SEBI'S NEW PLANS

SEBI & IRDA are in talks to iron out differences over the regulation of unit-linked insurance plans (Ulips). SEBI wants life insurance companies to sell Ulips after approval from them. Presently unit-linked plans were approved by Irda under the Insurance Act.

TERM LIFE V/S WHOLE LIFE INSURANCE

Choosing between term and whole life insurance policy really depends on the stage in life the buyer is in. For example, term insurance is best suited for an unmarried individual as he can get a high risk cover at a realistic premium amount say a cover for Rs. 10 lakh at approximately Rs. 2,500 annual premium.




Whole life insurance policy with a term rider would better suit a married person with two young kids. While a whole life plan would take care of the savings aspect of the married person allowing him to withdraw the amount as and when he requires it, the term rider would bring in the much needed additional protection cover at a reasonably low cost.



A simple whole life policy would suit a married person who is in his early 40s with grown up kids for the simple reason that it would cover him for his entire life at a low cost.

Direct Tax Proposals of Union Budget 2010-11

Broadened the Income Tax Slabs (see the revised tax slabs below).

Income tax return form, SARAL-II, to be made simple and user friendly for individual salaried taxpayers for the coming assessment year.

Allowed a deduction of an additional amount of Rs.20,000 for investment in long-term infrastructure bonds as notified by the Central Government. This would be over and above the existing limit of Rs.1 lakh on tax savings.Extended the provisions of Section 80D, that allows deduction under the Income-tax Act for contributions to health insurance schemes, to include contributions to the Central Government Health Scheme also as a deduction under the same provision.Tax Slabs for Financial Year 2010-11

Assesee Type From To Slab%

Male Upto 160000 0%

160001 500000 10%

500001 800000 20%

800001 and above 30%

Female Upto 190000

190001 500000 10%

500001 800000 20%

800001 and above 30%

Sr. Citizen Upto 240000

240001 500000 10%

500001 800000 20%

800001 and above 30%

INSURER TO PAY COMPENSATION

A Delhi Consumer Forum has directed a state-owned company to pay a compensation of Rs 10,000 to a senior citizen for the mental agony and harassment suffered by him due to delay in settlement of a medi-claim.




Finding UTI Technology Services Limited (UTITSL) guilty of deficiency in service, the Central District Consumer Dispute Redressal Forum also imposed a cost of Rs 3,000 on the company and ordered it to pay the amount to complainant M J Antony.



Anthony had approached the consumer forum as his medi-claim was rejected by the company after keeping him waiting for 10 months. He sought reimbursement and compensation for harassment and mental agony

HOW TRUE ARE TEMPTING ADS ABOUT HIGHEST NAV PRODUCTS?

Vishal Dhawan, Mumbai-based financial planner: ''These plans should not be seen as substitutes to pure equity plans that surely have a potential to give better returns over a period of seven to ten years. However, if you are a conservative investor who is looking at nominal returns while ensuring that the principal value is protected, then you may invest 10 per cent of your portfolio in these funds. But since there are a number of companies selling these products now, do compare the charges before taking the final call.''

COMING SOON:"PORTABLE" HEALTH POLICIES

Over the coming months, a majority of the population would be permitted to change their health insurer without having to lose any of the benefits that had accrued to them.




The proposed portable health insurance policy, earlier to be sold only to those between 18 years and 40 years, is to now cover individuals from three months to 65 years.