Personal Account Trading Policy 2012: Fill & Download for Free

Well, the Global Financial Markets already know that the Turkish Lira is under tremendous pressure and falling rapidly due to Turkey’s huge current account deficit (Turkish economy imports more than it exports), high dependent on foreign capital and investment, stronger U.S. Dollar as the U.S. Federal Reserve plans to rate interest rate and worsening diplomatic relations with the United States.Unfortunately, as the U.S. Federal Reserve plans to rate interest rate given the growth and expansion of the U.S. economy, investors will pull their money from Emerging markets into the U.S. Treasuries, equities, fixed income, etc. consequently, emerging economies like Turkey will find it difficult to service its debts.Global Investors are already concerned about other Emerging Markets like India exposed to high oil prices, over-reliance on exports to China, U.S.-China trade war and a more hawkish U.S. Federal Reserve and European Central Bank.Turmoil in Turkish currency impacted emerging markets with the rupee hitting a record low of 69.93 a dollar.However, there are long-term actions India could undertake to insulate its economy from being affected by instability in Emerging countries.Firstly. India needs to boost value-added exports. Although India has turned to Information Technology exports; still, 56% of its labor force still works in farming, even as agriculture accounts for only 18% of its economy. Information Technology demand for telecom, healthcare, retail sectors, etc is growing rapidly. Information technology in India is an industry consisting of two major components: IT services and business process outsourcing with export revenues standing at $108 billion and domestic revenue at $35 billion in 2016. Indian IT exports were $117 billion in 2017 while domestic revenues (including hardware) advanced to $37 billion. According to India Brand Equity Foundation (IBEF), Indian IT is expected to reach $350 billion by 2025. Indian Information Technology services – serves as the world's back office for IT services and Business Process Sourcing with the United States accounting for two-thirds of India’s exports. Therefore India must promote innovation via research and development (R&D); upgrade the skills of the Indian IT workforce; improve access to long-term finance for India start-ups.India needs better infrastructure. Ramping up infrastructure, while also bringing connectivity not within India but to neighboring countries such as Myanmar to promote regional trade. As such, the East-West Economic Corridor must be completed by India. The India–Myanmar–Thailand Trilateral Highway to link India with Myanmar, Thailand, Laos, Cambodia, and Vietnam. Electricity is another major issue India residents and businesses face daily. For electricity consumption, India consumes 1,408,624,400,000 that number is 1,122 kWh per person of electricity per year. The United States 3,911,000,000,000 kwh that is 12,700 kwh per person. India’s energy problems made global headlines when 600 million people were in the dark due to blackouts in 2012.Low cost manufacturers in Bangladesh and Vietnam now offers lower production costs than India due to their cheaper and more reliable power supply to manufacturers. Thus both countries are preferred sources than India regarding of textiles and clothing imports by end users. Vietnam and Bangladesh now occupy a larger share in the low-end manufacturing space left by China. Vietnam’s share in global ready-made garment exports increased from 1.7% to 5.3% in the past decade; Bangladesh from 2.5% to 6.7%. India saw a plain 0.8%. India decreased in comparative advantage due to infrastructure bottlenecks and inferior logistics. Jawaharlal Nehru Port, the largest container port in India, needs to be upgraded to increase the ports annual container volume from 4.47 to 10 million TEU. The handling of 10 million TEU annually at the port will put it on par with Port of Antwerp in Belgium, Port of Hamburg in Germany and Port of Los Angeles in the United States.Develop Progressive Trade Policies.India has a good manufacturing base, great exporter of IT services and strategically located in South East Asia with access to huge markets like China, Japan, Vietnam, etc. But it needs to improve its trade policies to live up to its economic potential. That is why it is necessary for India to pitch for greater market access in the proposed Regional Comprehensive Economic Partnership (RCEP) it is negotiating with fifteen countries. The RCEP is a major trade pact under negotiation between the 10 members of ASEAN and its six major trading partners - Australia, China, India, Japan, New Zealand, and South Korea. Jointly, the 16 countries represent more than 3.5 billion people and about 40% of global GDP.India already runs a trade deficit with as many as 10 member countries, including China, South Korea and Australia, of the RCEP grouping of 16 nations.The trade gap with ASEAN members, China, South Korea, and Japan in 2017 was $12.9 billion; $62.9 billion; $11.9 billion and $6.2 billion respectively.The case for Free trade Agreement between the two largest democracies in the world (India & United States) is solid. Yet U.S.