Which is the best insurance plan to choose in 2017 in India?

Well, no matter in which day, week, month or year you’re in. As of now, Investing in LIC (Life Insurance Corporation of India) is one of the best way to ensure you and your family that trusts and relies on you completely are safe from any financial crisis in case of any emergency or your absence due to death or any permanent disability!

I would like to share with you one of the LIC insurance plans which I highly recommend. I would like to highlight few important points to be considered which are sufficient to opt this plan and secure yourself and your family based on your capabilities and requirements.

Let me keep this explanation as simple as possible.

Insurance Plan: New Jeevan Anand

  • Minimum Basic Sum Assured: Rs 1,00,000/-
  • Minimum Age at entry : 18 years (completed)
  • Maximum Age at entry : 50 years (nearest birthday)
  • Maximum Maturity Age : 75 years (nearest birthday)
  • Minimum Policy Term: 15 Years
  • Maximum Policy Term: 35 Years

Description: Let me tell this in pointers.

  • It will provide protection to you and your family (provides financial protection against death throughout lifetime of the policy holder).
  • It is also a form of savings (provides lump sum amount you paid as premium, at the end of the selected policy term in case of his/her survival)
  • In case of any emergency in mid of policy term. Then you can also apply and take loan on this LIC Insurance.

There are 3 types of Benefits:

Death Benefit: On death during the policy term.

  • Sum Assured on Death, Simple Reversionary Bonuses and Final Additional Bonus is payable to the nominee.
  • Sum Assured on Death will be 125% of Basic Sum Assured or 10 times of annualised premium.
  • Example: If Basic Sum Assured is Rs. 10,00,000/- and Policy Term is 15 Years.
    • Sum Assured on Death will be 12,50,000/-

Note: Death Benefit will not be less than 105% of all the premiums paid (Excluding Service Tax, Extra Premium and Rider Premium) as on death.

End of Policy Term Benefit: On policy holder survival and completion of policy term with all the premiums paid on time without any due.

  • Basic Sum Assured, Simple Reversionary Bonuses and Final Additional Bonus is payable to the nominee.

Optional Benefit: LIC Accidental death and disability benefit rider.

  • This is an optional benefit which can be availed by paying extra premium amount during the policy term.
  • In case of accidental death during policy, policy holder nominee will receive Accident Benefit Sum Assured + Basic Sum Assured
  • In case of accidental permanent disability occurs due to an accident during policy, policy holder will receive
    • Accident Benefit Sum Assured in equal monthly installments for 10 years
    • All the future premiums = Accident Benefit Sum Assured – Shall be waived off.

Let me explain the Jeevan Anand Lic policy details with example for your better understanding.

  • Policy holder age as on creation of policy: 25 Years
  • Policy Term: 15 Years
  • Basic Sum Assured: Rs 10,00,000/-
  • Sum Assured on Death: Rs 12,50,000/-
  • Accident Benefit Sum Assured: Rs 10,00,000/-

Total Approximate Paid Premium (Inclusive of all taxes): Rs 11,81,781/-

Approximate Lic Jeevan Anand Returns at Maturity Time:

  • Basic Sum Assured: Rs 10,00,000/-
  • Simple Reversionary Bonus: Rs 6,15,000/-
  • Final Additional Bonus: Rs 20,000/-

Total Approximate Return at Maturity Time: Rs 16,35,000/-


Life Time Risk Cover: Rs 10,00,000/-

Total Approximate Return: 16,35,000 + 10,00,000 = Rs 26,35,000/-

Take away pointers:

  • Rs 14,53,219/- is total growth of money you had invested for 15 years.
  • It is 122.96% increase from the total amount of investment done for 15 years.

Conclusion: I found this insurance plan to be more beneficial for long-term investment.

By seeing the amount of return on investment it gives. Who on this earth would not want to invest in such kind of investment right?

For further details on eligibility and other restrictions are available on the LIC website.

Hope so this article has helped you in some way!

Do let me know if you have any questions in specific to this?

Disclaimer: This article is meant for general education purposes only. I have not considered your personal risk profile and have expressed my own opinion in this article. Premium shown above is indicative and not exact, actual premium may vary according to various rules applicable. Maturity calculation is approximate calculation done based on current rate of bonus as on today’s date.

Finance – Rate of Interest? Explained in a much simple way!

Well!! This is a terminology we have been studying since our school days. But, still at times we do face problems when this term comes into picture while taking any type of finance. Such as Personal Loan, Home Loan, Car Loan, etc.

Getting into the definition part of it.

