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LIC of India New Plan Aadhaar Shila (Plan No.844)

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With reference to Product Development Department, CO, Circulars ref. CO/PD/95 & 96 dated 20th April 2017, regarding introduction of Aadhaar Shila (Plan No. 844)- Unique Identification Number (UIN) 512N309V01 . I hereby provide information about this plan to best of my knowledge. LIC of India New Plan Aadhaar Shila (Plan No.844) is a plan specially designed for females and is available to Aadhaar Card holders only. This plan is available only under non-medical scheme.

LIC of India New Plan Aadhaar Shila (No.844)

Sum assured

  • Minimum sum assured per life: Rs. 75000/-
  • Maximum sum assured per life: Rs. 300000/-
  • Note splitting into multiple polices to take bigger advantage of the policy is not allowed.

Elligibility

  • Minimum Age of Entry: 8 years (completed)
  • Maximum Age of Entry: 55 years (nearest birthday)
  • Minimum policy term for all age group is 10 years and maximum is 20 years. Age at maturity shall not be more than 70 years. E.g. a person with age 55 years can take a maximum policy term of 15 years.
  • Standard medical condition – should not have been declined insurance on medical grounds before. Pregnant ladies are not eligible

Benefits

  • On death during first five years of the policy: 110% of the sum assured
  • On death during after completion five years of the policy: 110% of the sum assured + loyalty additions
  • On Maturity: Sum assured along with loyalty additions
  • Loan facility available after three years
  • Surrender of policy and paid up available after three years.
  • Accidental death benefit available. In this scheme the sum assured payable is doubled in case of accidental death.

KYC Requirements for the Aadhaar Shila

  • Self-attested copy of Aadhaar card is a must
  • No other additional proof of identity and residence is required provided address mentioned in proposal form tallies with the Aadhar card.

Mode of Payment

  • Yearly
  • Half-yearly
  • Quarterly
  • Monthly (through bank mandate only)

Investment options for year 2017

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how to make money in 2017

2017 photo

Happy new year 2017

Wishing you a very happy and prosperous new year from all of us at DivyaAdvisor.com. Apart from taking the opportunity to wish you for the new year I also wanted to take share some advice on investment for the year 2017. I hope you will all earn and pay more income tax compared to last year. Continue reading for investment options for the year 2017. Invest wisely and make most of your money.

Investment Options for the Year 2017

  • Term Plan – it is not an investment but a necessity. Investment here can also get you income tax benefits.
  • Medical Insurance – another must have. Choose from many options available. It is not an investment option for year 2017 but a necessity. Investment here can also get you income tax benefits.
  • Emergency Fund – It is not an investment option for year 2017 but a necessity. Consider having at lest 3-4 months of your monthly expense as your emergency fund.
  • Your own house – you should have one house of your own, one where you can live. I am expecting real estate rates to fall down as black money is squeezed out of the system. It is not an investment option for year 2017 but a necessity. You also get exemption on principle and interest for income tax purpose.
  • Equity – Markets down mean good rates on some premium companies. For the choice of stocks, contact your advisor unless you are a market pundit yourself. If you hold for more than a year your income is not taxed.
  • Equity mutual fund – This is best suited option for an average person. Qualified fund managers ensure they do the investment in equity on your behalf. When markets are down you are presented a good opportunity to buy some quality stocks / funds. If you hold for more than a year your income is not taxed.
  • Long term fixed deposits – Treat this as a limited time offer. Make the most of fixed deposit rates before they tumble down. it is inevitable that the interest rates will go down substantially as banks have more money than ever. Keep in mind any income on this option is taxed under your existing income tax bracket.
  • LIC of India plans – you can invest in it as a portion of your debt portfolio. LIC Jeevan Akshay can also be considered for long term assured returns as unlike Fixed Deposit rates will not change every few years. This option gives you benefit of income tax and is tax free on return.

Investment Options to avoid in the Year 2017

  • Gold – I do not see it shining this year, global market clues are suggesting a further decline in value.
  • Real Estate – expect rates to go down as black money is squeezed out of the system. Rentals are also expected to remain flat or decline as more housing units will be offered for posession this year.
  • Bonds – Expect rates to fall down further this year.

How to check KYC status for Mutual Funds?

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Compliance to KYC (Know your customer) has been a compulsory process for mutual funds. Once an individual does a KYC formality mostly at the time of buying his/her first fund, the same status will be valid across all mutual funds. There are multiple KRA (KYC Registration Agency) that are maintaining your KYC compliance status. Registering with one is enough to be a KYC complaint applicant to mutual fund purchase.

Here are the steps to check your KYC status.

Step 1: Visit KRA Website

Most KRA have a KYC status search that you can use. I will be showing you how to check KYC status using CDSL Ventures Limited (CVL) KRA.