-India trade partnership is vastly underperforming. Bilateral trade in goods is about $74.3 billion in 2017. This sounds good but pales in comparison with two-way trade between the United States and China, which was $636 billion is almost nine times as large.The US is India's second largest trading partner, and India is the U.S. 9th largest trading partner in 2017. The Indo-US Economic Dialogue, established in 2003, aided in strengthening economic relations between India and the United States.The US exported $25.7 billion worth of goods to India, and imported $48.6 billion worth of Indian Products.Main U.S. imports from India include information technology services, Pharmaceuticals, machinery, textiles, chemicals, iron and steel products, coffee, tea, and other edible food products.Main India imports from the U.S. include aircraft, fertilizers, machinery, organic chemicals, and medical equipment.The United States is also India's largest investment partner, with a direct investment of $10 billion (9% of total foreign investment).Investors have long viewed India’s huge population (2nd most populous country in the world next to China) as a plus for economic growth, but unless it carries out more reforms and changes its economy will be susceptible to crisis in Emerging Market. These changes will require resolve and commitment if they are to reduce India’s ranking in Ease of doing business; India in 2018 ranks 100th out of 190 countries. The United States in 2018 ranks 6th out of 190 countries; and Global competitiveness ranking. India ranks 40th out of 137 countries.

[Adapted from Christopher Black's answer to What do business people think of Donald Trump?]Here is a graph (from the Dept. of Labor) of total private sector employment in the U.S., including all of Trump’s latest numbers through April 2019, with all axis labels removed. Point to where you think Trump’s Tax Cuts and Jobs Act of 2017 first took effect, signaling a shift from the “terrible policies” of Barack Obama to the new era when the “greatest jobs producer God ever created” started waving his “magic wand?” Then read on.Although many Trump critics focus on his emotional immaturity and his ethical/legal struggles, I would like to focus on the things Trump himself claims are his greatest strengths: his business leadership and deal-making skills.I run my own business and have quite a few friends and relatives who have led companies, some big and some small. (Mine is small.) The hope of many business owners like me, and our millions of workers, was that Trump would put American businesses on an even stronger path than the “Obama trajectory.” He would turn around our trade deficit, balance the budget, boost GDP, create an infrastructure for prosperity, and be the world’s greatest job creator.[*Many say cutting regulations is also important. But only if it gives their particular business a competitive advantage. Oil companies hate regulations that impede drilling or encourage fuel-efficient cars, but love those that impede wind farm or solar development. When you hear someone say “regulations are killing us,” 95 times out of 100 he means he just wants more government handouts and tax breaks than his competitors. Smart regulations can actually boost growth if implemented correctly. More importantly, regulations are our major instrument of corporate accountability. In short, “number of regulations eliminated” cannot be an objective measure of success.]When assessing a president’s performance as a “national CEO,” the question is not so much “how strong is the economy right now?” (partisans will take credit or cast blame to make their side look good) but rather “how is the president dealing with any current crises and laying the groundwork for future prosperity?” But of course, we can only look at the data in retrospect. It’s best to look at them in context, to get beyond the partisan boasts and talking points. Here are the numbers:[From U.S. Bureau of Labor Statistics][UPDATE AUGUST 2020]Where does it appear that the “Trump economic miracle” occurred? Are there clear inflection points in the data that signal that Trump’s “magic wand” has cast its spell? Under Trump, did the budget deficit come down? Did the Tax Cuts and Jobs Act of 2017 cause real wages to increase or GDP to accelerate? Did he “win the trade war?” Did the Tax Cuts and Jobs Act of 2017 nudge the employment line from the “Obama trajectory” even a teeny-tiny, itsy-bitsy bit?When you actually look at the numbers, it’s clear that Trump’s performance is middling or sub-par at best. The cherry-picked data he and his cheerleaders put out, when put into context, plainly don’t support their claim that he is a business genius who “turned around a mess [he] inherited.”In fact, the data show precisely the opposite. It appears that Trump inherited an economy with some decent momentum, all the more astonishing after the “Great Recession” of 2007–2009. (In Obama’s second term, GDP growth averaged +2.2% per year—not spectacular, but remarkably steady and far better than what economists had predicted following the Great Recession, and well above the 1.58% average GDP growth rate of the post-Depression “golden era” of 1945–1960.) Take the employment chart at the bottom, which is the first graph put into context. If Trump were “the greatest jobs producer God ever created,” we would see an inflection point in the graph somewhere in Trump’s first two years. In fact, there is an incredibly strong inflection point on this chart, but unfortunately it coincides almost perfectly with the day that Barack Obama signed the Recovery Act in February 2009, weeks after taking office. (To be fair, much of the change in the employment trend can also be attributed to the Troubled Asset Relief Program (TARP) passed by Bush in October 2008 and supported by both candidates for President, John McCain and Barack Obama. Senator Hillary Clinton also supported it. Bernie Sanders did not. TARP was the major driver of the huge budget deficits in 2009–2012, but it obviously succeeded in stopping the trend of enormous job losses, which was a much bigger problem.) Note that these are private, non-government jobs, so there’s no room for the “bigger government” counterargument. The unemployment rate has continued to decline under Trump, but only because the “Obama line” has continued.