File        : Jeev amrit Page 1.jpg
Description : JEEVAN AMRIT Page I

File        : Jeev Amrit page 2.jpg
Description : JEEVAN AMRIT Page 2

File        : Health + page1.jpg
Description : Health Plus page 1

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Description : Health Plus page 2

File        : Jeev amrit Page 1.jpg
Description : JEEVAN AMRIT Page I

The following file was arranged to be sent to the india_insurance_investment
group automatically.

   File        : health plus broch.exe
   Description : TAKE LIC's HEALTH & WEALTH POLICY
   Size        : 2575 KB

However, due to the large size of the file, it is not sent
through email.  Instead, you can access the file at this URL

http://in.groups.yahoo.com/group/india_insurance_investment/files/health%20plus%\
20broch.exe

File        : Jeev Amrit page 2.jpg
Description : JEEVAN AMRIT Page 2

File        : Health+ Page 2.jpg
Description : Health Plus page 2

File        : Health + page1.jpg
Description : Health Plus page 1

Dear sirs,

I am a share consultant and if i canvass SIP SHCHEMES OR HEALTH SCHEMES,what
would be my commission

hari_178@...
(0)9840164668


--- On Sun, 12/14/08, india_insurance_investment@...
<india_insurance_investment@...> wrote:

> From: india_insurance_investment@...
<india_insurance_investment@...>
> Subject: [india_insurance_investment] File - health plus broch.exe
> To: india_insurance_investment@...
> Date: Sunday, December 14, 2008, 4:12 PM
> The following file was arranged to be sent to the
> india_insurance_investment
> group automatically.
>
>   File        : health plus broch.exe
>   Description : TAKE LIC's HEALTH & WEALTH POLICY
>   Size        : 2575 KB
>
> However, due to the large size of the file, it is not sent
> through email.  Instead, you can access the file at this
> URL
>
>
http://in.groups.yahoo.com/group/india_insurance_investment/files/health%20plus%\
20broch.exe
>
>
>
>
>
>
> ------------------------------------
>
> Yahoo! Groups Links
>
>
>     (Yahoo! ID required)
>
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> mailto:india_insurance_investment-fullfeatured@...
>
>

File        : Jeev Amrit page 2.jpg
Description : JEEVAN AMRIT Page 2

The following file was arranged to be sent to the india_insurance_investment
group automatically.

   File        : health plus broch.exe
   Description : TAKE LIC's HEALTH & WEALTH POLICY
   Size        : 2575 KB

However, due to the large size of the file, it is not sent
through email.  Instead, you can access the file at this URL

http://in.groups.yahoo.com/group/india_insurance_investment/files/health%20plus%\
20broch.exe

File        : Jeev amrit Page 1.jpg
Description : JEEVAN AMRIT Page I

File        : Health + page1.jpg
Description : Health Plus page 1

File        : Health+ Page 2.jpg
Description : Health Plus page 2

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E-mail : info@...
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ph : 044-43072896.

With Warm Regards,
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Careerglo.Com.

Another good policy from LIC is Jeevan Tarang:
All benefits from Tarang are 100% non-taxable :
sec 10(10D).
U get
1. bonus
2. pension amount
3. death-benefit
4. loyalty-addition

A non-taxable pension.
A Government-guaranteed pension (sec 37 of LIC Act 1956).
An uniform pension. Never decreases.

Suppose U take a policy for a Sum Assured of Rs.12 lakhs,
for say 10 yrs,at the end of the 10th yr, U get Non-taxable Bonus
and from the 11th yr U get INR 66000 pa  i.e,Rs.5500 per month non
taxable pension  throughout Ur life till 100 th Yr.

Pls also visit my website - http://www.linkbrander.com/go/59251 for
more details on insurance & investments.

Also feel free to ask me for other details If U are interested. I
shall send U the necessary forms which U can fill & send to me along
with Ur cheque.

Thanx
Smt.RAJALAKSHMI GANESAN,
LIC Insurance & Fin Advisor,
CHENNAI
ganraj2006@...
Ph: 9884571620, 9840104409

LIC's MARKET PLUS 1:

This is a unit linked deferred pension plan.
You can take the plan with or without risk cover.
You can also choose the level of cover within the limits,which will
depend on whether the policy is a Single premium or Regular premium
contract and on the level of premium you agree to pay.

The allocated premiums will be applied to purchase units as per the
Fund type chosen. Your Unit Account will be subject to deduction of
charges as specified in the Policy Conditions.The value of the
units in the Unit Fund may increase or decrease,depending on the
investment return of the assets representing the chosen Fund.