Visit: https://www.cvlkra.com/

You can alternative visit https://camskra.com/ and use “My KYC Status” option. Remember as I said above your status

Step 2: Click on KYC Enquiry

Step 3: Fill in details

Just need to fill in PAN and Captcha as highlighted below

Step 4: Get the Results

Review your results across as KRA. Remember if you have a valid compliance status across one KRA it is valid across all mutual fund houses and you need not go through the process once again.

What if you do not find any records for your PAN?

You need to download one of the following forms from the link below, get the documents ready and call in one of mutual fund distributors like yours truly. Please note that in person verification is a mandatory process hence you will not be able to mail the forms to get a valid KYC compliance.

Click here to visit CDSL Ventures Ltd. Website to download forms

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LIC of India Bonus Rates 2015

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Summary of LIC of India Bonus Rates 2015

  • Bonus rates for LIC of India have mostly not changed from last year. Only exception are Jeevan Anand and Jevaan Shree plans where rates have increased by Rs. 1 across all policy terms
  • Bonus rates for the new plan has not been different from the old plans that were selling before the new IRDA regulations came into effect.
  • Refer to my earlier post if you want to understand LIC of India Historical Bonus Rates
  • Refer to my earlier post if you want to understand return on LIC of India Policy

LIC of India Bonus Rates 2015

Reversionary Bonus Rates declared as a result of valuation as at 31st March 2015
Sl No.

Plan

 Term* Bonus Rates (Per `
1000/- Sum Assured)**

2015
1 Whole Life Type Plans (2,5,6,8,10,28 – before conversion,35,36,37,38,49,77,78,85 & 86)  

70
2

Endowment Type Plans (14,17,27 – after conversion, 28 -after conversion,34,39,40,41,42,50,54,79,80,81,84,8 7,90,91,92,95,101,102,103,109,110 & 121)

< 11

34
11 to 15

38
16 to 20

42

> 20

48
3 New Endowment Plan (814) 12 to 15

38
16 to 20

42

> 20

48
4 Single Premium Endowment Plan (817) 10 to 15

41
16 to 20

46

> 20

51
5 Money Back Assurances Plans (75 & 93)

20

39

25

44
6 New Money Back Plans (820 & 821)

20

39

25

44
7 Jeevan Surabhi Plans (106,107 & 108)

15

34

20

41

25

50
8 Jeevan Mitra (Double Cover Plan), Jeevan Saathi (88,89)

15

40
16 to 20

44

> 20

48
9 Jeevan Mitra (Triple Cover Plan) (133)

< 16

40
16 to 20

45

> 20

50
10 Limited Payment Endowment Plan (48)

<16

40
16 to 20

44

> 20

49
11 Limited Premium Endowment Plan (830)

12

40

16

45

21

50
12 New Children Money Back Plan (832) 13 to 15

38
16 to 20

42

> 20

48
13 Jeevan Lakshya Plan (833) 13 to 15

41
16 to 20

45

> 20

49
 

 

  

 
14 Jeevan Anand Plan (149)

5

38
6 to 10

38
11 to 15

41
16 to 20

45

> 20

49
15 New Jeevan Anand Plan (815)

15

41
16 to 20

45

> 20

49
16 Jeevan Rekha Plan (152)

< 11

49
11 to 15

44
16 to 20

40

> 20

34
17 Jeevan Anurag Plan (168)

< 11

38
11 to 15

40
16 to 20

42

> 20

44
18 New Jeevan Suraksha – I Plan (147)

< 6

21
6 to 10

27
11 to 15

31

> 15

35
19 New Jeevan Dhara – I Plan (148)

< 6

20
6 to 10

25
11 to 15

28

> 15

32
20 Jeevan Tarang Plan (178)

10

47

15

48

20

49
21 Jeevan Madhur Plan (182)

< 11

21
11 to 15

26
22 Child Career Plan (184) 11 to 15

34
16 to 20

38

> 20

40
23 Child Future Plan (185) 11 to 15

38
16 to 20

42

> 20

44
24 Jeevan Bharti Plan (160)

15

38

20

40
25 Jeevan Shree – I Plan (162)

10

44

15

45

20

48

25

52
 

 

  

 
26 Jeevan Nidhi Plan (169)

< 11

38
11 to 15

40
16 to 20

42

> 20

44
27 Jeevan Pramukh Plan (167)

10

47

15

48

20

51

25

55
28 Jeevan Amrit Plan (186) 10 to 15

30
16 to 20

30

> 20

30
29 Jeevan Bharti – I Plan (192)

15

29

20

31
Note:
* Plan – 149 & 152 : Premium Paying Term in place of Term
Plan – 178: Accumulation Period in place of Term
Plan – 147,148 & 169: Deferment Period in place of Term
** Plan – 147 & 148: Bonus rates are per thousand Notional Cash Option
Plan – 182: Bonus rates are per thousand Death Benefit Sum Assured Plan – 186: Bonus rates are per thousand premium paid

