Queries
Payal Majumdar
I am 33 years old and
have a yearly income of
`10 lakh. I would like to
start investing in term
plans and ULIPs that
can together ensure `50
lakh cover when I am 60.
Please suggest.
Taking into account your
annual income, you should
buy a term plan of minimum
`1 crore to safeguard
against the uncertainties
of life. We believe that
your purpose of creating a
corpus of around `50 lakh is
for your retirement support.
However, the amount
seems to be rather low for
that purpose. It would be
a better idea to consult a
financial advisor or refer
to online calculators as
well. Rather than working
towards a ‘target corpus’
at age 60, try an alternate
approach instead. Invest
10 per cent of your yearly
income into ULIPs from now
till you turn 50. This is over
and above your mandatory
retirement savings such as
EPF. Thereafter, increase it
to 15 per cent This alternate
approach takes into account
your changing income and
lifestyle needs over the next 27
years, which you would agree
is a very long period of time to
continue post retirement. If you
need help, consult a financial
advisor or refer to retirement
calculators that are available
online. You can evaluate low
charge, deferred annuity ULIPs
that offer in-built guarantees
at maturity. The target amount
that you will attain through this
approach will be shown to you
through a ‘benefit illustration’
that has been approved by
your insurance company and
the regulator.
V Viswanand
Senior Director & COO, Max Life Insurance
Yogesh Patil, Navi Mumbai Nandini Jain
I am a non-resident Indian currently working
in Dubai. What should I declare in the Foreign
Account Tax Compliance Act (FATCA) form
where it says ‘Please indicate all the countries
in which you are resident for tax purposes and
associated details’? Do I need to mention
UAE as a tax country other than India? I am a 30 years old married woman. My
monthly income is `50,000. I would like to
buy an accident insurance plan which also
gives me maturity benefit.Please advice.
The Foreign Account Tax Compliance Act came into
being to monitor tax evasion and ensure strict adherence
to tax rules. Its main objective is to identify and prevent
offshore tax avoidance by US citizens or residents. In
short, this is an attempt to track persons based in the US
who are earning from overseas investments and stashing
assets in other countries. Being a non-resident Indian
with a source of income in Dubai, you should mention
UAE as resident for tax purposes, other than India.
B Gopkumar
CEO, Reliance Smartmoney.com
12
Outlook Money July 2018 www.outlookmoney.com
It is advisable to buy accidental death and
dismemberment rider on your existing life insurance
policy In case your life cover is less than 10 times of
your annual income, you may go for a term plan and
add the accidental death and dismemberment rider
to it. You may also consider accidental death covers
offered by general insurance companies. However, do
take note that a pure accident insurance plan will not
provide you any maturity benefit. As you are young and
earning, depending on your risk appetite you may
also start investing in unit linked plans to build a
retirement corpus.
V Viswanand
Senior Director & COO, Max Life Insurance