on page no 50 of this public disclosure found here http://www.aegonreligare.com/download/file/fid/2041 the total death claims settled were hardly 79. On % basis, they did settle 79/79 claims that works out to 100% ratio for death claims. But, 79 is a very small number to judge.

I have seen ICICI, HDFC, Birla, Aviva with claim settlement ratio anywhere between 90-95% n settling thousands of claim in a year.

At the time of me buying Aviva, aegon was cheaper even then, but I did not wanted to go with new company specially when there were lot of rough patches in insurance industry.

That said, as long as you are disclosing every material fact in your proposal form, no company is going to reject your claims. Claims are denied most of the times due to wrong information given at th time of buying for ex.

1. Not disclosing smoking / drinking habits

2. Not disclosing previous policies

3. Any other important material disclosure

Most of the times, agents are the culprits for above points as they will never ask you these points and fill the form blindly for the sake of issuance n thereby commissions.

So, to sum up, go with any company that meets your requirements, but see that you read n answer each n every point in form correctly. If so, you need not worry...

[ami1 237]

Thanks a lot Hitesh. Am checking the sites and will PM you the details.

[kshah 452]

I am currently hospitalized since last week and must stress the need for hospitalization cover and mediclaim - medical expenses are extremely high

Good thread OP, voted up

I will read in more detail later but for the moment could you please advise on

- mediclaim (struggling to get cover for my parents who have just turned 60 and have diabetes/cardiac disease background)

- pet (dog) insurance (very popular abroad but almost unknown here)

I am posting without any permission of hitesh hope it is alright. I have no knowledge of financial products.

I have given health insurance policy to my staff members from indian bank (arogya raksha) they offer only family policy (proposer, spouse, children - upto 2 and dependent parents). They settle claims without much hassle so please check with bank.

http://www.indianbank.in/services.php?by=78&ty=3

[hiteshkkk1 327]

I am currently hospitalized since last week and must stress the need for hospitalization cover and mediclaim - medical expenses are extremely high

Good thread OP, voted up

I will read in more detail later but for the moment could you please advise on

- mediclaim (struggling to get cover for my parents who have just turned 60 and have diabetes/cardiac disease background)

- pet (dog) insurance (very popular abroad but almost unknown here)

I am posting without any permission of hitesh hope it is alright. I have no knowledge of financial products.

I have given health insurance policy to my staff members from indian bank (arogya raksha) they offer only family policy (proposer, spouse, children - upto 2 and dependent parents). They settle claims without much hassle so please check with bank.

http://www.indianbank.in/services.php?by=78&ty=3

Looks really good considering no medical tests for any age, maternity cover, higher sum assured upto 10 lacs..

Just have to check premiums...

Sent from my SCH-I535 using Tapatalk

[commonman 228]

anyone working in govt/psu sector, remember to check the option of Postal Life Insurance also

[ni0987 179]

i have seen postal insurance banners claiming highest returns for govt/psu employees.<br />