Does your Life Insurance policy are still Unclaimed?

By RJ Advisory

Recently I read one article in business magazine and inspired to write this article to help policy holders. According to IRDA circulars in India unclaimedmoney with life insurance firms rises 250%. As IRDA said, at the end of 2012-13, unclaimed money with life insurance companies was Rs. 4,866 crore compared to Rs 1,373 crore in 2009-10. The main reason behind rise in unclaimed amount is because of dependents not being aware
of existence of a life insurance policy. Among other reasons the IRDA said is to rising unclaimed amount delay in settlement of claim and change in address of the insured. It could be your money also lying with any Insurance Company got unclaimed!


What are some steps you must take to secure your existing policy?

  • Check the all policies you are holding in name of you and your family members.
  • Check your Contact details like Address, Mobile, e-mail etc are properly updated in Policy.
  • You must also update your Bank details (MICR, NEFT code) in your Insurance Policy.
  • You should check and note down your maturity date of your policy in your personal diary.
  • Check Nominee details (If nominee is minor, appoint guardian to receive any claim in future).
But Latest Good news is that From April 1, Policyholders will be able to get details of unclaimed insurance online. From April, Policy holder or nominee will be able to access information about the policy. IRDA has asked insurance companies to display details like policy holders name, address, maturity, death benefit and premium due for refund etc things, unclaimed for over six months, on their websites. Share your best comments on this articles.

All about Tax Saving Mutual Fund

By RJ Advisory

“The Hardest thing to understand in the world is the Income Tax” -Albert Einstein. Tax Planning is an important part of personal finance but common investors bemused about the income tax. When the financial year coming to close and people have started to complete their tax planning before deadline. It is such a huge task to complete before 31st march and in this rush they select unwise products. Keep one thing clears in mind that investing for only saving
income tax can be harmful to your personal finance.

Why ELSS more beneficial than other Saving Schemes?

Popularly known as ELSS fund are offering tax benefits to the investors under section 80C of the Income tax Act. Equity Linked Saving Scheme which offers investors the dual benefits of capital appreciation and tax benefits. An investment of up to RS 1 lakh will give the investor a tax exemption. There is lock in period of three year in all ELSS scheme. They give better return than other diversified open ended equity scheme because of the 3 year lock in period as the fund manager has no redemption pressure for up to 3 year. Similar to other equity funds, ELSS funds also available in both growth and dividend options. Under the growth option investor get capital appreciation on the maturity time and under the dividend option, investor can receive a regular dividend income even the lock-in period not completed. Dividend amount and capital gain are totally tax-free in ELSS Schemes.

ELSS Vs other Saving Schemes

The Lock in period of such fund is only 3 year which is lower compare to other saving schemes like PPF (15 years), NSC (5 & 10 years) and Bank FDs (5 years). ELSS funds are linked to market but there are also good ELSS schemes which have given better return over a long time. You can also opt for SIP investments, which brings discipline in your investment.

What are Some Downsides of ELSS Funds?

Premature withdrawal is not possible in this type of funds before 3 years. Saving Schemes like PPF and Bank FDs allow withdrawal subject to certain conditions. All risk of equity market is associated with ELSS, so it is not advisable to risk adverse investors.

Performance of Some Good ELSS funds

Remember to check at the long term performance of the fund before invest in it. Also remember to look at the fund manager’s view of investment, portfolio return over the long term, portfolio of the fund and expense ratio. But over a long term, ELSS funds are the best tax saving instruments; especially if you are an investor who can take high risk.

Recently SEBI board has accepted a long term policy for mutual funds which can give some tax incentives under section 80C of Income Tax act.



Video Learning of the Month

By RJ Advisory


Today I am going to start a new Video Learning for Blog reader which will help you to understand personal finance in better way. Every month I will share one video which I had enjoyed, because learning through videos can be very simple and more powerful for you. First Video learning is about Advantage of an SIP
(Systematic Investment Plan) by IDFC Mutual Fund.


I think this Video Learning series can be simple and easy for my blog reader. After watching above video you can share your views in comment section.