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LIC SIIP Plan No 852- Systematic Investment Insurance Plan

Shitanshu Kapadia
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LIC SIIP Plan No 852- Systematic Investment Insurance Plan

LIC SIIP Plan No 852 is a new ULIP plan launched by LIC on 2nd March 2020. This plan is unique in terms of many aspects. SIIP is unit linked, non-participating, individual life insurance plan. SIIP is the second ULIP policy launched by LIC in the year 2020. Along with SIIP LIC has also launched single premium ULIP plan called as LIC Nivesh Plus Plan No 849. This plan is available in online as well as offline mode. You can invest in four different fund options under this policy.

Let’s take a look at LIC SIIP plan key features, eligibility, benefits in detail and try to figure out is it worth investing or not.

LIC SIIP Plan No 852 – Key Features & Eligibility 

  • LIC SIIP is regular premium policy with monthly saving option of Rs.4000 or yearly saving option of Rs.40000.
  • The insurance coverage will be 7 times if age is above 55 and 10 times for others.
  • Premium paid will be converted to unit as per the unit price on the date payment.
  • You can select from four different fund options bond, secured, balanced and grwoth. This is similar to LIC Nivesh Plus policy.
  • Switching is allowed between all four funds four times in a year. This is to ensure higher returns from the investment.
  • You can withdraw money from this plan after 5th The withdrawal will be in the form of fixed amount or fixed number of units. Partial withdrawal is not allowed to minor.
  • This plan provides life risk cover option.
  • Guaranteed addition offered in addition to unit fund value. The percentage of guaranteed addition will be a percentage of the fixed annualized premium.
  • You cannot get loan facility under this plan.
  • The facility of surrender is available after the lock-in period of 5 years. The fund value available as on date is paid in case of surrender.
  • This plan also provide additional riders such as accidental riders.

LIC SIIP Plan

Eligibility 

Minimum Entry Age – 90 days

Maximum Entry Age – 65 days

Minimum and Maximum Maturity Age – 18 years to 85 years

Policy tenure – 10 years to 25 years

Lock-in period – 5 years

Sum Assured – 10 times of annualized premium for age below 55 years and 7 times of annualized premium age above 55 years.

LIC SIIP Investment Fund Options

Bond Fund – Bond fund is relatively safe and suitable for low risk investors. This fund does not invest any money in the equity shares.

Secured Fund – Secured fund is intended to offer steady income to the investor with the combination of equity and fixed income securities.

Balanced Fund – Balance Fund provides balance and growth to the investors. This fund is for medium risk investors. This fund invests in equity and fixed income securities.

Growth Fund –  Growth fund is for aggressive investor. This fund is intended to provide capital growth to the investor.

LIC SIIP Benefits

Maturity Benefit 

If insured survives till the maturity date, the plan will offer an amount to the policy holder which is equal to fund value. 

Death Benefit 

On the death of policy holder before commencement of risk during the policy tenure, the plan will pay an amount equal to fund value to the nominee. On the death after the date of commencement risk, higher of sum assured or unit fund value is paid to the nominee. 

LIC SIIP Plan Review – Should You Invest?

In order to conclude that SIIP is worth for investment or not let’s take a look at positive and negative of this plan.

LIC SIIP Plan  – Positive & Negatives
Positives Negatives
(1)   Four fund option for the selection (1) Overall charges applicable are very high
(2)   Facility to switch between funds (2) Risk is high as returns are market linked
(3)  Mortality charges will be refunded by LIC (3) Low sum assurance for age above 55 years
(4)   Guaranteed addition of 5-25% at specific intervals (4) Premium allocation charges and other charges are very high.
(5)   Expected returns from this policy is low

SIIP is policy is projected as systematic investment plan and mainly launched to attract salaried people who are looking for last minute tax saving option. The expected return from this policy will be low as charges are very high. I would not recommend investing in LIC SIIP Plan. Instead of SIIP, you can invest in other tax saving instruments such as ELSS, PPF, Tax saving FD etc.

LIC Nivesh Plus Plan No 849 – Single Premium ULIP – Review

Shitanshu Kapadia
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LIC Nivesh Plus Plan No 849 – Single Premium ULIP – Review

LIC Nivesh Plus Plan No 849 is a single premium ULIP plan by LIC. LIC Nivesh Plus provides four different fund options for the investment. It is a unit linked, non-participating, single premium life insurance policy. In short, Nivesh Plus is an insurance cum investment policy. In addition to LIC Nivesh Plus, LIC has also launched another product called as SIIP Plan 852.

