LIC - New Jeevan Anand Plan

Let's say I'm 30 years old and taking the LIC plan under New Jeevan Anand Scheme. Sum assured for 24 Lakhs for 24 Years. In this case my Maturity amount will be 58,89,600.00, where i will be paying Rs. 27,30,221.00 for 24 years. In the above case, my premium payment half yearly will come to Rs. 58,000 approximately (including GST)

My Benefits:

1. I'm insured for Lifetime and i get the maturity amount after 24 years

2. For the Premium amount paid, i have the TAX exemption under Section 80C

3. I can apply for Loan on the premium amount paid. Lets say i applied for loan on January 2021, Loan eligibility is as below mentioned in the last column

4. The interest paid for this loan taken will be very less around 8%, and is processed immediately. There are no processing fees and other charges for this loan 

5. The premium paid for this is not on month on month basis, the interest can be paid once every 6 months without any extra charge

6. Incase if the interest is not paid, the amount will be deducted while the policy is matured and the difference will be paid of

7. The policy will be covered even after the Maturity time till the death of the insurer without paying any extra premium after the initial maturity is completed

Best Regards

B G Nareshkumar

Personal Finance - Savings Vs Investment

Speaking about Personal Finance, 3 main aspects comes into consideration. Let's say for example, a person earns Rs.1,00,000 monthly and uses Rs.60,000 for his basic needs, later he has Rs.40,000

What can be done with the remaining Rs.40,000 ?

1. Saving

2. Investment

3. Spend it (Luxury Expenses)

Saving is something which do not appreciate in value but the money / resource saved will be the same for longer period of time, which can be used when needed. Eg: if the remaining Rs. 40,000 is kept in the bank locker, it does not appreciate but can be used in future

Investment is something which appreciates in value. For example, if the person buys Gold or good shares for the remaining cash, it appreciates with respect to time and in future when the resource is sold, it gives additional money compared to invested amount

Option 3 is left to the individual decision and if the excess money is not saved or invested, then he/she needs to be employed for the life time

Ancient days, people used to invest and also save the resource for the future, lets say Rice, Wheat and other commodities are saved for future and Gold is one of the important form of Investment those days which appreciates in value

Even these days, Gold is considered as the better Investment tool. Every Indian family buys gold whenever they are able to (No matter whatever the price gold is sold at) - it is always believed that Gold will always appreciate in value and the main reason is Gold can be converted to cash at any point of time 

What about buying a house ? Yes, definitely it is an emotional factor that people willing to own a house but it doesn't give immediate cash / cannot be liquidated immediately when needed

In personal finance, Savings & Investment are 2 important factor one should concentrate on to have a safe future. It is always advisable to have half of the excess money to be invested and half of the excess money to be saved.

Best Regards

B G Nareshkumar