Khota Paisa

Review : LIC Market Plus

Posted in Reviews by khotapaisa on July 19, 2009

When I started analysis of LIC market Plus, I went to the LIC website looking for the policy brochure. Not surprisingly, I couldn’t find it on the website. LIC seems to be one of the very few insurers who don’t provide full policy details on the website. Anyways, there was some information along with benefit illustration provided on the website.
LIC Market Plus I is a ULIP based pension plan. There are three riders available for the customer i.e.  Life Cover, Accident Benefit & Critical Illness Benefit. The last two riders are available only if you opt for the life cover rider. It’s good to see that life cover is available as a rider. It’s always better to have the flexibility in insurance products. Since there is not much information available on the website, let’s look at the cost of the ULIP. Here comes the big surprise! For a 20 year policy without life cover, the net return turs out to be 8.6% for 10% return on investment. This makes it the one of the lowest cost pension plan (most probably the lowest cost ULIP) available in the market.
Overall, though not much information is available for this plan, it is an extremely low cost plan. So if you are planning to buy this plan, you will certainly be paying much less than most ULIP investors.

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186 Responses

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  1. Sreeni said, on August 13, 2009 at 1:01 pm

    Hi,
    Thank u very much for your posts.
    Myself and wife have 20Lakh home loan.
    My wife has one simple lic policy, for which we are paying 7400 per annum.
    I do not have any life policy, for which I’m planning for.
    Kindly do suggest.

    Thanks-Sreeni

    • khotapaisa said, on August 13, 2009 at 7:51 pm

      Hi Sreeni,
      Since you have a loan of 20 Lacs, you must have a term loan(20 lacs) to cover your loan. This insurance should be separate & for the duration of your loan. In addition, you need to have term plan to protect your family. Based on the info provided, it is not possible to suggest the insurance amount.

  2. Connan said, on October 23, 2009 at 6:36 pm

    I am planning to invest for my retirement. I have 2 options-
    -Money back policy from LIC
    -Mutual Funds.
    Since I already have insurance, I do not want to take the Money back from LIC since it already has insurance. Is the Market plus plan a good bet for good returns over 1–12 years or I should pick up a mutual fund and start a SIP.

    Please advise.

    • khotapaisa said, on October 24, 2009 at 8:04 pm

      Ravi,
      Regular investments in mutual funds are theoratically better option than ULIPs owing to ULIP loads. But these investments need periodic monitoring and adjustments(as needed). With the coming ULIPs(low cost), ULIPs may well start scoring on par with MFs on the cost front. I would suggest that if you find it easy to track & manage your investments(or have a good financial advisor), go for MFs. If you are looking for fill-it-shut-it-forget-it kind of experience, go for ULIPs. Remeber that when you buy ULIP, always opt for the all-equity fund option.
      You can check out this post for more on the proposed ULIP cost structure.
      https://khotapaisa.wordpress.com/2009/09/20/ulips-towards-a-bright-future/

  3. Suzi said, on November 5, 2009 at 1:58 am

    Hi,

    I had invested 10k pa in lic money plus. Growth funds. How much should i wait to get the maximum profit asap.
    Also i invested 10k single premium in market plus growth funds. what do u say? how long should i wait to get the maximum proft?

    thanks!

    • khotapaisa said, on November 5, 2009 at 9:58 pm

      Since you have already invested money in ULIPs, the best option is to stay invested. You should not invest in ULIPs for anything less than 10 years. I hope that you have taken the policy for more than 10 years. In any case, keep paying the premium and let your fund grow. As for your single premium policy, again you have bough it. So stick to it. For future, don’t buy single premium policies for small amounts. Better invest it in mutual fund etc for a reasonable period.
      Hope it helps.

      • jothi said, on February 2, 2010 at 5:02 am

        Sir,
        I have taken LIC Money Plus Policy 100000 (1 Lakh Policy) on April 2007. Now i Have given 30,000 for this policy paid at 2500 as installment in every 3 months.When I take that policy my agent said that It is enough to pay premium for 3 years. you can take money of about 7,00000 in 20 years. like the below review in mouthshut.

        1)dont have to invest money after lock in period which is for 3 yrs only,
        2) Tax benefits of 80-c and 80-L too
        3) after 3 yrs we can take out the amount with interest every year laeaving only 20000 in it
        4) its a fixed scheme of 10000 rs only per year
        5) Its return are calculated at 10% pA according to its fact sheets which is very nominal in equity market , and is always 20 % or more in equity ,
        6) if you even pay first 3 years , its not compulsion to pay after that
        7) and if u dont take out that money ie 30000 of three years , than at the time of maturity it will easily give u 700000/- easily

        Is It true? I have opted for Growth Fund.I have plan to take money after 20 years and stop further premium payment. What I have to do? Kindly guide me.

      • khotapaisa said, on February 2, 2010 at 7:42 pm

        Hi Jothi,
        To reply to your question first.
        1. You must pay premium for the full term. Forget what the agent said.
        2. You get tax benefit under 80C. 80L is now clubbed into 80C.
        3. Take out money only if required. It is like a tree, the more you let it grow, the more it serves you.
        4. This is not a fixed income scheme.
        5. There is NO guaranteed return. Generally, 10-12% return over long term(10+ years) is acceptable. Don’t listen to the 20% stuff.
        6. There is no compulsion to pay after 3 years but you should keep paying.
        7. There is no guarantee that you will get atleast 7 lacs after 20 years.
        It’s good that you have opted for growth option. Just keep paying premium for the full term.

  4. amit said, on November 25, 2009 at 1:22 pm

    Hello,

    After watching & Analysing the Current Scenario in Market, I do want to invest in Shares & Mf, but i dont have any illustrative knowledge moreover not had any Financial Advisor, my LIC aggents & ICICI agents & other too suggest there’s accordingly.
    currently i was trying to put some amount ( 80,000 INR )approx investment in LIC market Plus.please suggest me how fruitfull it is.?

    • khotapaisa said, on November 25, 2009 at 3:20 pm

      Hi Amit,
      There is this simpe rule of investment that I follow – If you need the money within 5 years, put it in safe investment. If you need it after 10 years or so, put it in equity. And for anything between 5-10 years, put it partly in both. So, if you going to need the money within 5 years, invest it in long term debt funds. If you prefer fixed deposit, wait for some time for the rates to rise. For 10+ years, put it all in equity funds(large caps, diversified funds). For period between 5-10 years, you can put it either fully in debt instruments or balanced funds.

  5. Sekhar said, on December 2, 2009 at 3:19 pm

    Hi,

    I have around 55k investment yearly in LIC. 25K for Money back (25 years), 20K for Marketplus-1 (10 years) and 10K for jeevan suraksha (pension plan, 80ccc, 25 years).

    Now I want to invest 10K per year. What is the policy you suggest.

    I am 32 and planning for marriage in few months. Shall I go for NSC/ Mutual Funds/ some kind of savings. Plz suggest.

    Thanks,
    Sekhar

  6. Sekhar said, on December 2, 2009 at 3:20 pm

    Hi khotapaisa,

    I have around 55k investment yearly in LIC. 25K for Money back (25 years), 20K for Marketplus-1 (10 years) and 10K for jeevan suraksha (pension plan, 80ccc, 25 years).

    Now I want to invest 10K per year. What is the policy you suggest.

    I am 32 and planning for marriage in few months. Shall I go for NSC/ Mutual Funds/ some kind of savings. Plz suggest.

    Thanks,
    Sekhar

    • khotapaisa said, on December 2, 2009 at 8:44 pm

      Hi Shekhar,
      I am not sure why you need so many policies unless you have dependents. It is a bad idea ti buy insurance to get tax benefits. If you ask me, I would suggest getting out of money back & Jeevan suraksha. The pension plan you have right now will give you a corpus of around 4-6 lacs after 25 years. This will generate a pension of around 2-4000.- per month, where as your needs would be around 1-2 lacs per month. Other than the ULIP you have, both the plans give a return of 3-5% per annum. Even a fixed deposit will give you much better return. So, either make both the policies fully paid up(talk to your agent about it) or surrender it. The 30,000/- you will save can be invested in MFs thru SIP since you have time horizon of 10 or more years. If you need insurance, buy a pure term plan. Nothing else. It’s like this – in pure term plan you pay 10/-Rs for life protection which you feel is a waste. In all other insurance plans, you pay 100/-Rs and pay more charge indirectly. But you get the feeling that you are getting something back. So invest your 40k(with 10k extra you have) now in diversified equity funds regularly. If you want to play safe, go ahead and open a PPF account and put the money in it. It all depends on when you think you will need the money.
      I hope you will stick to term plans and avoid all other life insurance policies in future.

  7. Parminder Singh said, on December 10, 2009 at 5:47 pm

    Hi khotapaisa,

    I am 25 years old. I got married four months back. I am planning to invest the money. I have following options:

    1) LIC Market Plus Plan
    2) LIC Jeevan suraksha
    3) LIC Money back
    4) PPF Account

    This year I have 30K only. I want to invest in both terms. Long term and also short term in which I can get money like after 3 or 5 years. Next year I am planning to invest 50K-60K. Please suggest from above plans, which plan should I invest this year and how much should I invest or you have any other better plan for me.

    Thanks,
    Parminder Singh

    • khotapaisa said, on December 10, 2009 at 8:49 pm

      Hi Perminder,
      Congrats on your marriage. Before deciding where to invest, you should keep two things in mind.
      1. Your investment size(30k today, 50-60k next year) is variable. So, any before making any investment commitment, you need to be sure that your will be able to invest that amount for the investment period.
      2. Since you have both short & long term needs, you can put all long term money(10 yrs or more) in equity. For 3-5 years investment, I would suggest debt based investment as 3-5 years is too short for equity.
      So for 3-5 years need, you can invest in long term debt fund(say HDFC cash management etc), fixed deposit or recurring deposit(depending on whether you want to invest monthly or one shot).
      For long term, it’s better to go for diversified + large cap funds. If mutual fund is not feasible for you, you can go for ULIP like LIC Market plus.
      As for PPF, when you become father, give a ppf account as a gift to your child.
      DON’T TAKE ANY INSURANCE PLAN OTHER THAN TERM PLAN or ULIP. AND DO TAKE A TERM INSURANCE(IMMEDIATELY) TO PROTECT YOUR FAMILY.
      Wish you all the best in you personal & financial journey with your wife.

  8. Parminder Singh said, on December 11, 2009 at 12:45 pm

    Thanks for your kind assistance.

    So Shall I go for:

    1) LIC Market Plus Plan
    2) LIC Jeevan Anand

    these plans. right? I am not understand about short term plan. Like If I need the money after 5 years so which Plan will be best suitable for me?

    Thanks,
    Parminder Singh

    • khotapaisa said, on December 11, 2009 at 2:20 pm

      I have mentioned a line in all capital letters in my reply. That means a big NO to Jeevan Anand or similar policies. These type of policies are for ultra cash rich people.
      By Short Term I mean 0-5 years.
      Yes, You can go for ULIP like Market plus. But you must invest in it for atleast 10 years.
      If you want to invest for 5-10 years, you can invest in a combination of equity and debt. But no ULIPs for less than 10years. Go for mutual fund to invest in equity…if you can’t/don’t invest in mutual funds then invest in FD,RD,NSC etc for anything less than 10 years.

  9. U N Shankar Ram said, on December 13, 2009 at 5:13 pm

    I had invested Rs. 2 lacs in Lic Future plus in June 2006. My broker says that the NAV of this is now about Rs. 4 lacs. He suggests that I switch this to Market Plus 1.

    According to him the rate of growth will be better in Market plus 1.

    Is he correct?

    • khotapaisa said, on December 14, 2009 at 10:44 am

      Since it looks like you had taken single-premium policy, you won’t be paying any fee/charge on withdrawal now. But before you decide to withdraw it, I would like you to consider the following points.
      – Never buy single-premium ULIPs unless you have varialbe income(i.e. you are not salaried).
      – Any ULIP you buy(single or regular premium) MUST be for long term(10+ years) as you pay hefty higher fee in ULIPs.
      – Your investment (double in 3 years) has given you 20-25% of compuonded return. So, why sell something that is performing good?

