New Direct Tax Code Presented in Parliament on 30th August 2010 disappoints

The New Direct Taxes Code Bill introduced in Parliament on 30th August, 2010 is very different then what it was proposed in its initial as well as revised draft. It has many surprises and would disappoint Individual taxpayers who were expecting a lot from the Finmin. Although it is not a complete disappointment as we will be getting more than what we have at present. Please find the summary of Draft presented in the parliament 

• It will become effective from April 1, 2012 instead of April 1 2011. The DTC operationalization has been put on hold for a year to give tax practitioners, taxpayers and tax administrators time to become familiar with the new provisions.
  
  

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Purchasing or renting a house- The debate continues

In my earlier post (The magic of compounding), there was a very heated as well as healthy discussion with one of my reader regarding "Is it better to buy a house or simply rent it " and invest the entire capital on which power of compounding would would work which might give higher returns with no strings attached. Although every individual might have different view in this regard, I found 1 very useful calculator at http://www.itrust.in/tools-and-calculators/Buy-vs-Rent/Calculator.jsp which gives a rough estimate based on some inputs. Although there are many assumptions, as well as there might be regulatory changes in future which might change the dynamics.

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True story - How Mis selling happens in ULIP

I am sure that we all get calls from Corporate agency of various insurance companies. Although earlier I always use to disconnect the call without listening but today I thought why not listen to the person. This was the call from one particular policy of a renowned Private life Insurance company. Please read the interesting conversation I had with that particular caller. Why I am not highlighting the Insurance company is that Corporate agents of other companies would not be any different.

Caller: Very good afternoon sir, I am

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Review - ICICI Pru iProtect Online Term Insurance

I have always emphasized about having a term Insurance in your portfolio in my earlier post as it offers High Coverage at much lower cost as compared to any other Insurance products like ULIP and Endowment plans. 

In the term insurance segment, you all must have heard about Aegon Religare I-Term Plan, a revolutionary product which was launched last year offering Online term insurance at really lower cost as compared to other products available in the market. Those who have not heard please refer to my Post Lowest Premium Term Insurance Policy in India

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LIC Jeevan Saathi Plus: Table No. 197

LIC’s Jeevan Saathi Plus is a unit linked plan wherein a couple can take the insurance cover on their lives under a single policy. The proposer under the plan shall be called Principal Life Assured (P.L.A.) and the other life (wife/husband) shall be called Spouse Life Assured (S.L.A.). The premiums can be paid either in lump sum (single premium) or regularly throughout policy term. The P.L.A. can choose the level of cover (Sum Assured) for both lives within the limits, which will depend on whether the policy is a Single premium or Regular premium contract, age and the amount of premium agreed to pay. For regular premium policies, in case of death of the P.L.A. during the term of the policy, the plan also provides for waiver of all future premiums including outstanding premiums, if any, provided life cover is in force.

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LIC Jeevan Bharathi - I Table No. 192

LIC’s Jeevan Bharati-I – is a plan exclusively for women. It is a with profit plan having special features considering the needs of women. The plan also provides for Accident Benefit, Critical Illness Benefit and Congenital Disability Benefit as optional Riders

1. SPECIAL FEATURES

1. Encashment of Survival Benefit as and when needed:

The policyholder at her option may avail the survival benefit any time on or after its due date. If opted to avail later, increased survival benefit at the rate decided by the corporation from time to time will be payable. 

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IRDA starts Nation-wide Grievance Call Center for Complaints against Insurance Companies

Are you having a problem with Claims or other issues with an insurance company and your insurer is not paying any attention to your complaint?For those facing problems with life insurance claim settlements, better times are here as IRDA (Insurance Regulatory and Development Authority) has started a new service where you can approach by phone or E-mail. You can now approach the IRDA on its toll-free number or on the contact numbers of special Designated Officers which is available on a click. 

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Twelve steps before buying an Insurance policy

Insurance is one of the most important aspect of financial planning, which takes care of the Risk part. However it is really difficult to understand which Insurance product is most suitable according to our needs as well as stages in our life. Most of us rely on the expertise of their Insurance advisor, broker, or sales representative to help us make the right decision. It would not be advisable to rely totally on the advise of Insurance agents/Representative as Insurance is a push based product and the product in which agents/representatives get is generally advised by them.

Here are some steps you can take to ensure you get the right product for the right price:

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Looking for Higher Health Insurance Cover: Here comes Top-up Insurance cover.

In the times of rising medical costs the perfect health protection for you and your family it is important that you have adequate health insurance cover for your family. Although most of us already have cover upto 5 lacs by paying hefty premiums we have never thought of opting for health insurance cover of 10 lacs, 15 lacs 20 lacs and so on.

Since most of the insurance companies offer health cover only upto 5 lacs, buying 4 insurance cover of Rs 5 lacs each will turn out to be a very costly proposition. Here come new type of Health insurance cover " Topup insurance cover" In which you can take topup insurannce cover upto 15-20 lacs by paying fraction of premium which you will have to pay by taking 4 insurance cover of 5 lacs each.

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