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Ramalingam

Ramalingam Kalirajan  |6991 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 12, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Asked by Anonymous - Jul 12, 2024Hindi
Money

On 2023 March I have taken edelweise lic of 525000/ year for 12 year scheme but after one year premium I lost my job and not capable for. 2 nd primium and finance problem so request company to return my primium but company refused so what can I do ?

Ans: First, I want to acknowledge your situation and empathize with the financial stress you're experiencing. Losing a job and dealing with an unexpected financial burden is challenging. However, there are steps you can take to manage your current predicament and make informed decisions moving forward.

Evaluating Your Policy
You mentioned that you purchased an Edelweiss LIC policy with an annual premium of Rs 5,25,000. Unfortunately, you have lost your job and cannot pay the second premium. You've also requested a refund, but the company has refused.

In India, insurance policies, including LIC, typically have strict terms regarding premium payments and refunds. Generally, if the policy lapses due to non-payment of premiums, the insurer may not refund the premium paid.

Surrendering the Policy
If you cannot continue with the policy, surrendering it might be an option. Surrendering a policy before the stipulated period usually results in a significant loss, as the surrender value is often much lower than the total premiums paid. However, it might be better than letting the policy lapse without any value.

Check with your insurer about the surrender value and the exact procedure for surrendering the policy. Ensure you understand the financial implications, including any penalties or fees.

Exploring Policy Loan Options
Some insurance policies offer the option to take a loan against the policy's surrender value. This might be a viable short-term solution to meet your financial needs without completely losing the benefits of the policy.

Enquire with Edelweiss LIC if a policy loan is available and assess the terms, including interest rates and repayment conditions. This can provide immediate financial relief while keeping the policy in force.

Considering the Free Look Period
When you buy an insurance policy, there is a "free look period," usually 15 days from the date of receipt of the policy During this period, you can review the policy terms and conditions. If you find them unsatisfactory, you can return the policy and get a refund of the premium paid, minus some nominal charges.

If you are still within this period, you can leverage this option. However, it seems you might have already passed this window. For future reference, always utilise this period to ensure the policy suits your needs.

Budgeting and Financial Planning
To navigate through your current financial crunch, creating a detailed budget is crucial. List all your income sources, savings, and expenses. Identify areas where you can cut costs or defer payments.

This budget will give you a clear picture of your financial status and help you prioritize your expenses. Focus on essential needs and avoid any unnecessary expenditures.

Seeking Alternative Income Sources
Since you've lost your job, exploring alternative income sources is essential. Consider part-time or freelance work, which can provide interim financial support. Online platforms and local opportunities might offer suitable options based on your skills and experience.

Networking with former colleagues, friends, and industry contacts can also open up new job opportunities. Inform them about your current situation and actively seek their assistance in finding suitable job openings.

Debt Management
If you have existing debts, managing them efficiently is vital. Contact your lenders and explain your situation. Some lenders might offer deferment or restructuring options for your loans.

Prioritize high-interest debts and aim to pay them off first. Consider consolidating your debts if it reduces your overall interest burden and simplifies repayments.

Emergency Fund
If you have an emergency fund, this is the time to utilize it. An emergency fund is designed for unforeseen circumstances like job loss. Ideally, it should cover 3 to 6 months of living expenses.

If you don’t have one, consider starting to build one as soon as you stabilize your finances. Having an emergency fund provides a financial cushion for future unexpected situations.

Financial Assistance and Support
Explore government schemes and financial assistance programs that might be available for unemployed individuals. Some organizations and non-profits offer financial aid or support for those in need.

Seek advice from a certified financial planner who can provide tailored guidance based on your specific situation. They can help you create a recovery plan and suggest investment strategies for future stability.

Exploring Other Investment Options
While dealing with your current policy and financial issues, it's also a good time to evaluate other investment options. Investing in mutual funds through SIPs (Systematic Investment Plans) can provide better returns and flexibility compared to traditional insurance policies.

SIPs allow you to invest a fixed amount regularly, even with a limited budget. They offer the benefit of rupee cost averaging and potential for higher returns over the long term.

Benefits of Actively Managed Funds
Instead of investing in index funds, consider actively managed funds. These funds are managed by professional fund managers who aim to outperform the market.

Actively managed funds can adapt to changing market conditions and potentially offer better returns. The expertise of fund managers and their ability to select high-performing stocks can provide a competitive edge.

Advantages of Regular Funds
While direct funds have lower expense ratios, regular funds offer the benefit of professional guidance from certified financial planners. Investing through a planner ensures you receive personalized advice and continuous portfolio monitoring.

Regular funds also provide access to additional services and support, helping you make informed investment decisions. This professional guidance can be invaluable, especially in complex financial situations.

Final Insights
Your current financial challenges require careful planning and informed decisions. By evaluating your insurance policy options, budgeting effectively, exploring alternative income sources, and seeking professional guidance, you can navigate this difficult period.

