Month: October 2007
How many are enough?
How many are enough?
The more life covers you have, the tougher they are to manage. A smart investor buys a term cover for life insurance and invests in funds independently. But for those who cannot, Ulips are the best bets
by Sunil Dhawan for Outlook Money
Consider the following grim statistics. Almost eight of every 10 Indians are without any kind of life or health insurance. But the irony is that even those with insurance policies, especially life covers, maybe underinsured.
On the other hand, there are individuals who have bought insurance policies for the sake of investment only. Take the case of 38-year-old Minoti Desai, a former member of the Indian women’s cricket team, who is now self-employed. She has 23 life insurance policies, mostly money-back, endowment and Ulips (unit-linked insurance plans) with a total life cover of Rs 40 lakh and an annual premium of Rs 3.4 lakh. She can have the same cover at a premium of about Rs 21,000 in a term plan till age 65, a life insurance plan that only provides your dependents with the sum insured during the tenure of the policy and not returns. The remaining annual contribution could have been invested in a range of pure investment products ranging from low-risk products like public provident fund to high-risk investments such as equity mutual funds (MFs). This combination provides higher cover as well as higher returns.
Why people have too many policies. There are many like Desai who have a portfolio of insurance policies much like a portfolio of MFs. Much of it has been because putting their money in traditional products such as endowment and money-back, has been their preferred investment. “I have been buying traditional plans almost every year for the last 13 years. It keeps a check on my spendthrift ways and helps me save money,” says Desai.
Since traditional products didn’t have the flexibility to adjust to changes in one’s life, such as the need for enhanced cover after the birth of a child, people had to buy fresh policies. There are other reasons as well. Insurance was sold as a tax-saving option and access to it was relatively better, thanks to a larger number of insurance agents as compared to, say, MF agents. Many people treated insurance products as the only investment tool to achieve life’s goals, such as children’s education and retirement.
Problem of plenty. A pile of policies comes with a pile of problems. To name a few, it may be difficult to keep track of premiums, updating nominations and maturing policies even if your agent is helpful. Since you are committed to premium payments, you remain vulnerable if your commitments are large, especially in exceptional times, such as a job loss, or when you want to take a sabbatical without pay. The other major problem arises when you realise that your agent has sold you a policy whose features don’t fit your needs and even the returns are not endearing. Life insurance policies being long-term contracts, the exit costs are high (see The Right Policy: Pick Live Covers, Drop Dead Ones, 15 January), which forces one to stay put.
How Ulips can prevent pile-up. For those who can’t actively track and manage investments and would like to rely on investment-cum-risk insurance products, Ulips are an alternative to holding large number of policies. You can buy a Ulip that ensures adequate insurance cover, gives flexibility in premium payments, and has a decent fund performance. You can even attach a critical illness and a disability rider. This way you could cover a lot of risks in a single policy. More savings can happen in the same Ulip through top-ups. Thanks to this flexibility and hardsell by agents, Ulips have become popular. “I have almost stopped buying traditional plans since 2001; now my insurance pie also features Ulips,” says Desai. If you want greater risk cover or find the premium unmanageable, you can even rely on a combination of a low-premium, high-life cover term plan along with a Ulip.
Even as you search for the best Ulip, you need to be on your guard. This product is meant for long-term investment, since much of administration and other costs are levied in the initial years of the policy term. However, unscrupulous agents have been hawking Ulips to those looking to park money in equity-related instruments and getting them. There have been instances where new Ulips have been sold to the same customer just because the insurer has launched a new fund option at a lower net asset value. Worse, some agents, after having switched insurers, urge policyholders to exit existing Ulips to buy newly launched ones by their new companies. Therefore, zeroing down to the right agent is essential (see Finding The Right Partner, 15 September). Also, check whether the exit costs of the Ulip are manageable.
How many policies should you have? “There is no thumb rule for the number of policies that one should buy,” says Debashis Sarkar, director (marketing), Max New York Life Insurance. Opt for Ulips that give both the sum assured and fund value as death benefit, instead of those that provide the higher of the two. Choose Ulips that offer life cover till age 100. You can increase or decrease the cover whenever the need arises. A periodic review of life risk cover also helps. “Do a ‘needs analysis’ at periodic intervals; it may so happen that one of your risks may increase or decrease and your calculation may change completely,” says Anand Pejawar, country head, Bancassurance, SBI Life Insurance.
