Till date, all my posts on life insurance plan were focused on why we should avail life insurance plan. At the same time, it is a fact that same shoe doesn't fit all. In certain cases, a life insurance plan might not be required. To clarify that in this post, life insurance plan means term insurance plan. Normally "Insurance" in India means "Life Insurance" only :) but traditional plans like money back policy, endowment plans etc. From a personal finance perspective and as a thumb rule, if you buy any financial product then you should ask 5W's i.e. What, Why, When, Where and Who/m. The ... Read More
5 Ques You Should Ask Your Financial Planner
Financial Planner can make or break your financial fortunes. A good Financial Planner is a lifeline for wealth creation. Unfortunately in the Indian context, USP of a Financial Planner is more of convenience factor rather financial planning. Recently, when i checked with one of my client Mr. Paresh from Mumbai, the services provided by his Financial Planner. He told me that financial products including mutual fund schemes are decided by his Financial Planner. He calls his Financial Planner whenever he would like to invest. The pickup boy collects the application form and cheque from him. He ... Read More
7 Financial Mistakes You Should AVOID
Everyone is bound to make financial mistakes because of complex personal finance world. Even i also learnt from my financial mistakes after paying price for the same. Financial wisdom says that "Listen to your mind". Most importantly "Heart should not overtake mind while making financial decisions". In my opinion, the biggest problem in our country which in turn is sole reason for committing financial mistakes is "FREE ADVICE". Its a fact that anyone giving FREE FINANCIAL ADVICE will have vested interest in mind. Be it insurance, stock or financial investment. Assuming i ask a bank employee ... Read More
ULIP – Investment or Insurance?
I am always confused whether to refer ULIP as Investment product or Insurance product. It cannot be attributed to my financial illiteracy. ULIP is a mix of both investment and insurance i.e. Jack of all trades. Till date ULIP has a roller coaster ride. Once it was darling of both buyer and the seller then it was most hated product which no investor wanted to touch. Thanks to IRDA for clearing most of the mess around ULIP. Acche Din of ULIP are back with dream run of stock market since Sep'13. In my opinion, fate of ULIP is linked to performance of stock market. Like Mangoes & Strawberry, ... Read More
Beware of Hidden ULIP Charges
ULIP Charges and Greed are synonyms for each other. ULIP (Unit Linked Plan) is a perfect case study of How Greed Kills. Greed is always both ways i.e. Banks/Insurance Provider's greed to sell more and Greed of investor for higher returns. ULIP was launched in 1971 but all the mess in ULIP started after private life insurers entered in 2000. ULIP misselling became so rampant that IRDA (Insurance Regulatory and Development Authority) had to step in. IRDA came up with regulations for ULIP to control ULIP charges in September 2010. I still remember that for few ULIP products, large portion of ... Read More