[You can be forgiven for suspecting that the last graph was faked, or at least manipulated, to make Obama look good. After all, if Obama’s employment numbers were that good, with a classic inflection point at the very start of his tenure, followed by a rocket-like trajectory, why wasn’t he Tweet-bragging constantly about it? (Never mind. We all know the answer to that question.) If you doubt the numbers, check them yourself. Go to the US Department of Labor Statistics website (BLS Tools), go to the “Employment” section, click on “Data Finder,” check “All employees, thousands, total private, seasonally adjusted,” make the range 2004 to 2019, download the Excel data (.xlsx), and make your own line graph.]But what about the Dow and GDP? Business leaders and investors want to see real changes in productivity and growth. As I write this, Trump has just started his 27th month in office—24 of which were with full control of all three branches of government, a “blank check” for Republicans—which is plenty of time to let his economic policies take effect. The Dow has gained +34.2% in that time. That is great compared to the –22.1% change at Bush’s 27th month, but middling compared to Obama’s +60.1% growth at this point in his presidency. Trump bragged a great deal about the 81 all-time highs for the Dow during his first two years in office, but since the Dow grows at a fairly steady 6-8% per non-recession year, all-time highs are not unusual. For comparison, after digging the country out of the Great Recession in his first term, Obama saw 91 all-time highs in the first two years of his second term. Trump has touted the 3% GDP growth in 2018 as “unprecedented,” but this isn’t even close to true, as the graph indicates. It seems almost anemic compared to the eight Clinton years. Even George W. Bush had TWO years of greater than 3% GDP growth, and he had the worst economic performance of any president since Hoover.It’s interesting to compare Trump’s economic performance to that of Bill Clinton, since Trump spends so much time trashing the Clintons and spreading conspiracy theories about them and the many others on his “enemies list.” Take your favorite metric—GDP growth, stock market performance, budget deficits, productivity growth, profit growth, job creation, balance of trade—and compare Trump’s performance to Clinton’s over equal time intervals. It’s enlightening to do your own analysis and free yourself from the propaganda coming from the corporate media and the White House. And it’s easy. Use BLS Tools, BEA Data, or any other objective data site. (Just stay away from the White House’s communications team or any politically biased media source, like CNN or Fox.) Based on the data alone, which one would you say is a truly great “business leader?” It’s a much different story outside of Trump’s Twitter bubble. [If you don’t have the time, you can look at Bloomberg’s thorough 14-point analysis of the economic data of all U.S. Presidents going back to Jimmy Carter. (It started this “presidential index” before Trump took office, so they’re not cherry-picking data for or against Trump.) As of late January, Trump ranked 6th out of 7 Presidents in terms of economic performance, ahead only of George W. Bush. Even Carter is ahead of Trump. Clinton is first, followed by Barack Obama, followed by Ronald Reagan.]According to one World Bank economist, the Trump Administration is following almost precisely the policies of the George W. Bush administration—tax cuts, increased spending, and deregulation, that led to the same conditions that produced the Great Recession. The numbers and trends are eerily similar.Perhaps we shouldn’t be so surprised, given that Trump’s personal and corporate return on investment (ROI) has been far weaker than—in fact, less than than 1/3 as strong as— a passive investment in the S&P 500. In other words, Trump has not provided investors with any legitimate reason to invest in him rather than the cheapest generic stock fund. Recently his net worth has certainly increased, however, as a result of the Tax Cuts and Jobs Act of 2017, which by several analyses has netted the Trump family anywhere from $22.5 million to $1.1 billion, mostly through massive cuts to the Inheritance Tax. This is an enormous benefit only for the children of billionaires.Trump’s Productive ROI is probably so low because, unlike self-made billionaires, he never had to impress potential investors. When all your money is inherited (apparently, Trump started receiving his $480 million inheritance when he was only 3 years old), you don’t need a stellar business model. Of course, being an heir doesn’t automatically disqualify someone from being a great business leader. John D. Rockefeller, Jr. and Thomas Watson, Jr. also inherited large companies and enormous wealth from their fathers, but they also provided strong leadership for their companies and became great philanthropists. However, it