LIC of India Final Additional Bonus 2015

Terms in respect of maturities, discounted maturity claims / Number of years’ premiums paid in respect of claims by death (#)

Amount of Final (Additional) Bonus per ` 1000/- Sum Assured for policies with sum assured
 

Up to 25,000

25,001 to
50,000

50,001 to
1,99,999

2,00,000
and above
15

0

0

10

20
16

0

0

15

25
17

0

10

20

30
18

10

15

25

35
19

15

20

30

50
20

20

25

40

70
21

25

30

50

100
22

30

50

80

150
23

35

100

150

250
24

70

150

230

350
25

170

250

330

450
26

270

350

430

550
27

370

450

540

670
28

470

550

650

790
29

570

650

760

910
30

670

750

900

1100
31

800

900

1100

1300
32

950

1050

1300

1550
33

1100

1200

1550

1800
34

1250

1350

1700

2050
35

1400

1500

1850

2300
36

1550

1650

2050

2550
37

1700

1800

2250

2800
38

1850

1950

2500

3050
39

2000

2100

2750

3300
40 & above

2150

2500

3000

3550

10 steps in your march towards financial freedom

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Wishing a very happy Indian independence day to all the Indians and friends of India . As India celebrates its 69th independence day on 15th August 2015 you should also look towards marching towards a financial freedom. Here are ten steps to help you march towards it.

 

10 steps in your march towards financial freedom

 1. Emergency Fund

Emergency can come knocking your door any time make sure you have at least 3 months of your expense parked as emergency fund. Liquidity is important hence in my opinion this is how you should park your emergency fund

  • Keep one month of expense as cash as your home
  • Keep one month of expense in your savings bank account
  • Keep one month of expense in a liquid debt fund. This also helps you save income tax if the holding period is longer than 3 years. After all there is no guarantee that you will have to use your emergency fund in three years.

    2. Life Insurance

  • Life is uncertain you need money so that your dependents can lead a lifestyle that you were giving them with your income
  • Experts advise that one should have a cover of 10 times your annual income.
  • Make sure your dependents knows about your life cover and the claim process. Make sure you also introduce them to your financial advisor.
  • You should also advise your dependents on how they can invest the money received from the claim to generate a regular income.

    3. Health insurance

  • Medical emergencies can cripple your finances.
  • Ensure you have adequate medical insurance for you and your dependents.
  • Aim to have a family floater plan that has no sub limits or cap on medical expense

    4. Critical Care / Accidental Insurance Plan

  • While life and medical insurance can take care of the respective needs there are times when you can be put on a bed rest leading to job loss
  • Ensure you have a critical care plan that covers loss of income that may arise out of your inability to attend your income generating job

    5. Insuring High Value assets

  • If something happens to your high value assets like your home it will be difficult to manage your finances
  • Ensure your high value assets like home, car, factory, shop are adequately ensured for theft, earthquake, fire, flood etc…
  • In case of an equipment you should consider annual maintenance plans that cover spares and labour.

    6. Appoint a financial advisor

  • Unless you are an expert in personal finance domain you should look forward to appointing an advisor
  • If you are a busy person and will not have enough time to track your investments regularly look forward to appointing an advisor who can track it for you.
  • Interview advisors and pick one that can cover you on various aspects like advise on insurance, investments and income tax

    7. Have a financial plan

  • You should have a financial plan with all goals in mind.
  • A financial goal should include inflation adjusted amount that you need for the goal and years that you need to invest to reach towards that goal.
  • Few examples of goals are retirement, money for child education, money to buy your next car etc…
  • If you cannot do it yourself ask your advisor to create a plan for you.

    8. Choose the right investment plan

  • There are multiple investment plans in the market choose the one that suits your goal
  • Choose investing in an equity mutual fund if the goal is few years away. Equity mutual fund has time and again proven that investment for a longer time in a SIP has given best returns compared to other products
  • Choose investing in a balanced fund or split your investments into equity and debt when investing in a medium term goal. Part of your money gets invested into equity that gives you better return and the other part is invested into debt products that are less risky.
  • Choose investing in a debt plan like liquid funds, fixed deposits etc. when investing for a short duration goal. A market crash can erode your investment that you may not be able to recover in few months

    9. Keep income tax in mind

  • Invest wisely. You should be aware what are you saving for and how much time you would need.
  • Understand tax implications of your investment.
  • There are plans that help you save tax at the time of investing e.g. LIC of India policies, ELSS mutual funds etc…
  • There are investments where you need to pay income tax even before maturity e.g. bank fixed deposits interest for each year is added to your income while the maturity is still further away
  • There are plans that are tax free or nearly tax free at the time of maturity e.g. Mutual funds, LIC of India policies, Tax free bonds etc…

    10. Buy a house / apartment

  • You should consider buying a house/apartment for your own living. This one house will also be you retirement home post your income generating years.
  • Did you know your retirement home can be reverse mortgaged to generate additional money for you after retirement? Reverse mortgage only applies to the house you live in after your retirement.
  • Buying multiple houses is an investment strategy but buying one is a necessity. You should study the real estate market well before buying multiple houses.

