Tata AIG Life launches Gyan Kosh

Gyan Kosh offers two protection options to customers to ensure the protection of their financial goals—Security Net and Safety Net

Tata AIG Life Insurance has launched Tata AIG Life Insurance Gyan Kosh, a non-participating unit linked endowment insurance plan. The plan comes with in-built benefits to ensure financial protection of one's goals for children's education, important milestones of life like marriage, providing funds for setting up a business etc.

The plan offers two protection options to customers to ensure the protection of their financial goals-Security Net and Safety Net. Both these options have inbuilt waiver of premium benefit that waives all future premiums payable under the plan in case of death or total permanent disability of the insured.

In case of Safety Net a sum assured is paid to the nominee on death of the life assured, future premiums are waived and the policy benefits continue.

In case of Security Net, in addition to the sum assured getting paid to the nominee on death of the life assured and future premiums getting waived, the inbuilt "Family Income Benefit" also gets triggered. The "Family Income Benefit" pays a re-adjustment income of 1% of sum assured to the family for the next 100 months or end of the policy term, whichever is earlier, in case of death or total permanent disability of the insured.

Under both the options, the Total Fund Value is paid to the policyholder (in case of total permanent disability and survival till maturity) or the nominee (in case of death of life assured) on maturity.

Gyan Kosh offers the investor the opportunity to choose from a wide range of seven investment funds as per their risk profile. In addition, they can also benefit from Tata AIG Life's portfolio strategies-SMART (Systematic Money Allocation & Regular Transfer) to optimize ones returns due to rupee cost averaging or AAA (Automatic Asset Allocation) to benefit from age appropriate allocation of assets.

On survival to the end of the policy term Guaranteed Maturity Addition of 1.5% to 3% of Regular Premium Fund Value (depending on the policy term) is paid to augment the maturity corpus.

The policy can be purchased by an individual at any age ranging from 18 years to 50 years. Tax benefits are available as per Income Tax Act, 1961.

User

74% of Indians are financially prepared for retirement: Survey

Indians are second best in Asia Pacific with 74% ‘feeling’ adequately financially prepared to handle their retirement, Canara HSBC Oriental Bank of Commerce Life Insurance survey states

Indians have the lowest concern about financial hardship in retirement, according to survey done across 17 countries by Canara HSBC Oriental Bank of Commerce Life Insurance.

Indians are second best in Asia Pacific with 74% 'feeling' adequately financially prepared to handle their retirement and 69% of the respondents see themselves as being better off in their later life than their parents, the survey said.

However, 51% respondents in India are worried about being able to cope financially in old age, with one in ten people in India expecting to continue working in later life to provide income for themselves, it said.

India currently enjoys the fortunate position of relatively high savings rates. Further, it does not face the immediate demographic challenges of most of its peers.

However, this will not last, said Canara HSBC Oriental Bank of Commerce Life Insurance CEO John Holden.

With the looming demographic time bomb, in the long term, India is likely to face the same pressure as its peers, he said.

Over the next 30 years, a higher proportion of the population will be of working age and when they retire, India too, will face the challenges of an ageing, non-working population. As life expectancy increases, the number of years spent in retirement is expected to get greater, he added.

The study further noted that those with a financial plan for the future enjoy several benefits over those who do not. It is called 'planning premium' and these benefits are both 'hard' and 'soft', including not only greater and more diverse retirement savings, but also a more positive outlook and fewer worries about later life, it said.

Individuals who undertake financial planning are not only likely to be better off in retirement, but also are more likely than non-planners to associate retirement with positive ideas such as freedom and less likely to associate it with negative ones such as financial hardship, it added.

According to the study, a key challenge in encouraging households to start planning remains the need to raise basic levels of financial literacy.

The survey had a sample size of 1,028 in India. Of this 778 men while 250 women across various age-group were surveyed.

User

RBI may hike key policy rates by 25 bps tomorrow: Analysts

In its annual policy document for 2011-12 released last month, the RBI had said that inflation control would be its primary focus in the near future, even as it agreed that the high rate of price rise would impact the country’s growth story

New Delhi: With inflation hovering much above the comfort zone, the Reserve Bank of India (RBI) may raise key policy rates by 25 basis points (bps) in its first mid-quarterly review of the credit policy for FY11-12 tomorrow, reports PTI.

“I think the RBI would take one more small step to curb inflationary expectations. The market is expecting a 25 basis points increase,” Indian Overseas Bank chairman and managing director M Narendra told PTI.

One thing is certain, inflation is beyond the comfort level and the RBI has already expressed its concern on many occasions, he said.

In its annual policy document for 2011-12 released last month, the RBI had said that inflation control would be its primary focus in the near future, even as it agreed that the high rate of price rise would impact the country’s growth story.

“Given the inflation condition, the general consensus is that RBI would raise rates by 25 basis points,” said Punjab & Sind Bank executive director PK Anand.

For the month ended May, inflation moved up to 9.06% from 8.66% in the previous month, mainly on account of a rise in the price of manufactured products.

According to IDBI Bank executive director RK Bansal, rising inflation numbers have raised the expectations of a rate hike by the RBI.

“My feeling is that the central bank could further raise rate by 25 basis points,” Mr Bansal said.

The RBI has hiked key policy rates nine times since March 2010 and is likely to continue with its tight monetary policy stance to tame inflation, which is edging toward double digits.

The central bank, in its annual policy, had accepted that inflation would remain a matter of major concern in the next few months on account of high global commodity prices, particularly of crude.

Analysts feel that repeated rate hikes have led to dwindling investment, which is turn has led to a slowdown in economic expansion.

During the January-March quarter, gross domestic product (GDP) expanded by only 7.8%, the slowest pace of growth in five quarters.

At the same time, factory output—as measured by the Index of Industrial Production (IIP)—grew by only 6.3% in April, as against 13.1% in the corresponding period last fiscal.

However, the central bank’s priority would be to check price rise, analysts said.

According to IndusInd Bank executive vice-president Moses Harding, headline inflation shooting past the 8.5%-9% tolerance zone in May has set off alarm bells. There is now extreme pressure on the RBI to continue with its rate hike actions and maintain the repo rate as the operative policy rate for an extended period of time.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)