As defined in Investopedia:

Interst Rate

Its for sure, once we have read the above definition we have a fair idea what it means.

Now, just to put the above definition in a simpler term.

Simplified Definition:

Depending on the money being taken from a bank or a finance company as a loan (be it personal loan, home loan, car loan, education loan,etc.). Rate of Interest will be charged for the total amount borrowed. 

Let me explain it with a scenario:

Let us consider that I have taken a personal loan of say Rs 10,000/- for an example from any bank or a finance company.

And the said Rate of Interest being charged is of 11.15%. annually. Say, the loan tenure is said to be 2 years.

Note: Rate of Interest is generally calculated on a yearly basis. There are two types of interest that is calculated.

  • Simple Interest
  • Compound Interest

In the above said scenario for the loan amount Rs 10,000/-

If we say it to be a simple rate of interest that will be calculated. Then, total interest being paid at the end of 2 years would be Rs 2230/-

If we say it to be a compound interest that will be calculated. Then, total interest paid at the end of 2 years would be Rs 2354.32/-

The difference of Interest amount is seen because in simple interest the interest is being calculated only on the principal amount, your interest amount of first year is not added here to calculate the interest for the 2nd year. But, in case of compound interest it is being calculated not only on the principal amount but it is calculated on (principal amount + interest amount of first year).

Formula used to calculate Simple Rate of Interest and Compound Rate of Interest is:

(Source of formula: Investopedia)

Simple Rate of Interest = P (Principal) x I (Annual Rate of Interest) x N (Years)

Compound Rate of Interest = P (Principal) x [ ( 1 + I(Rate of Interest) N (Months) ) – 1 ]


DISCLAIMER: This article is only meant for general education purpose. 

Investment? Explained in a much simple way!

Investment is a very beautiful term when you know what exactly it is! If you don’t know it. Then it becomes a pain for you or anyone who doesn’t know much about it.


Now, to know a little more about Investment in a much more simpler way.

Definition: Let me explain it to you this way!

Say, you have some money with you left after having all the expenses for the month done as of now. And, you don’t have any need of the surplus left post all the things having been done.

Now, what do you do with this extra amount??

There are 2 things you can definitely do out of it!

  1. Just let it be in your savings account and let it earn how much ever interest it will earn over the period of time (very negligible growth of money).
  2. Invest it into something productive so that you can earn huge or considerably high returns than what you would gain from than just keeping it in your savings account (considerably high growth of money).

Now, when you get into this phase of ideology. That, you want to grow your money and not just accumulate whatever is available with you.

Investment comes into picture. 

By Investing your money into some of the well established process you can very well grow your money over the period of time and earn a very a good returns for your future requirements.

There are various methods of investments being done these days. Just to note few of them being LIC Policies, Mutual Funds, SIP, Cash Certificates, etc.

Tenure of Investment:  Very important aspect of any investment being done is the tenure of investment you are planning to do!

Simple straight forward logic behind investment is.

Longer the tenure = Higher will be the returns


Shorter the tenure = Lesser will be the returns

Conclusion: I would always suggest and would personally plan for a longer duration investments than opting for a shorter duration one.

Because, No matter what you see, what you read in any advertisements or any TV commercial ads, etc. People say even for a shorter duration we can invest sometimes.

Yes, that is undoubtedly true. But, growth of your hard-earned money for such investments is much lesser.

So, reduce probability of such short-term investments and increase chances to opt for long-term investments and plan accordingly.

If at all … in any corner of your mind you found this post to be insightful, served the purpose of your reading, got overall picture of what investment is all about?

Then please do like, comment, share and subscribe!

Applying for a Car Loan? 4 things you should take care of, before you apply for it!!


One thing which can give you sleepless nights. If you land up with wrong financier for any kind of loan.

But, on the other hand. If you make a right decision and do all the possible research before applying for a loan.

Undoubtedly! you will be on a much much safer side by having nothing to worry about. Provided!!

You continue to pay the due amount every month (EMI) without fail! 🙂

Want to know more about EMI. Bet you should read this post of mine.

EMI? Explained in a much simple way!

Okay!! Too much of gyan on general terminology of loan though!

Yes, coming to CAR Loan!!

Car Finance

According to me. Personally having studied many lenders of loan while I had to purchase my car.

This is what I did. These 4 things which I checked has made life a much easier and simpler. Because I have nothing to worry about except to pay the monthly EMI without fail.

  • Loan Amount:

Ah! common ideally any person looking for a car loan will already have some idea as to how much loan amount will be required to purchase a car.