1.Payment of Premiums: You may pay premiums regularly at yearly,
half-yearly or quarterly intervals over the term of the policy.
The minimum annual premium will be Rs.5,000/- increasing thereafter
in multiples of Rs.1,000/-. Alternatively, a Single premium can be
paid subject to a minimum of Rs.10,000 and thereafter in multiples
of Rs.1,000.

2.Benefits:
A) Death Benefit:
If the Life cover is opted for, the Sum Assured under the Basic
Plan together with the Fund Value of units either as a lump sum or
as pension.In case the policy is taken without life cover,then the
Fund Value of the units held in the Policyholder's Unit Account
shall be payable either as a lump sum or as a pension.

The amount of pension will depend on the then prevailing
immediate annuity rates under the annuity option chosen.

B) Benefit on Vesting:
On your surviving to the date of vesting, the Fund Value of the
units held in your Unit Account will compulsorily be utilised to
provide a pension based on the then prevailing immediate annuity
rates under the relevant annuity option. However, you may opt to
commute up to one-third of the Benefit to be paid as a lump sum.
Further,you may choose to purchase pension from LIC or other life
insurance company.

3. Accident Benefit Option: If you have opted for life cover, you
may opt for Accident Benefit equal to life cover subject to minimum
Rs. 25,000 and maximum Rs. 50 lakh (taken all policies with LIC of
India and other insurers). In case of death by Accident, an
additional sum equal to Accident benefit will be payable.

  4. Eligibility Conditions And Other Restrictions:

Basic Plan
Minimum Age at entry :             18 years completed
Maximum Age at entry :            70 years (age nearer birthday)
However if life cover is opted for, then 65 years
Minimum Age at vesting:           40 years (age last birthday)
Maximum Vesting Age   :          75 years (age last birthday)
Minimum Deferment Term:        5 years
Minimum Sum Assured   :         Rs. 25,000 for Single premium
Rs. 50,000 for Regular premium
Maximum Sum Assured   : Single Premium-Equal to single premium
Regular Premium - 20 times of the annualized premium

Cooling off period: If you are not satisfied with the Terms
and Conditions of the policy, you may return the policy to us
within 15 days.

Loan: No loan will be available under this plan.

Assignment: Assignment will not be allowed under this plan.

Exclusions: In case the Life Assured commits suicide at any time,
the Corporation will not entertain any claim by virtue of the
policy except to the extent of the Fund Value of the units held
in the Policyholder's Unit Account on death.
****************************************************************
Market Plus 1- It is a unit linked pension plan. U can invest a
minimum of Rs.10000/- pa for 10/15/20 yrs.
The  minimum returns  at the end of 20 yrs is approx INR 25 lakhs
23,00,000) which  will  fetch U a monthly pension of INR 25,000/-
with an option to get a commuted value also.

Pls also visit my website - http://www.linkbrander.com/go/59251 for
more details on insurance & investments.

Also feel free to ask me for other details If U are interested. I
shall send U the necessary forms which U can fill & send to me along
with Ur cheque.

Thanx
Smt.RAJALAKSHMI GANESAN,
LIC Insurance & Fin Advisor,
CHENNAI
ganraj2006@...
Ph: 9884571620, 9840104409

HI
I am Rajalakshmi Ganesan from Chennai,INDIA.
I am an insurance/fin advisor in LIC of India.

May I suggest that U to invest in the latest HEALTH+ scheme
of LIC which gives U total PEACE OF MIND regarding HEALTH
INSURANCE,SECURITY & completely TAXFREE returns(U/s 80C,80D & 10D).
`Health Plus' From LIC of INDIA-where HEALTH MEETS WEALTH- gives U
the freedom to withdraw from the fund value an amount equivalent
to the actual expenses U have incurred in respect of any
domiciliary medical treatment (domiciliary treatment benefit-DCB)
for himself or other members of the family,health coverage for
the entire family (husband, wife and children), and hospital cash
benefit(HCB) to meet hospitalisation expenses.

"Health Plus policy is unique in its kind providing health benefits
to entire family (husband, wife and children) in one policy and
provides daily hospital cash benefit, ICU expenses, major surgical
benefit and domiciliary treatment benefit"

A person paying Rs15,000 yearly premium for his family can claim
tax benefits under section 80d and can avail major surgical
benefits of Rs500,000 per member along with hospital cash benefit
of maximum of Rs2,500 per day.
During the term of policy, this benefit shall be available for 365
days for each member. Domiciliary treatment benefit can be availed
twice a year.

The policy also provides easy withdrawal of funds after three years.
U can visit my site/group :
http://in.groups.yahoo.com/group/india_insurance_investment
for more details.

