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LIFE INSURANCE
Unlock the Secrets to a Blissful Retirement: Beyond the Rupees, it’s a Lifestyle Transformation! Your lifelong dedication deserves a worry-free future, and that’s where strategic retirement planning comes into play. Don’t let the golden years be tarnished by financial stress. Begin the journey early to safeguard your dreams and maintain the lifestyle you’ve worked hard for.
Did you know that 60% of your current expenses won’t magically disappear after 60?
It’s time to confront the crucial questions: Who will be your support system in this new chapter?
How will you & your spouse sustain the standard of living and cover healthcare costs?
Take control of your destiny—prioritize retirement planning, start saving now, and pave the way to a secure and fulfilling retirement.
IN THE DYNAMIC LANDSCAPE OF INDIA, WHY THE CONCEPT OF RETIREMENT HAS UNDERGONE A SIGNIFICANT TRANSFORMATION?
1. With an increasing life expectancy that is projected to reach 82 years by 2035, individuals are confronted with the need to plan for a retirement period that may span 25-30 years.
2. The traditional joint family system is dissolving, and the onus of financial well-being during retirement is shifting more onto the individual.
3. Inflation’s Erosive Effect: Inflation erodes the purchasing power of money over time. Retirement planning involves factoring in inflation to ensure that the accumulated corpus not only maintains its value but also grows to meet the escalating costs of living.
INTRODUCING: LIFE INSURANCE JOINT ANNUITIES FOR A SECURE FUTURE AND BEYOND
Life Insurance Joint Annuities offer a powerful solution for securing your family’s future. These plans provide a guaranteed income stream, ensuring you and your spouse can enjoy a comfortable, worry-free retirement. Beyond your lifetimes, they extend their benefits to your loved ones, with a significant death benefit for your designated beneficiaries, such as your children. It’s a plan designed to navigate life’s uncertainties with confidence and peace of mind.
Lifelong Guaranteed Income through Annuity Plans:
HOW DOES THE PLAN WORK?
Plan Name - HDFC Life Smart Pension Plus
Example 1: Mr. Rahul, aged 60 years and his spouse aged 55 years, opts for Joint Life option and pays Rs. 2,50,000 p.a. for a Premium Payment Term of 5 years and chooses a deferment period of 10 years. They opted for Life Annuity with 100% Return of Premium in HDFC Life Smart Pension Plus Plan. He also opts to receive his annual annuity for whole life starting but after a deferment period of 10 years. He decided to make his 12 years of child his nominee.
Plan Name - TATA AIA Fortune Guarantee Pension Plan
Example 2: Anirudh is a 55 years old Male, he wants to opt for a plan that would provide Guaranteed income to him and his spouse both post retirement and would also support his child after they both are gone. He chooses TATA AIA Fortune Guarantee Pension Plan (Deferred annuity with Return of Premium.
Plan Name - ICICI Pru Guaranteed Pension Plan Flexi
Example 3: Mr. Remani, a 50 years old professional is married to Mrs. Remani, a 48 year old professional. They are both approaching retirement and want to create a secure source of annuity for themselves. They decide to save Rs. 10 lakhs per year for 5 years under Joint Life with Return of Premium option, and choose a deferment period of 10 years.
In case Waiver of Premium benefit option is chosen, the Total Premiums Paid mentioned above would include premiums waived off due to trigger of Waiver of Premium benefit.
On the death of the Primary Annuitant, the same annuity amount starts getting paid to the Secondary Annuitant. On the death of the Secondary Annuitant, no further benefits would be payable and the policy shall terminate. Where the Secondary Annuitant has predeceased the Primary Annuitant, on death of Primary Annuitant, no further benefits would be payable and the policy shall terminate.
ELIGIBILITY CRITERIA – COMPARISON OF ALL THREE PLANS
FIXED INCOME
Fixed Deposits (FDs) remain a popular choice among investors due to their safety and stability. For risk-averse individuals, FDs often form the backbone of their portfolio. According to a Statista report, the cumulative value of FDs in Indian banks reached an impressive INR 46.82 trillion in 2020, showcasing the strong trust Indian investors place in this financial instrument.
FDs are not only a tool for securing savings but can also be strategically utilized for retirement planning and achieving other financial objectives. However, have you ever wondered how the tenure of an FD influences its returns? Does opting for a longer tenure automatically guarantee better returns? Let’s explore the nuances of tenure and its impact on FD returns while delving into their advantages, disadvantages, and categories.