      As for your agent, ask him how can he tell that growth will be better? Isn’t 20+% growth very good? The reason he is asking you to switch is that he will get a big comission on it.
      I would suggest you to stick to your investment. If you want to play safe, you can book part of your 2 lakhs in profit. So you could sell it partly (say you sell enough to get 1 lakh cash) and put it in a safe investment (FD, debt funds etc). That will give you a good cushion in addition to a performing investment.

  10. Susan said, on December 16, 2009 at 4:36 pm

    Dear K Paisa

    As a fellow till-recent financial illiterate, I was very impressed with your blog and some of the common-sense answers there, so am asking for your insight on my current queries–if you could shed some light on this it would be great. I am 32 yrs old freelancer (non-regular income).

    I currently have three small LIC policies, (1) Rs. 20,000 annual premium for Jeevan Bharti ULIP (Growth fund, 20 yrs), (2) Rs 10,000 annual for Jeevan Nidhi (small pension plan), and (3) Jeevan Bharti Rs. 20,000 annual (women specific plan with special riders for women-specific health ailments). So far I am happy with my choice here–should i change?

    Now I am looking for one solid, one-time investment in an equity-based product which does not require constant monitoring or a demat account. I am considering putting a lump sum in the LIC Market Plus growth fund with a 10 yr lock in. Do you think that is a sensible option in terms of returns and no-hassle value?

    Tx v much in advance!

    • khotapaisa said, on December 16, 2009 at 5:17 pm

      Hi Susan,
      Thanx for your encouraging comments. Your investments are fine specially looking at the long term investment horizon. The only things that doesn’t fit well in here is the Jeevan Nidhi pension plan. But don’t worry too much about it if the premium(20,000/-) is small compared to your total annual investments. Since you have a non-regular income, it surely makes sense to go for single-premium plans. So go for it, LIC market plus is fine. You may like to look into non-LIC plans for diversification.
      Make sure that you have 6-12 months(depending on your financial situation) worth of cash equivalent.

  11. Susan said, on December 16, 2009 at 4:43 pm

    forgot to add, i already have a PPF account also in which i invest reguallry. Tx

  12. Devaraj said, on December 21, 2009 at 3:46 am

    Hello Sir,

    I am 32 year old. Me aand my wife have the following policies:
    1. LIC Money back policy: 21k per annum (since 2001)
    2. ICICI Lifetime : 18 per annum (since 2005)
    3. ICICI LifeTime Super Pension : 30k per annum (since 2007)
    (both 2 and 3 are unit Linked plans)
    4.Lic Jeevan anand: 16k per annum (since 2009)

    After reading this blog, it seems that only 2 and 3 seem to be good for us. Before deciding on surendering any of the plocies it would be very very help full to have your opinion and advise.

    Awaiting your reply.
    thank you in advance
    Devaraj

    • khotapaisa said, on December 21, 2009 at 9:15 am

      Hi Devraj,
      You are right in your assessment. Instead of surrendering, you may like to see if you could convert the policies into fully paid-up policy. If you are not fully insured, you must buy term plan to get protection for you & your family. So go ahead and put that 37000/- per year, that you pay as premium, to good use.

  13. Firoz alam said, on December 23, 2009 at 8:49 am

    I invest 20000/annum in money plus start from march2007 please suggest me if i do’nt give because 3years locked period,after15- 20years how amount ?this invest for my daughter marriage thanks

    • khotapaisa said, on December 23, 2009 at 9:43 am

      Money Plus is an ULIP so the returns are not fixed. But over a 15-20 years, you can assume around 12% return. At this rate if you keep investing 20,000/- per year for 15 years, you may be having around 7-8 lakhs. If you pay only first three premium, you may have around 3-4 lakhs. I would suggest that don’t stop paying premium. To take full advantage of ULIP, you should keep paying premium for full term.

  14. richa said, on December 23, 2009 at 2:26 pm

    Dear Sir

    As Market plus-1 is closing on 1 jan.Should we take it or wait for new policies ?.Our need is a good performing fund for short term with low risk.
    and low maintenance.
    Thanks
    Richa

    • khotapaisa said, on December 23, 2009 at 6:54 pm

      Don’t worry about market plus. If it closes so be it, you will not lose anything. As you don’t buy a car just because they are going to stop selling it, you shouldn’t put your money in anything just because it will not sell after sometime. You should invest money because you need to invest.
      Any ULIP you take, you need to follow the basic rules.
      1. You should take ULIPs for 10 or more years.
      2. You should pay premium for the full term, not just 3 years.
      Since you need investment for short term & low risk, you should invest in fixed deposits, debt funds, NSC etc. Any ULIP you buy exposes you to high risk, specially if invested for less than 5-10 years.

  15. jasmeet said, on December 24, 2009 at 8:08 pm

    Hi
    I have just started my job after completing studies. I want to invest my money could you please suggest me the suitable plans for me if i can invest upto 15000 per year?
    One of my friend is suggesting me for Market Plus 1 ULIP, Should I go for this?
    Please help me as I dont have much knowledge how to invest.

    • khotapaisa said, on December 24, 2009 at 10:27 pm

      Hi Jasmeet,
      It good to see that you plan to invest at this early stage in career. You can buy ULIP(not necessarily market plus) if you can’t/don’t invest in mutual funds thru SIP. But remember that any equity based investment(ULIP, MFs etc) you make, has to be for 10 years or more. If you think that you may need this money in the next 5 years or less, invest in a debt based instrument like debt fund, recurring deposit etc.
      I can guess that given your early years in career, you will typically need this money in next few years(for marriage, car etc). In this case you can start a recurring deposit with your bank.
      Hope that replies your query.

  16. PRASANNA SHANKAR said, on December 27, 2009 at 12:24 pm

    Hi

    I have been working for around 4 years now and Iam 25 with a regular income. My investments are

    1.Money Plus : 2 policies of 10000/- each (I am planning to stop paying premium this
    year as 3 years are complete)
    2.Bhima gold : Premium of 6850/- per year
    3.PPF: Investment of Rs.5000/- per year (variable)
    4.Ing Vysa New Freedom plan: 25000/- premium

    Last year I invested in Jeevan astha 2 policies of Rs.26,197/- each. The advantage I see in this policies are that there is no compulsion for paying the next year. I hope to be married in a year or two.. and look to buy a house in 3-4 years and might not be able to pay regular high premiums then… although I might not withdraw this money in next 5 years..

    Your suggestions pls… Especially if I need to look for policies like ULIP or Jeevan astha type (fixed return after a term)//

    • khotapaisa said, on December 27, 2009 at 12:57 pm

      Hi Prasanna,
      Now that you have made your investment(ULIP & others), it would serve you to stick to it specially ULIP. For many reason that I have put in by posts on blog, non-ULIP & non-Term policies like Jeevan astha etc are not designed to suit common investors. Since you plan to get married, buy house in the next 2-5 years, you need to save for it. And any investment for 5 or less years must only be in safe instruments. I would suggest you the following –
      1. Don’t take any insurance policy now (till you get married, then take term plan).
      2. Don’t stop paying premium after 3 years. You get the advantages of ULIP (after paying high upfront charge) only if you pay all premium and for atleast 10 years.
      3. Start investing a fixed amount monthly in a recurring deposit to pay for your near term expenses like marriage etc.
      4. Pay full towards your PPF account.

  17. Satish said, on December 28, 2009 at 10:32 am

    Hi,
    I must say this blog of yours help ‘finance illiterate’ people like me to decide on investements.

    I am 30 years old, married and have a kid. I already have LIC money back policy. As I am working in a private sector, I am planning for a pension plan. Market Plus I looks like a good option to me. Assuming I retire at 60, I am expecting my monthly need would be at least rs. 1 lakhs.
    Q1. Is the Market Plus I right choice? If not then what do you suggest?
    Q2. How much I should invest annulay for pension?
    Q3. Is it right time(from market and my age perspectives) to think of pension plan?

    Regards,
    Satish

    • khotapaisa said, on December 28, 2009 at 12:17 pm

      Hi Satish,
      You can very well go for LIC market plus I. You can also look for other ULIP based plans. For comparison of pension plans, you can click here.
      As for your retirements needs, to get about 1 lac monthly income after 30 years, you need to invest around 8-10,000/- per month. So a premium of 1 lacs per year should do fine for you. As for the timing, the best time to start investing for retirement is today. So go ahead & buy a pension plan.

  18. manoj said, on December 28, 2009 at 10:37 am

    Dear Sir,

    I wish to invest around 5lakhs annually for a steady growth over a 20 yrs horizon till retirement. Kindly suggest which investments and ratio for the investments planning ( my intended plan as per following):

    1) ppf ( me & wife) – 70000 x 2 = 140,000 ( max)

    2) A good pension plan (20 yrs)

    3) Equity market / SIP

    4) Mutual funds

    5) Home loan for IT benefit

    6) How much term insurance

    I have earlier done good investments in property.

    pls advise.

    Regards

    • khotapaisa said, on December 28, 2009 at 2:59 pm

      It’s good that you already have a good plan with you. If you ask my suggestion, I would recommend some minor changes in your plan. Here is my input on your plan.
      1. PPF (you & wife) – Great, keep investing
      2. Equity market & SIP – Invest directly in stocks if you have time to research into it.
      3. Mutual Funds – Go ahead & start SIP.
      4. Home Loan for IT benefit – No loans please just to take IT benefit. Buy home when you can give atleast 20% down payment.
      6. How much term plan – It depends on your expense & liabilities(loan, marriage, education etc). So I can’t give you a figure here without these details. BTW, good to see that you plan to take term plan.

      As for how much to invest in each, you can afford to invest all of it in funds(thru SIP) if all the 5 lakh has 20 years horizon. For any investment with 5 years or less time horizon, it must be in safe instruments.

      • manoj said, on December 30, 2009 at 1:06 pm

        Thanks for the reply & clarity in my personal financial planning.

        a) whay do you say 20% downpay is must for home loan. can you elaborate

        b) Also i would like to know more on how to invest for Childrens future ( daughter 7 yers & son 5 yrs) . Which are good investment options for education, marriage etc

        Regards

      • khotapaisa said, on December 30, 2009 at 4:15 pm

        Hi Manoj,
        There is no hard and fast rule for 20% down payment. It is just an indicator that makes sure
        1. You really can afford the house as you are not highly leveraged.
        2. Your debt burden (EMI) is low and hence more affordable.
        3. You don’t just go out one day and book a house as if it were a TV or motorcycle. Believe me, a lot of people do it.
        Empirically, 205 is the least you should down pay. The higher you pay the better.
        As for child planning, you can read some posts on my blog here.

  19. Bharat Tank said, on December 29, 2009 at 3:48 pm

    Good Afternoon,

    Your website is very informative, Please help in getting solution to my queries –

    I have following investment –

    1. Jeevan Anand- Premium per annum – 4000
    2. Jeevan Shree – Premium per annum – 25000
    3. Money back – Premium per annum – 6000
    4. Jeevan Saral – Monthly premium – 2042
    5. SBI MF Tax gain – Monthly premium – 6000
    6. PPF – approx 10000 per year
    7. LIC Health plus mediclaim – 15000 per annum
    8. Bajaj allianz Mediclain for 2 lakhs – 5000 per annum

    almost similar policies are for my wife as well.

    LIC policies are planned for returns after 45 years of age. My current age is – 35

    i have approx 4 lakhs for investment, i want to keep my base amount secured and want to get monthly income. what is the best option.

    also i want to go for Market plus Pension plan for annual investment of 50000.

    Please help in answering my below queries:

    1. Does above mentioned LIC/MF/PPF make sense
    2. What you would suggest for 4 lakhs investment
    3. what youwould suggest for Pension plan where annual payment is 50000
    4. what is the discount LIC agent offers if i go for point# 3 & 4 plan
    5. I am new to Financial market, generally go by Financial advisor recommendation. Please suggest good website where i can learn Financial market basics so that i can tke decisions.

    waiting for your reply.

