Online Term Vs. Regular Term Plans

The major difference between this HDFC Life Click 2 Protect plan and a regular term plan is that it is much cheaper comparatively since you are buying it directly from the company and there are no agents involved.

Plan Details

• Minimum sum assured is Rs. 10 lakhs
• Maximum sum assured is Rs. 10 crore
• Minimum premium – Rs. 2000
• Only Annual premium payment option is available
• Policy terms ranges from 10 years to 30 years
• Minimum entry age – 18, maximum – 55
• Maximum maturity age – 65

Benefits

Death Benefit – The nominee will get the sum assured in case of death of the policy holder

Surrender and Maturity Benefits – This online term plan does not have any maturity or surrender benefits

Tax Benefits – This premium paid for this plan is eligible for tax benefits under section 80C

How to Buy HDFC Click 2 Protect

You can just buy this Click2Protect online in just 3 simple steps,

1. Choose sum assured and policy term
2. Calculate your regular annual premium
3. Fill the form and make the payment

Approximate Premium

For a 1 crore sum assured  a non-smoking individual of 30 years of age just need to pay an annual premium of Rs. 10,600.

Things to Know

• After buying this HDFC Life Click 2 Protect plan online they have given you an adequate free look-in period of 30 days within which you can cancel your policy and you will get the refund minus charges
• There is also a 30 days grace period for paying premium annually
• If no premium is paid the plan gets lapsed but it can be revived provided you have paid the pending premiums

There are various other online term plans like the Aviva i-Life, Met Protect and Kotak e-term, ICICI iProtect and many more plans like the good old and the first online term insurance plan from Aegon Religare iTerm, etc., which you can compare effectively before deciding to buy any one of the plans.  But it is mandatory that you buy at least one term plan for yourselves without fail which is the pure insurance plan that you should have rather than the money back, endowment or ULIP plans which actually combines life insurance with the investments which is totally not advisable for any individual looking to cover their family even during their absence.

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Jeevan Ankur Plan Details

Entry Age – 18 years to 50 years

Entry Age for kids – 0 to 17 years

Term – 18 minus age of kid, maximum 25 minus age of kid

Sum assured – minimum Rs. 1 lakh while there is no maximum limit

Features

• Parents are the life assured (not kids)
• Maturity benefit:  Sum assured + loyalty bonus
• Death Benefit:  Sum assured + maturity benefit +income benefit
• Various riders to choose from including accident benefit rider
• Critical illness benefit rider including premium waiver
• Cannot take loan with this policy

Benefits

• Death benefit ensures that immediate payment to meet the financial requirement for kids.
• 10% SA on policy anniversaries to help meet the financial requirements regularly till the end of policy
• Monetary benefit helps reach the important goals in your child’s life at the time of maturity
• Customization of plan with accidental riders, critical illness rider for more security

Although comes loaded with various benefits and features, as the experts advice just think twice in taking such traditional endowment or children’s plans as the actual yield at the end of the term would much lesser comparatively in terms of inflation as well as liquidity factors, etc.

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Issue Open and Close

The current issue is open from January 27, 2012 and closes on February 6, 2012.

Minimum Investment

The minimum investment that you can make with HUDCO Bond is Rs. 10,000 (10 bonds).

Ratings

These HUDCO Tax Free Bonds come with a rating of CARE AA+ and FITCH AA+ by CARE and FITCH credit rating companies respectively.  This means that they come with high degree of safety when it comes to timely disbursal of investment, etc.

Listing

These hudco bonds will be listed in both stock exchanges (NSE and BSE).  Hence demat account is mandatory to buy these bonds.

Interest Rates

In Tranche 1 series you get a coupon rate (interest rate) of 8.10% and with tranche II you get 8.20% p.a.  The bonds will be allotted on a first come first serve basis.

Investment Duration

The tranche I series 1 bonds can be redeemed in 10 years while the tranche II series 2 can be redeemed only in 15 years.

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Issue Closes

The current issues open from January 27, 2012 and closes on February 10, 2012.

Minimum Subscription

The minimum bonds that you can buy is 10 and in multiples of 5 thereafter.  It means the minimum subscription amount is Rs. 10,000.  The bonds will only be allotted on a first come first serve basis.

Interest Rates

These Indian Railway Bonds come with a coupon rate of 8% p.a. for 10 years and 8.10% p.a. for 15 years.  For the regular retail investors the interest rate is 8.15% p.a. for 10 years and 8.30% p.a. for 15 years.  The interest will be paid annually.

