Why this may be the right time to take an LIC policy?

Before going any further about explaining/justifying the post title, let me give you an example. The experience of me. Like everybody I too wanted to make quick money and opened a stock market account. I was a die hard follower of moneycontrol.com and CNBC TV18 News channel. I did tremendous research of all the Top companies and studied their stock performance. But despite all those efforts I fell into the trap of making quick money instead of thinking about long time investment. I bought penny stocks a lot and failed to make money. Eventually I lost close to Rs. 1 lakh despite having invested Rs. 10 lacs into a numerous number of stocks.


It was later that I realized that only 20% of the savings amount has to be used for stock markets. Moreover they have to be invested in large cap stocks which give a steady performance along with good profits that the company makes every quarter. Remaining 80% has to be placd in mutual funds, Bank Fixed Deposits, Post office schemes, Bank Recurring Deposits, Life Insurance, General Insurance etc.

Insuranc here plays a crucial part. We definitely ignore this aspect and go for other zones. We need to make a custom of insuring our health, cars, bikes and homes via taking a General Insurance (Preferably The NEW INDIA ASSURANCE company). What we tend to ignore is the Life Insurance. 

Why Life insurance? Why LIC? Why this is the right time to invest in LIC? Here goes my justification. The Global stock market which is driven by the US stock market and US manufacturing, jobs data is at an all time high now. Even the Indian Stock markets are at an all time high. The investors are not sure if this will sustain and if this will continue north. People feel the valuations are too high. Secondly the Bank interest rates are coming down to 7% from 9% 2 years back. We suspect that the interest rates may come down further to 4-5% in the near future.


The UK economy and the Europe economy is very poor and doesnt give a goos sign at all with major countries threatening to go out of the Euro currency. The bailout hasnt helped them. If the countries go bankrupt and leave Euro, the stock markets will fall like a pin. The US now proposing and tightening the Visas and jobs, doesnt give a good sign either. The stock markets may fall anytime in the near future and the gold prices may go high. Even a small change in the political front in the US and India is more likely to bring the market sentiments down and the interest rates down. 

LIC now gives a return for about 7%. This is will remain until the policies get matured and will be assured to the customers if the policies are taken now. They assure guaranteed reeturns. This may be the right time to get yourself an LIC policy so that we tend to enjoy around 40-50 lacs hard cash in the 15-20 years time frame. Even if you own multiple houses, the danger is that the real estate is already dull and there may not be any buyers when you wish to sell. Having hard cash of around 50 lacs is absolutely necessary in the next 2 decades. So we must think about General, Life insurances which can safeguard our future whilst saving our money.


Please think now and email lic_rangarao@yahoo.co.in for more LIC needs.


Location: Mudichur Rd, Tamil Nadu, India

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