New National Pension System ( NPS ) withdrawal rules

The Pension Fund Regulatory and Development Authority (PFRDA)  has relaxed partial withdrawal norms for NPS subscribers. With this, NPS subscribers can withdraw up to 25% of their money from their corpus thrice in their lifetime.

The first withdrawal is now permissible after three years from the date of joining. Earlier, NPS subscribers were allowed to withdraw their corpus after completion of 10 years.

This amount will be tax-free in the hands of subscribers.

New Image

Currently, NPS subscribers can withdraw partially for higher education or marriage of their children, fund their entrepreneurial dream or professional skill development, construction or purchase of first house and treatment of specific ailments like cancer, kidney failure, paralysis etc.

Like NPS, EPFO also allows partial withdrawals. However, since there is no such limit on withdrawals, many people pull out their money from their EPFO account. As a result, many subscribers are left with a small corpus for their post-retirement days defeating the very purpose of EPFO.

Another key development is the choice of a pension fund for central government employees. Now, such employees can choose pension funds including private sector pension funds, with the change of fund being allowed once every year.

Partial withdrawal is permitted under the following conditions

1. For higher education and marriage of children including a legally adopted child.

2. For purchase or construction of a residential house or flat. In case, the subscriber already owns a house other than ancestral property, either individually or in the joint name, no withdrawal is permitted.

3. If the subscriber, their legally wedded spouse, children, including a legally adopted child or dependent parents suffer from any specified illness, which shall require hospitalization and treatment in respect of diseases such as Cancer, Kidney Failure (End Stage Renal Failure), Primary Pulmonary Arterial Hypertension, Multiple Sclerosis; Major Organ Transplant, Coronary Artery Bypass Graft; Aorta Graft Surgery; Heart Valve Surgery; Stroke; Myocardial Infarction; Coma; Total blindness; Paralysis; Accident of serious/ life-threatening nature; Any other critical illness of a life-threatening nature, withdrawal is allowed.

4. To cover expenses by a subscriber for skill development/re-skilling or for any other self-development activities.

5. To cover the expenses by a subscriber for the establishment of own business or any start-ups.

6. To cover medical and incidental expenses arranging out of disability or incapacitation suffered.

Mistakes investors make without an advisor

Easy access to financial information on the internet means that any investor can access a list of top performing schemes. Newer, easy to use online investment platforms have also taken the pain out of the transaction process. So do investors need expert guidance on financial matters?

The answer is a resounding yes. This is because an advisor’s role is not limited to identifying the best performing schemes; he matches client needs to right investments and helps them make wiser investment choices.

Here are seven investment mistakes that clients tend to make without the guidance of an advisor.

mentor1

Saving but not investing:

Most individuals save a certain portion of their earnings. However, these savings are often lying idle in their bank accounts. Owing to their busy work-schedule, investors may not get time to immediately research and invest their savings.

A financial advisor helps investor channelize his savings into investments. By helping an investor budget his earnings and expenses, he reduces the amount of cash lying idle in the bank. In short, an advisor helps an investor manage his money better and invest more.

cash

Starting late:

Delaying financial planning is quite common among investors. Goals like retirement and financial planning for a family seem far away for a millennial investor. However, many of them forget that time is the best friend of investments. Starting early gives investors more time to accumulate the required corpus. It allows them the flexibility to stop or adjust their investments temporarily in case of an emergency. Starting late can put a financial burden on investors, as they will have to save more to reach their key financial goals such as retirement.

Often people splurge their earnings on items they really don’t need.  Through a discussion on financial goals, an advisor can help the individual visualise the corpus he needs to accumulate to fulfil his financial dreams. This may encourage an individual to invest rather than spend frivolously.

compound

Wrong investment choices:

Wrong investment choices do not just refer to investments made in a Ponzi scheme; it also includes investments made out of line with an investor’s risk-return profile. To elaborate an investor may consider himself to be a risk-taker and invest in high yield bonds. Alternatively, he may invest a majority of his corpus in equities. However, in reality, his personal responsibilities and goals require him to take a more conservative approach. This is an example of a wrong investment choice.

A financial advisor makes a holistic evaluation of the investor’s risk tolerance, liquidity needs, goals and income before recommending an investment. This analytical and exhaustive approach helps advisors recommend the most suitable investment options to their clients. Moreover, an advisor can also help warn you against any investment scam.

