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Old 1st September 2008, 09:42   #16
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Originally Posted by ashthedivx View Post
I am too inclining towards LIC's Komal Jeevan, try to get more an more information about the product. What were the points before picking "Komal Jeevan"
We have a known LIC agent in Kolkata who has been doing the LIC's for my family as well as for my grandfather, uncles, distant relatives etc. He suggested this plan. There are not much plans of insurance right from infant age. This is the best available plan.
Pls check the LIC website.

Say SA = 1 lakh, you pay prem = 7500 / yr till the kid attains 18 years.

After that in alternate years LIC will pay back the sum assured in 4 installments (at 18 = 20%, at 20 = 20%, at 22 = 30%, at 24 = 30%)
At age 26, the kid will get the SA + bonuses = comes close to 5 lakhs (for a SA of 1 lakh). You can either FD this money for later usage or use it for stationary / books needs.

hence if you do a 2 lakh SA then at 26yrs you can get close to 8 - 10 lakhs which can be used for his / her marriage/studies or invested for further use.

Abhi
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Old 1st September 2008, 12:25   #17
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Originally Posted by Sam Kapasi View Post
Don't get me wrong, don't be offended at my statement but take a moment and reflect on what we have come to.

Your little boy is 3 days old. He doesn't even have a name yet. He doesn't know feet from fingers, nose from toes and he is happily smiling innocently at everyone, grabbing anything you put in his little fingers, crying for his milk and pissing and pooping all over his little bed or in his diaper.

And we're discussing how much money he should have invested in his name.

It's not you Ash.

It's all of us.

What has the world come to? Doesn't anyone feel the way I do? I'm squirming really hard inside.
I think I can understand your point of view, but unfortunately in today's world, this is the least a father can do unless the kid is born with a silver spoon. One of the biggest worries that parents have is for their kid's education. Who does not want to provide their kids with the best possible opportunity when it comes to education? It would really kill you inside if you had to chose a lesser of two schools or colleges, because you cannot afford the fees in the newly come up IB school (for example). Or when the option of your kid being educated in some premier education program (which are costly in today's world) is out for you because of finances.

I know that I had to make some difficult choices as a student as my folks were not able to afford high payment towards a few of the courses that I wanted to take up. I just don't want my child to go through the same. My wife is 8th months pregnant and I too am passively thinking about what I can do for the child to secure his/her education. That's the least which I can do.

This is just my perspective and it may grossly differ from others - which is perfectly okay
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Old 1st September 2008, 12:44   #18
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I would suggest you look at a policy called Shooting Star from ING Vysya. It would mean paying a premium of about Rs.20000 (Minimum) for a period of 5 years, you would get fund pay out starting from 18 years of your child until 21 years. A good insurance advisor would be able to help you with the right option. You have the time to your advantage since your child is just born and you are planning already. Cheers. Way to Go.
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Old 2nd September 2008, 09:45   #19
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Originally Posted by akroy View Post
We have a known LIC agent in Kolkata who has been doing the LIC's for my family as well as for my grandfather, uncles, distant relatives etc. He suggested this plan. There are not much plans of insurance right from infant age. This is the best available plan.
Pls check the LIC website.

Say SA = 1 lakh, you pay prem = 7500 / yr till the kid attains 18 years.

After that in alternate years LIC will pay back the sum assured in 4 installments (at 18 = 20%, at 20 = 20%, at 22 = 30%, at 24 = 30%)
At age 26, the kid will get the SA + bonuses = comes close to 5 lakhs (for a SA of 1 lakh). You can either FD this money for later usage or use it for stationary / books needs.

hence if you do a 2 lakh SA then at 26yrs you can get close to 8 - 10 lakhs which can be used for his / her marriage/studies or invested for further use.

Abhi
Thanks for the heads up information, figures do looks impressive !! I also figured out that in this particular plan, premiums will be waived off even after death of guardian/parent.

Did you also looked into some other comparative plans offered by TATA-AIG and ICICI ?? I am not sure if those plans were available or not at time you picked up LIC "Komal Jeevan" but still the returns i.e. guaranteed 75 Rs @ 1000 Rs is still the highest among all.

Quote:
Originally Posted by pypkmsrikanth View Post
I would suggest you look at a policy called Shooting Star from ING Vysya. It would mean paying a premium of about Rs.20000 (Minimum) for a period of 5 years, you would get fund pay out starting from 18 years of your child until 21 years. A good insurance advisor would be able to help you with the right option. You have the time to your advantage since your child is just born and you are planning already. Cheers. Way to Go.
Can you elaborate it bit more precisely ??