WHY CHOOSE FIXED DEPOSITS?
Key Advantages
1. High Security and Minimal Risk: FDs provide assured returns as they are insulated from market fluctuations, ensuring the principal amount is safe.
2. Guaranteed Returns with Compounding Benefits: The interest rate for an FD remains fixed for the selected tenure, offering stability and predictability.
3. Liquidity Options: Investors can partially or fully withdraw their FD in times of financial emergencies.
Potential Drawbacks
1. Lower Returns Compared to Equities: While FDs are safe, their returns (typically 7.5–9.5%) are often lower than those from equity-based investments.
2. Taxable Interest Income: FD interest earnings are taxable as per the investor’s income tax slab.
3. Inflationary Risk: If inflation outpaces FD returns, the real value of the investment diminishes over time.
FACTORS INFLUENCING FD INTEREST RATES
1. Economic Trends and RBI Policies: Changes in inflation and repo rates directly impact FD rates, with banks often adjusting rates to attract deposits during high inflation.
2. Bank-Specific Policies: 2.Interest rates can vary between public and private banks depending on the tenure and investor category.
3. Type of FD: Cumulative FDs, where interest accrues over time and is paid at maturity, usually offer higher returns compared to traditional options.
4. Market Dynamics: Competition among banks may lead to special schemes or promotional offers, influencing FD rates.
HOW TENURE AFFECTS FD RETURNS
While longer FD tenures often lead to higher returns due to the power of compounding, this is not always the case. Banks may offer competitive rates for short-term deposits during specific periods to meet their liquidity needs or attract more customers.
Example: Akshat, who plans to buy a new iPhone in two years, evaluates two FD options:
This example demonstrates that short-term FDs with higher rates can sometimes outperform longer-term options
CHOOSING THE RIGHT FD TENURE
Selecting an appropriate tenure depends on individual financial goals and circumstances. For long-term objectives like retirement planning, locking in higher rates can be advantageous
Long-Term Planning Example: Akshat is planning for retirement in 15 years with INR 10 lakhs to invest. He considers three options:
This illustrates that even a marginal increase in ROI significantly enhances returns over the long term.
TYPES OF FIXED DEPOSITS
1. Regular FD: Offers a fixed interest rate over the tenure.
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2. Flexi FD: Linked to a savings account; surplus funds automatically convert into an FD.
3. Tax-Saving FD: Provides tax deductions under Section 80C, with a 5-year lock-in period
4. Senior Citizen FD: Offers higher interest rates (0.25–1% more) for senior citizens.
5. Shareholder FD: Provided by corporates or NBFCs exclusively for their shareholders.
CUMULATIVE VS. NON-CUMULATIVE FDS
? Non-Cumulative: Interest is paid out regularly, making it suitable for generating periodic income.
? Cumulative: Interest compounds and is paid at maturity, ideal for long-term wealth creation.
CONCLUSION
The tenure of an FD significantly impacts the returns, but longer durations do not always guarantee higher earnings. Factors like economic trends, bank policies, and market conditions also play a crucial role.
For risk-averse investors, FDs are an excellent choice for achieving financial goals while minimizing exposure to market risks. Carefully evaluating tenure, comparing interest rates, and leveraging tools like FD calculators can help maximize returns and align investments with financial objectives.
MUTUAL FUNDS
n the intricate tapestry of India’s diverse inheritance landscape, where the threads of religious laws weave a complex pattern, don’t entrust your legacy to fate’s capricious hand. Instead, wield the brush of certainty by crafting your will.
Enacted in 1956, the Hindu Succession Act brought significant reforms by acknowledging daughters’ equal entitlement to ancestral property. This marked a watershed moment in bolstering women’s property rights. Yet, nuances persist between self-acquired and ancestral property, with the latter subject to distinct inheritance rules.
In the absence of a will, asset distribution hinges on familial dynamics. For instance, in a scenario featuring a husband, wife, unmarried son, unmarried daughter, and husband’s mother, if the husband passes without a will, the wife, son, daughter, and mother-in-law inherit equally, each receiving a one-third share.
Muslim law operates on Sharia principles, treating self acquired and ancestral property alike. However, this egalitarian stance often leads to differing asset allocations among heirs.
Under Muslim law, the inheritance pool includes the wife, sons, daughters, mother, father, and widow of the son. Distribution follows prescribed shares, contingent upon familial composition and other considerations.