Generally, banks will be ready to pay the borrower upto 90% of the On Road Price of the vehicle.

Or, If you seem to be more lucky enough and they consider you to be one among their privileged customer and you are associated with the bank from many years or since a decade. Then they would not hesitate to even lend you upto 100% (Chances of this being very less).

So based on the amount you have in your savings which you can utilize to pay as a down payment to purchase the car. Decide the loan amount more wisely.

Lesser the loan amount = Lesser interest payable at the end of the tenure

  • Loan Tenure:

Minimum duration any bank provides a car loan is for 1 year and maximum being 7 years for a New Car.

So first thing what I did was to decide as to which tenure if I select would be more feasible and better for me.

Well, In my case. I wanted maximum amount of loan. So one way for me to do was to go for a longer tenure.

More the tenure = More loan amount you are eligible to get (Be informed, this will also lead to pay more interest amount at the end of tenure)

  • Rate of Interest:

Average Rate of Interest of best banks lending car loan ranges from 8.35% to 14.74%.

Once you made up your mind on tenure of the loan. Be calculative about what will be the best interest to go with. Keeping in mind the tenure you have decided to take.

Ideally, If you choose for longer tenure. Best thing to do is to choose the bank which will provide you the least rate of interest on the loan amount.

By doing this, you can save lots of money on interest being paid by the end of tenure.

It is always advisable to go for the bank which will provide you the provision of “NIL” almost negligible processing or foreclosure charges for the car loan amount.

Ideally, most of the banks charge premium on these charges. So it was always to important to notice this before applying for any banks for a Car Loan.

Conclusion: Once you are clear with these things as mentioned in the above post. This will ease your process of choosing the best loan based on your requirement and ease of applying and repaying the loan.

Hope so this post was of some help for you!

Keep reading and sharing if you like the posts I write!

If you think I need to add some more points or missed out on anything. Do comment your thoughts on the above written post.

Processing and Foreclosure Charges? Explained in a much simple way!

Yes, Everyone has at least a little confusion with respect to these terminologies.

So what you think would be the meaning of these terms??


How stupid is to ask such a question? If you would have a better understanding of it. Isn’t it obvious? that you wouldn’t have been here to read this post at all??

No Problem! By the end of this post I am sure you will be able to figure out what this terms exactly mean.


process and forecluser

Processing Charges: These are the charges applied by a bank or any finance companies to process your loan application and provide you the loan amount based on your eligibility criteria and terms and conditions of the provider bank or any financial company.

Basically, it is the charges applied to the customer by any financial organization to meet the costs they come across to give a better efficient service to the customer.


Before, applying for any loan. Make sure you check for these charges properly. So that you are saved from paying heavy processing charges for the loan amount.

Because there are banks or finance companies which charge almost Nil or negligible charges to their customer.

Foreclosure Charges: These are charges applied by the bank or any finance companies to process the closure of your loan in advance.

For Example:

Say by Grace of God! you could save huge money in shorter duration of time and you are now willing to pay all the remaining EMIs in advance. Then, you can do so by applying for foreclosure of the loan.


A gentle reminder, would be of no harm!

Please ensure before applying for any loans to avoid yourself from paying heavy foreclosure charges.

Because, there are banks or finance companies which charge almost Nil or negligible charges towards foreclosure of the loan.

Conclusion: No matter how careful you are in terms of loans and finance. Don’t ever be negligible with respect to these charges.

Because these charges might be negligible if the loan amount is small.


Same charges might be huge enough if the loan amount is large.

Hope so this post was of some help for you!

Keep reading my blog! Do let me know through your comments, if you have any specific questions with respect to the above post!

EMI? Explained in a much simple way!

EMI?? What is this EMI all about? This term is really confusing, I being from a non finance background. I find it hard to understand this terminology all together!!

If you also think so!

Then this post is definitely for you!

Don’t worry!

EMI to understand is quiet simple. To first tell the full form of it. It goes this way.


EMI = Equated Monthly Installments

Now, you might think what is the definition of it? No problem. Definition is like this. In very simple language.

Definition: To have better understanding of this you must be having at least some idea of Finance and its parts.

If you want to have a clear understanding of it in just 3 to 4 minutes. I would recommend you to read this post of mine.

What is Finance? Want to know it in a much simpler way?

Okay, here is the best part about EMI. And, this is why it is very popular driving force to take any loans these days.

From what you read in the Finance post above. Part 2 of Finance can be easily done through EMI.

