Term Plan or a ULIP or a endowment plan?🤔

Life Insurance simplified:

Do 're-tweet' & help us educate more investors

A Thread 🧵👇

(1/15)
What is life insurance?

Life insurance is a product which pays out a sum of money either on the death of the insured person or after a set period in return for a specified premium

(2/15)
What are different types of Life insurance?

Term Plan-Pure Risk Cover

Endowment Policies-Insurance Cover + Saving

Non-Linked Participating Endowment Plan-Insurance cover + Sum Assured

ULIP-Insurance + Investment Benefits

Non-participating ULIP-Fixed Insurance Cover

(3/15)
Which Insurance policy to buy?

Insurance is a pure product to hedge life risk.

Investments should never be made using insurance products❌

A pure play term plan is the only life insurance that one should buy!

(4/15)
What is term plan?

This is the simplest type of life insurance policy.

It pays your family a sum of money in case of your death, during the policy term.

It does not pay anything if you survive the policy term

(5/15)
Who should buy a term plan?

Have dependents, i.e non-earning family members ( eg children,retired parents)

Have loans that might burden your family, in case of your death

(6/15)
When to buy a term plan?

As soon as it is established that u have dependents.. buy a term plan!

The sooner u buy a term plan the cheaper it is!

As life goes on the risk of contracting a disease is also higher

Therefore buy a term plan as soon as possible

(7/15)
How long should be the term plan for?

The term plan should cover u as long as u have dependents on u.

Once u are free from all the duties there is no need for a term plan.

Ultra long term plan like one for 85 years have poor returns and are not recommended.

(8/15)
What should be a sufficient cover?

A sufficient cover will depend on ur living expense and ur goals.

Add up ur expenses and ur goals and any liability u may have.

That generally will be the cover that you may need.

(9/15)
Customizations:-

Payout options:-

Lumpsum:-
Entire cover is credited in one go!

Lumpsum+Annuity-

Some amount is credited upfront while the rest is paid out as monthly income.

Annuity-

All the money is paid as monthly income

Choose a model that will help ur needs

(10/15)
Premium pay models:-

Companies provide the following options:-

-Pay over the lifetime of the insurance policy

-Limited Pay Options:-

Companies now offer an option to pay within 3-5 or 10 years.

(11/15)
You should calculate the NPV of each of the faster pay options to conclude the cheapest.

If u have the money and wish to not take on additional liability…then paying off the premium faster makes sense.

(12/15)
Critical Illness(CI) Rider:-

Companies provide a rider of accelerated payment of sum insured in case of any CI

These are inferior to a pure play CI cover

Rather than buying an embedded CI rider one must buy a standalone CI cover.

(13/15)
Waiver of premium on critical illness:-

This rider will help you waive the burden of paying ur premium in case u are diagnosed with a listed critical illness or are permanently disabled due to an accident

This is a must have rider as it will protect ur insurance.

(14/15)
Our 2 cents on Life Insurance

-Evaluate the need for a Life Insurance
-Buy only a term plan
-Be careful on the customizations
-Carefully evaluate the amount of cover,the age uptil which it should cover u.
-Disclose all the medical history to the best of ur knowledge

(15/15)

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with JST Investments

JST Investments Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @JstInvestments

6 Apr
Hello, Annual report Season!

Mahindra CIE🚚🚚 has come out with its annual report!

A thread 🧵on -

Insights by the company on the auto sector
Management Discussion
Direction of the company

Do share around for maximum reach!

Let's go! 👇

(1/20)
Main products for the company are:-

Forgings
Gears+castings+aluminium products

Main operations in:-

Europe
India

(2/20) Image
Europe business🌍:-

MHCV🚚:-

Production for MHCVs in Europe has cumulatively fallen by ~17%.

The forecast for MHCV growth in CY21 is 11.4%.

However, CY18 numbers will once again be
achieved only in CY24.

(3/20) Image
Read 20 tweets
1 Apr
Health Insurance simplified:

Do 're-tweet' & help us educate more investors

A Thread 🧵👇
What is health insurance?

Health insurance covers medical expenses that arise due to an unforseen illness. These could be related to hospitalisation,cost of medicines etc

(1/14)
Why is health insurance important?

Health risks and uncertainties are a part of life

With the constant increasing prices of healthcare,insurance today is a necessity.

Health insurance provides people with a much needed financial backup at times of medical emergencies.

(2/14)
Read 15 tweets
31 Mar
Natco Pharma: Business Model Simplified.

Hit the 're-tweet' & help us educate more investors.

A Thread 🧵👇
1/ A niche business model with a focus on complex molecules that are either FTF or PARA IV.

What is FTF/ PARA IV?

For that, let’s get the basics cleared.
2/ A generic drug is a copy of the patented molecule which might look different optically, however, works the same way.

When the patent expires, generics enter the market.

A Para IV/FTF is a way to enter 1st among the generics & also get a 180-day exclusivity.
Read 16 tweets
23 Mar
We have been hearing about Non-Fungible tokens or NFTs a lot recently, therefore we thought let's shed some light on it!

In this thread, we will cover -

Fungibility
Bitcoin v/s NFTs
NFT sales
Applications
Advantages
Concerns

#LearningswithJST

Let's go 👇
First, let’s know what fungibility is.

It refers to the ability of an asset to be exchanged or substituted with similar assets of the same value such as currency.

you can exchange 5 notes of Rs 100 for 1 note of Rs 500. The value is Rs 500 (despite being in another form)
NFTs are the opposite of that

Each one is unique and can't be substituted for something similar

Think of the Mona Lisa painting - an original piece of art. It can’t be swapped for a poster of the same painting from a gift shop because the poster doesn’t hold the same value
Read 17 tweets
1 Feb
Jan Auto sales update:-

Escorts sales grows at 48%

Stay tuned for updates during the day!

#AutoSalesWithJST
Jan Auto sales update:-

Maruti sells 160,000 cars in Jan.(4% growth)

#AutoSalesWithJST
Jan Auto sales update:-

Ashok Leyland sells 12359 vehicles (a growth of 14%)

M&HCV is back with a growth of 32%.

#AutoSalesWithJST
Read 9 tweets
1 Feb
Stay tuned with all the important budget happenings!

As always, we will simplify the announcements for you!

Stay Tuned :)

#BudgetWithJST #Budget2021
A new central sponsored scheme - Aatmanirbhar Health Yojana with an outlay of Rs 64180 Cr over 6 years (in addition to National Health Mission)

Will strengthen National centre for disease control

Will launch 'Mission Poshan 2.0'

#BudgetWithJST #Budget2021
Will implement Jal Jeevan Mission with an outlay of Rs 2.87 Lakh Cr

Govt to set up 15 health emergency centres

#BudgetWithJST #Budget2021
Read 27 tweets

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!