 

 Voluntary Disclosure : Author is an authorized agent of LIC of India , distributor of Mutual funds and authorized person on NSE.

Most Common Mistakes that First Time Life Insurance Buyers Make

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Common Mistakes

Buying life insurance has never been easier. These days life insurance is a click or phone call away. Lots of money being pumped into advertizemet is also making the awareness go up. Today we are looking into the common mistakes a first time life insurance buyers typically make.

mistake photo

Common mistakes First time Insurance Buyers make

 They do not know their true worth

One of the most common mistake that first time life insurance buyers make is buying an insurance policy for a random cover. I have often met people who instead of calculating a need fix a random value and ask for an insurance. More often or not the amount they wish to buy is either too less or too much for their current income level. Always remember the primary purpose of a life insurance policy is to supplement your income in your absence. As a rule you need insurance only if you have dependents and you need as much for your dependents to maintain at least their current lifestyle for years that they would be dependent on your income.

They mix insurance with investment

Another common mistake that first time life insurance buyers make is buying an insurance policy for an investment or to save income tax under section 80C. As a rule of thumb one should not mix insurance and investment. If you like the concept of market linked or endowment plans use it only to diversify your investment portfolio but never as your first insurance product. The first insurance product should always be a term plan that covers your insurance needs and not investment cum insurance. Your dependents will get peanuts out of these products if anything happens to you. Never spread yourself thin with insurance products.

They prefer convenience

Another common mistake that first time life insurance buyers make is to prefer convenience of buying. A product that is convenient to buy does not guarantee that it will be convenient to claim. A friendly buying website or a friendly neighbourhood agent makes it easy to buy but you should do enough research on choosing an insurance company that has a great track record of claim settlement. There are many websites or agents that have the convenience to shop through web or phone. A friendly execute will visit your home to collect documents. Some even send a paramedic to take your basic medical tests. Offers of no medical tests may sound convenient but at the time of claim the insurance company will investigate your medical condition. Even a small omission wilful or otherwise may lead to claim rejection.

IRDA publishes an annual report on claim settlement ratio this is a good starting point to kick start your research. Another great way to research is to speak to people who have had made claims in the past. They will tell you how easy or hard has it been dealing with a particular insurance company while claiming the amount. Remember the claim has to be made by your dependents while you are not there for them. Even if it takes extra bit of pain please take that, your do not want your grieving dependents an extra burden of fighting the claim with an insurance company.

They are caught unprepared during an insurance sales

Another common mistake that first time life insurance buyers make is being caught unprepared when they are meeting an agent or over a sales call. If the agent realizes you are not prepared well to understand insurance concepts they might pitch in various things which sound attractive at first place but it may not be a requirement. It is often better to research before meeting an agent so that you are not misled into buying a product you do not need. Remember the golden rule I told you your first insurance product has to be a term plan. Security first!

They are looking for cheaper premium or a cut from agent’s commission

Another common mistake that first time life insurance buyers make is to look for cheaper premium or a cut from agent’s commission. Unless you are looking to do a formality of buying an insurance do not look for cheapest plan. There are no cheap plans. Which one of the two insurance company would you prefer?

  1. Annual premium of Rs. 10000/- for a term plan with a company that is very convenient to buy , medical tests waived off, not all income documents required BUT has very poor track record of settling claim OR
  2. Annual premium of Rs. 15000/- for a term plan with a company that does a detailed medical tests on you, takes all your financial documents but has a good track of settling claims

There are many agents who can offer you rebates from commissions they earn from the company. These agents are not only violating section 41 of the insurance act but also looking to make the sale through at any cost. You need to think carefully why would an insurance agent pass on all or major part of his earning to you. There can be many reasons why the agents pass on few of these are listed below.

  1. Creating a monopoly – pass all or more that what they earn so that other agents in the area quit
  2. Desperation – they might be desperate to meet their targets hence passing their income.
  3. They have identified a penny wise and pound foolish person in you. It is your day today, they are confident they will earn more later.
  4. Breaking your existing relationship with another agent or company: they need to bring you out of a particular company or agent into their own fold. Initial sops or discounts is a proven practise of luring customers.

It will be your choice if you really want to engage with such cunning or desperate agent(s).

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Thinking of buying Gold this Akshay Tritiya? Read this before you do…

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Thinking of buying Gold this Akshay Tritiya? Read this before you do…

Akshaya Tritiya, also known as Akha Teej is being celebrated this year on 21-APR-2015. IT is considered a very auspicious day amongst Hindus and people start new ventures on this day. Since it is considered that any investment you start on this day would continue to grow many people traditionally buy gold on this day.