doesn’t appear that Trump is on the same path, particularly since his family foundation was recently shut down due to campaign finance violations and self-dealing.Many of the habits that Trump acquired as a private CEO are troublesome when projected on a national scale. It’s alarming that Trump is working so hard to hide his taxes and make his finances above the law (and even more alarming that the Senate and courts may let him get away with it). Strong companies don’t hide their numbers unless they are cooking the books. It’s an even worse sign that not a single American bank has been willing to lend money to Trump for over a decade, and that the only bank that has funded Trump (Deutsche Bank) is a known epicenter for international money laundering. (A disreputable bank might lend money to someone who doesn’t repay his loans because he gives them something more valuable. One theory is that, in this case, it is access to Russian oligarchs who need to offshore tens of billions in stolen cash.) It’s also a problem to have such a confirmed reputation for stiffing your own workers and subcontractors, and not just because bullying is such a bad leadership stance: it’s a clear sign that your cash flow is poor, which means that you don’t have a profitable business model.But maybe Trump is just not a numbers guy. Great CEOs can have different styles. Sometimes, vision and inspiration are better keys to long-term success than just a laser focus on profits and growth. If you can attract and inspire entrepreneurs now, perhaps you can ensure prosperity down the road. Unfortunately, Trump seems to have a great deal of difficulty getting America’s top CEOs to accept his leadership on his own Business Advisory Council. Apparently, he does not like to share the spotlight.As a result, he doesn’t appear to attract and keep the best people or to provide strong guidance for business leaders. His advisors seem to be chosen because he saw them on TV, rather than because they have any substantial expertise. Their predictions have so far been just more Trumpian exaggeration, and not the reliable estimates of the economic future that business leaders need to make decisions on capital investment and hiring.Perhaps most importantly, his vision for the nation is historically bleak. “Keep the foreigners out,” “my haters are losers,” “everybody’s after me,” “bring back coal,” and “no collusion” aren’t very inspiring rallying cries for American workers and entrepreneurs. Trump is not leading on the economic issues that voters care about most, such as long-term financial stability (rather than more reckless debt); a 21st century data and transportation infrastructure, an affordable first-class healthcare system, prosperity in the face of climate change, ensuring worker security in the face of accelerating automation, and expanding free trade (rather than destroying alliances and building walls).One of Trump’s biggest campaign promises was to “totally fix” the “disastrous trade imbalance” that was “costing us trillions,” and that his predecessors couldn’t handle because they were too “weak and stupid.” (Most economists and CEOs disagree that trade deficits are a bad thing, but let’s go with Trump on this one.) In January 2018, Trump started his tariff war (which exactly 0 out of 60 economists surveyed by Reuters agreed would “benefit the U.S. economy”) that he promised would be “so quick and easy to win.” It wasn’t. Actually, it’s much worse than that. It pushed our 2018 trade deficit to at an all-time high. (Before Trump took office, the all-time worst monthly trade deficit was $76 billion in July 2008, at the depths of the Great Recession. Under Trump’s “tariff war,” that record has now been broken FIVE TIMES.) In July 2018, Trump had to pay farmers $12 billion dollars out of the U.S. Treasury to make up for lost revenue. It’s an impressive failure by all measures, which probably explains why he’s not tweeting about it much anymore.Trump also promised to be a “great dealmaker,” as his TV persona suggested. Trump is actually correct (in my opinion) that Chinese currency manipulation, protectionism, and intellectual piracy are real problems for the world markets, and America should be spearheading the fight against them. But a dealmaker needs a plan, a backbone, a steady hand, and the skills to maximize leverage. A smart deal maker would have kept us in the TPP (instead of dumping it because—umm, globalism?) so that the U.S. would have a much stronger leveraging position against China. Instead, Trump gave control of the Asian markets to China and started a weak, stupid, and needlessly expensive tariff war. It’s like quitting the game, then trying to “win” by throwing rocks at the players. Trump’s personal weaknesses in these areas are apparent to anyone who observes how he reacts to even ordinary challenges. Those who work closely with him have noted that he has an extraordinarily fragile ego and pathetically short temper and attention span. He doesn’t do his homework and therefore is ill-prepared in negotiations to apply appropriate leverage or respond nimbly to setbacks. He is far too susceptible to flattery, so it’s easy for our adversaries to take advantage of him. Since he seems to take pride in reneging not only on contracts he signs with his business partners, but also on treaties signed by his predecessors, it’s unsurprising that our adversaries and friends alike regard Trump’s “deals” with contempt, and regard America as a less trustworthy partner.Trump