What do you do if you have already accumulated a pile of policies that you might now want to reduce? In Ulips, you need to stay invested for the long-term, given the commonly front-loaded cost structure. For traditional plans, depending on exit penalties, you could take a call to minimise your losses. Buying life covers is all about knowing how much cover you need and figuring out when it is enough. The good news is that with the ever-expanding choice in insurance-cum-investment options, you can actually strike a balance.
Text the teacher
Text the teacher
Pragya Kaushika,TNN
Come November and the School of Open Learning (SOL), Delhi University (DU), will launch its welcome gift for the new batch of students enrolling in the BA programme for 2007-08 – a 24-hour query helpline via e-mail and mobiles.
One guest faculty member will be appointed as counsellor and instructor for a group of 20 students, informs H C Pokhariyal, executive director, SOL. He adds, “The basic need for any education system is the availability of teachers who can devote time to students. Distance learning is coming up as an alternative to regular classes as there are many students who do not get admission to regular courses.”
The idea emerged from the SOL’s interaction with the open universities in the UK. Admitting that distance learning in foreign countries has upgraded to a level where it can compete with the regular education system, Savita Dutta, director, SOL states, “We have invited experts from the UK to help us improve our distance education methodology.”
If the experiment with the BA programme manages to achieve the goal with which it has been started, it will be extended to other courses provided by SOL. Says Dutta, “We cannot limit the number of students enrolling in our courses, and since they need tutors just like regular students, we will enhance the teacher-student link to manage them efficiently.”
Apart from helping enrolled students find the right guidance during examinations, this new system will also provide job opportunities for fresh post-graduates. “MA/MPhil students will be invited to join us as guest faculty under the scheme, and this will simultaneously address their employability issues.”
Meeting The Challenge Of Changing Patterns
Meeting The Challenge Of Changing Patterns
Janina Gomes for TIMES OF INDIA
“We once saw a man draw some black dots. We looked and could make nothing of them but an irregular assemblage of black dots. Then he drew a few lines, put in a few rests, then a clef at the beginning, and we saw these black dots were musical notes. On sounding them we were singing”. This observation set me thinking. There are many black dots and spots in our lives. We cannot understand why they come — unexpected bad news, sudden deaths, illnesses, unsavoury encounters, brushes with the uncouth… We wonder why God permitted them in the first place. Then, other experiences come flooding in, equally unexpected: good tidings, experiences of goodness, compassion and mercy.
Maybe God has been adjusting the dots. He has been drawing the lines he wants, separating the good from the bad, lifting us above what is low and unseemly. He puts in the rest in the proper places. The black dots no longer remain an irregular assemblage. They are drawn into a larger pattern, woven into a wider harmony.
When we look down a long avenue of trees, we are amazed to look from one end of the avenue to the other at the rich greenery, the large boughs, the arching leaves. Sometimes, the trees seem to groan under the burning heat of summer, yet they provide shade to the hapless who take shelter under their outstretched arms.
There are seasons, when the trees shed their leaves and remain brown and seemingly barren. Then once again, they suddenly turn green in spring. Fresh new leaves appear. All is verdant, green, inviting once again.
When we look back along the long avenues of our years, our experiences are quite similar. There are good times and bad. There were times for growing roots deep into the ground to withstand the winters of our lives. There were times to shed leaves, experiences, persons and situations that were poisoning our lives. There were times to shift our alliances and allegiances to bring them more in tune with God. There were times to go deeper in search of water and the source of life.
We all have to deal with change in our lives. Change is really an opportunity to grow. The unexpected always comes along. The unexpected could also come in the form of the beautiful and the inspiring. We all know what joy meeting an old friend by chance can bring us.
An unexpected phone or letter that encourages us can light our day. An experience of quiet joy and peace may come to us through a sudden shaft of light from the window. Affirmation from a friend or loved one could lift us, when the lowness of some around us is getting us down.
Change and difference are a part of life and the mystery of being unsure never leaves us. It is no secret that deer, squirrel and owl are not alike, that birds do not fly in lines and fish don’t all float at the same level. We choose the level at which we live our lives, the heights that we touch and the depths to which we stoop.
We cannot determine the times of sunshine and the times for cloud and rain. Our spiritual experiences may not always be pristine and un-diluted light. We all cannot escape the darkness and gloom. But the closer we move to God, the better we learn to handle change.