Like every year, this year also LIC has launched new plans in March month. This is to attract customers who are mainly looking for a last-minute tax-saving instrument. In this post, we will take a look at LIC Nivesh Plus Plan No 849, key features, options, benefits and other facts about this plan. In the end, we will also review LIC Nivesh Plus Plan to decide is it good for investment or not?

Also Read – Top 7 Best LIC Policy for 2019 – 2020

LIC Nivesh Plus Plan No 849 – Key Features & Eligibility 

  • Nivesh Plus is a single premium ULIP plan. This plan provides tax benefits. As it is a one-time payment plan it is a hassle-free investment option.
  • You can invest with a lum sump small amount of 1 Lakh. There is no upper limit for investment.
  • This plan provides four different fund options – Bond, Secured, Balanced and Growth.
  • You can switch freely between these fund options. The switching is allowed four times in a year.
  • You can partially withdraw money after 5th year onwards.
  • This plan provides life cover options. One can select sum assured of 10 times of single premium or 1.25 times of the single premium. If your intention is pure investment you can go for 1.25 times cover. Whereas if you want insurance with tax benefits you can go with 10 times cover.
  • At the policy maturity, you will get the Unit fund value.
  • This plan provides guaranteed additions in addition to the unit fund value.

LIC Nivesh Plus Plan - ULIP 849

Eligibility

Minimum Entry Age – 90 days

Maximum Entry Age -35 years to 70 years as per life cover selection.

Minimum Maturity Age – 18 years

Maximum Maturity Age – 50 years to 85 years

Policy Term

Option 1: If Basic Sum Assured is 1.25 times of Single Premium Option 2: If Basic Sum Assured is 10 times of Single Premium
For age at Entry up to 25 Years For Age at entry 26 to 30 Years For age at entry 31 to 35 years
10 to 25 years 10 to 25 Years 10 to 20 Year 10 Years

Nivesh Plus Plan Fund Options

LIC Nivesh Plus Plan provides four different fund options.

Bond Fund – Bond Fund is suitable of the low risk investor. It is relatively safe option where money is invested in fixed income securities. This fund invests 60% of amount in government guaranteed securities and 40% in money market instruments. Equity investment is NIL.

Secured Fund – Secured Fund is suitable for lower or medium risk investor. This option is expected to provide steady income. In secured fund 45-85% money is invested in fixed income instrument, 0-40% in money market instrument and 15-55% is invested in equity. 

Balanced Fund –  Balance Fund is for medium risk investor. This fund provides balance income and growth to the investor. In balance fund 30-70% money is invested in fixed income instrument, 0-40% in money market instrument and 30-70% is invested in equity. 

Growth Fund – Growth Fund is for high risk investor. This fund is intended to provide long term capital growth to the investor. In growth fund 20-60% money is invested in fixed income instrument, 0-40% in money market instrument and 40-80% is invested in equity.

Investor has option to select and switch between these funds throughout policy term.

LIC Nivesh Plus Benefits 

Maturity Benefit – On the maturity of plan, you will get unit fund value. The amount will be based on NAV on that date.

Death Benefit – On the death of policy holder during policy term, you will get sum assured as opted while purchasing the policy.

Nivesh Plus Charges 

You need to pay following charges when you purchase LIC Nivesh Plus policy.

Fund Management Charges – This charges are applicable for the management of fund. This charges are levied at the time of computation of NAV on daily basis.

Fund Charge applicable
Bond Fund, Secured Fund, Balanced Fund, Growth Fund 1.35% of unit fund per year
Discontinued  Policy Fund 0.50% of unit fund per year

Morality Charges – You need to pay additional amount for the insurance cover that is known as morality charges. This amount is taken at the beginning of buying a policy. The morality charges depend upon sum assured and the unit fund value.

Premium Allocation Charges – Under this ULIP plan you need to pay premium allocation charges. The charges will be reduced from your premium amount and remaining amount is used for buying units. The allocation charges for online policy is 1.5% and for offline it is 3.3%.

Discontinuance Charges – You also need to pay discontinuance charges if you don’t want to continue this policy. This charges are applicable up to 5 years. From the fifth year onwards no discontinuance charges applicable.

LIC Nivesh Plus Plan – Review

Now important question is should you invest in LIC Nivesh Plus Plan or not?  After going through policy detail one can easily figure out following positive and negative points. 