New ImageInvesting based on the preconceived notion:

Our friends, family members often influence our investment decisions. For example, a young professional may invest the majority of his money in gold and FDs just like his parents. He may shun equities having seen his relatives lose money in day-trading. However, based on risk profile and age, he may be better off investing in riskier products.

Financial advisors can help clear any investment related misunderstandings from the minds of investors and guide them on making better investment choices.

LIC Jeevan Shikhar Plan : Tax Saver or Loser

Letting behavioural biases influence their decision:

Selling off their investments during a slight market correction, holding on to loss-making investment, ignoring research which does not align with the investor’s view are all examples of behavioural biases influencing investor’s decisions.

Advisors can help investors identify these biases and encourage them to stick to their financial plan rather than acting under the influence of emotions.11111

Taking too much debt:

Many investors dream of building their own home or buying a car. Generally, investors fund these purchases through a loan or EMI. If the amount of debt is not kept in check, it can balloon and become unmanageable. Excess debt may also hurt an investor’s credit score which in turn lead to higher rates on future loans.

By budgeting their income and expenses, advisors help evaluate whether an investor can comfortably service a loan.

More pain seen in NBFC sector in next few months

The 50 largest NBFCs are looking for Rs. 700 billion in just the current month. The sector needs Rs 1.2 trillion in the current quarter and will have to refinance 40 percent of its debt over the next 12 months.

In India, crises move slowly. We’ve known for years that the state-controlled banks that dominate the financial sector were groaning under the weight of bad loans. For years, though, the government successfully kicked the can down the road. All those assets haven’t been accounted for yet, the banks haven’t been fully recapitalized, the bankruptcy process isn’t working to schedule, yet somehow the banks are still chugging along.

Frustrated entrepreneur sleeping on the table with a bomb of financial crisis on his head. Concept of bankruptcy and financial crisis

India’s luck may be about to run out. The country’s shadow banking sector — dominated by what officials call “non-banking financial corporations” or NBFCs faces something of reckoning over the next month. Ever since a leading NBFC  Infrastructure Leasing & Financial Services Ltd., or IL&FS defaulted on some of its debt recently, the entire sector has been starved of funds. The amount shadow banks managed to raise through the sale of commercial paper short-term debt fell by 65 percent in October, according to Edelweiss.

union liquid

cp paper 2IL&FS ran into trouble because it was borrowing short to lend long. Given that such behavior is common throughout the sector, everyone is worried about whether shadow banks will be able to roll over their debt. The 50 largest NBFCs are looking for Rs. 700 billion in just the current month. The sector needs Rs 1.2 trillion in the current quarter and will have to refinance 40 percent of its debt over the next 12 months.

principle ultraSome of the bigger shadow banking players, particularly in housing finance, might find that the liabilities due to be paid are higher than their assets maturing over the same period. The sector is in dangerous territory.

For India and its government, this poses a real problem one that will get worse if a few big NBFCs collapse because there’s insufficient liquidity in the market. While shadow banks account for at most 15 percent of lending in India, they seemed like safe and attractive destinations for the savings of the middle-class. They’ve also become central to infrastructure finance over the past few years. If a lack of funds slows down the real estate and infrastructure sectors and thus construction blue-collar jobs, too, would be lost. This isn’t the sort of thing any government wants just months before an election.

BOI AXAThat’s why all sorts of bailout schemes are being planned. Some of them might be worth trying. Most, though, look like bad ideas.

For instance, India’s largest bank, the State Bank of India, has promised to buy Rs. 450 billion of shadow-banking assets and banks have been allowed to lend more to NBFCs. There’s nothing inherently wrong with a bank buying distressed assets, as long as we can be sure it’s being done in the bank’s best interests and not because bureaucrats in New Delhi think that state-run banks’ money is theirs to command. If people fear that banks aren’t being sufficiently discriminating when buying NBFC assets, they’d have even more reason to worry about the asset quality of those banks. In other words, bailouts could spread contagion, not contain it.

What’s more problematic, perhaps, is the government’s insistence that the Reserve Bank of India opens up a special window to lend money to the sector as it has for banks. Think of this as being something like what the Federal Reserve did during the 2008 crisis when it expanded its historic role and chose to become a lender of last resort even to shadow banks.

dsp creditThe RBI is resisting; it doesn’t think there’s a systemic risk here. It also thinks it can do better than the central banks of the West did in 2008. While the latter may have prevented a crisis, finance got off too easy. The RBI seems convinced that India’s shadow banks need to clean up their act and they won’t if they get access to easy money now. If a firm or three end up going under, so be it. That would be better than using public money to create a dozen more failures such as IL&FS over the next few years.