    Thanks
    Bharat

    • khotapaisa said, on December 29, 2009 at 4:35 pm

      Hi Bharat,
      Let me first reply your queries.
      1. Does above mentioned LIC/MF/PPF make sense?
      I would suggest you convert all your LIC policies(1 to 4) into paid-up policies. This will free up 37000/- per year from premium. You can put it in PPF or equity based funds depending on your comfort level. Even PPF or other safe investments will give you better return than LIC policies. As for the insurance that LIC policies offer to you, I am sure that total sum assured of the first 4 LIC policies will be not more than 5-10 Lacs. You can buy a term plan for 10 lacs for about 3000/- or less. So go for term plan and buy enough protection.
      2. What you would suggest for 4 lakhs investment?
      As you said that you want to keep the 4 lacs safe & get monthly income, you can invest it in Post Office MIS.
      3. what you would suggest for Pension plan where annual payment is 50000?
      You can go for it. Make sure that you get ULIP based plan for say 20-25 years.
      4. what is the discount LIC agent offers if i go for point# 3 & 4 plan?
      Discount depends on agent but I think you should not buy any policy based on discount. NEVER.
      5. I am new to Financial market, generally go by Financial advisor recommendation. Please suggest good website where i can learn Financial market basics so that i can tke decisions.
      If you have a financial advisor who you believe in, keep it going. Just make sure the you have advisor not a saleman who is always selling you policies, NFOs etc. You can click here to read more on this. Some of the useful financial websites are listed on by blog.

      And finally, if you have paid 3 premium of LIC health plus, stop paying any premium. It is a very costly ULIP. The 15000/- saved from LIC health plus premium can be invested in mutual funds, recurring deposit etc till you retirement. So, when you retire, you will have 12-18 lacs of medical fund which will be great asset for your retirement.

      • Bharat Tank said, on December 29, 2009 at 5:15 pm

        Thanks for your prompt reply. based on the Advisor parameter suggested – he falls some where near to 4. for past few year he is ranked #1 by LIC.

        want to clarify few points based on your recommendation as i am not very comfortable with financial terminologies:

        1. Close 1 to 4 policies and invest in PPF and Equity based funds (If you can elaborate more on Equity based funds). Term based – do you mean to say – pay minimum premium for big insurance amount and if nothing happens during that period then no money paid by insurance company.

        2. What you would suggest – if 4 lakhs amount to safe and can be withdrawn within 1 or 2 days/weeks time – and monthly interest can be earned. as per my understanding Post office MIS – money will be locked for good period (approx 6 years)

        The biggest challenge faced in case of LIC – i don’t have any authenticated document which contains all the returns/benifits information. LIC policy papers does not talk about final benifit/outcome. I am only relying on the piece of paper/printout given by my advisors. Not sure if others are also facinig similar situation.

        Please suggest so that i can consolidate everything and can see what all i am paying/receiving over a period of time with covereage.

        Thanks for your valuable information.

        Bharat Tank

      • khotapaisa said, on December 29, 2009 at 6:59 pm

        Hi Bharat,
        Here is the answer to your queries.
        1. Yes, you should convert all the four LIC policies into paid-up policies i.e. you don’t need to pay the premiums anymore. To convert it into paid-up policies, you should talk to your LIC agent. As for term plan, yes the cheap-no-money-returned policies for a enough sum assured. Do the same for all such policies for your wife.
        2. If you want to keep 4 lakhs for few weeks, you can keep it in your saving account or short term mutual funds. Post Office MIS locks your money for 6 years.
        For your documents, that’s the problem with having so many policies. In general you should have only Term plan + ULIP(if reqduired) as part of insurance portfolio.

  20. deepak said, on December 30, 2009 at 1:20 pm

    hello sir ,
    Planning to invest Rs 100000 lic market plus 1 single premium , is it a good option , main aim is tax benefit with good profits n with short lock in period , I am not sure if I can pay premium next year as I may go for higher studies(so single premium).

    • khotapaisa said, on December 30, 2009 at 4:18 pm

      You can so for single premium ULIP if your income is irregular. But once you invest, say in LIC market plus I, you must remain invested for at least 10 years. If you think you will need this money earlier, don’t invest in ULIP. Since you plan to go for higher studies, I would suggest you keep the money safe as you may need it in short term (less than 5 years) even if your higher studies all are paid for.

  21. Girish Mishra said, on December 31, 2009 at 1:43 am

    Hello Sir,

    I want to invest some where around lac rupees. My basic purpose will be tax savings. However if i will get life cover and tax benefit with good returns that will be gr8. I have heard about lic’s market plus and kotak Ulip. Please help me. Where i can invest and get what i need.

    • khotapaisa said, on December 31, 2009 at 1:17 pm

      Hi Girish,
      Where you invest depends on how long you can leave the money invested. If you think that you may need the money withing next 5-6 years, put it in a debt fund or FD. Buy ULIP only if you don’t need the money for the next 10 years atleast. ULIP will give you tax advantage as well. But don’t invest just to get tax advantage.

      • Girish Mishra said, on December 31, 2009 at 8:42 pm

        Thanks for your rapid response. This would be my first time when i am investing. I heard about LIC Market Plus. I want to invest in both. Long terms as well as short term. Is their any online website or any way where i can call for financial advisor. Right now i just have a LIC policy for five years with sum assured of 2lacs. No other investment.

      • khotapaisa said, on January 1, 2010 at 2:24 pm

        Hi Girish,
        For short term(5 years or less) invest your money in safe instruments. For websites/advisor, you can google it. But I would suggest you hire an advisor, talk to the advisor & then decide. If you let me know your city/location, maybe I could help you on it. As for your insurance, you are highly under insured. How long 2 lacs will last for your family if needed? Few months! So take sufficient insurance by taking term plan(s). You can email if you need any help.

      • Girish Mishra said, on January 1, 2010 at 2:34 pm

        Thank you sir once again for providing such a valuable suggestion. Currently i am at delhi. So if you know any financial advisor firm that would be wonderfull. Yes i know i am highly under insured. Thats why i was thinking of LIC’s market plus with full cover. And what are the other short term investment options for say 5 years period. Please help.

        Regards,
        Girish

      • khotapaisa said, on January 2, 2010 at 7:41 pm

        Hi Girish,
        Call up iTrust people. I guess you won’t be disappointed. The link is http://www.itrust.in

  22. Firoz alam said, on January 3, 2010 at 9:35 pm

    Thanks for good advise.
    I have fallowing invest since2007 march
    1.money plus 20000/year
    2.jewananand 5699/year
    3.mar.Endo.plan7118/year
    in 1&3 for my first daughter
    Now my second daughter (16month)for marriage perpos?Now iwant invest 25000/year please suggest me better advice me&my daughter Thanks

    • khotapaisa said, on January 4, 2010 at 8:52 am

      For your 16 month old daughter, you can either buy another ULIP plan or open a PPF account. If you invest 25000/- for 16 years in PPF, you will get around 7.5 Lacs. This is a safe investment. When and as your income increases, you can start systematic investment plan(SIP) in mutual funds in addition to this PPF investment.

  23. Prakash said, on January 6, 2010 at 12:11 pm

    Hi All,

    It was really nice and very informative going through the previous posts in this thread.
    Now to my query, I need to do savings of around 80k for tax benifits, within this month.

    Please suggest me the a best Tax Savings Plan which would give me a better returns after 3 years. Actually am looking for 3 years term. So kindly suggest me a Good scheme friends.

    Also, please let me know, that can I take NSC, FD or ULIPs which would help in tax exemptions.

    Thanks in advance.

  24. Firoz alam said, on January 6, 2010 at 8:59 pm

    Thanks for realy good advice
    Now i am 35years,I am good medical precticner,Now I want to invest for pension plan which give me after 15-20years 30000/month
    please suggest me good advice

    • khotapaisa said, on January 7, 2010 at 11:50 am

      To get 30,000/- per month after 20 years, you need to invest 8-10000/- per month (@ 5% annuity rate) for 20 years. But I am not sure if 30,000/- will be of much use after 20 years. If you are talking about 30,000/- in todays term, you need to invest about 27000/- per month. You can use retirement calculator posted on the blog.

  25. Rhishikesh said, on January 9, 2010 at 8:53 am

    Hi Guruji,

    My dad is investing in LIC money plus (T. No. 180), Fund type=Growth, since last 3 years.

    Policy term is mentioned as 5, in the premium payment receipt that we receive.

    I would like to know, from where can I find the number of units allocated to dad?

    Dad is saying that he is not going to pay next premium. Is it good decision (and why)?

    Thanking you in advance.

    • khotapaisa said, on January 9, 2010 at 2:06 pm

      Hi Rushi,
      If your father doesn’t have some other need for the money, he should keep paying the premium. Generally, you shouldn’t take ULIP plans for anything less than 10 years. You can check out the NAV here among other places.
      Thanx but I am not expert enough to be even referred to as Guruji. I am another learner like others trying to figure out the intricacies of personal finance.

  26. Karthik said, on January 11, 2010 at 12:39 pm

    Hi Mr khotapaisa,
    I am very confused and scared person interms of investment and insurance. I feel scared to take any steps

    where i need to pay some amount regularly(wheather that is loan or investment), as in IT market there is no fix

    income and fix job. I just got married 10 months back and i need to plan for my future (Specially 1. House, 2.

    Retirement, 3.Child and His/Her education). I am 26yrs old with anual income 6L and having following investment:

    1.Life Insurance:
    a. Yearly 12k for 17 Years in (Double Cover Endowment Plan, Table No 14) from LIC since Nov 08, though i am

    feeling i should have taken table no: 133, Triple Cover Endowment Plan.

    b. Yearly 6k for 20 years in New Bhima Gold (table no:179) from LIC since July 08.

    2. Investment:
    a. I have PPF account (opened in 2009) and saved around 50k for this FY. I have plan to put 70k in this every

    year.
    b. Should i consider NSC/Kishan Vikaspatra/ Bank FD for random investmet? after puting 30-50k in PPF?
    (Insurance[1a+1b] and 50k in PPF, meets my tax savings quota of 1L)

    c. I made 2 small recurring account to pay for next year insurance premium. I opened this instead of monthly

    premium because i would have to pay 800/- extra in case of monthly payment. so i thought why dont i go for

    yrly and get the interest from recurring also.

    d. I thought of buying stocks instead of some ULIP plans or mutual funds due to the charges/they dont know

    my need, i am the fund manager of my own fund. I am doing some short term and long term tradings. I do

    spend some time in market research daily basis. I have around 20k invested in good stocks for long term(i am

    very careful in choosing stocks). I dont do any gambling, i do it only for investment, as no bank can give

    +ve/-ve return like stock market :).

    Yearly can save around 1.2L- 1.8L in total(currently), might increase or decrease. I hate to commit that i will pay

    you “X” amount even if i dont have income. Please let me know if i have done some wrong investment? Please let me

    know if i must consider some other component in investment keeping in mind of my needs (1. House, 2. Retirement,

    3.Child and His/Her education)?

    I will be thankful if you give some comments. Waiting for your reply.

    Regards,
    Karthik

    • khotapaisa said, on January 11, 2010 at 1:43 pm

      Hi kaushik,
      To answer your questions first –
      1. If you ask me, you should come put of your insurance policies(the two you mentioned) and buy a term plan first. How you come out of if it something you need to figure out with your insurance agent. You will be saving 18K per year. As to how much term plan you should buy, I can’t comment without further info.
      2. a. PPF os a good option. Infact it serves good (low risk, right investment horizon) for your child’s education planning. Keep investing 70K per year. After 16 years, you willl have around 20Lacs with you.
      b. For tax purpose, you may invest in ELSS for long term towards your goal.
      c. Whether you pay monthly or yearly premium depends on your comfort level. So whichever way you feel fine is ok.
      d. I won’t recommned betting your retirement on your investment skills(in stocks). I would recommend that you either invest in funds or ULIPs for goals like retirement. No do-it-yourself please. These goals are too important to bet on. ULIPs are costly, but over long term(10 year or more), they do serve purpose. ULIPs are good for people who are not financially disciplined. Say, you invest in funds(towards retirement) for 5 years then you come across a situation where you need money for something. Since the money in your funds is available at a click, there is a tendency to use it for short term needs. This, though, has a big impact on your retirement.