oversells and underperforms. He tends to spin his deals and policies as “huge victories for America,” but at closer inspection (for instance Korea, China, Iran, the Paris Accords, and the TPP) they seem to be poorly developed plans that do little or nothing to make America great.It appears Trump was lying when he said he had a beautiful plan to replace Obamacare, and the “Infrastructure Week” Trump has promised repeatedly over his first two years in office (including this week again), has turned into a cruel Internet joke-meme.Top business leaders understand the value of promotion and even “showmanship,” but only when it’s accompanied by a grand strategy and hard work to build the product. So far, Trump doesn’t seem to have any great economic product and no grand strategy. Many of us were willing to give him a chance, but at this point we shouldn’t be surprised that the Trump White House is following the dismal trajectories of Trump Airlines, Trump University, Trump Steaks, Trump Mortgage, and the Trump Taj Majal. All glitter, no substance, and WAY too much fraud and debt. We can only hope that he doesn’t bankrupt America like he bankrupted those companies. [Update August 2020: Hope is lost.]The ultimate measure of any President who considers himself a “leader of the national brand” is the Anholt-GfK Roper Nation Brands Index. Ever since Trump took office, the U.S. has fallen below all of our chief competitors for the first time since George W. Bush left office. This means less influence, less investment, less credibility, and less power.If a CEO of a Fortune 500 company had this kind of record after 3 years, he would almost certainly be fired by the board. Trump’s inability to keep the US at the top of the Nation Brands Index hurts every company in America that depends on imports, exports, overseas sales, or foreign investment, which is almost all of them.Business leaders would also love for Trump to get the crushing national debt under control, because it puts severe limits on our ability to grow in the future and to deal effectively with any downturns or recessions. (Debt control, at least in theory, is the reason that so many business people are Republican in the first place.) Unfortunately, Trump is heading fast in the opposite direction. He’s racking up record debt, but building very little prosperity-creating infrastructure. [Update August 2020: It’s gotten much worse with the pandemic, and Trump has no viable plan.]In fact, the deficit problem is even worse for Trump than the graph above indicates. The Congressional Budget Office predicts that the 2019 deficit will exceed $900 billion, and will exceed $1 trillion for every year beyond 2022. It’s one thing to run budget deficits during a recession to counter the collapse in global demand (as in World War II, when U.S. deficit spending helped extract us from the Great Depression), but in times of relative prosperity, it is reckless and puts future prosperity at risk. [Update August 2020: The U.S. is now racking up debt even faster. As with the Taj Mahal or Trump university, the Trumps and Kushners seem to be maneuvering to extract as much wealth as they can before the collapse.]Trump seems to be more interested in strong-arming the Fed to goose his short-term numbers than he is in planning for long-term prosperity. (The “Taj Mahal Plan.”) In order to safeguard economic stability, the Fed must stay free from political meddling. Trump’s nominations of Herman Cain and the Stephen Moore to the Fed show that either he prefers political cheerleaders to qualified economic leaders, or that the qualified candidates don’t want to work with his administration.This is the kind of destabilizing behavior that creates bubbles and crashes.Even though a majority of the CEOs I know are Republicans, many admit (reluctantly) that Obama did a much better job of promoting the American brand, strengthening trade relations with other nations, maintaining the stability of governance that businesses need to grow, building infrastructure, and, despite some policy disagreements (primarily about particular trade deals and domestic spending), leading us out of a deep recession with a steady hand, all while Trump was sniping at him from Trump Tower. By all relevant accounts, it doesn’t seem that Trump knows as much as he claims about tax policy, trade policy, budgeting, brand-building, or—most surprisingly—deal-making.Now that he’s in office, we can see how he operates, and we’re not impressed. Thankfully, most American corporations are not run “the Trump way.”

The biggest mistake Indians do is we consider Insurance as an Investment. When I say Insurance it means Endowment policies, ULIP, Whole Life Participating policies, etc.You should never ever ever ever consider Insurance as an Investment.Grab a cup of coffee, this answer is long, a real story and an eye opener for you.This is an incident which happened in June 2012, one of my colleague Mr. Ronad, we both were working in the same organisation and in one of our conversation during lunch he mentioned to me,“You know Vipul, I have purchased LIC Jeevan Anand policy of 20 lakhs and agent told me that after 20 years the amount would be 45 Lakhs rupees.”