This is a genuinely brave and praiseworthy stand. One of the great wonders of Indian economic history is that so few firms are allowed to fail in an economy that constantly under-performs expectations. That’s one reason few sectors manage to rise above mediocrity: The market is never really allowed to work.

This crisis may be an opportunity to change that mindset. India needs a vibrant shadow banking sector; there are some things that regular banks just can’t or won’t do. But the country won’t get one by coddling institutions that are borrowing at the wrong tenures and lending to the wrong sectors.

By Bloomberg

Government Cautions People Against Risks in Investing in Virtual ‘Currencies’ ( Bitcoin ); Says VCs are like Ponzi Schemes

The ministry of finance cautioned people against the risks of investing in virtual currencies such as bitcoin which lack government fiat, comparing them with Ponzi schemes.

This follows a crackdown by the South Korean government on trading of bitcoins which led to an 8% drop in its value on Thursday.

Download (PDF, 38KB)

Are We Headed for Another Dot-Com Disaster?

bitcoin

“There is a real and heightened risk of investment bubble of the type seen in Ponzi schemes, which can result in sudden and prolonged crash exposing investors, especially retail consumers, losing their hard-earned money. Consumers need to be alert and extremely cautious as to avoid getting trapped in such Ponzi schemes.”

Bitcoin compared to other bubbles.

The Reserve Bank of India (RBI) has issued three warnings against investments in cryptocurrencies — one each in December 2013, February 2017 and earlier this month. “The government also makes it clear that VCs are not legal tender and such VCs do not have any regulatory permission or protection in India. The investors and other participants, therefore, deal with these VCs entirely at their risk and should best avoid participating therein.”

Be alert Bitcoins are not approved by RBI

 

Why do I need a personal accident Insurance Policy?

These days due to increasing number of vehicles in the country, the number of accidents are happening. Life is capricious or uncertain. Anything can happen to anyone at any point in time. People purchase insurance to protect themselves financially against such unfortunate events. A good insurance portfolio ensures that all eventualities cover you or your finances. Life insurance proceeds will ensure that your family achieves the financial goals in your absence. A health insurance plan will provide quality health care for you and your family. Many people of us are inclined to feel that if we have adequate life, health or critical insurance, your finances are protected.

What about an accident or an illness that causes total or partial disability, which in turn compromises your ability to earn income at the level before the accident. Life insurance will typically not cover such a scenario. Health insurance covers only hospitalization expenses. You can see there is a gap, which is not covered. It is in such cases that a Personal Accident Cover can come in handy. Personal Accident Insurance plans offer limited coverage but are still better than nothing.Under your term cover, you might get the accident benefit rider on extra payment but it will mostly pay off in the cases of permanent total disability, thereby leaving all other temporary and partial disabilities. 

accidentAccidents are categorized as one of fatal health hazards worldwide. When this health hazard is put into the frame of a country where one person dies by accident every four-minute, it does require our attention. According to World Health Organization (WHO) report, about 12.5 crore people die every year due to accidents and between 200-500 crore sustain injuries.

A personal accident policy covers death, permanent total disability, permanent partial disability and total temporary disability due to an accident. First of all, these events have to happen in an accident. If the insured person dies or gets totally or partially disabled through a natural illness, such disability (or death) will not be covered under a personal accident policy.

If one day on your way back home you meet with an accident which may leave you paralyzed for life? It is scary. But, this can happen and might leave a long-lasting impact on your life. With lives lost daily and injuries rising rapidly due to accidents, we come across many cases of permanent total or permanent partial disability. A personal accident cover helps in such a scenario by providing coverage for disability, which is not typically covered under either life or health insurance.

personalWhat if you fall victim to temporary total disablement, how would you meet the income/Job loss caused by it. In such a case, your personal accident cover comes handy with income coverage part. This means, if for some time you are completely bedridden due to injury, you will be paid a certain percentage of your sum assured weekly to compensate the income/Job loss scenario.

