I have taken an education loan from South Indian Bank for higher studies in the UK. Can I get the interest waived off as the loan amount, without including the interest, is less than R4 lakh?

Sahil Nair

Banks may consider waiving off a portion of the dues if you are unable to repay the loan and the account has turned into an NPA. For this you have to approach the branch manager of the bank where the loan was sanctioned and request for the waiver of part or full interest thereof and submit the proposal for repaying the outstanding amount. It will be up to the bank to consider your case on its merit. You should attempt to settle the matter amicably since a default status will affect your credit rating making it difficult for you to get loans in future.

How does LIC?s newly launched single-premium Jeevan Sugam fare as an investment and insurance option for a long term?

Mitul Kumar

LIC?s Jeevan Sugam is a non-linked, single-premium plan wherein the risk cover is 10 times the premium. On maturity, this plan offers a sum assured and loyalty additions. The maximum age for entry is 45 years. The investment return will be between 4.70% to 7% per annum, depending on the entry age and the sum assured. For an investment horizon of 10 years, some diversified equity mutual fund scheme or ULIP can give better return if you are willing to take the risk. For insurance cover, you may opt for a term insurance plan.

I had taken a home loan of R15 lakh 10 years ago. How do I protect the loan liability now?

Vikas Singh

Firstly, check with your banker who might have taken a home insurance at the time of sanctioning the loan. If no insurance cover is available, you may take a term insurance cover (reducing balance) with the sum assured equivalent to that of the outstanding loan amount.

Is there a minimum time period for which a patient has to be admitted in a hospital so that mediclaim benefit can be sought?

Aman Sharma

Yes, the patient has to be admitted in a hospital for at least 24 hours for making a claim, except under day care treatment and/or for surgical procedure when the period could be less than 24 hours. This relaxation is possible since certain treatment and surgeries are now completed in less than 24 hours due to technological advancement.

I have read news reports saying Irda will ban highest NAV products. I am told that they offer the best long-term returns. Should I take a highest NAV policy and get good returns in the long term?

PS Rao

Highest NAV products are the categories of guaranteed NAV products in which the minimum return is protected but the upside movement is restricted due to higher allocation to debt. Irda has expressed its displeasure due to misselling of the products. The guaranteed NAV products can provide return in the range of 7-10%. You should invest with an eye on your goal horizon and risk tolerance. If you want to

stay invested for a longer period, opt for either diversified equity/index MF schemes or opt for ULIPs after comparing their historical returns and the expenses/charges.

The writer is founder & chief financial planner of

Max Secure Financial Planners

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