Insurance : LIC insurance
Started : 5 -6 years back.
Total amount to Invest :3.6 Lakhs
Maturity Amount : 6 Lakhs.
Money i will get back after : 20 years
How i convinced myself that this is the best plan
1. 3.6 Lakhs becoming 6 Lakhs , Wow what a good money.
2. Feeling Secured that if i die today my parents will get 6 Lakhs and they can happily live ever after with that money.
3. Pay it like 6000 per quarterly and get for every 5 years (20% of 3.6 Lakhs = 72,000) So happy because even if could not pay next 3 Years i can pay with this.
4. Tax Saving for the year.
1 Year back I read about Term Insurance Plans in India.
I requestioned by thought process 1 year back, Is atleast one of the things which i felt happy is really making me happy.
1. What if i had put the same money in FD or a simple PPF with no complexity (8% ROI) - Rs 1500 per month would have given me 8.9 Lakhs - 2.9 Lakhs higher.
2. After Reading those links i realized how many years can my parents survive with those 6 Lakhs. if Monthly expense is 30K. So I realized it can not be even more than 3 years. I am blown out by this proportion
3. Anyways i have to put the same money from the pocket with the little bit of optimism i might still be able to to this.
4. I realized it is the costliest way to do Tax saving for peanuts if there are other options like PPF, Mutual Funds(may not be in future but still at this time this also can do) , or even 5 year tax saving fixed deposit, or EPF or NSC.
So 1 year before itself My mind clearly realized it is not worth even to put a single money back to this kind of endowment policies.
But still i went ahead and convinced myself with other options.
1. Why not wait one more year get a pure term plan then close.
2. Why not pay only for this year and then stop because i have not planned for tax in other options.
Later i realized that day is never there. Even after knowing all this i wasted 1 year of my time and my 1 year of investment for the simple reason of allowing my ego to take over than booking the loss and move on with the next
better decision. Atlast 2 weeks before i have applied for a surrender policy.
i.e Literally I got married to LIC (for 6 years) and not ready for the Divorce. Now i have happily divorced and move ahead with contractors.
Started : 5 -6 years back.
Total amount to Invest :3.6 Lakhs
Maturity Amount : 6 Lakhs.
Money i will get back after : 20 years
How i convinced myself that this is the best plan
1. 3.6 Lakhs becoming 6 Lakhs , Wow what a good money.
2. Feeling Secured that if i die today my parents will get 6 Lakhs and they can happily live ever after with that money.
3. Pay it like 6000 per quarterly and get for every 5 years (20% of 3.6 Lakhs = 72,000) So happy because even if could not pay next 3 Years i can pay with this.
4. Tax Saving for the year.
1 Year back I read about Term Insurance Plans in India.
I requestioned by thought process 1 year back, Is atleast one of the things which i felt happy is really making me happy.
1. What if i had put the same money in FD or a simple PPF with no complexity (8% ROI) - Rs 1500 per month would have given me 8.9 Lakhs - 2.9 Lakhs higher.
2. After Reading those links i realized how many years can my parents survive with those 6 Lakhs. if Monthly expense is 30K. So I realized it can not be even more than 3 years. I am blown out by this proportion
3. Anyways i have to put the same money from the pocket with the little bit of optimism i might still be able to to this.
4. I realized it is the costliest way to do Tax saving for peanuts if there are other options like PPF, Mutual Funds(may not be in future but still at this time this also can do) , or even 5 year tax saving fixed deposit, or EPF or NSC.
So 1 year before itself My mind clearly realized it is not worth even to put a single money back to this kind of endowment policies.
But still i went ahead and convinced myself with other options.
1. Why not wait one more year get a pure term plan then close.
2. Why not pay only for this year and then stop because i have not planned for tax in other options.
Later i realized that day is never there. Even after knowing all this i wasted 1 year of my time and my 1 year of investment for the simple reason of allowing my ego to take over than booking the loss and move on with the next
better decision. Atlast 2 weeks before i have applied for a surrender policy.
i.e Literally I got married to LIC (for 6 years) and not ready for the Divorce. Now i have happily divorced and move ahead with contractors.