I am advising against buying gold this Akshaya Tritiya and here is why. Gold has not delivered in last 5 years at all. It is surprising to see that investments even in debt mutual funds returned more to the investors. Read this blog to find out if the glittery gold is the right investment this Akshay Tritiya.

NOTE: Buying gold to please ladies in your household is not covered as scope of this post

What if you have been buying gold worth Rs. 10000/ per month since April 2010?

If you had been buying gold worth Rs. 10000/- per month since 1st April 2010 you would have gold worth Rs. 638544/- as on April 17, 2015. Investment in Equity: Mid & Small Cap mutual fund could have given you a value of Rs. 1408509/- during the same period.

This is 2% annualized returns compared to 30% in the Mid & Small Cap mutual fund. A SIP in mutual funds across all categories have beaten gold in last 5 years.

See the table below that summarizes investment in gold with few of my recommended funds across categories.

 

Investment from 1-APRIL 2010 to 1-APRIL-2015
Amount Invested / Month

10000
Total Investment

610000
Category

Instrument

Value as on 17-APR-2015 in Rs.

Annualized Rate of Return
Mutual Fund: Equity: Mid & Small Cap Canara Robeco Emerging Equities Fund

1408509

30%
Mutual Fund: Equity: Tax Planning Axis Long Term Equity Fund

1307943

28%
Mutual Fund: Equity: Large & Mid Cap Franklin India Prima Plus Fund

1108494

22%
Mutual Fund: Hybrid: Equity-oriented Tata Balanced Fund – Plan A

1096775

22%
Mutual Fund: Equity: Large Cap UTI Equity Fund

1034527

20%
Mutual Fund: Hybrid: Debt-oriented Aggressive UTI CRTS 81 Fund

856987

13%
Mutual Fund: Debt: Income ICICI Prudential Long Term Fund

835360

12%
Mutual Fund: Debt: Gilt Medium & Long Term SBI Magnum Gilt Long-term

824825

12%
Mutual Fund: Debt: Liquid SBI Magnum InstaCash

766810

9%
Mutual Fund: Hybrid: Arbitrage IDFC Arbitrage Fund – Plan B

765339

9%
Physical Asset: Gold Gold

638544

2%

 

Is investment made on dependent’s name eligible for Income Tax Benefit?

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One common question that comes to mind of income tax payees is what are the scheme that allow investing on their dependents name. This blog aims to summarize that for you.

family photo

While you can invest on your dependents name not all schemes will be eligible for income tax exemption. Please go through the following table.

Is investment made on dependent’s name eligible for Income Tax Benefit?

Income Tax Section Is investment made on dependents name eligible for Tax Benefit? Comments
Medical Insurance 80D YES Allowed for Self, Spouse, Children & Parents
Medical Treatment for Handicapped Dependent 80DD YES Allowed for Self, Spouse, Children, Parents, Dependent Brothers & Sisters
Medical Treatment for Specified Disease 80DDB YES Allowed for Self, Spouse, Children, Parents, Dependent Brothers & Sisters
Interest on Education Loan 80E YES Allowed for Self, Spouse & Children
Donations to Certain Funds, Charitable Institution etc., 80G NO Only Allowed for Self
Permanent Physical Disability including Blindness 80U NO Only Allowed for Self
Pension Policy 80CCC NO Only Allowed for Self
Rajiv Gandhi Equity Savings Scheme 80CCG NO Only Allowed for Self
Provident Fund 80C NO Only Allowed for Self
Voluntary Provident Fund 80C NO Only Allowed for Self
Life Insurance Policies 80C YES Allowed for Self, Spouse & Children
PPF 80C YES Allowed for Self, Spouse & Children
NSC 80C NO Only Allowed for Self
Infrastructure Bonds 80C NO Only Allowed for Self
Tuition Fees 80C YES Only Allowed for up to 2 Children
ELSS 80C NO Only Allowed for Self
ULIP 80C YES Allowed for Self, Spouse & Children
5-Yr bank fixed deposits 80C NO Only Allowed for Self
Senior Citizen Savings Scheme 80C NO Only Allowed for Self
5-Yr post office time deposit scheme 80C NO Only Allowed for Self
NABARD rural bonds 80C NO Only Allowed for Self
NPS 80C NO Only Allowed for Self
Interest on NSC 80C NO Only Allowed for Self
Stamp Duty & Registration Charges on house 80C NO Only Allowed for Self
Home Loan Principal Repayment 80C NO Only Allowed for Self
Housing Loan on Self Occupied Property 24 NO Only Allowed for Self
Housing Loan on Let Out Property 24 NO Only Allowed for Self
Deduction on interest on home loan for first time buyers 80EE NO Only Allowed for Self
House Rent Allowance 10 (13A) NO Only Allowed for Self
Deduction in respect of Rents Paid 80GG NO Only Allowed for Self
Interest on Savings account 80TTA NO Only Allowed for Self