Also feel free to ask me for other details If U are interested.
I shall send U the necessary forms which U can fill &
send to me along with Ur cheque.
Thanx
Rajalakshmi Ganesan
LIC FAMILY WELFARE & FINANCIAL CONSULTANT,
NANGANALLUR,CHENNAI,TAMIL NADU,INDIA
Email:ganraj2006@...
Phone:9884571620, 9840104409

The nation's pride,Life Insurance Corporation of India,has now
come up with a new Unit Linked Insurance Plan- LIC's HEALTH PLUS

So, whats special

It is HEALTH INSURANCE :-

The product called LIC Health Plus, will give the policyholder
the option to take health insurance cover for his immediate
family — spouse and children

The benefits will cover hospital cash benefit, major surgical
benefit,domiciliary treatment benefit, benefit at the end of
the policy term and death benefit.

The premiums paid will qualify for income-tax deduction under
Section 80 D. This means that U can claim a tax deduction of
up to Rs 15,000 a year and senior citizens up to Rs 20,000 a year

With all this, LICs Health Plus is a awesome buy for everyone.
For those who wish to insure or invest or plan for future or buying
mediclaim or health conscious ones or tax saving or just saving or
anything...

Sabke liye bas ek hi kaafi hai- LIC ka HEALTH PLUS

After all, a true company pooling hundreds of rupees from millions
of people and investing millions of rupees in hundreds of nation
building activities...

That's the way to go: LIC
Rajalakshmi Ganesan
LIC FAMILY WELFARE & FINANCIAL CONSULTANT,
NANGANALLUR, CHENNAI, TAMIL NADU, INDIA
Email:ganraj2006@...
Phone:9884571620, 9840104409

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E-mail : info@...
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Best Wishes
Customer Support Team
E See Marry.

MARKET PLUS I - Unit Linked Pension
Age: 0 to 70 yrs
Sr.Citizen Special- No medical checkup needed
Insurance Cover optional
Withdrawal after 3rd Yr
Min Rs.10000/- Yly
Mode: Single Prem, Yly, Hly, Qly
Best return on UR Investment
Inbuilt Pension Scheme
The BEST of LIC's EVER!
Ur investment of Rs.10000/- per month for 20 yrs will
yield a unbelievable monthly pension of Rs.1,50,000/-
after 20 yrs!!
For investing pls contact me, Your Fin Advisor :
Smt.RAJALAKSHMI GANESAN, CHENNAI
ganraj2006@...
Ph:9884571620, 9840104409

Tired of Paying Premiums For Life Insurance Every Mth/Hly/Year?
INVEST IN LIC'S JEEVAN AMRIT

Pay Only For 3 or 4 or 5 Yrs(choice is Urs!)
Get Free Life Insurance upto 30 Yrs with returns on maturity

Example:
If U pay a total Rs.16500/- for 5 Yrs, U get 1 Lakh Life Insurance
for 20 yrs & on maturity U get back Rs.1,14,500/-

Features:
Age: 13 to 70 yrs
Maximum Term if the plan: 30 yrs
Min Rs.10000/- Yly
Mode of Premium payment: Yly & Hly only

Contact me for taking this UNIQUE PLOICY!!:
Rajalakshmi Ganesan,
Chennai.
ganraj2006@...
Ph: 9884571620, 9840104409

Want to become a Hi NET WORTH Individual in 15 yrs?
==========================================================
Invest in MONEY PLUS-1 FROM LIC- The BEST of LIC's EVER!

LIC MONEYPLUS IS AN ENDOWMENT TYPE ULIP(INSURANCE + M.F.)
IT IS RISKLESS INVESTMENT TO GET THE SHAREMARKET BENEFITS
WITH INSURANCE BENEFIT.
U CAN SURRENDER either Fully or partially ANYTIME AFTER 3 YEARS at the
prevaling NAV.

Age: 0 to 65 yrs
Partial Withdrawal after 3rd Yr
Min Rs.5000/- Yly
Mode of premium payment: Yly,Hly,Qly & ECS

1) The appreciation @ 10% are now given by most banks for Fixed
Deposits.
But the experience of LIC's earlier such fund i.e.,Jeevan Plus,whose
NAV on date is Rs.14.6662(25.8 %)can be taken safely for MONEY PLUS also.
    Taking a projection of only 22% per annum for appreciation your
investment for 20 yrs @ Rs.10000 per yr is Rs.2,00,000 which
multiplies to a whopping minimum asset of Rs.23,60,167 at the end of
20 yrs.

2) The BUILT IN Life Insurance for U is initially Rs.1 Lakh upto fifth
year but it steadily grows upto Rs.23,60,167 in the 20 th year without
paying any huge extra premium.