When you are young, your chances of meeting with an accident are higher. According to WHO report, people aged between 15 and 44 years account for 48% of global road-traffic deaths; If this is just the data for deaths, imagine the rate of disability prone youth. Hence, it is always advisable to opt for a personal accident cover when you first start earning. The plan provides a considerable protection for a very low premium. While you get 100% payout in case of permanent total disability, in partial disability you get paid depending on the extent of the loss. For example; for the loss of an eye, the policy will pay 50% of the total coverage, for the loss of a leg it will typically pay 50-70% of the total coverage.

Say a strict no to Guaranteed Life Insurance Plans

Regardless of the fact whether you got hit by a two-wheeler or a four-wheeler, your personal accident insurance will cover even minor things like falling off a bike, among others. Not only this, even small injuries like broken bones, fractures, cuts, burns, etc. which do not require hospitalization, get covered under a personal accident cover.

The rule of thumb says you should go for a cover that is eight to ten times your annual income. The personal, emotional or mental trauma triggered by accident often leaves a permanent scar on life. Therefore, having a personal accident insurance can decrease that stress and can make your life a little less stressful. It can brace you from the financial hardships.

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The premiums for an accident cover are abysmally low. For a sum assured of Rs 5 lakh, your premiums can be as small as Rs. 600/- p.a. for death, total and partial disability coverage. This is probably equivalent to what you may pay for a meal for two when buying a food delivery app. However, we suggest that you should always buy a cover, which is at least ten times your annual salary. This is because your accident cover acts as your income in the event of death or disability. The product currently is an evolving one, and most insurers provide a protection of up to Rs 30 lakh online. The higher sum assured can be brought offline only.

HOW CAN YOU SETTLE YOUR INSURANCE CLAIM IF REJECTED?

Personal accident cover is required only to take care of permanent disability (total or partial). Your life insurance, health insurance, and emergency corpus should take care of accidental death, accident-related hospitalization and temporary loss of income.

Permanent disability, total or partial, can compromise your earning ability. In fact, it can even add to your expenses. You may require domiciliary treatment (treatment at home), physiotherapy sessions or nurse support. No health insurance coverage will cover such costs beyond a point.

Future Supply Chain Solutions Ltd IPO Review

Future Supply Chain Solutions Ltd. (FSC) is a supply chain and logistics company. Future Supply Chain Solutions is part of Kishore Biyani’s Future Enterprise Ltd. The company was incorporated in 2006. The company offers automated and IT-enabled warehousing, distribution and other logistics solutions. It has customers in various sectors all across India, including ATMs, automotive and engineering, retail, fashion & apparel, food – beverage, FMCG, e-commerce, health-care, electronics and technology, home and furniture.

It has 42 distribution centers across India, which covers approximately 3,500,000 square feet of warehouse space.

List of anchor investors

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The company offers customers services in three key areas:

  1. Contract Logistics
  2. Express Logistics
  3. Temperature-Controlled Logistics

The promoters :

Future Enterprises Limited ( Kishore Biyani Group company)

Main objects of the issue are:

1. Avail the benefit of listing of the Equity Shares on the Stock Exchanges;
2.To Enhance stability and brand image and
3.To provide liquidity to its existing shareholders.

FUTURE

IPO Dates & Price Band:

  • IPO Open: 06-December-2017
  • IPO Close: 08-December-2017
  • IPO Size: Approx Rs. 650 Crore (Approx)
  • Face Value: Rs. 10 Per Equity Share
  • Price Band: Rs. 660 to 664 Per Share
  • Listing on: BSE & NSE
  • Retail Portion: 35%
  • Equity: 9,784,570 Shares

Market Lot:

  • Shares: Apply for 22 Shares (Minimum Lot Size)
  • Amount: Rs.14,608

Allotment & Listing:

  • Basis of Allotment: 12-December-2017
  • Refunds: 14-December-2017
  • Credit to demat accounts: 14-December-2017
  • Listing: 18-December-2017

IPO Registrar:

Link Intime India Private Ltd

Lead Managers:

  • IDFC Bank Limited
  • IIFL Holdings Limited
  • Yes Securities (India) Limited

Do Not Compare Yourself with Other Investors While Making Investment

Risks and Upsides

Logistics service providers face the following general challenges in the market:

Foreign direct investment activity is uncertain and is dependent on global policies and market volatility.

A slowdown in the user industry could affect the volumes handled by logistics service providers.

Quality and availability of infrastructure could impact performance.

Intense competition and low barriers to entry in certain segments could affect logistics service providers.

Increasing scale could be challenging.

The express logistics industry is sensitive to high operating costs; and

There is a need to continuously invest in and evolve technology.