LIC Nivesh Plus Plan – Positive & Negatives
Positives Negatives
(1)   Single Premium Policy (1) Overall charges applicable are very high
(2)   Four fund option for the selection (2) Risk is high as returns are market linked
(3)   Facility to switch between funds (3) Low sum assurance of 1.25 Times
(4)   Guaranteed addition of 3-7% at specific intervals (4) Maximum policy term for person with age above 30 years is 10 year only
(5)   Expected returns from this policy is low

From above comparison one can easily say that LIC Nivesh Plus is not a good option for the investment. History says that ULIP will offer only low returns to the investors. So, instead of selecting this policy you should invest your money in other instruments such as equity mutual funds, fixed deposit, ELSS etc.

Nivesh Plus is gimmick by LIC to attract salaried people during tax saving month. I would advice to stay away from this policy.

How to be a Successful Leader in MLM Network Marketing?

Shitanshu Kapadia
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How to be a Successful Leader in MLM Network Marketing?

MLM Network Marketing is one of the best ways to generate passive income.

I recently met my friend who is about to reach the Amway Diamond level. He shared that he is earning nearly 4 Lakh per month via Amway MLM Marketing. He explained Amway Plan and showed how he has reached nearly Top-level in MLM network marketing. His education credential was average, he could reach this level only due to hard work and marketing skills.

The story of my friend to become a successful leader in MLM Network Marketing Business is exciting. I thought to capture all his thoughts, tips, tricks and ways of becoming a successful leader here. I am sure it will help all aspiring MLM network marketing people.

In MLM network marketing, empathetic leaders are often successful business people because they understand and connect with their team’s needs and motivations. This empathy fosters trust and loyalty, empowering teams to work together more effectively toward shared goals.

MLM Network Marketing

 

How to be a Successful Leader in MLM Network Marketing?

A leader is someone who creates leaders & not followers. Here are useful tips & tricks for becoming a leader in MLM.

#1 Create Vision 

A leader should have a vision. So first step towards becoming successful in MLM leaders is developing a powerful vision. Once you join MLM company you should make a vision for your MLM business. The vision should be big, such as becoming emerald, diamond, double diamond etc. Your vision will keep you going even during tough times. Share your vision with a prospect, customer or team.

Also Read – Top 10 MLM & Network Marketing Companies in India

#2 Understand products and Services & Benefits

A second important step is getting a proper understanding of the products and services offered by the company. You should go through detail of every product so that you will be able to answer questions about products. Additionally, you need to understand the business model and benefits. Product knowledge has nothing to do with performance but it is mandatory for succeeding.

 #3 Prepare Yourself Well

Make sure to dedicate fixed time for the MLM. Prepare yourself well. Prepare effective training material and speech for the prospects and team members. Make sure to use practical examples in your material.  If possible, make use of visual graphic in your material. Start creating your network by finding prospects.

#4 Improve your communication skills and convincing power

Successful MLM leaders are always trying to get better every day. So keep educating yourself like the top MLM leaders. Communication skill is important when it comes to MLM. You should improve your communication skills and convincing power. It will help you to build a strong business.

#5 Improve your ability to train and guide

A strong team is mandatory for becoming a top MLM leader.  Make yourself ready to train the team. Improve your training ability. Arrange weekly training for the down team. Take responsibility for your own business from day one.

#6 Transfer Skills

Transfer your skills to your team members. Work on creating a strong team under you. Inspire other team members to duplicate success.  Give a hard target to team members. Remember if a leader gets soft, his team member becomes weak. Share with your team what really works and duplicates you will surely see positive results.

 #7 Help Team Members to reach the Goal

Please remember that MLM is about connecting and working with people. So, help your team member to reach the goal. Solve their queries and help them to get started. Spend time with them. Accompany them while they arrange a meeting with new prospective team members. Don’t rely on your up line. Take responsibility to help others.

#8 Build Relation & Study what other leaders do and try to replicate the same

Build Relation with other leaders. Successful MLM leader build solid relation with other leaders. Invest your time and energy for building relation. Once you establish relation, try to learn from other leaders. Study what other leaders are doing. Meet them frequently once you learn from other successful leaders try to replicate the same. You need not reinvent the wheel.

#9 Remove Public Speaking Fear

One of the most important things you should learn for becoming a successful MLM leader is removing public speaking fear. There are many instance where you need to speak in public when move ahead with your MLM journey. Make yourself ready for the same. 

#10 Find out methods to promote your MLM products 

You need to find out various ways to promote your MLM products. You can host event every week at your home. Share your business success with people. Make use of technology such as WhatsApp, YouTube for promoting your business and products. Try to reach people in mass for recruiting in your team. 

#11 Never Give up

Network marketing is not easy. You will not get success overnight. You need to work hard for making money via Network marketing. You may come across various situations where you end up losing your time and money. Be patient and stick with your goals. Never Give up. Build a strong pipeline that gives you very good results. 