3)Want to become a Hi NET WORTH Individual in 15 yrs? Invest minimum
of Rs.10000 per month(i.e., Rs.1.2 lakhs per year)for 20 years &
CREATE AN ASSET OF Minimum Rs.2,37,28,070!! Also get life insurance of
an equal amount for FREE!!

For investing pls contact me,Your Fin Advisor :
Smt.RAJALAKSHMI GANESAN, CHENNAI
ganraj2006@...
Ph: 9884571620, 9840104409

LIC's MARKET PLUS:

"IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER"

LIC's MARKET PLUS:

This is a unit linked deferred pension plan. You can take the plan with or without risk cover. You can also choose the level of cover within the limits, which will depend on whether the policy is a Single premium or Regular premium contract and on the level of premium you agree to pay.

 The allocated premiums will be applied to purchase units as per the Fund type chosen. Your Unit Account will be subject to deduction of charges as specified in the Policy Conditions. The value of the units in the Unit Fund may increase or decrease, depending on the investment return of the assets representing the chosen Fund.

 1.Payment of Premiums: You may pay premiums regularly at yearly, half-yearly or quarterly intervals over the term of the policy.The minimum annual premium will be Rs.5,000/- increasing thereafter in multiples of Rs.1,000/-. Alternatively, a Single premium can be paid subject to a minimum of Rs.10,000 and thereafter in multiples of Rs.1,000.

2.Benefits:
A) Death Benefit:
If the Life cover is opted for, the Sum Assured under the Basic Plan together with the Fund Value of units either as a lump sum or as pension. In case the policy is taken without life cover, then the Fund Value of the units held in the Policyholder's Unit Account shall be payable either as a lump sum or as a pension.

The amount of pension will depend on the then prevailing immediate annuity rates under the annuity option chosen.

B) Benefit on Vesting:
On your surviving to the date of vesting, the Fund Value of the units held in your Unit Account will compulsorily be utilised to provide a pension based on the then prevailing immediate annuity rates under the relevant annuity option. However, you may opt to commute up to one-third of the Benefit to be paid as a lump sum. Further, you may choose to purchase pension from LIC or other life insurance company.

3. Accident Benefit Option: If you have opted for life cover, you may opt for Accident Benefit equal to life cover subject to minimum Rs. 25,000 and maximum Rs. 50 lakh (taken all policies with LIC of India and other insurers). In case of death by Accident, an additional sum equal to Accident benefit will be payable.

 4. Eligibility Conditions And Other Restrictions:

Basic Plan
Minimum Age at entry :             18 years completed
Maximum Age at entry :            70 years (age nearer birthday).
However if life cover is opted for, then 65 years
Minimum Age at vesting:           40 years (age last birthday)
Maximum Vesting Age   :          75 years (age last birthday)
Minimum Deferment Term:        5 years
Minimum Sum Assured   :         Rs. 25,000 for Single premium
Rs. 50,000 for Regular premium
Maximum Sum Assured   : Single Premium-Equal to single premium
Regular Premium - 20 times of the annualized premium

5. Method of Calculation of Unit price: Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of allotment. There is no Bid-Offer spread (the Bid price and Offer price of units will both be equal to the NAV). The NAV will be computed on daily basis and will be based on investmenvestment in Government /Government Guaranteed Securities / Corporate Debt performance, Fund Management Charge and whether fund is expanding or contracting under each fund type.

6. Surrender:The surrender value, if any, is payable only after the  completion of the third policy anniversary both under Single and Regular premium Contract . No partial withdrawal of units will be allowed under this plan.

7. Other Features:
i)Top-up (Additional Premium): The policyholder can pay additional premium in multiples of Rs.1,000 without any limit at anytime during the term of the policy. In case of yearly, half-yearly or quarterly mode of premium payment such Top-up can be paid only if all premiums have been paid under the policy.

ii)Discontinuance of premiums and revival: If premiums are payable either yearly, half-yearly or quarterly and the same have not been duly paid within the days of grace under the Policy, the Policy will lapse. A lapsed policy can be revived during the period of two
years from the due date of first unpaid premium.

If you have opted for life cover, under Regular premium policies where at least 3 years' premiums have been paid, and the subsequent premiums are not paid, the life cover and accident benefit cover, if any, will be compulsorily available under the policy and the charges for the same if any, shall be taken, in addition to other charges, by cancelling an appropriate number of units out of the Policyholder's Unit Account every month subject to the following :

two years from the due date of first unpaid premium, or
two years from the due date of first unpaid premium, or
till such period that the Policyholder's Unit Account reduces to one annualized premium, whichever is earlier.

 iii)Increase / decrease of benefits: No increase (except to the extent of Top-up stated above) or decrease of benefits will be allowed under the plan.

iv)Conversion to annuity at Vesting date:The rate at which the amount at vesting date will be converted to an annuity is not guaranteed and will be based on the prevailing immediate annuity rates under the relevant annuity option at the vesting date.

