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basant
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Joined: 01/Jan/2006
Location: India
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   Posted: 19/Dec/2007 at 6:44pm |
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Why not take a pure Term insurance cover at Rs 10 a day you can get an insurance of close to Rs 10 lacs. That would be significantly higher then your ULIP coverage.
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CHINKI
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Joined: 07/Feb/2007
Location: India
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Posts: 2827
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Posted: 19/Dec/2007 at 6:53pm |
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In a Term Insurance, you will have to keep paying every year for the insurance cover.
In ULIP, you pay only for the 3 years and after 3 years no premium paying plus you can withdraw partial amount leaving only amount equal to your annual premium as fund amount.
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TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO
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basant
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Posted: 19/Dec/2007 at 7:29pm |
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Compare the premium with the coverage and you would know what I am referring to also you can pay a premium for one year and get coverage for the entire term. Obviously premium is higher in this case.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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CHINKI
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Posted: 19/Dec/2007 at 9:27pm |
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In term insurance, you have to pay premium every year like your car insurance. Otherwise insurance cover will get lapsed.
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TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO
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basant
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Posted: 19/Dec/2007 at 9:46pm |
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Term policies have less premium otheers take more invest that amount in debt and give back something thus creating an illusion that policy holders are making money.
The only way to profit from aterm plan is to actually effect the clain the first year of policy! But some things in life are best left without profiting like mediclain, life insurance etc.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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Mohan
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Joined: 09/Feb/2007
Location: United States
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Posts: 1855
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Posted: 19/Dec/2007 at 10:21pm |
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In ULIP, one is paying lump sum which is earing income to pay for insurance cover.
In Term one pays annually. This is pure protection.
Either way, lump sum or annual, one has to pay for coverage.
Everyones needs are unique.
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Be fearful when others are greedy and be greedy when others are fearful.
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India_Bull
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Joined: 19/Sep/2006
Location: United States
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Posted: 19/Dec/2007 at 1:45am |
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Just my 2 cents on Insurance:
1. Don't expect/treat insurance as an Investment.(So dont expect returns from Insurance !!) Insurance is Insurance.
2.Buy Term Insurance (Forget ULIP,Moneyback Policies etc), just keep aside your premium for term insurance keeping in mind that you will never get any retuns on that money.
3. Invest now the money you wanted to put in ULIP etc in ELSS (If you are scared to put it directly in the market ) as a rule every year and with Basantjee's theory of compounding you will have good corpus of money which can be used as Pension fund alongwith Insurance
P.S- I am not an insurance agent- Due to my knowledge on this subject they get scared to talk to me !!
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India_Bull forever Bull !
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catcall
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Joined: 02/Sep/2006
Location: India
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Posts: 1076
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Posted: 08/Jun/2008 at 8:43pm |
I am planning to up my insurance cover by buying a Term Insurance Policy
( NO, I do not have a leveraged F&O position in the market and therefore am NOT planning for a quick windfall for my dependents! )
I have a preference for an LIC policy with a view that in case I hit seller circuit, it would be easier for my dependents to get the insured amount as compared to some of the private players, even though the premiums for some of these companies is lower.
Any views on this issue?
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There are two times in a man's life when he should not speculate-when he can't afford it and when he can-Happy investing!
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