(By the way I call LIC agent as “Messiah”, that’s how you treat them)I did some calculation on the fly and informed him that,“It will not give you more than 6% returns which means that instead your wealth being appreciated, it is depreciating day by day and secondly forget about the returns you have constantly kept your family under danger.”Below Image represents the returns of Jeevan Anand policy.If you look at the returns of Jeevan Anand (It could be any traditional policy) it is a mere 6% and in past several years inflation was more than 6%. Which means your wealth is depreciating instead of appreciating.His second question was “How is my family under constant danger in-spite of Insurance?”I explained to him that imagine if something unfortunate happens to you, your wife will receive 20 Lakhs and so-called bonuses of another 5 Lakhs from LIC.That is rupees 25 lakhs.Now your wife doesn't understand investment so what she is going to do, she is going to keep these money into fixed deposit.I am talking about 2012 when interest rate were around 8%.Considering this scenario his wife will receive rupees 2 lakh on 25 Lakhs of Sum insured at 8%.i.e 25 Lakhs * 8% = Rs 2 Lakhs.“If you divide this 2 Lakhs by 12 months that is 16,666 rupees per month.Can your wife survive with Rs 16,666 for her life expectancy of 75 or 80 yrs of age?Can your wife carry household expenses + Children education expenses with Rs 16,666?”His answer was a big “NO” (I am sure your answer will also be a NO).He asked me for a solution.“The base minimum insurance required is your yearly salary multiply by 100 divided by the current interest rate.”His salary was 15 Lakhs per annum which means 1500000 x 100 / 8 percentage i.e Rs 1.87 Cr.But while doing financial planning all worst case scenarios have to be considered.Interest in 2012 were around 8%, considering a what if scenario I told him what if tomorrow the interest rate comes down to 6%. (Now the interest rate is at 6%)I replaced 8% with 6% and the Insurance amount required to him was 2.5 crore.Again the same formula (15 Lakhs x 100 / 6%).It was suggested to him to purchase a term insurance of Rs 2.5 Crore.We had a scheduled meeting because of which we could not continue our conversation.Next day, he told me, Vipul instead of 2.5 Cr I have purchased an insurance or 1.5 Cr.I forcefully told him to purchase another 1 Cr of insurance because 2.5 crore was the base minimum insurance required to him.Because we had not factored in inflation for child education, tax component from the proceeds of insurance amount, etc. etc.He did not listen to me and as usual, Indian typical mentality “Kya Hoga Yaar kuch bhi to nahi hoga” (Nothing will happen)In Sep 2014, my phone rang and I received the news that my same friend died in a swimming pool.It was a shocking news to me.I could not believe what I heard because he was a good swimmer.A person who used to wake up at 5.00 in the morning, regularly used to do yoga, walking and occasionally swimming. How could he die?He was just 38, in fact that’s the age to live the life at fullest.I along with my other office colleagues reached at swimming pool, police was also present.Police took his body for Post-Mortem at Bhagwati Hospital in Borivali,Mumbai.I bet you will not be able to stay in post morterm room for more than 30 seconds, They cut the body like we cut a banana. It was terrible.We received his dead body after few hours and cremated as per Hindu rituals.His family kept a prayer after 13 days. I wanted to speak to his wife about Rs 1.5 Cr Insurance.I didn’t had the courage to ask his wife, I mean how could you ask a woman whose husband died just 13 days ago.I gathered some courage and finally asked her about the term insurance of Ronad.To my surprise, she was completely unaware of this insurance policy.I knew Ronad’s email and the insurance company from where he purchased the term insurance.The challenge was as he died even the password died along with him, we recovered Yahoo email password through OTP stuff and finally the policy details.Claim was filed while providing all the papers related to death which included panchnama, death certificate, post mortem report, etc, etc.His wife received Rs 1.5 Crore cheque after few days and that was the day I realized the power of insurance.After this incident, half of the office staffs came to me for insurance planning because they saw what happened.This incident made me realize that such a casual advice saved a life of a widow, she will not have to beg in front of anyone, anymore. Imagine the scenario where she would have received Rs 25 Lakhs from LIC. (Can’t even think of it)That was the day I started spreading awareness towards financial literacy. It gave me a goal in my life. (Majority of you don’t even know why you are living this life)My mission is now to educate 1 Crore Indians towards financial literacy for which I started blogging, webinars, conducting seminar in society.There are few societies which pay for tea, coffee and chairs while some don’t. Those who don’t, I pay from my own pocket.What I learned and you should learn from this incident,a) Messiah, be it LIC agent or any other Insurance company agent are behind their premium not behind your family security(Exceptions are always there).b) Insurance is not an investment at all. Don’t do this wealth destroying mistake.c) Do buy term insurance and secure your family in case of an unfortunate event.d) All your bank details, Insurance details, Shares, Mutual Funds, email along with passwords should be known to 2–3 family members.Why 2–3 family members, there are cases where entire family dies in a car crash.My fight is against of Lakhs of messiah in India, I don’t know by which date I would be able to achieve my mission but I will continue my fight…..I would like to end