It is time to submit the declaration form for the savings.The income tax to be paid this time is much more than the last year as because of some uncertain situations, I faced, I couldn't invest in the last years... and I am already too late to wait anymore to start investing.
At this point, every year, I feel the need of a subject on money management in school curriculum. It is actually very important in this era to make a decision about where to invest your hard earned money.I don't know, if some other fellows are facing the same dilemma. I hope my experience will act as a little assistance in making this decision.
I was thinking of some Life insurance corporations (LIC) scheme, as I was not at all aware of the market and it was quite difficult to have faith in private sector. (you know those terms with small asterisk at the bottom of contracts,'oh my god..' stuff ! )
A LIC agent came in office with some reference, and it just seemed a very timely visit. After some discussion, I decided to go for a pack of 3 schemes with premium of around 4000/- pm for 20 years, the plane were ok, till I called policy bazaar.com, to just compare what I was going to invest in.
The simple question, from the other side, was if I am investing for money or insurance?? I said, obviously sounding, both. Then the fellow, named Arun Sharma, said it won't serve any of the two purposes. I was a bit confused, as most of the people have a LIC scheme. I asked him if he could suggest something better. He explained the benefits of going for a dedicated life insurance plan and investment in mutual funds or some other investment plans.
The advice given was very satisfying. I just felt how useful it will be if I pay around Rs. 400000/- over a period of 40 years, comes to around 943 Rs. per month. this for covering the insurance only.
It was better than investing Rs 600000/- and getting back double and an insurance of 12 lacs in accidental death and 600000/- in case of normal death. The one suggested by this fellow, was with a cover of Rs 1 Cr. (a scheme from HDFC). I think it not only will give some tax saving but also the sum insured is huge in case something happens. The family won't be stressed as far as finance is considered. It made me realize that the actual insurance scheme is this, which will cover my family after me, as a small covering is not something one shall go for as it won't be very helpful.
on the other hand, for making money, investment shall be targeted on that only, say mutual funds, real estate and other investment plans. The purpose of this will be to gain as much as possible and shall not at all be mixed up with the insurance.
So, I think if someone is about to start an investment, a detailed analysis is necessary and I found policybazaar.com a helpful link and would suggest it, at least for advice. Whoever you consult with but make a wise decision and not a traditional one.
thanks cheers :)
At this point, every year, I feel the need of a subject on money management in school curriculum. It is actually very important in this era to make a decision about where to invest your hard earned money.I don't know, if some other fellows are facing the same dilemma. I hope my experience will act as a little assistance in making this decision.
I was thinking of some Life insurance corporations (LIC) scheme, as I was not at all aware of the market and it was quite difficult to have faith in private sector. (you know those terms with small asterisk at the bottom of contracts,'oh my god..' stuff ! )
A LIC agent came in office with some reference, and it just seemed a very timely visit. After some discussion, I decided to go for a pack of 3 schemes with premium of around 4000/- pm for 20 years, the plane were ok, till I called policy bazaar.com, to just compare what I was going to invest in.
The simple question, from the other side, was if I am investing for money or insurance?? I said, obviously sounding, both. Then the fellow, named Arun Sharma, said it won't serve any of the two purposes. I was a bit confused, as most of the people have a LIC scheme. I asked him if he could suggest something better. He explained the benefits of going for a dedicated life insurance plan and investment in mutual funds or some other investment plans.
The advice given was very satisfying. I just felt how useful it will be if I pay around Rs. 400000/- over a period of 40 years, comes to around 943 Rs. per month. this for covering the insurance only.
It was better than investing Rs 600000/- and getting back double and an insurance of 12 lacs in accidental death and 600000/- in case of normal death. The one suggested by this fellow, was with a cover of Rs 1 Cr. (a scheme from HDFC). I think it not only will give some tax saving but also the sum insured is huge in case something happens. The family won't be stressed as far as finance is considered. It made me realize that the actual insurance scheme is this, which will cover my family after me, as a small covering is not something one shall go for as it won't be very helpful.
on the other hand, for making money, investment shall be targeted on that only, say mutual funds, real estate and other investment plans. The purpose of this will be to gain as much as possible and shall not at all be mixed up with the insurance.
So, I think if someone is about to start an investment, a detailed analysis is necessary and I found policybazaar.com a helpful link and would suggest it, at least for advice. Whoever you consult with but make a wise decision and not a traditional one.
thanks cheers :)
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