Q. I have been advised by my investment advisor that I should consider investing in a ULIP plan. My current age is 47 yrs. and I already have a term plan with sum assured of Rs 25 lakhs. My annual income is Rs 10 lakhs, and I have two daughters studying in college. Please advise whether I should consider investing in a ULIP. Please also suggest me some good ULIP plans. Mr. Ramanujam, Madurai
Ans.We have noted that you already have a term plan with sum assured of Rs. 25 Lakhs, but that is not enough as your annual income is Rs. 10 Lakhs and as per a thumb rule you must have at least 7 to 10 times of your annual income as sum assured. While going for a ULIP you have the flexibility of choosing equity or debt or hybrid for your investment part. Since you are only 47 yrs. of age, we would suggest you to go for equity based ULIPs so that you are able to create wealth as well as have the protection of Life insurance coverage.
Please note that if you are continuing with the old tax regime, your ULIP premium will entitle you to claim deduction u/s 80C up to a maximum of Rs. 1.5 lakhs p.a. Also, on maturity entire proceeds of the policy will enjoy tax free status in case the annual premium of ULIP plan is less than Rs. 2.5 Lakhs.
You may choose from the following options:
1. TATA AIA Fortune Pro
2. ICICI Lifetime classic
3. HDFC Click 2 Invest
For more details and help in filling the application form etc. please visit our Madurai branch. The address is given in last few pages of this magazine.
This story is from the August 2024 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 2024 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Thematic Fund Or Sectoral Fund, Which Fund Suits You?
A thematic fund is a type of mutual fund that focuses on investing in companies based on specific themes or trends.
Be Kind To Your Kidneys
The kidney is a vital organ in our body which is four inches long and two and a half inches in width.
Have You Included A Passive Fund In Your Portfolio Yet?
The assets under management (AUM) of passive funds recently crossed the Rs. 10 lakh mark. While a significant portion of this money comes from institutional investors, such as the Employees Provident Fund Organisation (EPFO), these funds are also gaining popularity among retail investors.
Mutual Fund
1. SEBI allows mutual funds to buy and sell credit default swaps (CDS)
Insurance News
1. The finance minister has launched a new NPS scheme named NPS Vatsalya
ASK THE EXPERT
Dear Sir, I attended your webinar on post-retirement financial planning. As advised by your good self, I invested in NPS after retirement.
Market Mystery: Some Important Investing Lessons from Fund Managers Themselves
Mr. Mahesh Patil is the Chief Investment Officer (CIO) of Aditya Birla Sun Life AMC Limited. As the CIO Mahesh oversees INR 3 lakh crore of assets under management.
How to make a cautious entry into equity funds during a bull market
The number of mutual fund folios has been rising, with flows via the systematic investment plan (SIP) route reaching new highs.
All that you need to know to kickstart your retirement planning process
We all enjoy planning for the future. It’s a good idea to plan ahead of time for anything, from the day’s activities to a vacation.
5 Steps To Achieve Your Financial Goals
From a beach house, a Jaguar, to traveling the world – there are many things in life that we want to accomplish.
