PNB MetLife Khushi

PNB MetLife, a private life insurer, has gone live with an Artificial Intelligence-powered customer service app 'Khushi', which aims to provide assistance to policyholders for their insurance-related queries.

"U (You) in Khushi means the customer and they are at the centre of whatever we do. We want them (customers) to be happy. We want them to have a meaningful interaction everytime they come in touch with us," Vijaya Nene, Director Operations and Services, PNB MetLife, told BusinessLine.

The app, now available on Android, empowers the customer and ensures customised experience for policyholders.

A policyholder can use the app to upload documents; download receipts and statements; get policy features; premium due details; get fund value and portfolio details; and update contact and KYC details.

When requested, this app can also locate the nearest PNB MetLife branch, arrange a call back from call centre representatives, fix an appointment with an advisor, among others.

Nene made it clear that Khushi is not a chatbot, but an AI-powered app, which is both text and voice-based.

"Khushi is intuitive. It actually looks at your intention. It's not chatbot kind of standard templated response – responses of Khushi are more meaningful because of machine-learning capability," she said.

"If you tell Khushi to pay your dues or to pay instalments, then Khushi understands that you are talking about premium.

In the case of chatbot, the response typically in such a situation would be, 'Cannot understand your service request'. The power of AI ensures seamless customised service," she said.

SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

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How to Withdraw from Sukanya Samriddhi Account

Withdrawals from Sukanya Samriddhi Account 

Up to 50% of the accumulated corpus can be withdrawn after the girl has completed 18 years of age to meet her education or marriage expenses. The SSY account will mature and close when the girl completes 21 years of age or till her marriage date, whichever is earlier. 

SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

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Loan against Mutual Fund

If markets are in a bull phase, it makes sense to redeem your investments

Say, you have investments in mutual funds (MFs), and you need money urgently. Do you redeem your investments? HDFC Bank Ltd seems to suggest you shouldn't. It launched its digital loans against mutual fund on 23 May. It is an overdraft facility that promises to give you money within minutes. Should you opt for it?

What is it?

At present, it is possible to take loans against mutual fund and equity share holdings. But HDFC Bank's loan against funds is completely online and paperless. You just need an HDFC Bank savings account.

The bank will offer loans against fund houses that Computer Age Management Services Ltd (Cams; one of India's largest registrar and transfer agents) services. So far, it will cater to 10 fund houses (see graph), It said it will eventually offer loans against MF units of other fund houses as well, including those serviced by other R&Ts such as Karvy Computershare.

The process is simple. Log in to your internet banking account, fill in basic details, and choose if you want to hypothecate equity or debt funds. The bank will re-direct your application to Cams, which will verify your MF holdings. As per Reserve Bank of India (RBI) rules, you can avail loans up to 50% of your equity funds and 80% of your debt funds. HDFC Bank offers loans of Rs1-10 lakh on equity funds and up to Rs1 crore on debt funds. It is an overdraft facility, so there is no tenure, but the loan is to be renewed annually.

After you choose the funds and the number of units, your application goes into processing, and you get your money in minutes. As per RBI guidelines, you need to open a separate current account (at HDFC Bank) where the bank will deposit your loan amount.

What works?

The process needs no documentation and is online. Also, you need not have bought funds from HDFC Bank. Units bought from others are also eligible securities here. On the Cams website, you can see all your holdings at one place.

When you take a loan against your MFs, you still own them; you just can't sell them till you repay your loan.

What doesn't?

As of now, this facility is available only on folios with a single holding.  But very soon, other holding pattern folios will also be made available

Loans against securities and funds are expensive. The bank didn't commit on the interest rate, saying it would depend on the customer's relations with the bank, indicated a rate of 10-11.5% per annum. Add a flat processing fee of Rs 1,499 per transaction.

Future Focus take on This

Almost a year ago, NJ India Invest Ltd, one of India's largest MF distributors, also started offering loans against MFs, along with Bajaj Finance Ltd. NJ India Invest holds its investors' MF units in dematerialised form, so a tie-up with a R&T isn't necessary. As an investor, this doesn't matter, but if you aren't an NJ India Invest's customer, then your only choice to take a loan against MFs is HDFC Bank, if you are want an easier way.