Strengths

One of the largest service providers with an extensive network of facilities in a fast-growing third-party logistics market.

Comprehensive solution for supply chain requirements.

Diverse customer base across many sectors.divrsificationAt the forefront in introducing new standards of technology and automation in the logistics industry in India.

Longstanding relationship with Future Entities.

Experienced management team with logistics and retail sector-specific knowledge.

Khadim India Limited IPO Review

Strategies

Capitalise on the growth of the third-party logistics industry in India.

Target growth by identifying new customers, increasing its share of existing customers’ third-party logistics spending and leveraging existing relationships.

Expand addressable market through customized and new service offerings.

Invest further in infrastructure and expand its network.

Explore inorganic growth opportunities.

Continue to improve operating efficiencies and implement technological and process enhancements.

indian log mktNegative

The Future Entities are its key customers and its Promoter and certain of its Group Companies account for a significant portion of its revenue. Any failure to maintain its relationship with these customers will have a material adverse effect on its financial performance and results of operations.

FSC’s business is affected by prevailing economic conditions in India and indirectly affected by changes in consumer spending capacity in the sectors we serve within India.

FSC may face competition from a number of international and domestic third-party logistics companies, which may adversely affect its market position and business.

Delays or defaults in payment by its customers could affect its cash flows and may adversely affect its financial condition and operations.

An inability to pass on any increase in operating expenses to its customers may adversely affect its business and results of operations.

FSC are heavily dependent on machinery and equipment for its operations. Any breakdown of its machinery or equipment will have a significant adverse effect on its business, reputation, financial results and growth prospects.

FSC business is highly dependent on technology and automation and any disruptions of or failure to update such technology or automation could have an adverse effect on its results and operations.

Changing regulations in India could lead to new compliance requirements that are uncertain.

The trend toward outsourcing of supply chain management activities, throughout India or within specific sectors, may change, thereby reducing demand for its services.

Conditions and restrictions imposed on FSC by the agreements entered into with some of its customers could adversely affect its business and results of operations.

The performance of its express logistics and temperature-controlled businesses may continue to decline.

Dependence on third-party vendors could have an adverse effect on its business financial condition and results of operations.

Some of its lease agreements may have certain irregularities.

FSC’s Promoter, Group Companies, and Directors are involved in certain legal proceedings and potential litigation.Any adverse decision in such proceedings may render us/them liable to liabilities/penalties and may adversely affect its business and results of operations.

Compititive positioning of Logistics service providers 

KEYFinancials

For FY 2017, 2016 and 2015, the revenue from operations was Rs. 5,611.83 crores, Rs. 5,198.70 crores, and Rs. 4,079.63 crores, respectively. (A CAGR of 17.3%.)

For FY 2017, 2016 and 2015, the net profit was Rs. 457.54 crores, Rs. 294.27 crores, and Rs. 246.57 crores, respectively, (A CAGR of 36.2%.)

For FY 2017, 2016 and 2015, the EBITDA was Rs. 742.82 crores, Rs. 699.40 crores, and Rs. 639.40 crores, respectively, (A CAGR of 7.8% during the last three Fiscals.)

Financial snapshot of Key companies.

financial snapshotValuations

On the upper price band of Rs.664/- and Restated FY17 EPS of Rs.11.69, P/E ratio works out to be 56x. Even based on last three years restated EPS of Rs. 9.41, P/E ratio works out to be 70x. Means, companies are asking higher price band of Rs.664/- in the P/E ratio of 56x to 70x. Its only listed peers Mahindra Logistics Ltd. is trading at P/E ratio of 68x. Hence we compare this way; Future supply chain is overpriced.  

Grey market premium

Currently, Grey market premium is Rs. 20/- ( Seller )

DISCLAIMER

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here.

 

Under performance of Equity Mutual Fund against their respective Benchmarks

A large number of equity mutual funds in the country has underperformed against their respective benchmark indices over the last five years.

Around 44% of the open-ended diversified equity mutual fund schemes failed to beat their benchmark in the last year. Nine schemes underperformed their benchmarks by over ten percentage points. 31 schemes underperformed by five to ten percentage points. There are 275 open-ended diversified equity schemes.

MFEven the schemes that managed to beat their benchmarks in the last year, 26 schemes outpaced their benchmark by only up to two percentage points.

Moving to specific categories, out of 65 large cap schemes, 30 schemes underperformed their benchmark.