      As for your goals, ideally your goals should be listed in the following order (in terms of priority).
      1. Retirement – Invest in funds via SIP or buy ULIP based product. Depends on your financial behaviour & comfort. For more on retirement planning, you can click here.
      2. Child Education – PPF should be sufficient. You can additionally invest in funds, ULIP etc. For more on child eduation planning, you can click here.
      3. House – If you plan to buy house in the next 5 years, invest the surplus money through a recurring deposit/debt fund. As your income increases, increase the contribution towards it. You can check out more on buying house here.

      • Karthik said, on January 11, 2010 at 4:25 pm

        Thanks a lot for your quick response.

        1. I was not aware about term plan, agent did not talked about this while i have selected the plan. And i was not mature enough to understand all these needs.

        The time i have selected the plan, i was having 12L life coverage from employer and 5.5L coverage from my end. Which was looking good at that time. Now i feeli must buy a term plan before i buy my house.

        I should start searching for some good ULIP plan for short term(5yrs- house down payment) and long term as well(retirement).

      • khotapaisa said, on January 12, 2010 at 11:32 am

        Good to see that you will be buying a term plan. Any ULIP you buy must be for 10 or more years. For 5 years timeframe, I suggest you not invest in equity.

  27. jasmeet said, on January 16, 2010 at 6:06 pm

    hello
    I have just started my job after completing studies. I want to invest my money could you please suggest me the suitable plans for me if i can invest upto 15000 per year?

    Could you please suggest me about LIC jeevan saral

    • khotapaisa said, on January 18, 2010 at 5:34 pm

      Hi Jasmeet,
      It’s great that you plan to start investing so early. Given your age, I wouldn’t suggest you to invest in ULIP as you will need to remain invested for 10 or more years. You will surely need money in the next 3-5 years. So, for now start a Recurring deposit with a fixed monthly payment. Don’t worry about tax implications for now. At this stage of life, you are going to have many short term(3-5 years) needs. So, tax friendly investments may not be suitable to you given the 3-5 years lock-in period.

  28. investor_for_tax_rebate said, on January 17, 2010 at 11:53 am

    Hello,

    Impressed by the blogging out here and the suggestions/advices you share with all. You’re doing a good job! Kudos!

    My Q – Under 80C, i want to produce proofs of 50K and i’m confused where to allocate these 50K funds? I have kept a timeframe of 10 yrs for this amount to stay invested.
    My needs/expectations out of the 50K investment are:
    1. Tax Benefit.
    2. Fetch returns from market. So, I’m open for equity diversification. A ULIP i mean.
    3. Mutual fund investment.

    To give you a flavour of what I have presently…
    I’m insured with three policies which accounts to an annual accrual of 30K INR.
    That’s LIC’s Jeevan Anand (8K) – not a ULIP, ICICI Pru’s Lifetime Super Pension (10K) – ULIP and Bajaj Allianz’s some plan – ULIP (12K).

    Could you supplement with me your expert comments, as to where should I allocate my 50K funds? Let me know the type of financial instruments about investment. Also, to be specific, I’m doing some research on some of the best ULIPs and MFs giving substantially high returns along with risk cover + handsome maturity benefit (may be i sound too greedy :-D). So, please suggest me some of the best ULIPs and MFs from various financial houses. (Please cite the names of the plans. I expect that from you.)

    I anticipate to answers from you so that my investment seems fruitful.

    Best Regards!

  29. Rajiv said, on January 17, 2010 at 5:12 pm

    I am 28 years old. I need to invest 1L pa to save my IT return.

    Currently i have the following options.

    1) ICICI Lifestage_Pension – Rs 50,000 pa [since 2009]

    2) PPF – Rs 50,000 pa [since 2009]

    I can wait for 20 years for the above 1L pa investment. I want to know whether I need to reduce the amound in PPF and consider any other investment option in LIC, MF, SIP, Gold..etc ?

    • khotapaisa said, on January 18, 2010 at 5:43 pm

      Hi Rajiv,
      Though it may sound suprising, I would give you a binding rule of investment.
      Never invest in any instrument just to save tax.
      I would suggest you invest 70k in PPF. Rest 30K, you can invest in ULIP as you have long term horizon. Do remember that all your investments should not be in long term investments (like PPF, ULIP etc) only.

  30. investment_for_tax_and_returns said, on January 18, 2010 at 11:07 am

    Hello,

    Impressed by the blogging out here and the suggestions/advices you share with all. You’re doing a good job! Kudos!

    My Q – Under 80C, i want to produce proofs of 50K and i’m confused where to allocate these 50K funds? I have kept a timeframe of 10 yrs for this

    amount to stay invested.
    My needs/expectations out of the 50K investment are:
    1. Tax Benefit.
    2. Fetch returns from market. So, I’m open for equity diversification. A ULIP i mean.
    3. Mutual fund investment.

    To give you a flavour of what I have presently…
    I’m insured with three policies which accounts to an annual accrual of 30K INR.
    That’s LIC’s Jeevan Anand (8K) – not a ULIP, ICICI Pru’s Lifetime Super Pension (10K) – ULIP and Bajaj Allianz’s some plan – ULIP (12K).

    Could you supplement with me your expert comments, as to where should I allocate my 50K funds? Let me know the type of financial instruments

    about investment. Also, to be specific, I’m doing some research on some of the best ULIPs and MFs giving substantially high returns along with risk

    cover + handsome maturity benefit (may be i sound too greedy :-D). So, please suggest me some of the best ULIPs and MFs from various financial

    houses. (Please cite the names of the plans. I expect that from you.)
    Can I go for LIC’s Market Plus for ULIP and SBI Magnum / Canara Robecco for MF?

    Best Regards!

  31. Rhishikesh said, on January 18, 2010 at 3:35 pm

    I’ve booked a property and done an agreement with builder in Pune. I will get the possession of the flat in next financial year. I want to claim the agreement value as tax free under 80C.

    My question is whether I can claim the stamp duty (agreement value) by diving that in next 5 years or not?

  32. investment_for_tax_and_returns said, on January 18, 2010 at 6:00 pm

    Hello,

    Please reply to my below post…this is the third time i’m asking… 🙂
    Impressed by the blogging out here and the suggestions/advices you share with all. You’re doing a good job! Kudos!

    My Q – Under 80C, i want to produce proofs of 50K and i’m confused where to allocate these 50K funds? I have kept a timeframe of 10 yrs for this

    amount to stay invested.
    My needs/expectations out of the 50K investment are:
    1. Tax Benefit.
    2. Fetch returns from market. So, I’m open for equity diversification. A ULIP i mean.
    3. Mutual fund investment.

    To give you a flavour of what I have presently…
    I’m insured with three policies which accounts to an annual accrual of 30K INR.
    That’s LIC’s Jeevan Anand (8K) – not a ULIP, ICICI Pru’s Lifetime Super Pension (10K) – ULIP and Bajaj Allianz’s some plan – ULIP (12K).

    Could you supplement with me your expert comments, as to where should I allocate my 50K funds? Let me know the type of financial instruments

    about investment. Also, to be specific, I’m doing some research on some of the best ULIPs and MFs giving substantially high returns along with risk

    cover + handsome maturity benefit (may be i sound too greedy ). So, please suggest me some of the best ULIPs and MFs from various financial

    houses. (Please cite the names of the plans. I expect that from you.)
    Can I go for LIC’s Market Plus for ULIP and SBI Magnum / Canara Robecco for MF?

    Best Regards!

    • khotapaisa said, on January 18, 2010 at 7:24 pm

      Hi Bhusan,
      Sorry for the delay in response. Since I am travelling, I am not able to blog regularly. Anyways, to answer your questions –
      My first piece of advice to you is to Never invest in something just to save tax. With this as starting point, it’s good that you have 50k to invest yearly for 10 years or more. You should invest in MFs if you have financial discipline. Otherwise, ULIP is the alternative.
      Now which ULIP and/or Fund to go for? It is easier to suggest ULIP based on the cost. And I won’t suggest against Market Plus. So, you may go for Market plus if you can’t/don’t invest in funds. Remember that you already have two ULIPs with you. As for the best fund, there is nothing like best fund. What will you say if I ask you which is the jeans brand? Everybody will have different answer to this depending on suitability. It’s the same with funds. A fund is suitable to you depending on various parameters like existing portfolio, time horizon, risk profile etc. And invariably, the best rated fund(s) that you read/hear about in magazines, websites, TV etc are not the best fund for you. There is no way to suggest a suitable fund without other details. My rule is to go for fund(s) which may not be the highest return giving fund(s), but one which is consistent over the last 5-10 years. You can go thru posts on this blog about fund selection.

      • investment_for_tax_and_returns said, on January 21, 2010 at 9:48 am

        Thanks a lot Sir for the delayed but fruitful response 🙂

        As for my decision, based on ur inputs and many other (internet, financial advisors etc…), I’m going for LIC’s Mkt Plus for whole of my investment.

        Cheers anyways!!!

        Best Regards.

  33. Firoz shahi said, on January 25, 2010 at 2:46 pm

    Thanks for all advise
    what is SIP,Give me details&now i invest 24000-36000/year for 15-20years which is better Ulips or Mf,
    i hope u give me good advice
    Thanks

    • khotapaisa said, on January 26, 2010 at 2:50 pm

      I will shortly write a post on SIP. For the ULP or MF question, you can click here to read more.

  34. Aristotle said, on January 26, 2010 at 1:52 am

    Dear sir,
    Wonderful explanations and advice. After reading all these replies any beginer like me would really be proud of learning so much. keep it up and thank you for spending your valuable time to help others.

    • khotapaisa said, on January 26, 2010 at 2:51 pm

      Thanx for you comments Draris.

  35. srisankar said, on January 29, 2010 at 11:26 am

    hy,

    i need some suggestions regarding the investments.

    i have
    1. ULIP from ICICI (20000K per year for 3 years)
    2. LIC Jeevan Anand (14000K)
    3. mutual fund (15000K)

    i am thinking of taking pension plan (refer any other option) , please suggest me on the product which suits.

    my age is 32

    • khotapaisa said, on January 29, 2010 at 12:19 pm

      Hi Subanshankar,
      Without having more information, I can only suggest you to look at the comparison of pension plans here. Few suggestions, though, that I would like to give –
      1. Any ULIP product(pension plan, child plan etc) you take should be for more than 10 years and you should pay all premiums.
      2. Avoid all life insurance policies that are neither term plan or ULIP.
      3. MF is better option over ULIPs if you have discipline.

  36. Dheeraj said, on February 4, 2010 at 6:49 pm

    Hello All,

    I need some suggestion regarding investments..
    I am a soft engg. My age is 29 Yr. I want to invest 30-50 K Per annum, but not on regularly basis, its for only 3 yrs. Will u suggest any good Ulip Plan Or any other Option… I m thinking abt below Options

    1) Market Plus (LIC Ulip Plan)
    2) ICICI Prudential Pinnacle (Guaranteed NAV)

    Plz advise me…

    • khotapaisa said, on February 4, 2010 at 10:27 pm

      Hi Dheeraj,
      I would suggest you not invest in ULIP. The first three years of ULIP are the costliest one. So paying an ULIP just for 3 years just doesn’t make sense. Given you age, I guess you will be needing money in the next 2-4 years for maybe wedding, car/bike etc etc. So if you feel you may need the money in the next 5 years, put it in a safe instrument. You can start a recurring deposit and invest the money. You can alternatively buy NSC but it has 5 years lockin.
      If you feel that you are not going to need this money for next 7-10 years, you can then invest in equity thru mutual funds.
      Hope it answers your question.

  37. Dheeraj said, on February 5, 2010 at 12:16 pm

    First of all, thnks for quick reply, i jst want to invest 3 or possible 5 yrs, but i would not want to surrender my policy till the date of maturity, watever i’ll buy,
    So can u plz suggest which ulip plan or any othr spcl ulip plan which gives any guraaneteed mony as per highest NAV like “ICICI Prudential Pinnacle (Guaranteed NAV)” will benifical for me?
    But if i invest 50k per annum then my Investment year will be Only 3 yrs. but if it is 30K then it will be possilbe i’ll pay 5 yrs.

    Plz Provide me any Calculated Data, if i keep policy for full 10 yrs, or i surrender it after 5 -7 yrs?