The question is: should you take a loan against MFs? The only situation when you can think of taking such a loan is if equity markets drop sharply and you lose, say, 20-25% of your corpus and you need money urgently. Instead of selling your MFs at a loss, you can take a loan and retain your units. When markets recover, your funds will grow back. But if your portfolio is in profit and you need money, it's better to sell your holdings instead of borrowing, he said.

Taking a loan, if required, that is less than 50% of the lien units' value If markets fall, you would not be called upon to repay your loan amount prematurely or offer more units in lien. Keep that margin of safety.

If markets are in a bull phase, it makes sense to redeem your investments. If markets are bearish, it may make sense to borrow if you need money urgently. If you must, then borrow wisely.

SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

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How to invest in equity mutual funds without risking your capital

The dividends announced by the source scheme will be transferred to transferee scheme at regular intervals.

Search for high returns make individuals consider investments in stocks. But they bring in 'high risk' to the table. Many senior citizens and low risk investors are looking to invest in stocks and equity mutual funds for high returns given low returns offered by traditional fixed income options such as bonds and fixed deposits. But the thought of losing one's capital is a big deterrent. Here is how you can invest in equity funds without losing your capital.

You are just going to use an existing facility offered by many mutual fund houses – dividend transfer plan. The facility allows you to invest the dividends declared by one mutual fund scheme into another scheme. What you just have to do is to invest your money in an arbitrage fund's dividend option and opt for a dividend transfer plan. The transferee scheme should be a diversified equity fund. This arrangement of transferring dividends to an equity mutual fund scheme allows you to invest in equity mutual funds without risking your capital. Even if stock markets tumble your capital remains safe. You may take a hit only on the dividends invested in equity mutual fund.

Let's us look into the details of this arrangement to understand how it works in your favour.

        

For the beginners, arbitrage fund manager buys a share in cash market and simultaneously sells equal number of shares in futures. The fund manager does not take any risk pertaining to stock markets. The aim is to lock in the price deferential to generate returns for the investor without risking capital. The returns generated are in line with money market returns. Though the scheme generates returns like a bond fund, the scheme is treated as an equity mutual fund for the purpose of taxation.

Arbitrage funds make good source scheme for dividend transfer plan as they distribute most of their profits by way of dividends as there is no tax on dividend.

As and when the scheme declares dividends the proceeds are invested in the scheme you have chosen. However there are couple of points you should keep in mind. First the amount of dividends if not more than a threshold then the same is reinvested in the source scheme. For example, most mutual fund schemes put this threshold at Rs 500. Your corpus invested in the arbitrage fund should be adequate to generate a dividend more than this threshold in each payout. To ensure that the payouts are more than the prescribed threshold, you may choose to invest in quarterly or bi-monthly dividend options instead of monthly dividend option.

Second factor is minimum investment norm of the transferee scheme. Unless the fund house waives it, the investor has to abide by this norm. In most open-ended diversified equity fund this amount stands at Rs 5000. If the initial dividend is not more than this minimum threshold, then the investor have to invest from his capital for the first time.

If both these norms are taken care of, the dividends announced by the source scheme will be transferred to transferee scheme at regular intervals. Please note both the dividend amount and the frequency of dividend are not guaranteed by mutual funds.

Arbitrage funds as a category have delivered 1.4% returns over past three months. Going by the trend one may see approximately 4-5% of the invested capital by way of dividends. This may look very small in the absolute terms. But look at it as a systematic investment plan with three year time frame and you will gradually build your equity mutual fund portfolio.

The returns depend on the arbitrage opportunities available. Given the liquidity gush in financial markets and falling interest rates the returns are expected to remain tepid from these categories of funds. If the situation persists, over three year period one may see around 10% to 12% of his money getting invested in diversified equity fund.                

SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich

For further information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

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Sukanya Samriddhi Account 2018 Changes

The minimum annual deposit requirement for Sukanya Samriddhi Yojana accounts has been lowered to Rs 250 from Rs 1,000 earlier. Interest rate on Sukanya Samriddhi account is revised every quarter

The minimum yearly deposit required under the popular girl child savings scheme, Sukanya Samriddhi Yojana, has been lowered so that more people can benefit from this scheme. The government has lowered the minimum annual deposit requirement for Sukanya Samriddhi Yojana accounts to Rs 250 from Rs 1,000 earlier, according to PTI. The government has amended the Sukanya Samriddhi Account Rules, 2016, stating that the minimum initial deposit to open the Sukanya Samriddhi account would also be Rs 250, the report added.

Under the 'Beti Bachao Beti Padhao' initiative, the Sukanya Samriddhi account was launched in January 2015. The interest rate on the Sukanya Samriddhi account is revised every quarter, just like other small savings schemes and the Public Provident Fund. For the July-September quarter, the rate has been set at 8.1%.

Here are 10 features of Sukanya Samriddhi accounts:

1) A guardian can open only one account in the name of one girl child and a maximum two accounts in the name of two different girl children.

2) A Sukanya Samriddhi account can be opened in the name of a girl child till she attains the age of 10 years.

3) Sukanya Samriddhi accounts can be opened in post offices and in designated public banks.

4) Deposits can be made up to 14 years from the date of opening of the account.

5) After this period, the account will only earn interest according to applicable rates.

6) The account can be closed after completion of 21 years.

7) Deposits made into the Sukanya Samriddhi account, the interest earned, and the maturity amount are tax-free.

8) The minimum deposit that needs to be made every year into Sukanya Samriddhi account is now Rs 250.

9) The maximum amount that can be deposited into Sukanya Samriddhi account on a yearly basis is Rs 1.50 lakh.

10) Partial withdrawal from a Sukanya Samriddhi account, up to 50% of the balance at the end of the preceding financial year, can be made after the account-holder attains the age of 18, according to the India Post website.

SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

What Health Insurance Policy will not cover

Decoding a health insurance policy document can be tough, given the complex list of terms and conditions. Many tend to give the in-depth study of the clauses a miss, only to regret later. Despite increase in awareness about sub-limits, pre-existing diseases and other exclusions, claim denial or reduced payouts continue to shock. To ensure uniformity, the Insurance Regulatory and Development Authority of India (Irdai) has set up a committee to suggest measures to standardize exclusions.

In 2012, the regulator listed 199 items, indicating their admissibility or otherwise. The recent move is aimed at streamlining the framework further. However, till then, refer to the following list to find out what your policy will not cover.

New or advanced treatment procedures

While newer techniques and treatment procedures are being introduced every day, insurers take time to keep pace with them. Unproven or experimental treatment, which is not based on established medical practice, is a common, but lesser known, exclusion in most policies.

We honour claims for various forms of surgeries, but if the hospitals recommend robotic surgery or cyber knife, which are not part of the policy agreement, the claim is not covered and becomes a part of exclusions. Stem cell therapies are not covered either. Some insurers feel these are experimental in nature. However, patients do opt for them if doctors say they will lead to the best possible outcomes.

As a policyholder, the key is to go through policy wordings to know if the 'advanced' treatment procedure your doctor is recommending is covered by your insurer or not.

Resident doctor's charges
If your hospital segregates room rent and resident doctor's charges in the bill, chances are your insurer will not foot it. Technically, resident doctor's charges are supposed to be included in the room rent. Therefore, the insurer will not pay for any separate resident doctor's charges. Since an individual can rarely dictate a hospitalisation. "Network hospitals are in tune with insurer's policies and hence the scope for high proportion of non-payable expenses in bills are limited. Registration charges levied by the hospital at the time of admission will also not be approved. Admission deposit is not covered either. Most are usually not aware of non-payable consumable items like shampoo and powder and other non-medical items. These form part of the standard list of non-payable items as per regulations

What the Irdai panel will look at now

• Allowing disease-specific permanent exclusions to provide coverage to ailments unrelated to the excluded illness.

• Minimising the number of exclusions to widen scope of health insurance coverage.
  
• Rationalising the exclusions that disallow coverage for new technologically-advanced treatment procedures.
  
• Identifying the exclusions that should be eliminated.
  
• Standardising and simplifying policy wordings.