Management Of Change Brings Stability
Management Of Change Brings Stability
Discourse: Swami Sukhabodhananda
There are two sources of stress, internal and external. Internal stress involves thoughts, values, beliefs and opinions. External stress involves wrong exercises, faulty breathing habits, unhealthy eating habits, pollution and sleep problems.
Nobody can avoid stress in life. One has to minimise stress. That is possible if one can work on both internal and external stress. The most important factor is our mind and how it looks at life.
At the end of one of my programmes, a lady danced for three hours in sheer celebration. Then she came and sat next to me and told me how happy she was. As she was drinking coffee, the beverage spilt on her beautiful saree. Immediately, she screamed, saying her joy from the three-hour dance was gone.
Looking at this incident, i learnt that three hours of happiness was invalidated by a sorrow lasting for a few seconds. If our mind can work like this, the reverse is also possible. The three hours of sorrow can be invalidated by a few seconds of joy.
The secret of being happy is to recollect happy incidents in life. Weaken the effect of unhappiness by distancing yourself from its pictures. Can you undertake the following acts in your life? Understand the mind. Transform the mind. Transcend the mind.
Transforming the mind involves the understanding that there is no complete satisfaction in life; there is only a possibility to improve upon the existing state of affairs. We don’t have to win every time in order to be happy; happiness does not depend only on success. Learn to respond and not to react to events and incidents in life. If one continues reacting, reaction becomes a habit. Then an egoistic and reactive “I” emerges. It will have its own foolish logic.
A dog and a cat had an interesting conversation. The dog said, “I am so lucky that the owner of the house serves me and the children of the house adore me. So i feel they are God”.
The cat also said, “The owner of the house pets me, the children of the house adore me, and the servant maid serves me. So i feel i am God”.
Effective management of change is an art. For this, you need to cultivate leadership qualities. To be successful in life, one has to have the leadership quality to manage change.
In esoteric teaching there is an important law called the law of three. The positive effort you put in is called the first force. As you put in positive force there is a negative force that would affect the positive force.
This negative force is called the second force. If one conti-nuously puts in positive effort, there would be a third force that would descend and transform the negative force into a positive force. This is called the law of three.
If you do not continue exerting a positive force, the negative force will take over. So the law of three urges us to be open to the negative force, but to continue applying the positive.
Afraid? Not us!
Afraid? Not us!
Avinash Kalla,TNN
Is conquering fear the key to success? As Dhoni and his boys swept the T20 trophy, they demonstrated amazing teamwork and spirit. Avinash Kalla unravels the success formula
Say ‘fearless’ and the image of a beaming Mahendra Singh Dhoni, along with his young bunch of enthusiastic cricketers, proudly holding aloft the T20 World Cup strikes the mind.
Dhoni pulled off a victory even as few gave India an outside chance of making it to the finals. So, what did this Jharkhand lad do differently when catapulted to the hot seat that others before him did not? You guessed it. He and his team operated with a mindset of utter fearlessness. “We played without fear. If we play like this, with everyone supporting each other, we’re going to win more matches than we lose. We need to enjoy ourselves whenever we go out in the middle. Let euphoria take the place of fear,” is the newly-anointed skipper’s slogan.
Is losing fear, then, the key to success in both individual and team enterprises? And what is the role of a leader in inculcating this attribute? “There is a tremendous relationship between fear and success,” says motivational speaker Shiv Khera. “There are thoughts of fear and defeat and thoughts of victory and happiness. It’s these very thoughts that direct or misdirect us,” he asserts.
While negative thoughts create an aura of gloom around us, the energy emitted by the positive thoughts is reflected in our actions and body language. Powered by this positive energy, one plays to win in whichever field one chooses to. As Khera puts it, “There is a huge difference between playing to win and playing not to lose. In the former, you play with an inspiration, whereas in the latter, you play out of desperation. And the results are different in both cases.”
When you are fearless, you don’t hesitate to take on the mighty and powerful. The Indian team demonstrated that match after formidable match against countries ranked favourites to lift the prestigious trophy.
Sabeer Bhatia, then a young entrepreneur, set aside fear when he walked in to negotiate with Bill Gates and co. for a whopping $400 million for his venture Hotmail.com. Microsoft offered him a meagre $160 million; Bhatia didn’t give in. He had just one choice ‘take it or leave it’. Undeterred, Bhatia who acknowledges that being fearless is certainly one of the qualities required to be successful in business, played it cool. “I’ll get back to you,” is what he said.