    • khotapaisa said, on February 5, 2010 at 2:48 pm

      Hi Dheeraj,
      As a thumb rule, keep away from any guaranteed NAV plan. For more on this, you can click here. As for investment, if you are ready to remain invested for 10+ years, you can invest in ULIP or MF. In your case, since you want to pay premium for only 3-5 years, ULIP is not a great option. I would suggest you invest in ELSS. You will get tax benefit as well.
      If you want to invest in ULIP only then out of the two options you have given, I would go for Market Plus. In case of ULIP, keep invested for 10 years or more.

  38. Sanjay Yadav said, on February 11, 2010 at 10:28 pm

    Dear K,

    I have invested in
    1) LIC Jevan Tarang – 5073 hlf yearly
    2) LIC Market plus-20000 yearly
    3) SBI magnum – 1000 SIP
    4) PPF – 20000 (started this year)

    I would like to know apart from above I want to invest money considering tax benefit but investment shall be for short period say 6 – 7 years.

    Please advice what will be a better option a mutual fund, saving schemes or else

    • Sanjay Yadav said, on February 11, 2010 at 10:32 pm

      I would like to make correction to my point nos 2, it is LIC Profit Plus, policy term of 20 years

    • khotapaisa said, on February 12, 2010 at 12:24 pm

      Hi Sanjay,
      For a period of 6-7 years, you could invest in equity(ELSS) if you are fine with the risk. If you want to play safe, you may buy National Saving Scheme(NSC). In any case, both investments provide tax benefit. I would prefer investing thru NSC which has 6 years maturity.

  39. Firoz shahi said, on February 14, 2010 at 3:54 pm

    I am not understand about my ulip (money plus)Which is start 2007march 20000/anum,3years locked period,please suggest me if i continue for 20years how amount ?if i give only 10year?i hope u give me a good advise thanks

    • khotapaisa said, on February 14, 2010 at 8:49 pm

      You can stop paying after 3 years in ULIP. But it is better to pay it for the full term. So, if you have bought the policy for 20 years, pay the premium for 20 years. After 20 years, you can expect around 15 lacs and for 10 years you can expect around 3-4 lacs. Please understand that there is no way to surely say that you will get 15 lacs after 20 years or 3-5 lacs after 10 years. This is just a guess assuming 12% return.

  40. Moloy said, on February 14, 2010 at 11:12 pm

    Dear Sir,

    I want to get a monthly return of 50k after 20 years from now.

    What is the best possible investment option i can have?

    Is the LIC Market plus 1 good enough in this regard?

    I can invest upto 60-75k per annum for this purpose.

    Thanks
    Moloy

    • khotapaisa said, on February 15, 2010 at 10:16 am

      Hi Moloy,
      The simplest way to get regular money after retirement (I guess you are talking about retirement) is to buy immediate annuity plan. Assuming 6% annuity rate (depends on your retirement age), you need to have a corpus of about 1 crore. To achieve this you need to invest around 11-12,000/- per month. Since you can invest only 65-70K yearly, I would suggest you start investing it full and increase the investment as much as you can with every hike in your salary. On the other hand, you need to postpone for 5 years, thus investing 6000/- per month for the next 25 years. Hope it clarifies your query.

  41. Ravi said, on February 17, 2010 at 1:38 pm

    Hi,
    I have taken LIC’s Market plus -1 Plan for 17 yrs with 20k per anum premium. Pls advice me how much amount I’ll get after its maturity.

    • khotapaisa said, on February 17, 2010 at 2:24 pm

      Hi Ravi,
      As with any equity linked investment, there is no way to tell how much it would be worth in future. One can only guess it based on the historical returns. Assuming a 12% annualized return over the next 17 years, you would have around 10lakhs in corpus.

  42. Nj said, on March 8, 2010 at 11:39 pm

    Well i am so happy to see a Blog which dealing with so common yet complicated issue called ” Investment ” .

    My Father who is 70 plus and i am 31 i am unmarried but will settle not very soon , now i was in between job and mostly our house hold run by father since he getting pension and some past investments which he always did at his best capacity .
    though he invested mostly in Post office scheme and liquidity maintained by it ( interest which its yielding ) recently we have some 6 lac frm FD matured now agent says invest on Market Plus I and Wealth Plus which seems good since father wants to avoid paying taxes so he wants to take this policies on my name since it going to be for long term lets say 3 years and 8 years now i understand its not full information for u but just curious to know is it a right decision ? well we don’t need that money now anyway .. if he invest in FD or any other scheme he will be taxed on returns so he wants to avoid it … please help .

    • khotapaisa said, on March 9, 2010 at 2:23 pm

      Hi Nj,
      Before going into details, let me say it clearly that you must not invest this long & hard earned money in any equity based scheme (as suggested by your agent) unless you don’t need that money for the next 10 years. If you need it early, put it in safe investments like Post Office MIS, NSC etc. Don’t worry about the tax, it’s part of the profit making process. And you don’t take extra risk just to avoid tax.
      To avoid any further unnecessary financial risk, keep away from this agents of yours.

  43. Spandanika said, on March 15, 2010 at 1:25 am

    Hi,

    I have invested in icici prulife and lic market plus – growth fund. I wanted to know should i withdraw fund for market plus as i already paid 3 premiums. I dont see much growth in the NAV.

    Regards,
    Spandanika

    • khotapaisa said, on March 15, 2010 at 1:12 pm

      Hi Spandanika,
      Since you have paid only three premiums, it is too early to jusge the performance of the fund specially given the big fall in market earlier. I would suggest you remain invested & pay premium. If you have decided not to invest any money in this ULIP (for whatever reasons), don’t withdraw the already invested money. Leave it as long as you can.

  44. Moreshwar said, on March 19, 2010 at 5:38 pm

    Dear Sir,

    I had taken moeny plus policy Table 180 [growth] option for 20 yrs. I had completed 3 yrs and paid Rs. 20,000 every year. My agent told me that after 3 yrs I need not to pay, any amount, just need to again reinvest from invesment after 3 yrs and after 20 yrs I will get 2 laks of Rs. Is it true? or should I withdraw at present amount? Kindly suggest what’s is best option. Is it possible to get on line present NAV value for moeny plus plan?

    • khotapaisa said, on March 19, 2010 at 6:15 pm

      Hi Moreshwar,
      There is no guarantee of what you will get after 20 years. Anyway, the best option for an ULIP investor is to invest for the full term unless there is need not to do so. I would suggest you keep paying the premium. If you find that you can’t afford to pay, you just leave the money invested to grow. As for checking NAV/Corpus, you can register your policy at the lic website and login to check out policy related info. Hope it answers your question.

  45. Tauheed said, on March 25, 2010 at 7:16 am

    I have invest 20000 for money plus from 20march2007,now three years complete,my agent said surrender the policy,i am not understand what i m doing ,please give me ful details about my ulips
    thanks

    • khotapaisa said, on March 25, 2010 at 9:21 am

      Without going into the details of ULIPs, Let me ask you to fire your agent first. As for your investment, you should continue with it. Going by the details available on the company website, it looks to be a good product in terms of cost. Though ULIP charges have come down since you bought this policy, I would still suggest you pay the premium.

  46. vazanth said, on March 27, 2010 at 4:38 pm

    Hi Sir,

    I have 3 LIC policies with one of them being moneyback policy and 2 being pure endowment policies from 2004. My annual premium comes around 25k. My age is 33 and I have invested in mutual funds and equities also. My doubt is, whether can I cancel any 2 policies so that I can use the money to invest in other avenues? Thanks in advance

    • khotapaisa said, on March 28, 2010 at 7:02 pm

      You can go ahead and cancel the two pure endowment policies. It doesn’t make sense for common investor to put money in any pure endowment policy.

  47. Firoz alam said, on April 5, 2010 at 11:47 am

    I write again,about money plus which is start march2007 anual prem.20000/anum,my policy number.216728565,I know my surrender value 23march whicH is 57800,I m shoked,now i m not understand that policy withdraw or prem. Continue ? So please suggest me good advice thanks

  48. PSA said, on May 1, 2010 at 11:19 pm

    Dear Sir,

    I want your expert advice on my father’s investments, who as per me has got himself trapped in agents cheap commission business.
    My father has invested Rs 50,000 p.a. in LIC Market Plus and Rs 30,000 p.a. in LIC Money Plus on the agents advice.
    He as paid the 3 year premiums as of now, going furthur, we need some suggestion as to stay invested or come out of these policies.

    My father is retired, aged 62, with a monthly govt pension of 35,000 per month.
    The other investments he has is PPF money, FDs, few bonds and has recently started SIP in MF.

    He is still working post retirement, is provided with a govt accomodation and other facilities. Would like to work for another 2 years and is planning to buy own house after that. There are no other financial liabilities, loans on him.

    Could you kindly suggest if he shoud continue with the LIC Money Plus and LIC Market Plus, considering his age, financial goals etc.

    Also, could you please provide little more details about these policies, when does actually the investor gets his invested money ?
    Thanks.

    • khotapaisa said, on May 2, 2010 at 10:12 pm

      Hi PSA,
      Before I comment on your quesries, let me tell you that your father is more financially stable than most of people he would find around him. Now to the points raised by you –
      1. He must not surrender any policy. He may like to stop paying premium though as there is no need to invest further for him.
      2. He MUST not invest in any other ULIP. Period.
      3. If he wants to invest monthly, he should primarily stick to recurring deposit, debt funds etc. A little exposure to equity through SIP should be fine.
      4. As for buying house, it won’t be easy to comment without much financial detail. As for ULIP, the investor can take the money back fully or partially anytime after 3 years without load. But it is better to remain invested unless you need the money.
      Hope it answers your question.

      • PSA said, on May 2, 2010 at 10:26 pm

        Dear Sir,

        Thanks a lot for your advice.

        Best Regards,
        PSA

  49. Kiran said, on May 10, 2010 at 9:23 am

    Hi Sir,

    Iam 31 years old and i m planning to get married very soon, Currently I have just one investment which is Birla sunlife SIP for which i am paying 24000/ annum, I would like to invest another 40K to 50K. Could you please suggest me a short term investment plan with good returns??

    • khotapaisa said, on May 10, 2010 at 6:17 pm

      Hi Kiran,
      Since you will be getting married soon, you may need money in the short term(1-2 years). In any case, if you are going to need the money in the next 5 years or less, you should invest it in debt. If you want to invest regularly, you can start a recurring deposit or invest in a debt fund. Don’t invest in equity for short term.

  50. Pratheep said, on May 10, 2010 at 3:58 pm

    Hello khotapaisa,

    So far I have paid 300,000 (100,000 per year) in LIC’s market Plus, and my agent said no need to pay after that, could you pls suggest me wether I should keep the amount or get it back and invest in any other?

    Pratheep

    • khotapaisa said, on May 10, 2010 at 6:21 pm

      Hi Pratheep,
      Your agent is there to serve his interest not yours. You should keep paying the premium for the full term unless you can’t pay it at all. ULIPs are designed to serve the investor only if he/she pays the premium for long term.
      Hope you stay away from your agent.

      • Pratheep said, on May 14, 2010 at 4:06 pm

        Thanks for your advice 🙂

  51. Tauheed said, on May 14, 2010 at 10:12 am

    I am investing money plus (growth fund) next 3years ,instalment 20000/year,now i have some problem,so i stop the premiam,kindly suggest me after 10year,15y.20years ,what amount ?
    I hope u give me good advice because this invesment for my son (7month)Thanks

    • khotapaisa said, on May 14, 2010 at 5:38 pm

      Hi,
      In ULIPs, you must invest for at least 3 years else you stand to loose money. I am not sure if you have already invested for 3 years. As for investment towards your son’s future, you could buy a child ULIP policy which will ensure that the policy continues even in the event of your death (the premium will then be paid by the company).
      It is not possible to say how much money you will have after 15 years or any period. What you can assume is an average compounded return of around 10%-15% (12% is a safe assumption).

  52. Arun said, on May 16, 2010 at 11:14 am

    Dear Advicer,

    Am 25 yrs old and employed in gulf , am CMA (cost & management accountant). I want to plan my savings for futre and my marriage. My purpose is wealth maximisation.
    No dependants on me father state gov employee mom home maker.
    My savings monthly 50-65k , am investing in TATA AIG ULIP 99750/-p.a and sbi mkt plus yrly 25k, apart from that monthly sips SBI magnum contra fund-
    1000,HDFC TOP 200 Fund- 1,500.00 ,Rel growth fund 1,500.00, Rel vision fund 2,000.00,Idfc prem eq fund 2,000.00 ,CAN Robecco Tax SAVER G 1,000.00.
    Apart from that bank savings 1.25 lacs there,
    Kindly suggest me some more plans n polices through sip are anything which gives additional returns , and i am planning for long term. Should i go for Retirement? Please advice me .