Ratings

IRFC Bonds come with a rating of AAA/Stable by CRISIL and “ICRA AAA” by ICRA which denotes that they come with highest degree of safety and servicing of your money on time.

Listing

The bonds will be listed at both BSE and NSE.

Should You buy

This IRFC Tax Free Bonds are one among the many tax free bonds we can expect from many government and non-government companies in the near future as it is the flavour of the season right now.  If you okay with the interest rate and the tax free option that you get, go for this secured Indian Railway Bonds for more safety than returns.

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All the below mentioned interest rates are applicable throughout from January 2012 to December 2012 until and unless the government decides to change it in between

Post Office Savings Account:

The interest rate has been raised for the regular Post Office Savings Account on par with the bank saving accounts.  Now the new interest rate being 4% p.a.  The interest from this account is tax free unlike the bank saving accounts.

Post Office Time Deposit

The post office time deposit or fixed deposit has the following interest rates for various tenure

1 year – 7.70% p.a.

2 years – 7.80% p.a.

3 years – 8.00% p.a.

5 years – 8.30% p.a.

The rates mentioned on the above mentioned fixed deposits from post offices are slightly lesser when compared with the bank fixed deposits.

5 year post office Recurring deposit:

The Rs. 10 if deposited in the recurring deposit per month will fetch you Rs. 738.62 after the 5 year tenure and you can calculate the yields according to your deposits.

PostOffice Monthly Income Account Scheme

The interest rate for the Monthly Income Scheme (MIS) is 8.20% p.a.  Minimum Rs. 1500 and maximum Rs. 4.5 lakhs.  The date of maturity will be 5 years from start.

National Savings Certificate (NSC) 5 years

The tenure for this scheme has been reduced to 5 years against the 6 years previously.  The interest rate being 8.4% p.a.  The interest rate Your Rs. 100 invested in this NSC scheme will grow to Rs. 150.90.  The lock-in period is 5 years.

National Savings Certificate (NSC) 10 years

This is a new scheme introduced from last year.  The rate of interest being 8.7% p.a.  The lock-in period is 10 years.

Public Provident Fund (PPF) 15 years

The all time popular tax saving scheme till now PPF interest rate is increased to 8.6% p.a. from December 2011 and will continue throughout 2012 as well and hence the best tax saving scheme among others available till now.  The minimum amount for investment is Rs. 500 per year.  The maximum amount has been revised recently to Rs. 1 lakh as against Rs. 70,000 previously.

Senior Citizen Savings Scheme

The interest rage for this scheme is 9.0% p.a.  The minimum amount deposit is Rs. 1000 and in multiples.  The lock-in period is for 5 years.

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Asset Allocation: There are two plans available with this fund namely plan A and plan B.  In Plan A you can get to choose to invest in 80-100% in debt and money market instruments and the rest in equities.  In Plan B your money will be invested in debt, gold as well as equities.  The gold will be in the form of investing in Gold ETF.

NFO Details: At the time of NFO the unit price of the Morgan Stanley Multi Asset Fund will be Rs. 10 per unit and the minimum investment amount is Rs. 5000.  The NFO closes on January 31, 2012.

Options Available: Growth and dividend payout and reinvestment options.

Such hybrid funds are a good choice for those who are looking to diversify their investment with one single investment option but since being an NFO, think twice before investing in it.  Otherwise you can also choose other such 3 mixed class funds which other MFs like the Sundaram Equity Plus.

It is primarily a debt fund which has its leg on both equities and gold class.

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The Face value of each of the SREI Infrastructure bonds is Rs. 1000 each with the minimum application of Rs. 1000 and Rs. 1 thereafter.

Rating

These current infrasturucre bonds from SREI comes with CARE AA by CARE rating agency.

Lock-in Period

As is the case of any other infrastructure bonds with tax benefits these too come with a lock-in period of 5 years from the date of allotment.

Interest Rate

The coupon rate or interest rate with the bond you can earn is up to 9.15% p.a. depending upon various factors like the option you choose like the cumulative or non-cumulative option, etc.

These SREI bonds will be listed at Bombay stock exchange (BSE) and the depositories are NSDL and CDSL and can be brought only in demat form, no physical buying of bond is allowed.

If you have missed the previous bond issues this year, you can try this bond issue from SREI to save additional tax of Rs. 20,000.

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