 8. Risks borne by the Policyholder:
i) Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors.

 ii) The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is
responsible for his/her decisions.

iii) Life Insurance Corporation of India is only the name of the Insurance Company and LIC's Market Plus is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.

iv) Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer.

v) The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.

vi) All benefits under the policy are also subject to the Tax Laws and other financial enactments as they exist from time to time.

9. Cooling off period: If you are not satisfied with the �Terms and Conditions� of the policy, you may return the policy to us within 15 days.

10. Loan: No loan will be available under this plan.

11. Assignment: Assignment will not be allowed under this plan.

12. Exclusions: In case the Life Assured commits suicide at any time, the Corporation will not entertain any claim by virtue of the policy except to the extent of the Fund Value of the units held in the Policyholder�s Unit Account on death.

LATEST!!!TAX Planning Tips

An Indian Citizen can save tax under the following sections:

Section 80C of Income Tax Act 1961
A maximum of Rs. 1,00,000 can be claimed as a deduction from your
taxable income provided it is invested in any / all of the following:
* Premiums paid towards Life Insurance Policies
* Equity Linked Saving Schemes (ELSS)
ELSS are Mutual Fund schemes having a lock-in period of 3 years.
Examples: SBI Magnum Tax Gain Scheme, HDFC Tax Saver, Pru ICICI Tax
Plan, etc.
* Public Provident Fund (PPF)
* National Savings Certificate (NSC)
* Principal paid towards Housing Loan

Section 80D of Income Tax Act 1961
Deduction upto Rs. 15,000 is allowed in respect of medical insurance
premiums paid by cheque by an individual to benefit the assessee and
dependent family including spouse, children, and parents. The same
benefit is also available to an HUF for its members. For senior
citizens, the deduction is raised to Rs. 20,000. However, premiums
paid by senior citizens for covering health of their children,
dependent or otherwise, are not eligible for the deduction.

Section 80DD of Income Tax Act 1961
The total deductible amount under this section is Rs. 40,000.
Sec.80DD stipulates that a resident individual or a member of HUF
having a dependent relative who suffers from a permanent physical
disability (including blindness) or mental retardation is entitled to
a deduction of Rs. 20,000 in a year for medical treatment, training or
rehabilitation.

Payment to LIC's `Jeevan Aadhar' and UTI's `Special Plan for the
Handicapped' specially designed for such persons is covered by Sec.
80DD. Deduction under section 80DD is statutory in nature and is
allowed in full, irrespective of the actual expenditure incurred on
medical treatment.

Section 24 of Income Tax Act 1961
Under Section 24, the maximum amount of Rs 1,50,000 paid towards
interest on your Housing Loan can be deducted from your income.
However, the Principal component upto a maximum of Rs.20000/- will
come under Section 80C.

4 reasons why ULIPs score over endowment plans

Look at any advertisement for a life insurance product and chances are
that it will be for a unit linked insurance plan (ULIP). Such has been
the popularity of ULIPs in the recent past that they have outpaced the
growth of regular endowment plans. We take a look at the most
important reasons why ULIPs score over endowment plans.

1. The power of equity
Simply put, ULIPs are life insurance plans, which have a mandate to
invest upto 100% of their corpus in equities. While individuals have
the choice to shift between equity and debt (explained later in this
article), several studies have shown that equities are best equipped
to deliver better returns compared to their fixed-return counterparts
like bonds and gsecs. And given the fact that life insurance is a
long-term contract, equity-oriented ULIPs augur well for the policyholder.

2. Flexibility
While ULIPs offer the opportunity to invest upto 100% in equity, it is
also true that ULIPs provide individuals the flexibility to shift to
upto 100% debt. It is entirely upon the individual how he wishes to
allocate his premiums between equity and debt. This is not the case
with endowment type plans- individuals can't choose their investment
avenues and have to be content with the insurance company's investment
decisions which revolve largely around debt.

ULIPs are available in 3 broad variants: 'Aggressive' ULIPs, which
invest upto 100% of their corpus in equities, 'Balanced' ULIPs which
invest upto 60% of their corpus in equities and 'Conservative' ULIPs
which invest upto 100% of their corpus in debt instruments and the
money market instruments*. Individuals are free to decide where they
want to invest their money. For example, individuals with an appetite
for risk can invest their entire money in equities while conservative
individuals have the option to park their money in balanced or
conservative ULIPs.

