Highest NAV Concepts - Guarantee Highest NAV Hidden Conditions

Let me explain all hidden conditions and concepts of Highest NAV Concepts with implication on your investment.
No multiple fund selection optionGenerally, ULIP policies come with multiple fund options ranging from pure equity fund, pure debt fund and balanced fund etc. But, the guarantee highest NAV policy offers only 1 or maximum 2 funds and these funds are also more than 95% debt oriented. The

Highest NAV Concepts - Practical example

Every insurance company launches their new guarantee highest NAV ulip policy in the market. People will opt for these ulip policies without checking details of the hidden condition.Let me explain these concepts with real life example.Let’s think practical: If insurance company has 10 policy holders with Rs 1000 annual premium. Each policy holder has 100 Units (with initial NAV Rs 10 and assuming

ICICI Pru Pinnacle Concepts - Misleading fundamentals

ICICI Pru Pinnacle guarantees highest NAV recorded on daily basis for the first seven years (from24/10/09 to 24/10/16).
Main features (As Advertised):- IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER – What do you mean by guarantee then?- Addition of amount equal to 3% of fund value (not highest but prevailing NAV on maturity). This will enhance the

SBI Life Smart ULIP Concepts - Exposed with fund performance?

Main features(As advertised):
- IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER - Forget about Guarantee.- Assure Guarantee of highest NAV in during the first seven years on Maturity.- Manage and give you maximum opportunity for your investment to grow while protecting your investments against market conditions.- Fixed Sum Assured 5 * AP (Annualized

Virtual Credit card or Prepaid Credit card - Secure Transaction online

                                  
If you are not comfortable using your credit card or debit card online but you do not have an option without making your transaction online then you don’t have to worry any more. You can opt for virtual credit card and use for your transaction without any tension of being misused by anyone.
What is a Virtual credit card or Prepaid credit card?Virtual credit

Product Innovation is coming in Health Insurance Industry in India

Max Bupa is expected to start their operations in near future and it is good to know that product to be introduced will come out with innovative features, which we have covered in our blogs from time to time. The company is starting with 6 metropolitan cities. Instead of focusing on too many hospitals, focus will be on treatment of policy holders in the best hospitals. We understand that 20 best hospitals have been empanelled in Delhi area.

Salient points of comparison between products available presently with that of Max Bupa are:

• Focus on metro cities
• Focus on upper segment or upper middle segment of society
• Use of smart cards
• Will not use TPAs
• For those opting for sum assured of Rs.15 lakhs – use of helicopter permitted for evacuation in case of emergency
• Max sum assured of Rs. 50 lakhs
• Reimbursement of medical tests cost incurred at the time of making proposal
• OPD coverage - yes
• Annual medical checkup
• A qualified doctor will be acting as your Relationship Manager – who will guide you on phone from time to time. He will even visit you when you are in hospital for serious ailment.

Why health insurance portfolio of Indian Insurance Companies is loss making

During 2008-09 the figures of some of the insurance companies are:


The reason why Insurance Companies lost money and that too heavily is that while issuing group/ corporate policies they give coverage for:
• Pre-existing diseases
• Maternity

The question arises – If pre-existing and maternity coverage is not given to individuals/ families then why it is being giving to corporate? Is this not a restrictive practice? Should we try to stop it?

Is it the desire of the insurance companies to show high top line figure that business is accepted by insurance companies from corporates at low premium rate?

Is it that large corporates are having bargaining power because of large number of personnel to be covered and big ticket cheque being issued by them?

Some of these questions need to be answered. Comments are invited.

Mutual Fund dividend calculation - a misleading method for customer

Every AMC (Asset Management Company) announces dividend in the month of January to March as many people are interested in saving tax and making investment for Section 80C.These people do not really understand the concept of mutual fund dividend calculation and make investment for fund which declares high dividend. People put more focus on dividend % than fund performance. It’s never like the

LIC's Wealth Plus misleading concepts

I am going to show actual Concepts/Facts(based on LICINDIA.COM) with my analysis.


LIC's Concept#1 
LIC’s Wealth Plus is a unit linked plan that safeguards your investment from market fluctuations, so that your investments are protected in financially volatile times. This plan offers payment of Fund Value at the end of policy term, based on highest Net Asset Value (NAV) over the first 7 years