Investing in mutual funds through SIPs and opting for actively managed funds can provide better financial growth. Remember, seeking advice from a certified financial planner ensures you receive tailored and professional support.

Take proactive steps to manage your finances, and with time, you can overcome these challenges and achieve financial stability.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Sanjeev

Sanjeev Govila  | Answer  |Ask -

Financial Planner - Answered on Jan 23, 2024

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I had taken a PM Vaya Bandana LIC scheme at 6 Lacs in the year 2020 . Now the LIC has informed me that I had exceeded Rs 15 lacs cap on this scheme. Neither me nor my Agent or LIC noticed that at the time of investment. Now LIC wants me to return the Certificate and return my money after deducting the premium paid. This means I shall loose : 1. Any return on my investment for last 3 years. 2. LIC had taken Rs 52000.00 as GST. What is the remedy and why I shall be penalized for the fault which all had committed.
Ans: As per the policy – “Total amount of purchase price under all the policies under this plan, and all the policies taken under Pradhan Mantri Vaya Vandana Yojana (with UIN 512G311V01 and UIN: 512G311V02) allowed to a senior citizen shall not exceed Rs 15 lakhs.”

But the effects of exceeding this maximum limit is not mentioned anywhere in the policy

While LIC has some responsibility for not initially flagging the cap excess, your agent also played a role in advising the investment.
Now, to get this issue resolved, explain your situation and highlight the lack of awareness about the cap. You can request LIC to reconsider the penalties.

If no resolution is reached with LIC, you can consider approaching the Insurance Regulatory and Development Authority of India (IRDAI) to file a complaint. They can mediate the issue and advocate for a fair solution.

For legal guidance and stronger representation, you may consider consulting a lawyer specializing in insurance matters. They can analyze the contract, identify potential legal grounds, and advise you on the best course of action.

Also, gather all relevant documents related to the investment, including the policy certificate, communication from LIC, and any emails/records with your agent.

..Read more

Ramalingam

Ramalingam Kalirajan  |6991 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 17, 2024

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Money
I have taken lic of edelweise and paid 1 st premium 525000 rs. last year 28/03/2023 but current year I left my job so can not able to pay 525000 rs and I have too much financial problem I ask to return my money but company said strongly no and never for remain life so my question is can I get money back or not
Ans: I'm sorry to hear about your financial situation. Navigating through insurance policies, especially when facing financial difficulties, can be challenging. Here’s what you can do to understand your options better:

Understand the Policy Terms
Read the Policy Document:
Carefully review the terms and conditions of your Edelweiss insurance policy. The policy document will provide details about the free-look period, surrender value, and any penalties associated with early termination.

Free-Look Period:
If you are within the free-look period (usually 15 to 30 days from the date you received the policy document), you can cancel the policy and get a refund after deducting administrative charges. However, since you mentioned that you purchased the policy last year, this option might not be available.

Surrendering the Policy
Surrender Value:
Check if your policy has a surrender value. Most insurance policies have a surrender value that you can claim if you terminate the policy early. However, policies generally accrue surrender value only after a certain number of premiums have been paid, often after the first two or three years.

Surrender Charges:
Be aware that surrendering the policy before the stipulated period can attract surrender charges, which can significantly reduce the amount you receive back.

Loan Against Policy
Policy Loan:
If your policy has acquired a surrender value, you might be eligible to take a loan against it. This can provide you with immediate funds without surrendering the policy.

Contact Edelweiss Life Insurance
Customer Support:
Contact Edelweiss Life Insurance's customer support or your insurance agent. Explain your financial situation and inquire about any flexibility in premium payments, possible policy loans, or partial withdrawals if your policy allows.

Defer Premium Payment:
Some insurance companies may offer options to defer premium payments or convert the policy to a paid-up status, where the coverage amount is reduced based on the premiums already paid.

Explore Financial Assistance
Alternative Financing:
Look for other ways to manage your financial problems, such as personal loans, financial assistance from family or friends, or exploring government aid programs if available.

Legal Advice
Consult a Financial Advisor or Lawyer:
If you face resistance from the insurance company or need clarity on your rights, consulting a certified financial planner or a lawyer specializing in insurance can provide you with tailored advice.

Practical Steps to Take
Review Policy Terms: Read your policy document carefully to understand the surrender value and any charges.

Contact Insurer: Speak to Edelweiss Life Insurance for detailed information about your options and any possible assistance they can provide.

Consider a Loan: Explore the possibility of taking a loan against the policy if it has accrued value.

Seek Legal Advice: If needed, consult with a financial advisor or legal expert to explore all possible avenues.

Summary
While it may be difficult to get a full refund, understanding your policy’s terms and exploring options like policy loans or surrendering can help mitigate financial stress. Always communicate with your insurer and seek professional advice to make an informed decision.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |6991 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 02, 2024

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Sir I hv taken PL from sbi 11 lac. 7 month em8 paid now i hv 10 lac to pay. Can pay or or benefits
Ans: Managing personal finances involves making informed decisions that align with your long-term goals and financial well-being. Let's delve into why prioritizing repayment of your personal loan before starting new investments can be beneficial for you.

