[ramki067]

My bro is 23 and want to start to take a life insurance(for 50L), rest to invest for tax savings and then invest for his future. What do you bhpians suggest? His take home is 15K/month and became a permanent employee from this month.

Thanks
Ramki

[amitk26]

Originally Posted by ramki067

My bro is 23 and want to start to take a life insurance(for 50L), rest to invest for tax savings and then invest for his future. What do you bhpians suggest? His take home is 15K/month and became a permanent employee from this month.

Thanks
Ramki

Does he have any liability ? If yes then he should buy insurance if he is Bachelor and no dependents then he should invest his entire money in investment instruments for both tax saving and investments for future.

He can always buy term insurance once he has dependents.

For tax savings : PPF , voluntary PF , Infrastructure Bonds
For investment : Mutual funds


For Insurance needs : Term Plan for the sum he needs as per liability + Accidental cover and health cover if required.

[carboy]

Originally Posted by ramki067

My bro is 23 and want to start to take a life insurance(for 50L),

Why does he want to insure his life?

[ramki067]

Originally Posted by carboy

Why does he want to insure his life?

True, my bad! What are the options he has now, for investment purposes?

Thanks,
Ramki

[ghodlur]

Originally Posted by ramki067

True, my bad! What are the options he has now, for investment purposes?

Thanks,
Ramki

Without any goal in mind, investments does not make sense. Ask you brother to list down his goals (Short term + long term). Since he is young and does not have any liability he can safely look into Equity - Mutual funds, Stocks, real estate etc.

He can reveiw his goals once he has additional responsibilites.

[neon_daytona]

I have a home loan for 26 lakhs with HDFC.
I have a wife and son as dependents.

I was planning to take a term insurance and needed advice.

First thing I wanted to take a house insurance from HDFC ERGO.
Premium quoted Rs 2600

Next is reducing coverage term for covering the loan(which would be better)? Single premium or Regular premium anything is fine.

I have a group life insurance coverage from employer which is roughly 3 times my Annual CTC. Plus a few endowment, money backs and ulips that amount to roughly Rs. 10lakhs.

Is that sufficient or should I need more. No other loans. I do have some emergency funds and PF accumulated to last easily for a year if needed.

[ghodlur]

First thing I wanted to take a house insurance from HDFC ERGO.
Premium quoted Rs 2600

Your post does not specifically say whether you need a home Insurance or home loan insurance. They are two different products. Home loan insurance is to cover the home loan in case death whereas the home insuarnce is to insure you home against any perils like fire etc. Looking at the amount quoted, it is likely for the latter than the former.

Next is reducing coverage term for covering the loan(which would be better)? Single premium or Regular premium anything is fine.

This depends on you paying capability. If you are comfortbale paying single premium then you should opt for it. This way you dont need to keep track every year for premium payment. Else regular premium is the only choice.

I have a group life insurance coverage from employer which is roughly 3 times my Annual CTC. Plus a few endowment, money backs and ulips that amount to roughly Rs. 10lakhs.
Is that sufficient or should I need more. No other loans. I do have some emergency funds and PF accumulated to last easily for a year if needed

The thumb rule is to have Insurance equivalent to 10 times your net salary.

[BaCkSeAtDrIVeR]

The thumb rule is to have Insurance equivalent to 10 times your net salary.

Allow me to rephrase that.

The insurance amount, if invested in safe instruments, should fetch your family a sum equivalent to your current income.

If that is very simplistic, introduce your own objectives :-D

[Rahulk76]

Hello Guys

One of my colleagues has surrendered a 5 1/2 year life policy. Will the surrender value recieved by him taxable ?

Rahul

[BaCkSeAtDrIVeR]

No - surrender proceeds of a life insurance policy are not subject to tax.

[PM - B]

Of the types of Life Insurance available,
1. Term Insurance is worth considering,

Term Insurance is like your car insurance, you pay the premium, if nothing happens, you do not get anything at the end of the term.
And NO, no No Claim Bonus either.

But this has an extremely low insurance premium

You can try the aegon religare site for an online quote.
For eg, if you are 30Years old and you take a 25 year term for a sum assurred of 3 crores, your annual premium is 31, 200.

I guess this would be one of the cheapest that is available to anybody, no negotiating or any such hassle.

[Jaguar]

Originally Posted by PM - B

Of the types of Life Insurance available,
1. Term Insurance is worth considering,

Term Insurance is like your car insurance, you pay the premium, if nothing happens, you do not get anything at the end of the term.
And NO, no No Claim Bonus either.

But this has an extremely low insurance premium

You can try the aegon religare site for an online quote.
For eg, if you are 30Years old and you take a 25 year term for a sum assurred of 3 crores, your annual premium is 31, 200.

I guess this would be one of the cheapest that is available to anybody, no negotiating or any such hassle.

I am 28 years old and getting a quote of Rs. 60,555 for a 25 year plan with 3 crores sum assured. Where are you getting such a low quote from?

I got from Life Insurance Quote – Generate instant term life insurance quote

[PM - B]

you can check here.

iTerm Plan | Term Life | Term Insurance | Term Life Insurance

[selfdrive]

What is surrender value? does it apply to term policies too?

I have a term policy for 33L which I am considering to discontinue (I have paid for 3 years). I will be taking a new policy for 50L at the same premium as the other policy. Should I expect any surrender value?

[hrman]

Originally Posted by selfdrive

What is surrender value? does it apply to term policies too?

I have a term policy for 33L which I am considering to discontinue (I have paid for 3 years). I will be taking a new policy for 50L at the same premium as the other policy. Should I expect any surrender value?

Term policies don't come with any surrender value. You would lose any premium you have paid as of date.