What are Dynamic Funds? ( Video )

The mid-cap category was the worst hit, with 62 percent schemes underperforming. We had a total of 34 mid-cap schemes on our list. 

Around 50 percent multi-cap schemes failed to beat their benchmark. Four in seven small-cap schemes remained under-performers.

Sectoral schemes, which are considered risky because of their focused sector exposure, had 11 under-performing schemes out of 49 schemes in total.

We have compiled a set of top under-performing funds in one-year period across equity categories given in the following table.

return

The scorecard reveals a majority of large-cap equity funds failed to beat the S&P CNX Nifty, the benchmark for large caps, with 53.33 percent underperforming their benchmark over the last five years, 57.14 percent during the previous three years and 52.63 percent over the previous year.

The percentage of actively managed equity funds underperforming the benchmark indices has seen a declining trend since December 2010. However, their number still exceeds those outperforming the index.

Retirement Fund : What is a Systematic Withdrawal Plan ( VIDEO )

Many actively-managed equity mutual fund schemes have failed or struggled to beat their benchmarks. Always place a lot of emphasis on consistency of performance while choosing a scheme to invest. As a rule, ignore short-term scorching performance while picking a scheme.

However, data from the diversified funds and equity-linked saving schemes (ELSS) suggests a percentage of funds outperforming the benchmark in both one-year and three-year period is stable as compared to five-year period.

Active managers of equity-oriented hybrid funds have also fallen behind benchmarks over both the one-year and five-year time frames.

 

DISCLAIMER

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here.

LIC CANCER COVER PLAN – REVIEW

LIC had launched its second health insurance related plan which is named as LIC Cancer Cover (Plan-905) on 14th November 2017. LIC’s Cancer Cover is a regular premium payment health insurance plan which provides financial protection in case the Life Assured is diagnosed with any of the stages of Cancer during the policy term. This plan covers both the early stage cancer and significant stage cancer.

It is an online health insurance plan which has low premiums, and it comes with some benefits and add-on features.

LIC CANCER PLANFeatures-

It comes with numerable benefits like lump sum benefit, premium waiver benefit, income benefit which would be paid till ten years every month, and many more.

  • This plan has one month grace period.
  • Loan facility is not available in this policy as the policy will not acquire any paid-up value or surrender value.
  • The term period of policy is 10-30 years.
  • Tax rebate available under Income Tax under section 80D for premium amount paid.
  • It comes with two sum assured plans, i.e., Level 1 and Level 2.
  • This policy is non-linked and regular premium paying health insurance plan.
  • Basic sum assured is between Rs 10 Lakhs to Rs 50 Lakhs.
  • Free look period of 15 days if the policyholder is not satisfied with terms and conditions of the policy.
  • The policy will lapse if premium not paid within the grace period, though it can be revived but within two years of first unpaid premium.
  • The policy can be bought through online on LIC website.
  • No third party agencies are involved in this policy.
  • Nominations are available in this plan.
  • Policy can be assigned under as per Sec 38 of Insurance Act 1983.

Say a strict no to Guaranteed Life Insurance Plans

Sum Assured Options-

  • Level Sum Insured

The basic sum insured will remain the same throughout the policy term period.

  • Increasing Sum Insured

The sum insured increases by 10% of basic sum insured each year for first five years starting from the first policy anniversary or until the diagnosis of  first event of cancer, whichever is earlier. On diagnosis of any specified cancer as mentioned above, all the claims will be based on the increased sum insured at the policy anniversary coinciding or prior to the diagnosis of the first claim and further increases to this sum insured will not be applicable.

Benefits-

  • Lump sum Benefit-
  1. Early stage cancer In this stage, the early stage cancer is diagnosed, 25% of sun insured would be paid immediately to be insured.
  2. Major stage cancer in this stage of cancer, 100% sum insured would be paid on being diagnosed.
  • Premium Waiver Benefit-
  1. Early stage cancer In this stage of cancer, first three years premium would be waived and later the premium payment to be continued.
  2. Major stage cancer In this stage, all future premium payments would be waived off.
  • Income Benefit-
  1. Early stage cancer benefit is not available.
  2. Major stage cancer In this stage, 1% of basic sum insured would be paid every policy month for ten years irrespective of the policy term, i.e., even if policy tenure is over, this benefit amount has been paid.

