How much money can I withdraw from my Public Provident Fund (PPF) account that I opened in 2003?
The entire amount in your account, along with interest, can be withdrawn only on maturity. However, in certain situations, partial withdrawals are permitted. You can withdraw an amount not exceeding 50% of what stood to your credit at the end of the fourth year immediately preceding the year of withdrawal, i.e, as on March 31, 2008, or at the end of the preceding year, i.e., as on March 31, 2012, whichever is lower, less the amount of loan, if any, drawn by you.
Is it advisable to take two health insurance covers to spread out the risk in case of any rejection of claims?
There is no need to take two health insurance covers. If you take two policies, the claim has to be shared by both insurers in the proportion of the sums assured. But the claim can be rejected in case of any non-disclosure or wrong disclosure of facts. In such as case, both claims will be rejected. But you can take a top-up cover from another insurer. Further, you are advised to go through the exclusions to the policy at time of the proposal.
Under the new guaranteed surrendered value, will I be told at the time of taking the policy about the amount I will get if I discontinue the policy midway?
The policy can be surrendered for cash only after the premiums have been paid for at least five years. The minimum surrender value allowed is equal to a certain percentage of the total amount of premiums paid, excluding the premiums for the first year.
I want to open an NPS account. Which pension fund manager should I go for?
In NPS, the amount is invested in three different asset classes, i.e, equities, corporate bonds and government securiies, in different proportions, depending on the age of the subscriber. The fund performance varies in all the three asset classes. At a younger age, equity exposure is higher and nearing retirement, that in G-Sec is more. The funds declare the NAV on a daily basis. UTI and IDFC have done well in equity schemes and SBI Pension Fund has performed well among fixed-income schemes.
The writer is chief financial planner with Max Secure Financial Planners
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