All through the way to clinching the mega deal, he remained firm and fearless. However, he has a word of caution, “You cannot have a weak hand and continue to be fearless. It would be foolish to do so; your spirit has to be justified by a solid platform. In my opinion, being fearless means that one should trust her or his intellect, and not be afraid to go against the norm to try something new.”
And defying norms is no mere feat; it takes a lot out of leaders who are able to turn the tide in their favour. Capt. Gopinath, who revolutionised the way people fly today, says, “We had a class barrier to defy when we entered the aviation business. Nobody believed in my project; some went on and said ‘Tata-Singapore airline never got the licence; you don’t stand a chance to see it through.’ But in my mind there was never a question about will I be able to do it? It was always how I can do it, till I actually did it.”
Individuals like Dhoni, Bhatia, and Capt. Gopi possess what Khera terms as ‘practising mental toughness’ — the mantra he says is, “I play to win but I am not afraid to lose.”
His views are echoed by Dhoni who said, “It really didn’t matter to me if we didn’t win, because we’d given it our best.”
Think for a moment, what if Bachendri Pal had allowed herself to get intimidated by the imposing Everest. She would never have scaled the tall heights she did by becoming the first Indian woman to conquer the Everest. Climbing the mountain must have been a daunting task for her, but she exorcised her fears and went single-mindedly about her mission. Again it was the courage of her beliefs that made environmental scientist Sunita Narain lock horns with a Cola giant, and stick to her guns in the face of immense pressure and arm twisting.
It’s the leader’s attitude and speed that determine the pace with which any team moves and builds the tempo. In Khera’s opinion ‘a bunch of sheep led by a lion is better than a bunch of lions led by a sheep.’
So are leaders born or do they learn to lead? And what is it that the leader needs to do differently to come out tops? “Some are born leaders whereas others acquire leadership skills over time,” says Bhatia. Capt. Gopi adds, “Courage is the most important aspect of leadership; it comes from deep conviction and belief. Second, a leader needs the ability to judge people and manoeuver them ensuring their potential is optimised.”
A formula Dhoni practised to perfection. When Harbhajan Singh showed signs of buckling under pressure, Dhoni decided to give the ball to Joginder Sharma, a player who, the captain felt, had fire in his belly and ‘wanted to make a mark at the international level.’ It was a gamble that paid off.
A leader does not hesitate to take gambles. Capt. Gopi says, “If you can’t create more leaders within your team, you are not a leader worth your salt. Give your people challenges and they respond. They thrive on these challenges and you in turn create leaders who will carry the show on.”
But not everything is always hunky dory for these fearless souls; they too have their lows and face defeats. “In business, you are only as good as your last quarter. It’s not every time that your courage will lead to success. You lose some, but then you need to analyse various aspects and act fast,” says Capt. Gopi. In these defeats there is glory as you go down fighting.
With Chak De being our current war cry, it’s time you believed in yourself and went for your dreams. Remember, fear surrounds us like a cage, break it, and the world is your playground. Now that we are in the game, who are we playing next?
From sheets to pillow cases to dusters
From sheets to pillow cases to dusters
Uma Asher,TNN
Over the years, it has slowly dawned on me that I have learned many things from my parents in years past, without even noticing. They live in an apartment in the overcrowded clutter that is suburban Mumbai. Every day, they buy a handful of flowers and bel leaves for the household altar. The flower woman delivers them to our door, wrapped in a leaf and tied with a piece of string. My mother saves the string, and when it has grown to a fist-sized ball, she returns it to the flower-seller, who re-uses it.
My father would take cloth bags to the market every day, but somehow plastic bags crept into the house occasionally. My mother would collect them, and periodically hand them over to the vegetable vendor, so he could reuse them.
In the days of glass milk bottles, my mother saved the aluminum foil caps. A few caps made a new career as scrubbers for cast-iron cookware like a roti tawa; others were given to our domestic help, who sold them as metal scrap in the slum where she lived. That way she earned a spot of extra money, and the aluminium presumably got recycled somewhere. When the tough nylon fabric from folding deck chairs frayed at the edges, it was taken out and sewn into heavy-duty bags to buy our monthly supplies of grain.
Those bags lasted well over a decade. When I was a child, the fabric of my unfashionable but sturdy cotton school uniforms was ideal for making shopping bags. Our old clothes that were in wearable condition were bartered for steel pots and pans from an itinerant vendor.