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The new 2014 Kisan Vikas Patra

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 The new 2014 Kisan Vikas Patra

Union finance minister Mr. Arun Jaitley on 18 November relaunched Kisan Vikas Patra (KVP), a scheme which was discontinued few years ago in 2011. Finance minister had promised to launch it during his budget speech earlier this year. In the budget speech he had outlined launch of KVP and the rational behind it. This is what he had to say in in para 27 of his budget speech

“Kisan Vikas Patra (KVP) a very popular instrument among small savers will be reintroduced The instrument will encourage people, who may have banked and unbanked savings to invest”

Read along to find out all about the new 2014 Kisan Vikas Patra

The new 2014 Kisan Vikas Patra
The new 2014 Kisan Vikas Patra

History of Kisan Vikas Patra?

Kisan Vikas Patra (KVP) – a certificate savings scheme was originally launched by the Government of India on 1st April, 1988. The original KVP was a scheme where money doubled in 5 ½ years. It had become quite popular and in the year of its closure, the scheme secured gross collections of Rs. 7575.95 crores (April 2011 to November 2011).

All you need to know about the *NEW* 2014 Kisan Vikas Patra (KVP)

  • Money doubles in 100 months (8 years and 4 months)
  • There is no upper limit on amount you can invest in this scheme.
  • The re-launched Kisan Vikas Patra (KVP) will be available to the investors in the denomination of Rs. 1000, 5000, 10000 and 50000
  • KVP can be issued in single or joint names.
  • KVP can be transferred from one person to any other person as many times as desired.
  • KYC norms are applicable, however PAN card is not a mandatory requirement as in other post office schemes.
  • It can be transferred from one post office to another post office in India
  • Nomination facility is available.
  • Investors can liquidate their certificates after the lock-in period of 2 ½ years and thereafter in any block of six months on pre-determined maturity value.
  • It will initially be sold in post offices but government plans to rope in nationalized banks later for the sale.
  • The certificate can also be pledged as security to avail loans from the bank or other institutions.

Return on Investment on the new 2014 Kisan Vikas Patra

Money doubles in 100 months (8 years and 4 months). Effective pre-tax rate of return is 8.67%. Please read the chart below to see the income tax implication.

Return on the new 2014 Kisan Vikas Patra
Return on the new 2014 Kisan Vikas Patra

Wishing you a Very happy Diwali

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Diwali_wish

Cost of delay in Retirement Planning

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Wake up cost of delaying your plans is huge

Cost of delay in Retirement Planning

The question is not that “Do You need a retirement plan?” the question is “When are you starting to invest in a retirement plan?” We all retire someday no matter what the profession, even business owners retire someday. To have a peaceful retirement one needs to start as early as possible. You need time for your investments to grow.

Read the example below on how time helps you grow your investment.

 

Wake up cost of delaying your plans is huge
Wake Up Photo By Stuart Miles / freedigitalphotos.net

 

The best time to plant a tree was 20 years ago. The second best time is now.” – Chinese Proverb

GOAL: Accumulate ₹ 1 Crore at the time of retirement

 

We all know starting early in investments means more time for the money to grow. This blog attempts to quantify this concept. As you can see a person aged 20 years needs to invest ₹ 2,000/- per month till retirement where as a person aged 35 needs to invest  ₹ 7,500/-

The illustrator below assumes a compounded return of 10%, compounded monthly.

 

AGE Amount Needed to Accumulate Rs. 1 Cr at Retirement (60 years)
(at 10% compounded annual return)
20 ₹        2,000
25 ₹        3,000
30 ₹        4,500
35 ₹        7,500
40 ₹       13,500
45 ₹       24,000
50 ₹       48,500
55 ₹     128,500

 

Amount Needed to Accumulate Rs. 1 Cr at Retirement (60 years)
Amount Needed to Accumulate ₹ 1 Cr at Retirement (60 years) . At 10% compounded annual return.

 

 

Most auspicious time to invest during Navratri 2014

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Wishing you and your family a very Happy Navratri

As you bring home Maa Durga this Navratri may she bless you with abundant affluence. On this auspicious occasion of Navratri, start your journey towards future prosperity and secure life with DivyaAdvisor.com. It is said anytime during Navratri is best for investment, however many people find the best muhurat within a day to invest. This blog shall help those who believe in astrology and invest on good muhurats.

Most auspicious time to invest during Navratri 2014

You will find below the most auspicious time to invest during Navratri. Abhijit Muhurat is considered to be the best for investment. Abhijit means “Victorious” or “the One who cannot be defeated”. Let your investments be always victorious.

Wishing you best of wealth and investing.

Time mentioned in the table below is for Delhi-NCR region. You may want to consult your local astrologer or use popular web services to get exact time for your location. Please note that Abhijit Muhurat is not suitable on a Wednesday, hence an alternate muhurat is provided.