Final Thoughts

In the end, I would like to say that MLM network marketing is not rocket science. You can achieve a big success in network marketing provided you follow the tips and tricks given above.

What are your thoughts on becoming a successful MLM leader?

Please share your thought with us at info@moneyexcel.com

Inoperative PAN means 11 Different Financial Transactions are not allowed

Shitanshu Kapadia
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0
Inoperative PAN means 11 Different Financial Transactions are not allowed

Inoperative PAN means a considerable impact on performing various financial transactions. Make sure that your PAN will remain operative. In order to keep it operative, you need to link it with Aadhaar card.

As per the latest CBDT circular, your PAN will become inoperative in case not linked with Aadhaar card by 31st March,2020. The guideline also clarifies that in case your link your Aadhaar with PAN after 31st March, 2020 your PAN will be operative from the date of intimation of Aadhaar Card.

It is aknown fact that the deadline for linking Aadhaar with PAN extended multiple times. However, it seems this is the last chance for linking Aadhaar with PAN. If you miss the chance and your PAN will be inoperative you will not able to perform various financial transactions.

Also Read – How to Link Aadhaar with PAN for Income Tax E-filing?

I have identified 11 such financial transactions that you will not able to perform if your PAN goes into the inoperative state.

Inoperative PAN

List of 11 financial transactions not allowed for Inoperative PAN

PAN is a mandatory requirement for individuals for carrying out several financial transactions. You need to quote your PAN card whenever quoting is mandatory. If you furnish or quote inoperative/Invalid PAN, then it is considered that you have not quoted valid PAN and will be liable for all consequences under the income tax act as well as penalty.

I have listed following such transactions that cannot be performed without PAN card or inoperative PAN.

#1 PAN is mandatory while opening a bank account. You cannot open a bank account by using Inoperative PAN.

#2 You need to furnish PAN card while applying for a credit card or debit card. Application of credit card or Debit card shall not be accepted with inoperative PAN.

#3 It is mandatory to mention PAN number while buying and selling immovable property above 10 Lakh. As inoperative PAN will not be valid, you will not able to buy or sell such properties.

#4 At the time of opening Demat account, you need to furnish PAN card. Opening new Demat account or transfer of Demat account is not possible with inoperative PAN.

#5 As of now, you need to produce your PAN card for payment of hotel or restaurant bill exceeding Rs.50000. You may face issues

#6 As per rule, if you are buying or selling any motor vehicle you need to mention your PAN card number on the documents. Inoperative PAN means you no transaction of buy & sell allowed for automotive vehicles.

#7 Depositing cash of over Rs.50000 in day allowed by bank only by furnishing PAN card. Inoperative/Invalid PAN card holder shall not deposit cash in the bank.

#8 Payment of more than Rs.50000 in a financial year to pre-paid payment instruments is allowed with mentioning PAN card only. Such a transaction is not permissible with inoperative/invalid PAN.

#9 If you want to purchase gold from the market exceeding certain amount, you need to provide PAN card. Thus buying gold is not possible with inoperative/invalid PAN.

#10 You will not able to buy mutual funds, debenture, bonds etc worth more than Rs.50000.

#11 Cash payment of more than Rs.50000 for the travel to any foreign country or payment for purchase of foreign currency requires PAN card.  Such a transaction will be impacted by inoperative/invalid PAN card.

You will not able to file income tax returns if your PAN is not linked with Aadhaar.

How to check if PAN is operative or not?

As of now system for checking the operative status of PAN is not launched. However, as per notification soon income tax will release formats, and procedures for checking the operational status of PAN. This is to ensure that only valid PAN cardholder (linked with Aadhaar) will be able to perform various transactions.

How to link your Aadhaar with PAN card?

The process of linking Aadhaar with PAN card is very easy.

Step 1 – Visit e-filing portal of income tax India by clicking on https://incometax.gov.in 

Step 2 – In left pane navigation, you will find Link Aadhaar link. 

Step 3 – Click on the link and you will be prompted to provide information about PAN, Aadhaar Number and Name as per Aadhaar Card. Enter exact information as per Aadhaar card, avoid spelling mistakes or capital small wording. 

Step 4 – After providing all the information you have to click on Link Aadhaar button. After verification from UIDAI, the linking will be confirmed.

The screen will show Aadhaar PAN linking is completed successfully

What happens if my PAN is linked to Aadhaar after 31st March, 2020?

You can link your PAN with Aadhaar after 31st March,2020 also. The inoperative PAN card gets operational once it is linked to Aadhaar. However, any transaction done at the time of PAN is inoperative will be null and void. So, it is advisable to link the two before the deadline.

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