LIC Jeevan Shikhar Plan : Tax Saver or Loser

  • Tax Benefit-

Tax benefits are available under section 80D of medical insurance but not under 80C as this is health insurance plan and not life insurance plan.

  • No Maturity and Death Benefit is available in this plan.

Eligibility Criteria for this plan-

LIC TABLEPremiums Payable under this plan-

For 20 years of term period and sum insured of Rs. 10 lakhs would have premiums accordingly:

  • Male whose age is 30 years For level 1 premium is Rs. 1,404 and for level 2 premiums is Rs. 1,841.
  • Male whose age is 40 years For level 1 premium is Rs. 3,044 and for level 2 premium is Rs. 4,224.
  • Male whose age is 50 years For level 1 premium is Rs. 9,936 and for level 2 premium is Rs. 14,101.
  • Female whose age is 30 years For level 1 premium is Rs. 2,856 and for level 2 premium is 3,953.
  • Female whose age is 40 years For level 1 premium is Rs. 5,546 and for level 2 premium is 7,753.
  • Female whose age is 50 years For level 1 premium is Rs. 9,900 and for level 2 premium is Rs. 13,476.

Waiting periods in this plan-

A waiting period of 6 months will be applied from the date of issuance of policy or date of revival of risk cover whichever is later, to the first diagnosis of any stage of cancer.

What are the Reasons Behind Most Women not Having a Health Insurance Cover?

Exclusions-

  • Any Pre-Existing Condition.
  • If the diagnosis of a Cancer was made within 180 days from the Date of issuance of policy or date of revival of risk cover whichever is later.
  • For any medical conditions suffered by the life assured or any medical procedure undergone by the life assured if that medical condition or that medical procedure was caused directly or indirectly by Acquired Immunodeficiency Syndrome (AIDS), AIDS-related complex or infection by Human Immunodeficiency Virus (HIV).
  • For any medical condition or any medical procedure arising from the donation of any of the Life Assured organs.
  • For any medical conditions suffered by the Life Assured or any medical procedure undergone by the Life Assured, if that medical condition or that medical procedure was caused directly or indirectly by alcohol or drug (except under the direction of a registered medical practitioner).
  • For any medical condition or any medical procedure arising from nuclear contamination; the radioactive, explosive or hazardous nature of nuclear fuel materials or property contaminated by nuclear fuel materials or accident arising from such nature.

 

DISCLAIMER

All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here.

The biggest worry for global financial markets is China

China is the 2nd largest economy in the whole world and carries substantial economic hit with its trading partners. However, the slight fall in China’s equity market on 23rd November 2017 has set a fret in financial markets of China.

China Blue-chip stock index, CSI 300 had experienced its worst downfall in 17 months on 23rd of November. CSI 300 index fell by 2.93% as the market became worried about rising bond yields and PBoC deleveraging campaign.

CHINA

The current year, China’s bond yields have risen by 93 bps and are trading at 3-year highs. The sharp rise in China bond yields specifies the government’s determination to control corporate debt, which involves them in a talk that Chinese economy could fall in the coming future.

                                                        China CSI 300 Index

CSIThe top stock on Hang Seng was WH Group Ltd which stood up 1.69% and the stock which suffered loss was AAC Technologies Holdings Inc which sustained a downfall of 4.24%.

The 3 biggest H-shares percentage decliners were China Pacific Insurance Group Corporation Ltd which had a downfall of 4.73%, New China Life Insurance Corporation Ltd which has 4.7% and China Merchants Bank Corporation Ltd down by 4.1% while the biggest stocks which perform well were China Minsheng Banking Corporation Ltd which stood up 2.41%, Great Wall Motor Corporation Ltd which gained 0.98% and China railway Construction Corporation Ltd who stood up 0.77% in the Chinese financial market.

                                                China 10 Years Bond Yields

BONDSThe CSI 300 index is moving smoothly by 3.3% and closed down at 3% which is its biggest loss since June 2016 i.e., within 17 months. The ChiNext Index stood down by 3.2% which is its highest downfall in 4 months. The other two stocks, i.e., Shanghai Composite Index and Shenzhen Composite Index fell more than 2% that day.

Three finance lessons for your child

According to the report, China’s five years corporate bond yields had risen by 33 bps in November 2017, which has hit a three year high of 5.3%. In China, there is more than 1 trillion dollar of local bonds which are going to get matured in the coming year 2018-2019, therefore, it is going to be expensive for these firms to roll over financing.