Wednesday, August 11, 2010

SBI LIFE - SMART ULIP - NAV GUARANTEED

Recently i saw an ad for smart ULIP and a guaranteed NAV plan by SBI LIFE. Wanting to know more about it, logged into their site http://www.sbilife.co.in/ and tried to generate a benefit illustration. Error message showed "Cannot find table 0" Guess their punchline on their site is true "SBI LIFE - WITH US YOU ARE SURE" Sure that you are going nowhere. A company of this scale cannot even create a simple benefit illustration.

Sunday, July 4, 2010

Not an Agent for Aegon Religare

There are repeated references to aegon in my blog. Just wanted you folks to know, i am not an agent for Aegon Religare or selling its products. It just happens to be the cheapest term plan and dont be misled by agents talking about claim settlement ratio etc... the claims settlement will improve only as more and more people buy and more and more people die. It just happens that LIC has had the largest number of insurance policies sold so far and obviously they will have the maximum number of claims history. I strongly believe that IRDA will look closely at all claims ratio of all private players and in fact private players are more than keen to settle claims (if it happens) but modern medicine and better quality of life is giving indians longer life. Don't fall prey to LIC agents and their tricks.

Friday, December 11, 2009

Max New York - 5 Star Plan

Hi

It was interesting and humorous to read the 5 Star plan from Max New York

Let me put the plan in perspective

* - Guaranteed Convenience - NO Medical check ups - This is actually counterproductive. According to me every individual should choose that plan which requires compulsory medical checkup - two reasons - one the company pays for it thereby it is of no cost to you - two if the policy is accepted, you can be damn well sure that you are in good healh, if it is rejected you can be certain thereis something wrong with you and it acts as an early warning signal for your health. So this is a no brainer - why is this a STAR i fail to understand

* - Guaranteed Life Cover - 10 times your policy - I have taken a policy which has a premium of Rs. 18,000 and a life cover of 25 lacs. Approximately 250 times.  Of course, i had to undergo medical tests, but my cover multipl eis 150 times ANNUAL COVER. Why is it a STAR that MAX NEW YORK gives a 10 times of your premium as life cover ?Can someone who is imaginative explain this to me?

* - Guaranteed Returns - 3.5% - If you were to invest in USD or in GBP you would get this rate. If you invest in a corporate depost or an RBI deposit you would get double this rate. Why is this a STAR? LIC's jeevan Ashay gives you 7.7% return guaranteed and you can tke the life cover from RELIGARE iTerm plan for a pittance. I fail to understand why this is a STAR

* - Guaranteed Benefits - 10% of your premium is added in the last 5 years of your plan. Considering time value of money it is equivalent to paying 0.68% extra today for year 15, 0.64%extra for Year 16 and so on till year 19. Assuming a 19 year product. This did not look like a STAR to me

* - Guaranteed Policy Continuance - this is what insurance is suppsed to be isnt it?

Overall i term this a ZERO STAR plan.. If you have excess money to burn and unable to learn how to do the MATH, this plan is for you.

TRY2XL@gmail.com

Thursday, December 3, 2009

LIC Jeevan Saral

Hello Folks,

I have seen lots of advertisements and flooded with enquiries about whether LIC JEEVAN SARAL is a good product. Most people are misled by the term '250 times premium'. Actually it is only 20 times the premium, but cleverly camouflaged as 250 times because life cover is calculated as a multiple of ANNUAL premium and not monthly premium. Secondly as in any other endowment plan, the plan is loosely structured and does not have the clarity of what is the net investible amount from your premium, and how it will grow. My take on this - Go for a standard ULIP which gives you a cover component of upto 80 (or 960 in LIC parlance) i.e. 960 times the monthly premium. Else the best plan is to take iTerm Plan from Aegon Religare which is about 40% cheaper than most term plans in the market and then think how you want to deploy your savings. Post Office Monthly Income plans give you a pre tax yield of 8.9% and Public Provident Fund is another beautiful option. Avoid this plan unless you have complete clarity on what it has to offer.

Balaji