* The percentages given in the paragraph above may differ across life
insurance companies.

That apart, ULIPs also provide individuals with the flexibility of
terminating/resuming premiums, increasing/decreasing premiums and
paying top-ups (i.e. a one-time sum over and above the regular
premium) whenever possible. These options are not available in regular
endowment plans.

3. Transparency
For the first time, ULIPs introduced transparency into the manner in
which life insurance products were being managed. This is something
that was missing in conventional savings-based insurance products
(like endowment/ money-back/ pension plans). To understand why we are
saying this, one has to first understand the structure of traditional
endowment plans. Traditional endowment plans have been opaque in more
ways than one.

To begin with, traditional endowment plans have invested a sizable
portion of their corpus in debt instruments like gsecs and bonds. The
quantum of money invested is not known. Individuals do not have access
to portfolios of endowment plans so they never find out how much money
is in debt/equities. Add to this the fact that the expenses, which
form a sizable percentage of the premium in the first few years, are
also not clear and you have a situation where the individual is
'investing' in life insurance purely on the basis of faith and little
else!

Unit linked plans brought transparency into the scheme of things.
Today, if an individual wants to invest in a ULIP, he knows upfront
what percentage of the premium is being invested, what are the charges
being levied and where his monies are being invested. This is a
welcome change for the policyholder. Another advantage ULIPs offer is
that they enable insurance seekers to compare plans across companies
and help him buy a plan that fits well into his portfolio. Also ULIPs
disclose their portfolios at regular intervals, so you know exactly
where your money is being invested.

4. Liquidity
ULIPs offer liquidity to the individual. He can withdraw money anytime
he wishes to once the initial years' premiums are paid. He will not be
levied with any surrender charges i.e. he stands to get the full
market value of his investments, net of charges, till date. This is
unlike conventional endowment plans where individuals tend to lose out
on surrender charges on surrendering their policies. Besides, part
surrender is also allowed in ULIPs. Simply put, part surrender allows
individuals to withdraw a part of their corpus and thus keep the
policy alive, albeit with some adjustments. This helps individuals
tide over a situation where they need cash but have few 'liquid'
investments at their disposal.

So does this mean that it is the end of the road for endowment plans?
Not quite! Individuals need to understand the de-merits of investing
in market-linked products like ULIPs. The latter are susceptible to
the vagaries of markets and can burn a hole in your portfolio over the
short term. So if you can't withstand that kind of volatility,
equity-oriented ULIPs are not the right investment option for you.
Insurance seekers would do well to take into consideration their risk
appetite as well as their overall financial portfolio before taking a
final call on ULIP investments. The ideal option is to have a prudent
mix of endowment and ULIPs depending on your preference for either
long-term growth or stability.

Medical insurance in INDIA

In recent times, there has been growing awareness about life insurance
products and the various benefits they offer to individuals. Offerings
like unit linked insurance plans (ULIPs) have done their bit to draw
individuals towards the insurance segment. Also tax benefits
(presently under Section 80C of the Income Tax Act) have contributed
to their allure and helped in popularising insurance products.

Conversely there are products like medical insurance (or mediclaim as
it is commonly referred to), which can add value to an individual's
insurance portfolio, but are relatively lesser known. In this note, we
discuss what medical insurance is all about and the various benefits
it offers to individuals.

What is medical insurance?
Medical insurance provides for reimbursement of hospitalisation
expenses for illnesses/diseases suffered or accidental injuries
sustained during the policy period. In other words, subject to the
insurance cover and the terms and conditions of the policy, the
insurance company undertakes to compensate the policy holder for
hospitalisation expenses that he incurs, during the policy's term.

To avail of the insurance cover, the policy holder is required to pay
a premium. The premium amount depends on factors like the policy
holder's age and health. The premium amount rises in line with an
increase in the insured's age, among other factors. In case of an
existing policy, wherein an insurance claim has not been made, the
insurance company compensates the policy holders by offering a higher
insurance cover (at the same premium) or by lowering the premium for
the subsequent years.

Premium amount
The table below provides an indicative list of the premiums from a
leading insurance company for its medical insurance policy for a cover
of Rs100,000.

Age
(Years)  Indicative Annual
Premiums (Rs)
25 - 35  1,470.34
36 - 45  1,599.42
46 - 55  2,288.57
56 - 65  2,606.21
66 - 70  2,916.00
71 - 75  3,124.76
76 - 80  3,866.67
(Inclusive of Service Tax charged at 12.5% and Education Cess charged
at 2.0%)

Added benefits
Insurance companies are known to offer discounts in premiums when
members of a family opt for medical insurance together vis-a-vis
applying for insurance in their individual capacities. Generally, most
policies cover upto 30 days of pre-hospitalisation and upto 60 days of
post-hospitalisation expenses; however an additional cost might have
to be borne for the same.