MODS: Kindly merge two consecutive posts.

Last edited by GTO : 2nd September 2008 at 15:22. Reason: Merge requested
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Old 2nd September 2008, 09:58   #20
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Originally Posted by ashthedivx View Post
other comparative plans offered by TATA-AIG and ICICI ?? I am not sure if those plans were available or not at time you picked up LIC "Komal Jeevan" but still the returns i.e. guaranteed 75 Rs @ 1000 Rs is still the highest among all.
Personally I would like to stay away from this private players. They are very bad when it comes to claim.
For my family, LIC gave handsome returns and it is with us for last 50 years.

I picked up Komal Jeevan just now and I didnot even consider the private options .

Abhi
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Old 2nd September 2008, 10:54   #21
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Quote:
Originally Posted by ashthedivx View Post
Can you elaborate it bit more precisely ??

MODS: Kindly merge two consecutive posts.
The name of the policy is "Creating Stars" sorry that I had misquoted it. You could get more information from here

ING - Product Center

The advantage of the policy is you could put in a higher amount of money per year now since your costs are still lower as compared to maybe 5 years down the line, hence the possibility to save more. Once you are through with this possibilly you can opt for a SIP seperately which would be additional investment. You would get 20%, 30% & 50% of the fund value during the years 18, 19 & 20, with the balance fund value received at the 21st year of the child. Once you get the 1st payout we can either use it for the child's education or alternatively invest again in a much shorter time span - say for 5 years.

Cheers.
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Old 2nd September 2008, 11:04   #22
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Quote:
Originally Posted by Sam Kapasi View Post
Don't get me wrong, don't be offended at my statement but take a moment and reflect on what we have come to.

Your little boy is 3 days old. He doesn't even have a name yet. He doesn't know feet from fingers, nose from toes and he is happily smiling innocently at everyone, grabbing anything you put in his little fingers, crying for his milk and pissing and pooping all over his little bed or in his diaper.

And we're discussing how much money he should have invested in his name.

It's not you Ash.

It's all of us.

What has the world come to? Doesn't anyone feel the way I do? I'm squirming really hard inside.
i agree with u Sam -- however people plan everything from marriage to kids in this mad mad world -- i have allowed life to happen to me rather than taking life by the horns and making it work for me. However, when i look at my two kids, i feel a lot many times that they deserve much better than what i can offer them today. Heck, I am even planning to relocate( at the risk of reshaping my career) to a different place just to wider their horizons rather than restricting their knowledge to just the bookish education we tend to follow here.

Be a father to know one -- i used to fear my father before i became one, and then all of a sudden all his decisions and sacrifices hit me like a ton of bricks and that has changed me forever. I am no longer the carefree human and happy go lucky person i was.
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Old 7th September 2008, 00:52   #23
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Quote:
Originally Posted by akroy View Post
Say SA = 1 lakh, you pay prem = 7500 / yr till the kid attains 18 years.

After that in alternate years LIC will pay back the sum assured in 4 installments (at 18 = 20%, at 20 = 20%, at 22 = 30%, at 24 = 30%)
At age 26, the kid will get the SA + bonuses = comes close to 5 lakhs (for a SA of 1 lakh). You can either FD this money for later usage or use it for stationary / books needs.

hence if you do a 2 lakh SA then at 26yrs you can get close to 8 - 10 lakhs which can be used for his / her marriage/studies or invested for further use.

Abhi
Even I must plan one for my kid. I was researching and thanks for pointing towards this plan. This is one of the best plans in the market.
But the point to be considered is that this is a 'insurance' plan and the 'life risk' is factored in the returns.
This is the illustration from LIC site: Life Insurance Corporation of India

If you pay Rs 607 monthly for 18 years, after 26 years you will get the guaranteed amount of Rs 2,95,000 and returns on this work to be 5.4%.

A comparable scheme without 'Benefit on Death' is recurring deposit scheme of banks. But maximum term offered is 10 years. So, we will invest Rs 607 monthly for 10 years at 9.25% (SBI Rate). After 10 years, we will invest the matured amount in 8 years fixed deposit scheme and also continue the recurring deposit scheme for 8 more years. By doing this, at the end of 18 years, you will get Rs 3,34,731. Take Rs 1,00,00 off this amount and put the rest of the amount (2,34,731) in FD for 8 years. At the age of 26 years, you would have received a total amount of Rs 5,87,874 (this is before tax).

