Life insurance companies rule the roost in the last few months of the tax saving season. The flavours of the season are traditional life insurance policies -- endowments and money-back, for instance -- with guarantees thrown in. In a falling interest rate scenario, such guarantee works as a bait to entice those looking at life insurance for tax benefits.
Guaranteed life insurance plans are the mainstay of almost all insurance companies. In such plans, instead of declaring bonus, which can vary depending on the profits that the insurers make, insurers declare a 'guaranteed addition' (GA) or 'guaranteed return' in lieu of bonus. On the face of it, such plans appear attractive with lots of guarantees thrown in at different stages of the policy. After all, the maturity amount is guaranteed and so are the monthly payouts.
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