Tuesday, October 21, 2008

LIC Jeeven Saral ; 250 times insurance cover of Monthly installment.

Death Benefit:
250 times the monthly premium + loyalty additions + return of premiums excluding first year premiums and extra/rider premium, if any, is payable in lump sum on death of the life assured during the term of the policy.

Maturity Benefit:
The Maturity Sum Assured plus Loyalty additions, if any, is payable in a lump sum. (e.g This can come to more then Rs. 40 lakhs if you are investing Rs 5000 per month for 25 years at the rate of 10%)

Surrender Value:
surrender value will be the greater of the guaranteed surrender value and special surrender. The plan also allows for partial surrenders.

Guaranteed Surrender Value:
The policy can be surrendered after it has been in force for at least 3 full years. The Guaranteed Surrender value will be equal to 30% of the total amount of premiums paid excluding the premiums for the first year and all the extra premiums and premiums for accident benefit / term rider.

Special Surrender Value:
80% of Maturity Sum Assured if 3 or more years’ but less than 4 years’ premiums have been paid; 90% of the Maturity Sum Assured, if 4 or more years’ but less than 5 years’ premiums have been paid and 100% of the Maturity Sum Assured, if 5 or more years’ premiums have been paid. The Maturity Sum Assured for this para will be the Maturity Sum Assured corresponding to the term for which premiums have been paid under the policy.

UTI Mastershare Declaring dividends year after year even in this bearish market as well !

UTI Mastershare Lambi race ka goda !

UTI's Mastershare has been in the market for now over more then two decades.
It has declared dividend every year since its launch in 1986.

I thought this year it will be difficult to declare dividend when there is liquidity crunch but again they have announced a dividend of 22% (Re.2.20 per unit on a face value of Rs.10/-). The record date for the dividend is October 23, 2008.
The scheme has also rewarded its investors with 3 bonuses and 2 rights during its existance.

Ms Swati Kulkarni, fund manager of the scheme said, “UTI Mastershare has a 22 year acquaintance with its investors. The scheme has consistently declared dividends year after year since its launch in 1986, irrespective of the market phases. UTI Mastershare, a large cap oriented fund, that invests, in a well diversified portfolio of fundamentally strong companies. The scheme is trusted by over 6 lakh investors and has a fund size of Rs.1689 crore”

I would recommend this Fund for the people who want regular yearly income through tax free dividends. The last five year returns is above 15% compounded annually this is when the markets are at sub 11k levels.