Date Day (Tithi) Most Suitable time of the day
25-SEP-2014 Pratipada (Shailputri Puja) 11.48 AM TO 12.36 PM
26-SEP-2014 Dwitiya(Brahmacharini Puja) 11.47 AM TO 12.35 PM
27-SEP-2014 Tritiya (Chandraghanta Puja) 11.47 AM TO 12.35 PM
28-SEP-2014 Chaturthi(Kushmanda Puja) 11.47 AM TO 12.35 PM
29-SEP-2014 Panchami(Skandamata Puja) 11.47 AM TO 12.34 PM
30-SEP-2014 Shashthi(Katyayani Puja) 11.46 AM TO 12.34 PM
01-OCT-2014 Saptami(Kalaratri Puja) 3.09 PM to 6.05 PM
02-OCT-2014 Durga Ashtami (Mahagauri Puja)
Maha Navami (Sandhi Puja)		 11.46 AM TO 12.33 PM
03-OCT-2014 Navami continues…, Vijayadashami 11.46 AM TO 12.33 PM

 

Click here to submit your contact details. We shall get in touch with you shortly.

DISCLAIMER: I am not an astrologer and this blog is posted for the benefit of my clients who believe in astrology.

 

LIC of India Bonus Rates 2014

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LIC of India Logo

LIC of India declared bonus rates vide Ref: Actuarial/Valuation/2214/4 on 1st September 2014. The results of Valuation was till 31st March 2014. Here are the details of the bonus.

LIC of India Bonus Rates 2014

Summary

  • Bonus rates have mostly not changed from last year.
  • Bonus rates for the new plan has not been different from the old plans that were selling before the new IRDA regulations came into effect.
  • Refer to my earlier post if you want to understand LIC of India Historical Bonus Rates
  • Refer to my earlier post if you want to understand return on LIC of India Policy

Simple Reversionary and Interim Bonus Rates

 

Group

Plan

Term

Reversionary Bonus Rate

%o Sum Assured (**)

Interim Bonus Rate

%o Sum Assured (**)

(*)

1

Whole Life type (Plans 2, 5, 6,

8, 10, 28 (Before Conversion),

35, 36, 37, 38, 49,77,78, 85 &

86)

70

70

 

Group

Plan

Term

Reversionary Bonus Rate

%o Sum Assured (**)

Interim Bonus Rate

%o Sum Assured (**)

(*)
2

Endowment type (Plans 14, 17,

27 (After Conversion), 28 (After Conversion), 34, 39 40, 41, 42, 50, 54, 79, 80, 81, 84, 87, 90, 91, 92, 95, 101, 102, 103, 109, 110 & 121)

< 11

34

34

11 to 15

38

38

16 to 20

42

42

> 20

48

48
3

New Endowment (Plan 814)

12 to 15

38

38

16 to 20

42

42

> 20

48

48
4

Single    Premium    Endowment (Plan 817)

10 to 15

40

40

16 to 20

45

45

> 20

50

50
5

Money Back Assurances (Plans 75& 93)

20

39

39

25

44

44
6

New Money Back (Plans 820 & 821)

20

39

39

25

44

44
7

Jeevan Surabhi (Plans 106, 107

& 108)

15

34

34

20

41

41

25

50

50
8

Jeevan Mitra (Double Cover plan), Jeevan Saathi, Limited Premium Endowment (Plans 88, 89, 48)

<16

40

40

16 to 20

44

44

> 20

48

48
9

Jeevan    Mitra    (Triple    Cover Plan: Plan 133 )

<16

40

40

16 to 20

45

45

> 20

50

50
10

Jeevan Anand (Plan 149)

<11

37

37

11 to 15

40

40

16 to 20

44

44

>20

48

48

 

Group

Plan

Term

Reversionary Bonus Rate

%o Sum Assured (**)

Interim Bonus Rate

%o Sum Assured (**)

(*)
11

New Jeevan Anand (Plan 815)

15

40

40

16 to 20

44

44

>20

48

48
12

Jeevan Rekha (Plan 152)

<11

49

49

11 to 15

44

44

16 to 20

40

40

>20

34

34
13

Jeevan Anurag (Plan 168)

< 11

38

38

11 to 15

40

40

16 to 20

42

42

> 20

44

44
14

New Jeevan Suraksha – I (Plan 147)

< 6

21

21

6 to 10

27

27

11 to 15

31

31

>15

35

35
15

New Jeevan Dhara –    I    (Plan 148)

< 6

20

20

6 to 10

25

25

11 to 15

28

28

>15

32

32
16

Jeevan Tarang (Plan 178)

10

47

47

15

48

48

20

49

49
17

Jeevan Madhur (Plan 182)

< 11

21

21

11 – 15

26

26

 

Group

Plan

Term

Reversionary Bonus Rate

%o Sum Assured (**)

Interim Bonus Rate

%o Sum Assured (**)

(*)
18

Child Career (Plan 184)