Understanding Your Current Situation
You have a personal loan of Rs. 11 lakhs from SBI, with 7 EMIs already paid and Rs. 10 lakhs remaining to repay. Additionally, you are contemplating whether to use available funds to pay off the loan or to initiate new investments.

Benefits of Repaying Your Personal Loan First
1. Interest Savings
By repaying the loan early, you can save on the interest that would accrue over the remaining tenure.
Personal loans often come with higher interest rates compared to returns from investments, making interest savings significant.
2. Debt-Free Status
Eliminating debt provides peace of mind and reduces financial stress.
It frees up your monthly cash flow by removing the burden of EMIs.
3. Improved Credit Score
Paying off the loan enhances your credit profile, potentially improving your eligibility for future loans at better terms.

Why Start Investments After Repaying the Loan?
1. Financial Flexibility
Once debt-free, you can redirect the monthly EMI amount towards building investments.
This enhances your ability to save and invest for future financial goals.
2. Risk Mitigation
Investing after clearing debt reduces financial risk and enhances your capacity to weather market fluctuations.
You can approach investments with a stronger financial foundation.

Strategic Considerations
1. Interest Rate Comparison
Evaluate the interest rate on your personal loan against potential investment returns.
If the loan interest rate is higher, paying it off first ensures guaranteed savings.
2. Long-Term Wealth Building
Delaying investments briefly to repay debt positions you better for long-term wealth creation.
It allows you to start investing with a clean financial slate and greater financial stability.

Personalized Recommendation
Given your current financial snapshot:

Priority: Repay the remaining Rs. 10 lakhs of your personal loan to reduce debt burden and save on interest costs.
Subsequent Steps: Once debt-free, reassess your financial goals and risk tolerance to strategically plan investments.

Final Insights
Managing finances involves balancing debt repayment and wealth creation. Prioritizing debt reduction before initiating new investments sets a strong foundation for your financial future. By focusing on clearing your personal loan first, you secure immediate financial benefits and position yourself favorably for future investments.

Best Regards,

K. Ramalingam, MBA, CFP
Chief Financial Planner
www.holisticinvestment.in

..Read more

Latest Questions
Anu

Anu Krishna  |1287 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Nov 08, 2024

Asked by Anonymous - Nov 07, 2024Hindi
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Relationship
Hi Anu Mam Im 27 yrs old ( married) and 10 yrs old daughter. Im seperated from my husband since 2 yrs due to several reasons like he is drinking and Totally addicted to it. And he is totally dependent and now today also roaming on the roads of some streets of hyd. I belongs to an orthdox family. Now the question is one backward caste man who is married age : 33 he is interested in me and proposed me to a marriage after knowing all my past and saying that he accepts my child too. And the thing is he said a lie to me at first that he is unmarried and even though i had a good impression on him about the way he behaves with me he even treat me in a very polite manner. He says he loves me even though i too had a good impression but the things are the castes and can we both settle down with a marriage can we be happy or he is only trying to convince me to get him a wife to care care of him or only for his parents, he always talks about his own sister and also the office colleagues calls them sister and get emotional about them those who left the office. And he cries a lot which i dont trust on him and the face i see him that was not an real cry that looks like an act which i dont like in him. May he is acting ? Or really loving me, ge cares alot i feel like he is over reacting
Ans: Dear Anonymous,
If you are in doubt, then it's highly likely that he is putting on an act. Go with your intuition and hey hey, you said that he is married and so are you...You do realize that you just can't go ahead and marry while you are already to other people, right?
Focus on what's happening in your life; you obviously have to do something about it...Other relationships can wait!

All the best!
Anu Krishna
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Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

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Anu Krishna  |1287 Answers  |Ask -

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Hello Ms Anu, I am a 42yr female..married since 14 yrs and have 10yr old son . I am highly qualified and financially independent. My marriage was a arranged one.. but in these 14 yrs.. I never experienced love or and attachment from my husband's side. He is a family man.. there is no other woman involved..He loves his parents and his two sisters immensely... but always treats me as a option. I feel humiliated and lonely and he has short temper when i talk about this issue... so basically I don't discuss... but that is no solution... I am suffering and unhappy. What should I do?
Ans: Dear Anonymous,
A few married men can be more focused on the women on their side of the family; it becomes easy to express love, care and attention to them as he has grown with them.
A wife happens to be someone that he is yet to understand. It requires effort to make a marriage work; your husband finds it convenient to take the easy way out and 'hang out' with his family.
So, here you take the lead and start. Start not by bringing forth your complaints as this is going to push him further to them which is going to annoy you BUT by inviting him to be with you. A lot of work, I get it...but the bottom line: that's what you want, right?
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All the best!
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Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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