So a recurring deposit scheme gives better returns than an LIC policy.

Last edited by msdivy : 7th September 2008 at 00:55.
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Old 9th September 2008, 21:21   #24
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Quote:
Originally Posted by akroy View Post
Say SA = 1 lakh, you pay prem = 7500 / yr till the kid attains 18 years.

After that in alternate years LIC will pay back the sum assured in 4 installments (at 18 = 20%, at 20 = 20%, at 22 = 30%, at 24 = 30%)
At age 26, the kid will get the SA + bonuses = comes close to 5 lakhs (for a SA of 1 lakh). You can either FD this money for later usage or use it for stationary / books needs.

hence if you do a 2 lakh SA then at 26yrs you can get close to 8 - 10 lakhs which can be used for his / her marriage/studies or invested for further use.
These figures are wrong.

As per LIC website, for SQ 1 lakh, total payout would be 4.7 lakh (including pay backs at 18,20,22 and 24 years). And that is considering 10% bonus which is not guaranteed. Guaranteed return is just 3 lakh.

Overall, this plan is big ripoff. Two things:

1. It does not give adequate insurance. If something untoward happens, death benefit is lower then Fixed Deposits. In other words, if something untoward happens, LIC will not be paying premiums on your behalf.

2. Returns are abysmal. Similar investment in bank FD will give you 7.8 lakh rupees.

Consider this: If you create an FD and keep adding funds to that FD. This is the return you will get:

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And this is the return if you could withdraw funds at 18,20,22 and 24 years.

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Old 9th September 2008, 22:40   #25
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Some of these mutual fund companies may not even exist 20 years down the line !! so please.. please.. Don't keep all your eggs in one basket. Spread it around as much as you can - equity, real estate. Even old fashioned investments like gold, Fixed deposits in a nationalized bank, NSC certificates.

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I have to get it done as soon as possible myself. Lawyers on forum, can you advice if I plan to immigrate later, where should I create my will. India, US where I am, or the country where I go after sometime?
With the way population is growing (refer to the other thread), perhaps immigration is possibly the best investment you can give your child?
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Old 9th September 2008, 23:13   #26
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Originally Posted by spadival View Post
Some of these mutual fund companies may not even exist 20 years down the line !! so please.. please.. Don't keep all your eggs in one basket. Spread it around as much as you can - equity, real estate. Even old fashioned investments like gold, Fixed deposits in a nationalized bank, NSC certificates.



With the way population is growing (refer to the other thread), perhaps immigration is possibly the best investment you can give your child?
true, with the way my things are going, they will have citizenship or permanent residence of two countries and PIO from india. I am happy to reduce some of the population prpblem of india

The important thing is to keep them in touch with the global trends so they don't get typical american mindsel, in which case they will be highly likely to be disappointed when they see a third world country taking over theirs with it's superior intellect.

my favourite investment is real estate, i always see it as buying a solid angle of the earth. indisputable. as long we don't have land mafia in picture.

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Old 10th September 2008, 10:22   #27
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Insurance is meant to be Insure one against RISK of loss of life.

It was never meant to be a investment tool in my opinion

Take huge term policy to secure kids future. Never ever take money back( Children policies are nothing but a variant of this), endowment policies. returns are lees than FD /PF

Invest the remaining amount in PPF if your are risk averse or invest in MF

The overhead charges of Insurance companies are much more than MF's

MF's can not charge more than 2% as AMC fees per annum. where as Insurance companies charges 20% of premium as fee in the first year and around 4% every year onwards. this will automatically result in less amount being invested and hence less return's
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Old 10th September 2008, 10:31   #28
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Nice thread. I recently got married. Looking at the education fees (My niece is in 1st and her fee is 15K for a year. I had 20K for doing masters), looks like I need to plan beforehand. We are planning a child after 2 years but then I guess looking at education expenditures, I should start saving for my child early .
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Old 10th September 2008, 10:37   #29
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Insurance is meant to be Insure one against RISK of loss of life.
Losing one's kid is more of an emotional loss than a financial loss. IMHO, parents don't need not insure their kids. But parents need to insurance themselves and ensure kids are the nominees.
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Old 10th September 2008, 11:33   #30
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Losing one's kid is more of an emotional loss than a financial loss. IMHO, parents don't need not insure their kids. But parents need to insurance themselves and ensure kids are the nominees.
I meant the same. parents should insure themselves with a term policy to secure kids future.
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