    • khotapaisa said, on May 16, 2010 at 1:24 pm

      Hi Arun,
      For your age, you are financially more disciplined than most. Your investments are fine. Just that you don’t need any more ULIPs now. Till you get married, you just keep investing in mutual funds. I don’t think you need any other plan, insurance for now. If you think you are going to need money in the next few years(<5 years), put it in a debt fund or recurring deposit. If you want to invest more every month, add extra SIP(s) to some of the large caps in your portfolio. Don't add any new fund for now.

      • Arun said, on May 16, 2010 at 2:12 pm

        THANK U A LOT N COULD U SUJJEST SOME LARGE CAP FUNDS ? 🙂

      • Arun said, on May 16, 2010 at 2:15 pm

        THANK U A LOT n pls sujjest some well doing large cap funds n additionaly one more question is that should i have to make insurance? 🙂

  53. Lokesh Gupta said, on May 16, 2010 at 12:35 pm

    Hi Khota Paisa,
    Your website and comments posted are very useful. I am a salaried employee and my current investments are as below.
    1) LIC Jeevan Anand (20,000/annum) – Took 5 years back
    2) LIC Jeevan Saral (52,000/annum) – Took last year
    3) PPF a/c where i have invested 60,000 this year (My interest was 8% annum assured return)
    I have taken these 2 conventional LIC policies because of my limited knowledge on other policies and plans in market and i understand that the returns are also very less but combined these 2 my life cover is for 16 lacs.
    Last month i have taken a SIP of Rs. 3000/month on SBI Contra Mutual Fund.
    Also have invested Rs. 80,000 (one time) on LIC wealth plus.
    My questions are as below:

    1) Pls comment on my current portfolio.
    2) I want to invest about Rs. 7000/month as a regular investment for next 15-20 years. Pls suggest if i should invest all in MF or partly in ULIP and partly in MF.
    3) Pls advice how is market plus I plan of LIC? Do you suggest that i invest
    3500/month in this plan and balance in any MF. (This way i will have about Rs. 6500 in MF and Rs. 3500 in ULIP)
    4) Another option i was considering was 3500 in Market plus I and 3500 in ICICI pension plan?
    5) Should i opt out of Jeevan Saral as the investments are more and return is less (after completing 3 years).
    6) Can you suggest me any good MF or ULIP plans available.

    Many thanks.

    • khotapaisa said, on May 16, 2010 at 1:46 pm

      Hi Lokesh,
      Few comments on your investments.
      – No more insurance policies other than term plan. No ULIPs either.
      – Invest full in PPF if you can.
      – If you want to buy pension plan, go for New Pension Scheme(NPS).
      – Put the extra money you have every month in funds thru SIP. I would suggest you add three SIPs in the following.
      1-2 Large Cap
      1-2 Diversified
      1 Balanced
      – For Jeevan Saral, since you have paid only one premium, just stop paying any more premiums. You will loose the premium paid. It’s only after 5 years that you can surrender without exit charge (even after 3 years there is a heavy exit charge). Alternatively, you can pay 5 premiums before exiting. Both options will result in more or less same corpus after 5 years. You need to decide which option you are comfortable with.
      – Take term plan to cover your life insurance needs. I guess you are not comfortably insured.

      Hope it answers your queries.

      • Lokesh Gupta said, on May 16, 2010 at 2:53 pm

        Hi,
        Many thanks for your reply. This will certainly help.

        If my understanding in correct your advice is not to have any insurance policies and ULIPs else go for mutual funds and term plans.

        1) Is NPS restricted only for govt employess and which companies offeres NPS.
        2) Pls advice if ULIPs of LIC are also not safe and will not give good returns?
        3) Which companies MFs are good to be considered for investments.

        Thanks.

        Lokesh

      • khotapaisa said, on May 16, 2010 at 6:42 pm

        Hi Lokesh,
        To answer your question
        1. NPS is for everyone, not just government employees.
        2. ULIPs from LIC are no different from other insurers. As for returns, no one knows the return you will get in ULIPs or any equity based investment.
        3. Selecting MF is a topic in itself. You can read the post(s) on the blog on this topic.

  54. Srikanth M said, on May 29, 2010 at 11:52 am

    Dear Khota Paisa,

    Could you please assist in managing my portfolio.

    here it is.
    1. LIC Jeevan Shree – I (162) yearly 36000 – Taken in 2005
    2. LIC Money Plus – (180) ULIP Yealry 30000 – Takem om 2007
    3. ICICI Invest shield cash ULIP -Monthly (1000) – Taken in 2005
    4. Invested 40000 in shares this year

    1. Please comment on my portfolio
    2. I would like to invest in MF/Debt shares, please suggest how can i do. With my current portfolio can i opt for this?

    Thanks and Regards,
    Srikanth

    • khotapaisa said, on May 29, 2010 at 11:36 pm

      Hi Srikanth,
      Here are my comments
      1. Jeevan Shree – Well, I am not a fan of these classic endowment plans. I would suggest you convert it in a paid-up policy, if possible.
      2. Money Plus – You purchased it recently, so keep investing.
      3. Invest Shield – The premium allocation charges seem to be too high. You may consider stopping premium payment for this, but don’t surrender the policy.
      As for your investment needs, I can’t comment much as there is little info. With the above two policy premiums saved, you will have 48000/- extra every year to invest. You must also consider buying a term plan for protection.

  55. dr aditya said, on June 1, 2010 at 11:16 am

    my father’s Fixed deposit of about 3.5 lakh has matured. Which is the best way to invest. Is it safe to invest via single premium i.e. 3.5 lakh in lic market plus at this stage??

    • khotapaisa said, on June 10, 2010 at 1:24 pm

      Hi Dr. Aditya,
      Sorry for the late response. Where you invest this money depends on when you may need it. If you need it within the next 3-5 years, put it in a FD or debt fund. If you need it after 10 years, put it in equity funds. As for putting it in ULIPs, you can if you are sure not to use this money for at least 10 years.

  56. Priya said, on June 6, 2010 at 9:35 pm

    Hi,

    I wish to invest 40,000 Rs fr the next 10 years. Pls help me choose the right scheme and how to allocate it. Also i would like to know what is the premium amount which i have to pay after 3 years if it is a ULIP Market plus ??

    • khotapaisa said, on June 10, 2010 at 1:32 pm

      Hi Priya,
      Sorry for the late response. You may opt for ULIP or mutual funds for 10 year period. If you don’t have specific needs like child plan, you may like to invest in ULIP based investment plans like ICICI Pru ACE plan. You can read the review here.
      Remember to pay the premium of ULIP for the full term, not just for 3 years.

  57. Srikanth M said, on June 9, 2010 at 5:38 pm

    Hi Khotapaisa,

    Thanks for your time.

    I am in dilema to invest in Mutual Funds or to invest in ULIP. Which one you prefer?

    • khotapaisa said, on June 10, 2010 at 1:44 pm

      Hi Sirkanth,
      It’s not easy t answer this question. I would suggest you read posts under the investing section of the blog. Any ways, it all depends on your needs & financial discipline. If oyou want a fill-it-forget-it kind of experience, you may go for ULIP. On the other hand, funds offer higher investing flexibilty. I would tryt to write a post on this subject.

  58. vinod bansal said, on June 12, 2010 at 11:31 am

    I invested three lacs rupees(one lac per year for three years) in market plus policy of lic in growth fund.After three years when lockin period was over I surrendered the policy and got Rs. 3.25 lac from lic. Is this amount is tax free? there was no insurence covered in this policy.I also availed income tax rebate on this plan.thanks

  59. SHISHIR said, on June 13, 2010 at 1:25 pm

    I INVESTED IN MARKET PLUS (181,188 & 191) FOR SOME FIVE YEARS, SOME TEN YEARS AND REST FIFTEEN YEARS. I WANT TO KNOW THE ABOUT RETURN AMOUNT. MY AGENT TOLD ME, I SHALL GET DOUBLE OF INVESTED MONEY AT MATURITY. I WANT TO KNOW THE REAL FACT AS IT IS NAV BASED. AT THE SAMETIME I WANT TO KNOW ABOUT PENSION PLAN, WHICH MY AGENT TOLD ME ME IF INVEST 6.50000/= THEN I SHALL GET 4.100/= PER MONTH FOR LIFE LONG. I WANT TO KNOW ALL STORY IN REAL.

    • khotapaisa said, on June 13, 2010 at 7:48 pm

      Hi Shishir,
      What you will get after your ULIP term is anybody’s guess. You may assume roughly 12% annual return over 10 years or more. I would suggest you don’t bother about the money you will get, just remain invested fo rthe full term. BTW, never buy any ULIP for less than 10 years. As for the pension plan, I would suggest you don’t go for any ULIP plan as you already have more than enough share of ULIPs. Look at the National Pension Scheme(NPS) as an alternative. You can read the review of NPS on this blog.

  60. Ram Chandra said, on June 14, 2010 at 11:37 am

    I am 24yrs old.Though I have already invested (just today) in Market Plus-1 but please suggest which among the following should I choose out of following if I am looking for a investment period of 5yrs with investment of 30k.

    BOND FUND
    SECURED FUND
    BALANCED FUND
    GROWTH FUND

    • khotapaisa said, on June 14, 2010 at 6:23 pm

      Hi Ram,
      It’s good to see a 24year old planning his investments. I don’t suggest equity investment for less than 10 years. So, I would suggest you invest the money in debt fund (like Bonds, secured), fixed deposit etc. If you really want to take risk, you may invest in balanced fund as well.

  61. udit said, on June 20, 2010 at 12:37 pm

    Hi,

    Need your help for investment in LIC market plus-1 for 25k (20 years)
    should i go for it, as I got news of approx of more than 30 L after 20 years of which 50 percent will be given and rest ammount as annual pension.
    Me and my wife has net LIC prem for 71000 approx.
    Mine:
    1 Jeevan anand – prem 10 k for 20 year for SA of 2L
    2 Jeevan Tarang- Prem 25k for 20 year for SA of 5L
    3New Jevan Bima Gold prem 6k for 12 years SA of 1 L

    My wife
    has 2 endowment of S.A of 3 and 2 each with prem of 11k and 7.5 k for 25 years
    and jeevan anand of SA of 3 with 12 k for prem of 25 years

    what you suggest , kindly help
    regards
    udit

    • khotapaisa said, on June 20, 2010 at 4:52 pm

      Hi Udit,
      I don’t have details on your finances but your’s is a classic example of insurance laden one. Why do you need to throw 71000/- yearly on non-performing, non-necessary insurance plans. If you value your hard earned money, you should be doing the following.
      1. Buy a term plan for you & your wife if she is earning.
      2. Invest this 71k (minus the term insurance premium) thru MFs or ULIPs as your investment horizon seems to long one (10-20 years).
      3. If you are looking for a pension plan, nothing better than NPS(New Pension Plan).

      • udit said, on June 21, 2010 at 9:26 am

        Thanks for the feedback,
        But one confusion, you want me to stop all the policies and then invest on ULIP or MF.
        And what is your advice on market plus-1, as it is termed as ULIP as well as pension plan.

        Regards
        Udit

      • khotapaisa said, on June 21, 2010 at 4:44 pm

        Hi Udit,
        You may consider stopping all non-ULIP, non-Term policies you have. Better invest in funds or ULIP to get equity exposure. But make sure that you invest for long term(10 or more years).
        Market Plus-1 is a ULIP based pension plan. That’s why I suggested NPS if pension plan is what you are looking for. NPS is very low cost and gives you exposure to equity as well.

  62. KRV said, on June 22, 2010 at 5:46 pm

    Hello khotapaisa,

    I have invested in ICICI Term Policy which covers for 30 Lakhs.
    I have home loan of 12 Lakhs outstanding, EMI is 15500 payable for next 9.5 years
    I have Personal Loan of 3 Lakhs, EMI is 14500 payable for next 2 years
    I contribute 10K/Month towards VPF

    I have cash surplus of 25K per month. I’m 34 years old, I would like to know where can I invest the cash surplus. I would be willing to take risk on this investment.