Most insurers also provide the facility of cashless hospitalisation by
tying up with third party administrators (TPAs). In other words,
policy holders can avail of medical treatment without incurring any
expenses during hospitalisation. Conversely, they would be required to
undergo medical treatment at their expense and subsequently file a
claim with the insurance company.

Tax benefits
Medical insurance premium paid is eligible for a deduction from gross
total income under Section 80D of the Income Tax Act. At present, the
eligible amount is Rs 10,000; in case of senior citizens, the same is
Rs 15,000. From the financial year 2007-08, the eligible premium is
Rs15,000. In case of senior citizens, the same is enhanced to
Rs.20,000. The premium payment has to be made by cheque, to keep in
force or effect the medical insurance.

Merits of taking medical insurance at a young age
It is best to take medical insurance at a younger age, when the
insurance seeker does not suffer from any ailments or sicknesses. This
is important because as one ages, there is a greater likelihood of
developing ailments. Existing ailments are not covered at the time of
opting for medical insurance. Hence it would be prudent to opt for the
insurance cover at an early age. Furthermore, taking a policy earlier
can also save the trouble of undergoing a medical check up.

Also given that insurance companies have increasingly started giving
senior citizens a cold shoulder (which is ironical given that most
individuals need hospitalisation/medical treatment at that age), it
makes sense to start early.

Finally, we present a check list of points to be considered while
buying medical insurance:
Check for the ailments/diseases that are excluded
Check whether expenses arising for treatment due to war, riots or a
terrorist attack are covered
Check the ailments that will not be covered in the initial years of
the policy
Check if cashless hospitalisation is included and also the number of
hospitals where this facility can be availed
Enquire about the compensation provided in case of partial or total
disability
In case the medical insurance policy is for dependants like parents,
check the maximum entry age
Ensure a complete understanding of the benefits accrued, in the event
of no claims being raised

SIP: All you need to know

Regular visitors and clients of Personalfn appreciate the importance
of the systematic investment plan (SIP) route of investing in mutual
funds. However it is surprising to note that it takes difficult times
(read volatile markets) for the investing community at large, to
appreciate the importance of such a handy facility.

Simply put, investing via an SIP entails making regular investments
(generally) in smaller denominations as opposed to making an one-time
lump sum investment. The intention is to capitalise on the volatility
in equity markets by lowering the average purchase cost. While few
would dispute the utility that an SIP can offer, there is a flipside
to the same as well. In this article, we discuss the pros and cons of
SIP investing.

How an SIP helps...

1. Lowers the average purchase cost
Perhaps the single most important advantage offered by an SIP is the
opportunity to lower the average purchase cost. This is achieved in
periods when equity markets experience a turbulent patch. Since the
investment amount for each installment is fixed, the investor gains by
receiving a higher number of units. An example will clarify this
better. Suppose the monthly investment installment is Rs 1,000 and the
fund's net asset value (NAV) is Rs 50; this will lead to 20 units of
the fund being credited to the investor. However, in the next month on
account of the volatile markets, the fund's NAV falls to Rs 40. This
will lead to a lowering in the average purchase cost; as a result, the
investor will have 25 units credited to his account. In other words,
an SIP can help investors benefit from volatility in equity markets.

2. Induces disciplined investing
Lack of disciplined investing is one of the major reasons for
investors not achieving their financial goals. For example, often
monies that are kept aside for investment purpose end up getting used
for extraneous purposes. As a result, the investor is even further
divorced from his goals. An SIP ensures that the investor continues to
be invested in a disciplined manner and thereby stays on course to
achieve his financial goals.

3. Lighter on the wallet
An often heard excuse for not investing is lack of monies. SIP takes
care of this problem by lowering the minimum investment amount. For
example, while the minimum investment amount for a lump sum investment
in a diversified equity fund could typically be Rs 5,000, for an SIP
it can be as low as Rs 500. As a result, investing via the SIP route
becomes lighter on the wallet.

4. Makes market timing irrelevant
Alongwith cricket and movies, timing the market ranks as a popular
pastime. Investors have an inexplicable urge for timing markets and
trying to get invested when markets have bottomed out. It's a
different matter that timing markets to perfection and doing so
consistently is beyond most investors. An investment via the SIP route
makes market timing irrelevant. On account of the on-going
investments, investors can afford to bid adieu to one of their
favourite pastimes and concentrate on more pressing matters.

When an SIP won't deliver...