this answer with famous quote of Mahatma Gandhi“First they will ignore you,then they will laugh at you,then they will fight at you,then finally you WIN”God Bless youRegardsVipul ShahIn case if you are looking for a life goal planner whom you can rely and trust,(more details in profile)Edits : I sincerely thank you all your response to this answer.Many readers have raised questions and I have tried my level best to answer their queryNagendra YadavYour formulae seems to be incorrect. What if interest rate is 1%, say as in US, you suggest 100 times the annual income? At 2%, 50 times? One typically starts around 25 and retire around 60… so anything more than 30 looks like un-necessary. Also lower the interest rate lower the inflation and lower the expenditure… and vice versa… so having interest rate in denominator is flawed.Ans : I respect your opinionIf the interest rate is 1% then it should be 100% because then only family will have the income in case of death of an earning member.Further to your query,Insurance can be calculated in two different methods1) Income replacement method and2) Expense replacement methodDetailed calculation is almost impossible to explain here.Anshum AgarwalI also bought one LIC policy similar to above. I paid 5 quarterly premium of around 40 thousand each. After that I realized about this and I stopped it. Then I bought term insurance.One question I have is, can I get that LIC money back?Ans : If the premium paid is in 1st year, entire premium is goneIf premium paid is uptill 3 years, you will recieve 30% of premium paidIf it is more than 3 years please contact the Messiah you sold you the policy for surrender value.Hiren KathrotiyaOne of my friends father dead with high term insurance policy, he still not get the claim amount because company is making different different excuses.Ans : Most of the claims are rejected because people do not tell the truth while purchasing the policyFor Example : If you are a smoker and if you hide it from an Insurance company just for the sake of saving few bucks in premium, your family will have to bear the consequencesYou also need to reveal existing policy details to both the insurance companiesFor Example : If you are having 1 Cr policy for XYZ company and you want to purchase another 1 crore from ABC company.Then inform ABC that you an insurance from XYZ company, after policy is issued by ABC, inform XYZ also.You can visit insurance samadhan (search in google). It is an insurance Grievance redressal platform.They charge only Rs 500/- and will not charge you till you win the case.It is run by Mr Shailesh who worked in Insurance sector for more than 2 decades.Disclaimer : I am no where associated with this company.Alisha SpecterGreat Job, if you need help with spaces for free, do let me know, a friend of mine has some cafe listings.Ans : Thanks for the help, will get in touch with in case of any requirementNaman AryaDon't buy it from any one. Chances are the guy who has written the answer will charge commissions. Go to websites of ICICI Pru or Max Life Insurance and buy an Online Policy. SimpleAns : It seems you are calling me out, I am not an insurance agentIndeed I am a fee only financial planner which means I get paid for my financial advisory fee from individuals like you to recommend you the right product.Since I am not associated with any commissions and only concerned with my fees I give unbiased opinion so that we both remain on same page.Majority of you have asked How to buy term insurance, where should I buy term insurance, What should be the max age to buy?What should be the max age to buy?Insurance should be purchased till the time you are going to earn.If you will earn till 60, purchased till 60 years of age.There is no economic value after 60 years because in an unfortunate death your family's income will not be impacted.Where and How to buy term insurance?Go to insurance aggregator websites likes coverfox or policybazar.Select the sum insured, insurance company, check the quote,compare it with insurance companies website.Where ever premium is low go ahead and buy. Am I right Naman Arya?Aritrim BasuIf you need a website, just connect with me, and I will provide you one free of cost. It is high time that people know, LIC is a nationwide scam.Ans : Thanks Aritrim for the help indeed my website would be up in few days.Pooja TripathiCan you share the details of Policy your friend purchased?Ans : I do not want to share the details here in public forum as I do not want to be biased.I have already mentioned how and where to buy insurance from.Any particular term insurance plan that you recommend?It does not matter which Insurance company term insurance you purchase, go with plain vanilla term insurance and do not hide anything from Insurance company.Ashish KapoorCan you share the cheque photo to me or any proof of 1.5 core rupees credited?Ans : Would you give me access to your bank account?No, RightI didn’t knew one day I will post this incident on Quora else I would have taken a photocopy for youI do not know the rationale behind asking your question but I would like to say"I got a goal in my life, left my six figure salary job , pay from my own pocket in society seminar"Such kind of motivation can't happen in fake stories bro!!!Geetesh GeeteshBut I would disagree with the statement that :“The base minimum insurance required is your yearly salary multiply by 100 divided by the current interest rate.”Because salary of the demised person can't be the criteria