11 to 15

34

34

16 to 20

38

38

>20

40

40
19

Child Future (Plan 185)

11 to 15

38

38

16 to 20

42

42

>20

44

44
20

Jeevan Bharti (Plan 160)

15

38

38

20

40

40
21

Jeevan Shree – I (Plan 162)

10

43

43

15

44

44

20

47

47

25

51

51
22

Jeevan Nidhi ( Plan 169)

<11

36

36

11 – 15

38

38

16 – 20

40

40

> 20

42

42
23

Jeevan Pramukh (Plan 167)

10

45

45

15

46

46

20

49

49

25

53

53
24

Jeevan Amrit (Plan 186)

10 – 15

30

30

16 – 20

30

30

> 20

30

30
25

Jeevan Bharati I (Plan 192)

15

29

29

20

31

31

 

*reversionary bonus rates are applicable for policy year entered upon during the inter valuation period i.e. 01/04/2013 to 31/03/2014 and in force for full sum assured as on 31/03/2014. It would apply to policies resulting into claims by death or maturity (including those discounted within one year of maturity) or surrendered on or after 01/01/2015.

 

Final (Additional) Bonus Per Rs. 1000/- Sum Assured for policies

 

Terms in respect of maturities, discounted maturity claims / Number of years’ premiums paid in respect of claims by death (#)

Amount of Final (Additional) Bonus per ` 1000/- Sum Assured for policies with sum assured

Up to 25,000

25,001 to

50,000

50,001 to

1,99,999

2,00,000

and above
15

0

0

10

20
16

0

0

15

25
17

0

10

20

30
18

10

15

25

35
19

15

20

30

50
20

20

25

40

70
21

25

30

50

100
22

30

50

80

150
23

35

100

150

250
24

70

150

230

350
25

170

250

330

450
26

270

350

430

550
27

370

450

540

670
28

470

550

650

790
29

570

650

760

910
30

670

750

900

1100
31

800

900

1100

1300
32

950

1050

1300

1550
33

1100

1200

1550

1800
34

1250

1350

1700

2050
35

1400

1500

1850

2300
36

1550

1650

2050

2550
37

1700

1800

2250

2800
38

1850

1950

2500

3050
39

2000

2100

2750

3300
40 & above

2150

2500

3000

3550

Photo by Imaginary Museum Projects: News Tableaus

Cardless Cash Withdrawal from ICICI Bank

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ICICI Bank

icici bank photo

 

Cardless Cash Withdrawal from ICICI Bank

ICICI bank today introduced cardless cash withdrawal facility. This is a very innovative feature that customers from ICICI bank can use to transfer money.  Customers can also use this facility if they are not carrying the debit card but can access internet. Lets see how it works.

Who can avail Cardless Cash Withdrawal facility from ICICI Bank?

  • The person initiating the transfer of money has to be an ICICI bank customer with internet banking facility with a valid mobile phone number registered with the bank.
  • The person withdrawing the money just needs a mobile phone number. The beneficiary need not have any bank account, just the mobile phone number is required.
  • It is important to note that the beneficiary can withdraw the money form only ICICI bank ATM.

How to initiate the transfer of money using the Cardless Cash Withdrawal from ICICI Bank?

  1. Login to your internet banking account
  2. Add a beneficiary with details like name, Address and mobile number
  3. Create a Cardless Cash Withdrawal transaction of the amount you wish to transfer to the beneficiary
  4. The account gets debited immediately with the amount and transaction fees of Rs. 25(insclusive of service tax)

How to withdraw the money using the Cardless Cash Withdrawal from ICICI Bank?

  1. Once transaction is successful using the internet banking both the person transferring the money and beneficiary get codes on their respective mobile phones.
    1. The person transferring the money gets a 4 digit code on the mobile phone. You have to pass on this code to the beneficiary to complete the transaction.
    2. The beneficiary gets a 6 digit code on his/her mobile number
  2. The codes will be valid until midnight, next day.  If money is not withdrawn transaction will be cancelled and money will be credited back to the bank account of originator.
  3. Beneficiary has to visit any ICICI bank ATM and enter the following details to get the money
    1. Mobile number of the beneficiary
    2. The 4-digit code (as received by the sender)
    3. The 6-digit code (as received by the beneficiary)
    4. The amount to be withdrawn
  4. Beneficiary has just one chance to enter the details correctly. If there is any mismatch in the details entered by the beneficiary, the Cardless Cash Withdrawal transaction will be blocked forever and amount will be credited back to the ICICI bank account holder.

Is there a limit to amount of money that can be transferred using the Cardless Cash Withdrawal from ICICI Bank?

The maximum amount that can be transferred through this service is Rs. 10,000 per transaction and cannot exceed Rs. 25,000 per account in a day. Also, the maximum amount per recipient cannot exceed Rs. 25,000 in a month.

 

Photo by Ian Muttoo

Photo by hkarau