1. In rising markets
An SIP could fail to deliver on its proposition of lowering the
average purchase cost, if equity markets rise in a secular manner.
Such a scenario is fairly possible over shorter time periods. As a
result, investing via an SIP could prove to be more expensive
vis-a-vis a lump sum investment. Hence, the solution lies in opting
for an SIP that runs over an appropriate time frame, say at least
12-24 months.

2. A directionless SIP
By a directionless SIP, we are referring to an SIP that is not a part
of an investment plan or an aimless SIP. It should be understood that
an SIP is not an 'end'; instead, it is the 'means' to achieve an end.
Hence starting an SIP in isolation is unlikely to be of too much help.
Instead, the SIP should form part of an investment plan aimed at
achieving a predetermined objective.

3. An SIP in the wrong fund
Investing via the SIP mode doesn't improve the prospects of a wrong
fund. A poorly managed fund stays that irrespective of the investment
mode. Its shortcomings will not be eliminated by an SIP. Hence the key
lies in first selecting a well-managed fund that is right for the
investor and then investing in it via an SIP.

As can be seen, the SIP mode of investing has a fair number of
advantages to offer; conversely, there can be instances when it may
not deliver as expected. Investors on their part should make
well-informed investment decisions after acquainting themselves of
both the pros and cons.

5 pointers for buying life insurance

Life insurance plays an important role in any individual's financial
planning process. For it is life insurance that helps secure the
financial future of the nominees. However, many individuals do not
know how to go about while considering life insurance products. We
have identified five points to remember before zeroing in on a life
insurance product.

1. Identify your needs
Before considering life insurance, it becomes imperative that
individuals first identify their needs. An individual should
understand whether buying life insurance is necessary to begin with.
For example, if an individual is single and earning but has no
financial dependants, then he may not really need life insurance. This
stems from the fact that nobody is going to be 'financially hurt' in
the absence of the insured (i.e. the individual in question).
On the other hand, we can consider a married individual who has family
members dependent on him. He also happens to be the sole earning
member in the family. Such an individual obviously needs life
insurance. This stems from the fact that his entire family is
dependant on him for financial support and in his absence, their
lifestyle would be severely impaired. Such individuals should have
adequate life cover as early as possible.

2. How much insurance do you need?
After having identified the need to buy insurance, the next step is to
ascertain the amount of cover needed. The concept of human life value
(HLV) can help in deciding how much life cover an individual should
opt for. The HLV takes factors like the individual's annual income and
expenses along with the inflation rate into consideration while
calculating the value.

3. Which product should you consider?
After having quantified the need for insurance, the next step is to
finalise a plan that will fulfil the individual's need. There are two
kinds of insurance plans - term plans and savings-based plans. A term
plan insures the individual for a high sum at a low cost. A term plan
makes for a good fit in all individuals' portfolios, irrespective of
their profile.
Many individuals also look at life insurance as a savings instrument.
Here, apart from insuring the individual's life for a certain amount
(i.e. the 'sum assured' in insurance parlance) savings-based life
insurance plans also give returns on maturity. This is unlike term
plans, which act as a pure risk cover and do not give any returns on
maturity.

Term plan: A feasible alternative?
	 Age (Yrs)  Sum Assured (Rs)  Tenure (Yrs)  Premium (Rs)
Term Plan  30  2,000,000  30  7,000
Savings-based plan  30  2,000,000  30  51,500

As can be seen from the table, it could become expensive for an
individual to adequately cover himself for the necessary amount with a
savings-based plan due to the higher premiums. Instead, individuals
can look at covering themselves with a term plan for the necessary
amount and invest their savings in various instruments at their
disposal like the national savings certificate (NSC), public provident
fund (PPF), bank deposits and mutual funds.

4. Select an insurance agent
Having understood how much insurance is needed, an individual then
needs to approach a life insurance agent. Individuals wanting to buy
insurance should preferably opt for full-time life insurance agents.
The agent should have a good track record to show for in terms of
offering objective advice in the client's favour and not his own. This
will stand the individual in good stead over the long run since life
insurance needs call for evaluation every few years and the insurance
agent will help the individual with the same over a period of time.

5. Compare policies across companies
Before zeroing in on an insurance plan from any company, individuals
should compare policies across insurance companies. This will help
them in evaluating which insurance plan is best suited to their needs.
One way of doing this is by contacting the insurance agent and asking
him for a comparative analysis of insurance plans. Another way is by
visiting the websites of different companies and scouting for relevant
information.

For example, an ideal term plan for a 25 year old can be the one that
offers him the necessary cover at the cheapest cost. For a unit linked
insurance plan however, different criteria like expenses, fund
management and flexibility offered will come into the picture. The
comparison will differ across various parameters depending on
individual needs as well as the type of plan chosen.