to judge the requirement of dependents. For eg. Say in Mumbai, Person X earns 15 lakhs per annum whereas other person say Y earns 5 lakhs per annum, than how could we say that minimum amount for spouse of X should be 1.5 cr wheteas for that of Y shoild be 0.5 cr. (considering both families live in same locality)Please shower further light on same.Ans : Please refer to reply provided to Nagendra YadavVikram OzaI wanted to understand the calculation in the image which cot my attention..FAB70 per 1000, FAB (70*200000)/1000 equals 4,20,000 for a yearAnd for 20years, 4,20,000*20 = 84,00,000I surely think am missing something, could you please help point.Ans : Final Bonus calculation as followSum Insured 20 Lakhs i.e 2000 (Thousand)Final Bonus by LIC is 70 Rs per Thousand which means 70 X 2000 = 140000I hope it is clear nowMegharaj SheelvahtWell when reading this answer I was not having coffee but a bottle of beer. Thanks for the answer/knowledge sir.Ans : Cheers!!!Avdhesh JhaIt's a copied answer of pramod kumarAns : Ask pramod kumarWhat was my friend's full name?In which swimming pool did he died and in which area?Which was the police station involved?Where did he used to reside in Mumbai?Where did his body cremation took place?What was his mother tounge?In which company was his working when this incident took place?Which was the insurance company from which he took Insurance?What is his wife's name?How many daughter/son he had and what were their name?We were two people engaged in Insurance claim, One was sitting at my friend’s home and another was at Insurance company, Ask pramod kumar to give the name of two people.It is a real story happened to me and I lost my colleague and a good friend,It is easy for pramod to copy but he can't feel the pain.Ankur SharmaHow can I contact you?Ans : Details are in my profileBarun GhoshAre you an insurance agent ?I don't know why , but I feel like you're hired to write this beautiful answer, which encourages readers to invest even more on insurances.Ans : I am not an Insurance agent and as far as writing is concerned, I wrote what happened in realityChanchal GuptaI agree with u on investment numbers… but, can u swear that the above story is true??Ans : Please refer to answer provided to Ashish Kapoor, Avdhesh Jha and Barun GhoshVivek ChadhaU r tarnishing name of LIC….ULIP was sold by private companies and exuberant charges cheated people…after that Irda introduced strict terms for ULIP…LIC has highest claim ratio and it's major income comes from core business only…and after decreasing market share..it's again commands 70% of market share….don't bad mouth such a strong brand…Ans : 70% Market share doesn't mean it is a good brand, 70% market is because globalization in Insurance took place later compared to 1991 globalization policy introduce by the then finance minister Dr. Manmohan SinghI am not against LIC, I am against the Messiah who give the wrong advice for their premiumI showed the truth, If it bitter for insurance agents let it be.Nikhil PagarVipul, one genuine question.What if inspite of paying all premiums on my term insurance (e.g 5 Cr which is a huge amount) , after my death , the insurance company plays dirty tricks with my family behind me ?Secondly after all this chaos of financial institutions in India (recent ones are PNB & ICICI ) , it is very difficult to trust these private institutions, in this case insurance companies whose sole purpose is to earn money. How I am suppose to trust them ? Honestly my confidence is low in India's financial system.(I completely agree with your theory here but the only thing I want to clear is the risk associated with term insurance in these pvt companies. LIC has term insurance of its own but the premiums are expensive. People buy LIC insurances because they are risk-free similar to FDs and its easy to claim the insurance money whereas I am not sure of these pvt insurance companies).Ans : When you sign on the dotted line of insurance paper it is now a contract between you and Insurance company.Most of the claims are rejected because insured person lie to Insurance company.For example : A person is a smoker and does not reveals to save few bucks on premium. Result is Insurance company got a chance to deny the claim.It is been said never hide anything from Lawyer and Doctor, one more added here is Insurance CompanyBelow are few most upvoted answers on Quora related to Insurance, Mutual Funds, Options trading and Investor Phycology.I am sure you will like it and will surely help in taking better informed financial decisionsInvestor Phycology answersDo you chase high returns mutual funds, get ready for worst impact in your portfolio?-What are the most common mistakes of Investors? 1014 UpvoteWhat are the risk associated in mutual funds?Random Answers for better financial decisionWhy Mid & Small Cap will create enormous wealth for investorsHow mutual funds house fooled you? and correct way to select a mutual fund - Analysis and review of Mirae Asset Emerging Bluechip FundIs it better to prepay home loan or invest in SIP of Mutual Funds? - 300 UpvoteWhich is the best mutual funds to invest in India?Are you invested in large AUM mutual funds, get ready for underperformance.How to do detail retirement planning? - 250 UpvoteWhy gold is a useless investment? 300 UpvoteWhy you should not opt for dividend mutual funds?Why Robo Advisor will suck your financial life?How you can generate 1% monthly income from options tradingWhy people hire financial planners?