Multiple visits by specialist doctors in a day
This may or may not be covered. While we pay for charges related to all visits of specialist doctors, some products do not pay for multiple daily visits by the same specialist. For example, the policy may pay for one daily visit of say a gastroenterologist, a neurologist and a nephrologist, but not if the same specialist visits the patient more than once a day. This, despite the fact that a patient may need need multiple consultations during a day.

Certain drugs used during hospitalisation
Despite being a critical illness, there is no blanket approval for all the treatment procedures meant for fighting cancer. Certain cancer drugs are excluded by some insurers. For example, a few chemotherapy drugs when administered intravenously are covered but if taken orally will be outside the scope of cover. Similarly, most drugs that fall under the umbrella of immunotherapy are not covered. Some policies may not pay for administration of intra-articular or intralesional injections. In addition, expenses related to supplementary medications are also not admissible

Illnesses as a result of substance abuse
You may be suffering from a critical disease, but if it is evident that the cause was alcohol abuse or excessive smoking, you might have to pay for the expenses out of your pocket. However, this can be tricky. Sometimes, claims are repudiated on the grounds that the ailment was caused by alcohol abuse or smoking. If you do not agree, you can raise a dispute. The causation has to be established for such rejections

Treatment at home
Several insurers cover treatment at home if the insured cannot be admitted to hospital. Domiciliary hospitalisation, it means medical treatment for a period of over three consecutive days for a condition which would otherwise require hospitalisation, but is taken at home. In such cases, the payable expenses are usually capped at 10% of the sum assured. However, it is completely disallowed in case of some diseases like asthma or bronchitis, even if the patient meets other criteria for allowing treatment at home

 

SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

How to Save for child University Education

A major financial planning goal that everyone has is saving for their children's education. To put their kids through a good university, parents are now taking on extra work, sacrificing holidays, and borrowing money. A recent HSBC Value of Education survey finds that on average, Indian parents spend Rs 3.62 lakh for their child's undergraduate and post-graduate studies. The study covered 505 parents and 100 students in India. Here are more such findings from the survey. 

How much are parents spending on their child's university education?
Rs 3.62 lakh is what Indian parents spend on average for their child's undergraduate and postgraduate studies.

So are students taking up jobs to fund their studies?
A little less than 74% of students are working as they study.

• 52% are working to gain job experience
• 33% need the extra money
• 29% are using it as an opportunity to meet new people
  • 25% are doing mandatory internships
  
  
  What debts have parents taken on for their child's university studies?
  
  • 31% have taken short-term loans
  • 26% have borrowed from family and friends
  • 24% have taken long-term loans
  • 21% borrowed on a credit card
  
  
  Does this cover the entire cost?
  No, Rs 4.15 lakh is the shortfall between what parents contribute and what students claim they spend on education. This gap is filled by bursaries, loans, other family members and students' own earnings.
  
  How are parents going the extra mile to support their child?
  
  
  • 79% of parents are paying for their child's education from regular earnings.
  • The sacrifices they have made are many:
  • 60% took less expensive holidays
  • 59% took fewer holidays
  • 57% cut down on leisure activities
  • 49% took on extra work
  • 34% gave up on me-time

  
  

  Given a chance, would the parents have approached the issue differently?
  
  

  • 61% wish they had started saving for the purpose earlier
  • 35% worry that they don't have enough to support their child's studies
  • 46% wish they had saved more regularly

  
  

  What are the expenses that add up to Rs 7.77 lakh over the entire course duration?
  

  • Rs 2.93 lakh goes towards course fees
  • Rs 1.46 lakh has to be budgeted for accommodation
  • Rs 22,346 is spent on academic material like books
  • Rs 47,400is eaten up by bills and utilities
    • Rs 50,400 is spent on clothes and make-up
    
    
    The other major expenses include eating out, food and groceries, entertainment, transport, gym membership, credit card loans and holidays.
    
    What should parents consider while planning their children's education?
    
    • Start planning early
      They should seek professional help to make better informed choices.
    • Be realistic about the cost
      Take into account all costs and inflation.
      • Instill good financial habits
        Teach the child to use budgeting tools and online calculators.

      • Invest in a range of skills
        Allow the child to learn soft and job-specific skills.

      
      
      

SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com