This will not affect the tax exemption provided to the amount received on the death of a person insured. It will also not affect insurance policies issued till March 31, 2023
Avoid relying on a bank RM for investment advice. Instead, approach a Sebi-registered investment advisor whose livelihood depends on the fee paid by his customers and not on product commissions.
The present norms do not specify the death cover according to the tenure of Ulip. According to existing norms, the minimum sum assured for a single premium should be 125 per cent of the single premium, while it should be five times the annualised premium for a regular premium irrespective of the tenure chosen. With the opening of the insurance sector, Ulips have emerged as popular investment products contributing more than 70 per cent of the new business premium income.
Insurance regulator IRDA on Tuesday said it will decide its future course of action on the ULIP controversy in the next two days keeping in mind the government's directive to seek a legally binding decision from a court.
Life Insurance Corporation of India (LIC) declared disappointing results in Q1FY24. While it reported a net profit of Rs 9,540 crore in Q1FY24, this was attributable to the transfer of Rs 7,490 crore from non-participating (non-par) products to shareholders' accounts due to the accretion on available solvency margin. In operational terms, annualised premium equivalent (APE) declined and value of new business (VNB) margin was flat. But the medium-term prospects may be better.
The bulk of an investor's portfolio should be in shorter-duration funds of up to one year portfolio duration.
Ask rediffGURU Ulhas Joshi your mutual fund queries.
For long-term financial security, millennials must not only provide social security for their young families but also ensure that their financial burdens are not passed down to their families, says Casparus Kromhout.
'It is requested that listed equity shares or units of equity-oriented fund schemes be exempted from capital gains tax (LTCG) if equity shares or mutual funds units are held for at least three years.'
The amazing excuses given by people who don't invest their money abound, but you would be wise to ignore them. Excuses won't help you get ahead; they can only hold you back from the retirement you deserve, says financial planning advisor P V Subramanyam
'If through growth and serving the customer we become number one, we will be very happy and very proud.'
Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
A term plan's premium is lower than that of a wholelife plan.
Mihir Tanna, Associate Director, S K Patodia & Associates, answers your tax queries.
Bundled products often come with restrictions. The customer also gets locked into two products at the same time. This reduces flexibility.
Ulhas Joshi, Head -- Sales, Rank MF, a mutual fund investment platform, answers your queries.
Ahead of the Union Budget 2023, insurers are hoping that the Centre will act on their recommendations, which includes increasing the limit for tax deduction under 80D of the Income Tax Act. Also among them are issuance of long-term bonds, tax incentives for home insurance premiums, and a separate section to claim deduction for term-insurance premium, among others. These suggestions would help improve the penetration of insurance in the country.
Financial planning expert Sailesh Multani offers some valuable investment tips.
The life insurer tinkered with its business strategy - raised the share of protection plans and reduced dependency on ULIPs in the past four years.
>You can buy a life insurance policy for someone else only if you have an insurable interest or expect financial loss from that person's death, points out Tarun Chugh, MD and CEO, Bajaj Allianz Life Insurance, answering insurance questions.
'From our perspective, it will bring additional customers and from their perspective, it will get them younger customers.'
The three year lock-in period enables ELSS fund managers to invest in high conviction stocks for a long period of time because of relatively less redemption pressure, says Dwaipayan Bose
These products do not suit everyone even though they are flexible and facilitate investments in debt and equities.
Term insurance policy provides a stated benefit only upon the holder's death, provided the death occurs within the policy period. There will be no stated benefits if the policy holder outlives the policy period.
Investors in unit-linked insurance policies can look forward to some more transparency. But costs, though not front-loaded, will be spread over the lock-in period.
Finance Minister Nirmala Sitharaman on Wednesday raised the personal income tax rebate limit, doled out sops on small savings and announced one of the biggest hikes in capital spending in the past decade as she did a tight rope walk in the Budget between staying fiscally prudent and meeting public expectations in the year before general elections.
Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
You can exit Ulips after five years.
'If you are a smoker, you should not provide misleading information to the insurer about your smoking habit in the insurance proposal form,' advises Pankaj Razdan.
Nikunj Saraf, Vice President Choice Wealth, answers your queries.
To enhance transparency in unit-linked insurance products and protect the interest of policyholders, the Insurance Regulatory and Development Authority has asked life insurers to disclose the underlying conditions and elements while advertising products.
'If we wait to invest only after the economy recovers fully, it might be too late,' advises Vivek Jain, business unit head-investments, Policybazaar.com.
Irda asks insurance companies to increase risk cover from July 1
The Securities and Exchange Board of India (Sebi) has decided against filing a joint application before a court to resolve its dispute with the Insurance Regulatory and Development Authority over unit-linked insurance plans.
The information will bring about more transparency by providing prospective policyholders clear information about the amount that has been collected from them as brokerage or commission, an IRDA circular said.
Investors must, however, be prepared for volatility in ELSS, cautions Sanjay Kumar Singh.
There is no reason for a child with no dependents to have insurance because insurance is put in place to provide for the child in the event of a parent's untimely death and not the other way around, says Amar Pandit.
Initial public offering (IPO)-bound Life Insurance Corporation (LIC) of India's assets under management (AUM) increased to Rs 38 trillion as of September 2021, compared with Rs 37 trillion as of March 2021, said sources in the know. Its AUM is almost 3x the AUM of all the private life insurers in the country and over 15x more than the AUM of the second largest life insurer, SBI Life, as of September 2021. SBI Life's AUM was approximately Rs 2.4 trillion as of September 2021, said sources.
'We try to pick up stocks early and hold onto them for the long term.' 'We are not someone who buys and sells on a daily basis.'
Buyers of unit-linked insurance plans may soon find it easier to compare features and charges of these products across companies, with life insurers deciding to standardise the product.
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