With their low-risk and high-return possibilities and easy switch options, New-age Unit-Linked Insurance Plans (NULIPs) offer a great solution to investors who worry about volatility in the market and prefer to hedge their investments. Targeting the new fourth-generation or 4G population and lure them to start early on their investment journey, NULIPS have greatly reduced most charges, including premium allocation, policy administration, fund management, and mortality. Most insurers have capped the fund management charge at 1.35 per cent of the fund’s value. This is deducted before computing the net asset value of the fund. Nowadays many insurance companies are also returning the mortality charges at the time of maturity. Hence these taxsaving investments are also offering a good value for your money.
It is but natural for any reduction or abolition of charges to sow doubts in the minds of potential investors on the feasibility of the plan or the insurer. After all, there’s never a free ride and someone has to pay for all the discounts and sops.
Casparus Kromhout, MD and CEO, Shriram Life Insurance, rightly points out, “Waiver of charges would lead to an increase in return for ULIP holders but that would also reduce the income components of insurance companies.”
A layperson cannot fully comprehend the functioning of these financial instruments. Therefore there is a brewing concern of hidden components insurers might levy to compensate for the reduction in regular charges. Allaying fears, experts, however, stress that these are transparent investment options.
Continue reading your story on the app
Continue reading your story in the magazine
Wage Redefined, Pay Reduced
Introduction of the new wage code from April 1 is likely to affect take-home salary for employees across public and private sectors but ensure a better retirement package
‘Invest Across A Wide Spectrum'
Actor Masumeh Makhija believes in diversity when it comes to planning her investments
SEIZE THE DAY, MY FRIEND!
It’s always, earlier the better, when it comes to planning for the time after you hang up your boots. It’s a longterm proposition and is often tangled with a host of duties and dreams. Saving from an early life smoothens the job but a late-starter is certainly not a no-getter.
Riding The Time Machine
Covid-19 has battered non-banking financiers, assets are in the throes of defaults, yet they have proved their resilience time and again, and crossed the bar. NBFCs – which throw the lifeline to the base of the pyramid – are fixed firmly on the ground with their unmatched ability to evolve into indispensability for the Indian economy
Lower Rate A Business Booster In Hard Times
Home loan interest rates have reduced over the last few months – at a time when the entire world went through one of the toughest phases. The economies have just begun reviving. A lower interest rate is the need of the hour to support the nascent resurgence in the Indian economy, says SBI Chairman Dinesh Khara in an interaction with Outlook Money. Excerpts from the interview:
Life Cover For Lives In The Lurch
Insurance regulator has issued a diktat for life insurance policies to cover transgenders but insurers see very few takers and buyers find the products too costly, too complex
It's Ease Of Doing Investments
Sebi plans to introduce regulatory-light regime with the debut of Accredited Investors in the Indian securities markets. The regulator faces a host of challenges to counter risks of investor frauds
Bank On Banks For The Nest Boom
BFSI stocks proved to be the best bet when everything went into a tailspin. A reviving economy pumps enough fuel in them to drive your funds to higher orbits
Always Invert To Get It Straight
Fill up your emergency bucket, house your interests in the investment bucket, and save in your dream bucket
Post Office Savings Schemes Banking On The Age
A higher risk appetite for faster and heftier returns divides India into two sections of investors. The seniors still trust the good-old Post Office Saving Schemes, while the juniors rush for new-age investment instruments.
Ease Of Compliance
Income-tax slabs unchanged, but small taxpayers will enjoy procedural relief in filing ITR and resolution of disputes; High-income earners may feel the pinch though
Save Tax & create wealth with ELSS in the year 2021
ELSS (Equity Linked Saving Scheme) is a popular investment tool to save tax under section 80C of the income tax act.
ईपीएफ और यूलिप से कर लाभ पर सीमा लागू
कर निर्धारण पुनः खोले जाने के लिए समय-सीमय में कटौती से करदाताओं का भय घटेगा
ELSS ULIPS NPS
Secure your long-term goals and retirement with these 3 tax saving investments
Tax-Saving: How To Avoid Last-Minute Pitfalls
The multiple advantages of planning your investment decisions early in the financial year
ULIP VS ELSS - Not Just A Matter Of Choice!
Undoubtedly, ULIP figures heavily in the minds of investors seeking an option for tax saving because the scheme also offers life insurance cover. However, does this attraction compensate for the other benefits offered by ELSS? Read on to know how the two fare against each other
How Ulips can work to your advantage: Know the fund options and transparency of charges
Unit linked insurance plan (Ulip) is an investment-linked life insurance plan that combines investment and protection.
Financial Advisors & You
In personal finance space, there are a lot of people who call themselves as financial advisors. However, it becomes difficult to identify a true financial advisor from myriad choices, forget demanding appropriate services from them. DSIJ explains different types of financial advisors and the services that you should demand from these advisors for a great service experience.
When To Choose Fixed Income And Market-linked Investments
Most investors want the best of returns with full safety of the principal amount invested.
How Various Fund Option Startegies In Ulips Help In Reaching Your Goals
It is widely suggested to plan for your long term goals and then link them to a tax saving investment.