    Thanks

    • khotapaisa said, on June 22, 2010 at 7:59 pm

      Hi KRV,
      Going by the figures you have provided, I guess you are under-insured. You need 15Lakhs of protection just to cover your loans. That leaves 15 lacs for your family protection, not enough given your healthy cash surplus. But it’s good that you have tried to protect to some extent. Given your age, I presume you are married, probably with kids. If so, you can start investing for long term towards goals like child education, marriage, retirement etc. For this you can invest in fund thru SIP. You can build your core fund portfolio around diversified funds & largecap funds (say 3-5 in total). You may also buy child plan if required. If you are going to need money in the next 5-7 years or less, you can start a recurring deposit or invest debt in debt fund or both.
      Hope it answers your question.

  63. Nandan said, on June 22, 2010 at 11:42 pm

    Hi KP,
    Its a good blog i somehow landed here for good. I have a few questions, i need to realign my insurance and investment portfolios. To start with i am committed to more LIC policies like Jeevan Anand, Jeevan Shree,Jeevan Mitra & something with Endowment profits. I plan to make these as fully paid up policies as surrendering them is not a good option. These were bought with much less insight into foresight. Now i want to keep insurance and investment seperate. So for insurance i’ll go for Term Plan and investment will take SIP MF path.
    Please give me your input on the above plan, and last question, By converting the LIC policies into Fully Paidup policies would i lose the bonus accurred till now or in general what would be my loss ?

    thanks KP, awaiting your thoughtful reply at the earliest.
    Nandan

    • khotapaisa said, on June 23, 2010 at 6:39 pm

      Hi Nandan,
      You don’t need advice as you know what to do. Go ahead and convert the policies into fully paidup and buy term plan first. Don’t worry about the bonus, it’s not big anyways. You are better off investing that money somewhere else.

  64. Rupen parekh said, on June 23, 2010 at 1:59 pm

    Hello Khotapaisa;

    I hv taken 2 LIC Policies

    1. Money Plus – 180 in my wife name with premium 30,000 p.a.with 20 years maturity.
    2. Komal Jeevan – 159 my son name with premium 27,558 p.a. with 12 year maturity

    Per our Lic Agent he confirm to pay above 2 premiums for 5 years. Then after we can stop paying premium & at the end of maturity can hv the funds at our disposal. As whatever we hv invested over 5 years will get it multiplied & that returns are re-invested further as premiums!!!

    Advice if this is true that we can stop paying premiums at 5 years end; m planning some MF after this investment.

    regds

    Rupen

    • khotapaisa said, on June 23, 2010 at 6:22 pm

      Hi Rupen,
      Yes you can stop paying premium after 3/5 years depending on the ULIP. For Komal Jeevan, there is no such deal. You can though surrender Komal Jeevan after 3 years and get 90% of monay back. You may surrender Komal Jeevan or try to get it converted into fullly paid policy if possible. As for the ULIP(Money Plus), you may stop paying premium but don’t surrender it. You can invest the premium saved from the policies into funds. But make sure that you have a good advisor.

      • Rupen Parekh said, on June 24, 2010 at 11:28 am

        Dear Khotapaisa

        Thank for quick reply. In fact I do not want to surrender policy; So hence is it I need to write to LIC to convert my returns into Premiums for rest of the years??

        Pls advice is Canara HSBC Life Insurance is good investment??

        Rupen

      • khotapaisa said, on June 24, 2010 at 9:06 pm

        Hi Rupen,
        You need to inform the insurer about it. As for Canara HSBC Life Insurance, I don’t know which plan you are talking about. But as you want to know if it’s a good investment, here is my comment.
        Insurance is not for investment. It is for protection. If tax break is all you need, there are better ways to get tax breaks. so, NEVER buy a policy to save tax.

  65. Anand said, on June 24, 2010 at 12:50 pm

    Hello,
    Greetings for the day.
    I want to invest in market plus. There are two schemes one is launched in 2006 by name market plus 181 & other is launched in 2008 by name market plus I 191. Please may i know which is good one to invest. I am planning for investment for 5 years. One more question is say suppose i have invested in any one of the plans mentioned above. Now say after 5 years the policy will be over & if suppose the principal amount is decreased then can i continue the policy for another 5 years or how is the next step? what are the possible ways?

    Kindly suggest me…
    Thanks

    • khotapaisa said, on June 24, 2010 at 9:47 pm

      Hi Anand,
      On the cost front, Market plus I is a better option. I am not sure what you mean by 5 year investment. Do you plan to pay premium for 5 years only but remain investment for much longer? Or you want to take money out after 5 years? If your answer to the first is yes, you may go for Money plus I. Infact there are lower cost ULIPs in market as well. And if your answer to the secons question is yes, don’t buy ULIP or any equity product.
      Your last question is not clear to me. Can you elaborate?

  66. Dr Aditya said, on June 24, 2010 at 1:38 pm

    what’s the status of ULIP’s right now after govt decision. i invested around 3 lacs(single premium investment) in lic market plus 1 (age–56 yrs) 1 month back without insurance cover( as charges for that were very high and my main purpose was tax free investment). Was it a right decision?? the market has risen 1000 ponts since den. rt now the money is in growth fund, if the market touches 19,000 points should i switch to secured fund??i am thinking if this as a long term(5-10 yrs) investment.your views??

    • khotapaisa said, on June 24, 2010 at 10:37 pm

      Dear Dr. Aditya,
      – NEVER buy ULIP or any insurance to save tax.
      – Remain invested in growth fund of ULIP(max. equity) till about 3-5 years before maturity. Don’t worry about sensex.
      – In my opinion, long term is 10 years or more.

  67. Ganesh T said, on June 25, 2010 at 1:05 pm

    Hi,

    I want to take a pension policy for my mother who is 59 yrs old now. I was looking at LIC Market Plus I. Would like to know whether this policy would be beneficial if I take it with the followig parameters.

    Tenure – 5 or 10 yrs ( what u suggest? )
    Premium: 15k yrly
    no riders

    What would be the approx corpus at maturity and approx pension amt that would start after maturity?

    Regards

    • khotapaisa said, on June 25, 2010 at 4:05 pm

      Hi Ganesh,
      NO ULIP for your parents (Mother in your case). Equity based products like ULIP are not suitable for her. I guess you want to pay for a pension plan so that she gets monthly pension after 5-10 years. Am I right? If so, I would suggest you start investing monthly in a combination of recurring deposit & balanced fund. Your contribution towards RD should be more if your investment period is less (5-7 years or so). You can invest more in balanced fund(s) if you want to invest for longer (say 8-10 years). After your investment period(5-10 years as you decide), you can buy immediate annuity plan with the money accumulated. Since your investment is 15K/year, you should for longer term investment. The longer you invest, the more pension your mother would get.
      With 15K/year for 10 years, you would have around 2-3 lacs. This would give around 1500-2000/- per month as pension from annuity.

    • Ganesh said, on June 25, 2010 at 10:38 pm

      Thanks for your prompt reply.

      Can you give examples of some balanced funds (u mean mutual funds, right) ? HDFC Prudence ???? Any others?

      • khotapaisa said, on June 25, 2010 at 11:08 pm

        Your selection is good. There is no better balanced fund to select. Given your monthly investment, you don’t need to invest in more than 1 fund. If you want to put more money, you can add a recurring deposit to your portfolio.

      • Ganesh said, on June 25, 2010 at 11:15 pm

        In addition to the above, I just did a search and found some Balanced funds
        – HDFC Prudence
        – HDFC Balanced
        – Reliance RSF

        Could you please prioritize these for me starting with the best ?

  68. Samby said, on July 6, 2010 at 10:28 am

    Hi,

    I have invested Rs 1 lac single premium in Market plus growth fund in 2007 for 10 yrs. As of now after three years returns seem to be nearly 8%. Any suggestion for withdrawing it after 5yrs or should i complete the term of 10 yrs. And if i complete the term what would be the approx returns

    thnx Samby

    • khotapaisa said, on July 6, 2010 at 6:20 pm

      Hi Samby,
      I wouldn’t suggest withdrawing unless you can’t pay the premium. So, keep invested and don’t worry about returns. Once you hace completed 7 years or so, start shifting the money from equity option(hope you have put it all in equity) to debt option in the ULIP. As for return, it is anybody’s guess. But assuming 12%-15% (12% is a safer assumption) return should be fine.

  69. Binu P Thomas said, on July 13, 2010 at 3:48 pm

    Hi I 25 Years old ,unmarried ,salried in a private concern around 25k permonth in hand..

    I dont have any investents or policies till now.For Tax purpose and also for while considering the future i would like to go for an LIC insurance. I heard about Market + a good option.Whats your view .Right now i can give 10000 – 15000 PER year as investment.

    • khotapaisa said, on July 13, 2010 at 6:22 pm

      Hi Bipu,
      It’s good to see that you are planning your investments. If you want to go for ULIP, make sure that you invest for 10 or more years. You can look for other ULIPs in market which are cheaper.

  70. Lingareddy said, on July 15, 2010 at 10:35 am

    Hello Sir,
    Its amazing to see you reply promptly for most of the young families.
    Its very rare to see such a valuable personal advice so promptly especially in India.
    By the way I live in USA. my co-brother insisting on me to invest in LIC Market Plus 1.
    As you suggested I am ready to go for full 10 years with up to 50K per annum.

    But my question is as , I am living in USA does this LIC plans make any sense?

    I am 34 years old. I have a 5 year old girl and 1 year old boy.

    Thank you in advance.
    I am whole heartedly appreciating your work here.

    • khotapaisa said, on July 15, 2010 at 7:47 pm

      Hi Lingareddy,
      Thanx or your encouraging comment. It’s good that you are ready to invest for 10 or more years. If you are looking for pension plan, you can open a NPS account (when you visit India). It is the best pension plan out there. Else you can invest in muutal funds if you prefer to. If your idea is to just invest in equity (say thru ULIP), there are cheaper ULIPs in market (like ICICI ACE plan).
      As to whether it makes sense for you, sure it does for two reasons.
      1. Return on investment in India is much higher here compared to USA.
      2. You probably would be returning to India after a long stay there.

  71. Anu said, on July 15, 2010 at 2:12 pm

    I had taken an LIC Market Plus (181) in Nov 2006 for Rs.20,000. I would like to know how much money I’ll get in total if I wish to sell it now? Since there has been fluctuation in the share market during these past years, will my initially invested RS.20,000 be subject to the changes the previous years or whether I’ll be able to trade the amount (Rs.2,0000) with the current nav. Where can I get information regarding this? Thank you.

    • khotapaisa said, on July 15, 2010 at 7:50 pm

      Hi Anu,
      If you want to knwo how much your corpus is, you can login to LIC website (you can register there pretty easily). The money that you can withdraw is based on the current NAV, which keeps changing. But I would suggest you not withdraw money unless you really need it. Leave it & let it grow.

      • anu said, on July 15, 2010 at 10:59 pm

        Thank you very much for your suggestion. I truly appreciate it.

  72. Meeran said, on July 15, 2010 at 5:04 pm

    Hi,

    I have invested Rs 25000/- per year in money plus (180) for 3 years. I did not pay the 4th year premium. Can i leave that with out paying or shall i close and withdraw the amount.

    • khotapaisa said, on July 15, 2010 at 7:54 pm

      Hi Meeran,
      The minimum paying period for money plus is 3 years. So you can stop paying premium. But you need to inform LIC about it. If you don’t need the money, don’t withdraw it.

  73. Das said, on July 19, 2010 at 2:22 pm

    Hi,
    Stumbled upon yr blog, while searching for info on Mkt plus I.
    Gd info, brief & to the point. Keep up the gd wk.

    A few gen ques. –

    1) Is mkt plus 1, is it still worth it with the proposed rule changes & is it still open for sale ?