You can easily return the amount you received from the bank or any finance company in Easy Equated Monthly Installments.

When I say, Easy Equated Monthly Installments. It has 3 components to it.

First: Principal Amount

Second: Interest Amount

Third: Service Tax or any other applicable taxes

So having known in general about What EMI is all about? Lets also know, as of now there are banks or financial institutions providing this option of EMI in 2 different ways!

  1. EMI with interest
  2. EMI without Interest

1. EMI with Interest: There is considerable rate of interest being charged for the loan amount received based on the loan tenure.

2. EMI without Interest: There is absolutely no interest being charged for the loan amount received.

Note: Either with respect to EMI with/without interest. Please don’t forget to look for all the processing and foreclosure charges for the loan being applied for.

Want to know more about Processing and Foreclosure Charges?

Bet you would want to read this post of mine which will give you a fair understanding of these terminologies in not more than 4 to 5 minutes.

Processing and Foreclosure Charges? Explained in a much simple way!

Conclusion: No matter which loan your planning to opt or apply for. Be sure to check all the features of the loan appropriately.

So that you don’t end up with a wrong loan and save as much as money on interest payable and make yourself relaxed by choosing one of the best EMI facilities.

Hope so this was of some help for you!

Thanks for reading! Do comment your thoughts on the above post. 🙂

Steps to buy a CAR!! Difference between Rich and Middle Class in a humorous way – Want to know? Read till the end! :)

Ah!! who on this earth do not want to own a car??

Common! Every other person would have a dream of having one for sure right??

Steps to Buy a Car:

Let me consider two scenarios and explain.

Scenario 1: Rich and wealthy man – he has this huge dump of money with him so much that .. Okay okay .. let me tell it this way!

Step 1 – Walks into a Car showroom looks for the Car he wants to buy and signs a heavy cheque.

And then, BOOM!!!

Car is at his home within no time!! 😀  (with no offense to anyone around)

Scenario 2: Middle class man – he has this huge huge dream in the backyard of his mind that “One fine day I will definitely buy this car (when he sees a car which he had dreamt off to buy from a very long time).

Then, the day has come! he has made up his mind to buy a CAR!!

And, what you think will be the steps for him to buy car??

Here it goes!

Step 1 – He will first look into all his savings he has done years/months/days together till date and calculates total money he can put to purchase the car and will discover that he has fallen short of money to buy the car.

Step 2 – He then looks into all the possible ways to fill this gap of money he has discovered.

Step 3 – He then steps into every other bank to give him a finance to purchase his car.

Step 4 – Finally, discovers the bank of his choice to pay him the shortfall of money.

So you think the story ends here??? he has purchased the CAR of his dreams????

No!!! this doesn’t end here.. to know when it will end.. look into Step 5

Step 5 – Once the bank agrees to finance him for car loan. He will go and have a talk with showroom sales person about the car he wants to buy.

Step 6 – Runs through all the essential formalities between bank and the showroom and pay the total amount to purchase a car in the form of DD/RTGS/Cheque done through the bank which has paid the loan amount.

Ahhhh!!! there you go!! after having done all this circus of getting a car.

The day has finally come and the CAR of his dream is at his home!!! 🙂

Moral of the Story: No matter how rich or poor you are. All it takes to buy a car these days is – shear commitment to own one and then do all the right ways it takes to have it with you. 

Commitment and perseverance is all that matters!!

What is Finance? Want to know it in a much simpler way?

Yes, Finance is the term which will confuse most us!!

All of us do come across this term not just once but most of the times in our life. Basically, when we end up having big goals to achieve but will not be having that much amount of money to fulfill it.

Exactly!! This is when Finance comes into picture.

Definition: Let me explain it by breaking it into 2 parts.

  • 1st part – Receiving Money –  Any organization (Banks, Finance companies, etc.) or any person will lend you money to fulfill your dreams when you badly needed it.
  • 2nd part –  Returning Money – You need to return the money you received from the lender.

Now you might be thinking this is very simple thing to do right????


Here is the catch, Please be very careful with this i.e. specially in,

2nd part –  While returning money back, you need to pay additional money in the form interest to the money you had received.


The time in our life, most of the time when we come across this terminology called Finance. In most of the cases, we tend to be in more hurry to somehow get the money at this moment and let’s think about returning money in later part.

And eventually, end up paying much higher interest rates for the money received.

So please be careful in deciding and thoroughly understand any finance matters and only then step into it.

Thanks for reading this post.

Hope so, this was of some help to you in understanding the term Finance.

Have any questions in mind about Finance?