A hypothetical scenario offers clarity on the Hindu and Muslim inheritance laws. For instance, if a husband passes without a will, leaving a wife, two unmarried daughters, and a married son, Hindu law would entitle the wife and daughters to equal shares, with the son receiving a larger portion. Conversely, Muslim law would allocate share to the wife and unmarried daughters, apart from a meaningful share to the married son.
Inheritance rights are intrinsic to women’s empowerment and gender equality. While legislative strides have bolstered women’s property rights, disparities persist within the legal framework. Advocating for reforms that ensure gender-neutral inheritance rights transcends religious divides, fostering equitable opportunities for women.
INHERITANCE RIGHTS OF WOMEN
Personal laws govern succession in India. In Hindu laws, there is further distinction between self-acquired and ancestral property, whereas Muslim laws and India Succession Act treat both alike.
Hindu Women’s Succession Rights in Absence of a Will:
In a family of husband, wife, unmarried son, married daughter and husband’s mother, if the husband dies without a will, then
Muslim Women’s Succession Rights in Absence of a Will:
In a family of husband, wife, unmarried son, married daughter and husband’s mother, if the husband dies without a will, then
NOTE
WILL RULES UNDER:
HINDU LAWS
A person can pass down their assets to family and relatives as they like with a will (except HUF property)
MUSLIM LAWS
A person to develop one-third of their estate through a will, while rest is decided as per succession law
HOW A WILL MAKES A DIFFERENCE
If husband distributes 33% of the property through a will as follows:
GENRAL INSURANCE
Presenting a Health Insurance Product from Manipal Cigna Health Insurance Co. Ltd - “Manipal Cigna SARVAH”. This specialized insurance plan is designed to cater to the unique health needs of ?BHARAT”.??They understand the importance of your health and the need for comprehensive insurance that truly meets your expectations. That’s why ManipalCigna presents Sarvah Health Insurance, a complete health solution with three distinct plan options:
This plan is designed to offer the right level of coverage to suit your needs. Whether you’re seeking basic care or comprehensive benefits, Sarvah has you covered. With Sarvah, you can have peace of mind knowing that ManipalCigna is with you, supporting you every step of the way.
HIGHLIGHTS OF THE PLAN
MANIPAL CIGNA SARVAH - PRATHAM- Begin your Journey with Confidence
MANIPAL CIGNA SARVAH- UTTAM - A Health Insurance Plan to ensure you are stress-free in major illnesses.
MANIPAL CIGNA SARVAH - PARAM - A Health Insurance Plan that doesn’t make you wait at all
*Optional Cover on payment of additional premium
FEATURES COMPARISON OF THE PLAN
How much does it Cost - Few Examples
How much does it Cost - Few Examples
How much does it Cost - Few Examples
Disclaimer: Bajaj Capital Limited (‘BCL’) has taken due care and caution in presenting factually correct data contained herein above. While BCL has made every effort to ensure that the information/data being provided is accurate. BCL does not guarantee the accuracy, adequacy or completeness of any data/information in the publication and the same is meant for the use of the recipient and not for circulation. Readers are advised to satisfy themselves about the merits and details of each investment scheme, before taking any investment decision. BCL shall not be held liable for any consequences, legal or otherwise, arising out of use of any such information/ data and further states that it has no financial liability whatsoever to the recipient/ readers of this publication. Neither BCL nor any of its directors/ employees/ representatives accept any liability for any direct or consequential loss arising from the use of data/ information contained in the publication or any information/ data generated from the publication. Nothing contained in this publication shall constitute or be deemed to constitute a recommendation or an invitation or solicitation for any product or services. Any dispute arising in future shall be, subject to the Court(S) at Delhi. Views given in the articles are the personal views of the contributors and not that of the company. Readers are advised to go through the respective product brochure/ offer documents before making any investment decisions. Disclaimer: The rates of interest are applicable as on the data mentioned herein above. The rate may be revised at the sole discretion of the respective companies inviting the Fixed Deposits without further notice. Printed by, Rajiv Wadehra, Published By, Raji Wadehra on behalf of Bajaj Capital Investment Centre Limited, Bajaj House, 97 Nehru Place, New Delhi - 110019, and Printed at Sundeep press C-105/2, Naraina, Industrial Area Phase - New Delhi - 110028, and Published at Bajaj House,97 Nehru Place, New Delhi - 110019, Editor-Rajiv Wadehra (CIN: U0000DL1988PLC039417))
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