    2) Life Incurance query – Unfortunately all taken well before completely understanding “term policies” (Curent Age 40+, just one dependent elderly parent. )
    The policies below are all annual premiums

    Endowment 14/35/35 start 26-OCT-1998 Rs.1396/-
    Jeevan Surabhi 108/25/18 start 15-Dec-1998 Rs: 4126/-
    Jeevan Griha-Triple 105/30/25 start 15-Dec-1998 Rs: 1333/-
    Jeevan Shree 112/25/16start 03-Mar-2001 Rs: 25878/-
    Endowment With Profits 14/16/16 start 20-Jul-2006 Rs: 6289/-
    Endowment With Profits 14/16/16 start 20-Jul-2006 Rs: 26733/-
    Endowment With Profits 14/21/21 start 20-Jul-2006 Rs: 23801/-
    Endowment With Profits 14/31/31 start 20-Jul-2006 Rs: 10707/-

    ULIP . 30-Jul-2006 Rs: 10000/- ULIP Future Plus 172/15/1 (just one premium paid)

    Birla Allianz 28-Feb-2005 (only 3 Yrs Rs:60,000/- paidup & stopped , but not surrendered)

    Pl review the above – keep / change/modify/ continue the above ?.

    3) Portfolio query.
    MF (mostly equity diversified funds 3 to 10 yr old) 4.5 Lakh, current NAVs are good. Hold/ sell/ modify ??

    Shares (directly) 2 Lakhs aprox (most IPO’s) current value abt 7-8 lakhs Hold/ sell/ modify ??

    Have abt 1 to 1.5 lakhs to invest per yr, currently puting most of it in MFs.
    Could U pl suggest a few gd MF scheems.

    4) Own a home, but considering buying another small flat as a pure investment, is it a good idea in the long run.

    Thanks for your time,

    Regards,

    • khotapaisa said, on July 19, 2010 at 9:36 pm

      Hi Das,
      First let me clarify that I am not financial expert. So, whatever I suggest should be taken with a pinch of salt.
      Now to your queries.
      1. Market Plus 1 is a pension plan. And if you are looking for pension plan, check out NPS (New Pension Plan).
      2. Too many policies. You may consider converting as many of them as possible into fully paid up policies or exit if the exit charges are not too big. But over a period, keep exiting them by either surrendering or conversion into fully paid up. You should in turn buy term plan for protection.
      As for ULIP, I am not sure what charges you are paying. Depending on the charges applicable, you may either continue it or stop paying premium after 3 years or so but not surrender it.
      3. With a MF portfolio of diversified fund with 3-10 year age, I won’t bother getting into details. So just keep investing in existing funds.
      I don’t know much about shares. So I wouldn’t be able to comment on this.
      4. Buying house as investment is a debatable topic. It all depends on your personal comfort. But do remember that house is a liability (insurance, maintenance, tax etc). So it’s generally not a good idea to buy house unless you can give at least 25%-30% as down payment.
      Hope it answers your queries.

      • Das said, on July 21, 2010 at 1:55 pm

        Hi Again,

        Tks for your views.
        LIC policies, I do need to look into / sort.
        MF have proven to give consistant returns over time.

        Abt buying a 2nd home. I was considering the distant surburbs (20L to 30L range)
        I could put down 50-60% for it out right. But the compelling question is – is it worth the effort, considering I’m looking at it as a pure investment. Taking into a/c the liabilities/ cost & effort involved in maintaining such an investment.

        If I do consider investing in another property, what is the ideal % of bk loan I should look for.

        Thanks again,
        Regards,

      • khotapaisa said, on July 21, 2010 at 6:31 pm

        Hi Das,
        Buying a second house with 50% down payment depends on your comfort. If you feel comfortable with a second house (with liabilities) + 10-15 lacs loan then you may buy it. As for ideal percentage as far as loan is concerned, you are more than better placed with 50+% in pocket.
        So go ahead & buy house (put it on rent). If bought for rental purpose, it also provides you as a source of income.

  74. aks said, on July 25, 2010 at 3:56 pm

    Hi,

    Thnx for guiding all finance illiterates. Need ur suggestion on:
    i want to invest around 1L this year as doing every year. Till now, was investing 70K in PPF, but nw i want to increase my equity portfolio as i dont much equity investments. i hv LIC insurance policies of Money back, term plan, Jeevan Anand and LIC’s monthly recurring deposit plan. i hv these priorities (1. buying a house 2. buying a car 3. invest for retirment 4. invest for child future and education). Currently i m at 28 and want ur guidance as to where i need to invest my money currently as i may need this money within short span of time if i get the house of my desire. Even i dont understand much abt debt market. so not investing even for a shorter period of time. Kindly suggest where i hv to invest these money, in which plan (plz specify names of plan). Also is it gud time to invest in property in Mumbai as prices are sky rocketing? thnx in advance

    • khotapaisa said, on July 25, 2010 at 11:49 pm

      Hi AKS,
      You would need a detailed financial planning to cover your financial goals. To answer your questions, if you think that you woudl need money in 5 years or less, you must invest in debt mutual funds, FD or Recurring deposits. Your RD is a good investment towards this. As for investing in property in Mumbai, I am no expert on this. But in general whenever you buy house, try to put at least 25%-30% as down payment. BTW, keep putting 70K in PPF as this would be an appropriate investment towards your child’s education.

  75. aks said, on July 25, 2010 at 4:44 pm

    hi,
    further to my last query, shld i go for lic money plus for pension plan? How new IRDA rule for ULIP make this lic maket plus more costlier? Whether IRDA’s rule effective from 1st aug, will make ULIPs more costlier than currently? Can i know wht is return generated by NPS? R they going to launch any new scheme in NPS within short span of time? shld v wait for new schemes of NPS? Thwon lots of question as i knw u cud answer all these very well and perfectly. thnx for all ur hard/smart/gud work.

    • khotapaisa said, on July 25, 2010 at 11:53 pm

      For pension plan, I would suggest NPS. To get the reutrns given by various NPS providers, you can check out the pfrda website. It is roughly in the range of 12%-18%. But don’t worry about the return. NPS is a beautifully designed pension plan. Just open a NPS account. There is no new scheme for NPS so no need to wait. With NPS in market, all the questions about cost of other pension plans, their return etc become irrelevant.
      Hope it answered your queries.

  76. Jay said, on August 11, 2010 at 11:35 pm

    Hi,

    I’ve a ULIP policy for 10,00,000 INR (FROM HDFC ULIP – 24,000 INR / year already paid last 3 years and still continuing ) as well as LIC Money back (5,00,000 – 24,000 INR / year paying since 2006) as well as two more LIC policies (15,000 INR / year). Add on to this i’ve my company mediclalim (1,00,000 INR) for me and my family members and accidental coverage for 15,00,000 INR for me.

    Can i invest in LIC Market plus for my pension or for my kid (she’s 3 years old now)

    Your advice is appericiated.

    Regards,
    Jay

    • khotapaisa said, on August 12, 2010 at 5:25 pm

      You already have enough ULIPs & other insurance plans. As for your pension plan, you can open an NPS account. There is not better pension product in market. For you kid, I guess you can use proceeds from the ULIPs and other plans towards education. An yearly investment of around 50,000/- (your two ULIPs) is a good starting point. You can additionally invest in PPF (16 years lock-in).

  77. Santosh said, on August 18, 2010 at 12:24 pm

    Hi,

    I was looking your khotasikkawordpress.com today where many people have raised their querries and you have well explained their querries.

    I want to invest 50K [One time investment] in LIC’s Market Plus. But I am made confused to choose between LIC’s Market Plus plan or to take Birla’s Sun Life insurance or should I opt for any other insurance plan. But I am interested to invest in ULIP plan where I can also get pension at the age of 60 yrs. I am 52 yrs. this time.

    Please help me in choosing right insurance.

    Santosh

    • khotapaisa said, on August 19, 2010 at 4:34 pm

      Dear Mr. Santosh,
      Since you have only 8 years left to retire/get pension, a pension plan is not the right product for you. In fact, you should not even look at equity product given your time frame & age profile. So, invest in safer investments like debt funds, RDs etc. If you are fine with risk, you can invest in balanced funds. But no ULIP or any other pension product.
      Hope that answers your query.

  78. Madhu Bhaskar said, on August 20, 2010 at 10:59 pm

    Dear Khotapaisa,

    I am 29, married, and planning to retire at 60. Please will you suggest me a pension plan. I went through a few equity based pension schemes, like HDFC pension super, SBI unit plus III, Bajaj allianz future secure etc. Then i went through your suggestion to our friends about NPS. I was a bit confused. Will you please tell me which one would be better and how is NPS different from the other pension plans.
    I want to make a decision carefully after observing all the available options in the present scenario, and dont want to repent on that later. Please help me in making the decision.
    One more doubt i have is, is it the right time to enter the market(i mean via the equity entry made by the firms of insurance) , as now the market is at its high rise, i would be paying more for all the units.
    Please suggest.

    Thanks a lot

    • khotapaisa said, on August 22, 2010 at 11:25 am

      Hi Madhu,
      It’s good that you are planning to invest in pension plans early in your career. With NPS around, you need not look around for other pension products. Other than low cost & index based allocation, there are several features of NPS which make it a very good pension product. The biggest question about NPS investors have is the lack of flexibility. So, if some time in furure, you need to take out money from your pension plan, you can’t do it in NPS. Well, this has been done purposefully. As a work around to this, you can open NPS TierII account as well. You deposit money in TierII account & then transfer it to TierI account . This will allow you to maintain a buffer amount in an account which allows you to withdraw when required.
      As for timing of the market, don’t ever let this question bother you again.
      Hope that answers your question.

  79. Madhu Bhaskar said, on August 23, 2010 at 12:53 pm

    Thankyou very much Khota Paisa.

  80. RAHUL said, on September 6, 2010 at 11:45 pm

    hello khota paisa

    ur blog seems v impressing.
    keep up d gud wrk.

    i hv a query.
    my wife is 33 years old. she wanted a retirement plan for herself.
    lic agent suggested her jeewan saral n then transfer the money to jeewan akshay after completion of the term.

    she has hence purchased jeewan saral with a premium of rs 4000 per month for a term of 20 years considering it safe investment.

    wht will she get after 2o years ?

    is tht a correct choice for a retirement plan?

    if it is not so , what can be done now.

    she is v confused. please give ur comments on d same.

    thanking you in anticipatiion.

    rahul

    • khotapaisa said, on September 9, 2010 at 9:23 pm

      Hi Rahul,
      Without going into the technical details of these LIC plans, I can tell you that your agent just made good money for himself. I would suggest that if she has not paid big sum for these policies, let her surrender the policy. She may loose some money but that is fine. As for retirement, ask her open NPS account. Nothing out there in market is better for retirement.
      And stop taking advice from your agent. After all it’s your & your wife’s hard earned money.

  81. RAHUL said, on September 9, 2010 at 10:43 pm

    hello khotapaisa

    thanx a lot for ur prompt reply

    well my wife has paid half yearly payment of Rs 24420 .

    wht do you suggest now?

    should she surrender the policy or wait for 5 years and then surrender ?
    please advice.

    ijeevan saral was taken for 20 years with premium of rs 4000 per month.

    we were asking only for a good retirement policy from the agent hence believed her advice.there was no amount returned by the agent from her commision as we never asked 4 it. were only looking for genuine advice from her.

    thanx again for ur time and help

    god bless u

    looking forward to ur reply.
    rahul

    • khotapaisa said, on September 11, 2010 at 7:14 pm

      Hi Rahul,
      If you and your wife are fine, I would suggest you surrender the policy but you would stand to loose 24000/-. But then it depends on your comfort level.

  82. RAHUL said, on September 13, 2010 at 9:48 pm

    thanx for ur advice and prompt reply

  83. Abhisek Sarkar said, on September 22, 2010 at 1:34 am

    Hi,
    I have invested around 2 lac 25 thousand in single premium in Market plus. The agent confirmed i would be getting around 1lac 20 thousand per month after 25 years lofe long. Also i am covered for life with an amount of 2 crores. How much truthful is it?

  84. Sharma said, on October 1, 2010 at 5:37 pm

    Hello Khotapaisa:
    My dad has purchased LIC Future Plus (single premium) 5 years back. Next week, the lock-in period is getting completed. Now the agent is saying that he has to withdraw the money. Is that correct? Can’t he just stay invested and withdraw whenever he needs money?


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