My mother rescued old zippers and buttons, and stored them in an old candy box to sew on other clothes. Torn clothes were cut up and saved as wipes for kitchen spills, muddy shoes, and so on. Old cotton bedsheets got cut up, and the ends, less frayed than the centre, were sewn up into pillow cases or dishcloths. If a container broke, the lid was saved, and used when another container was missing a lid.
To this day, gifts are unwrapped very carefully, and the paper stored flat under a mattress for reuse. Resealable plastic bags are rinsed, dried, and reused when possible.
Even though my parents live in a flat, they don’t regard their hoard of old stuff as clutter; it’s well-organised so things are there when they need them. When they need string, a plastic bag, a clean jar or bottle, a lid or nail of any size, a rag to wipe a spill, they know exactly where to find it.
Only when I lived in the US did it even occur to me that stores could sell such items. I have come to recognise and be grateful for how my parents’ little habits continue to shape the way in which I use things. They never use the expression “reduce, reuse, recycle”. When they add some little item to their stash, they simply say, “This will be useful.”
Photo Speaks – Passing shots- 26102007
Sheikh Zayed Road traffic towards Dubai – early morning rush
Sheikh Zayed Road traffic towards Dubai side – early morning rush
There is a street in Dubai which has a series of 2 headed coconut trees planted in the decorative median of the road. Identify it or just look for it next time you drive around. The amount of traffic block and bottlenecks, I am sure you will not miss it.
Mind Speaks – Cartoon corner
Indian Sensex going well above 19000 points during the last couple of days and this is what cartoonist had to say on it……

TOP 10 TRAITS of HIGHLY SUCCESSFUL PEOPLE – That You Can Learn! – by Philip Humbert
TOP 10 TRAITS of HIGHLY SUCCESSFUL PEOPLE – That You Can Learn! – by Philip Humbert
These traits work together in combination, giving repeatedly successful people a huge advantage. Because they are insatiable learners, they can respond wisely to change. Because their personal relationships are strong, they have good advisors, and a reserve of goodwill when things go bad. And finally, none of these traits are genetic! They can be learned! They are free and they are skills you can use. Start now!
1. They work hard!
Yes, they play hard, too! They get up early, they rarely complain, they expect performance from others, but they expect extraordinary performance from themselves. Repeated, high-level success starts with a recognition that hard work pays off.
2. They are incredibly curious and eager to learn
They study, ask questions and read – constantly! An interesting point, however: While most of them did well in school, the difference is that they apply or take advantage of what they learn. Repeated success is not about memorizing facts, it’s about being able to take information and create, build, or apply it in new and important ways. Successful people want to learn everything about everything!
3. They network
They know lots of people, and they know lots of different kinds of people. They listen to friends, neighbors, co-workers and bartenders. They don’t have to be “the life of the party”, in fact many are quiet, even shy, but they value people and they value relationships. Successful people have a rolodex full of people who value their friendship and return their calls.
4. They work on themselves and never quit!
While the “over-night wonders” become arrogant and quickly disappear, really successful people work on their personality, their leadership skills, management skills, and every other detail of life. When a relationship or business deal goes sour, they assume they can learn from it and they expect to do better next time. Successful people don’t tolerate flaws; they fix them!
5. They are extraordinarily creative
They go around asking, “Why not?” They see new combinations, new possibilities, new opportunities and challenges where others see problems or limitations. They wake up in the middle of the night yelling, “I’ve got it!” They ask for advice, try things out, consult experts and amateurs, always looking for a better, faster, cheaper solution. Successful people create stuff!
6. They are self-reliant and take responsibility
Incredibly successful people don’t worry about blame, and they don’t waste time complaining. They make decisions and move on. Sometimes they are criticized for taking this to extremes – Jimmy Carter carried his own briefcase and a President “shouldn’t” do that! Extremely successful people take the initiative and accept the responsibilities of success.
7. They are usually relaxed and keep their perspective
Even in times of stress or turmoil, highly successful people keep their balance, they know the value of timing, humor, and patience. They rarely panic or make decisions on impulse. Unusually successful people breath easily, ask the right questions, and make sound decisions, even in a crisis.
8. Extremely successful people live in the present moment
They know that “Now” is the only time they can control. They have a “gift” for looking people in the eye, listening to what is being said, enjoying a meal or fine wine, music or playing with a child. They never seem rushed, and they get a lot done! They take full advantage of each day. Successful people don’t waste time, they use it!
9. They “look over the horizon” to see the future
They observe trends, notice changes, see shifts, and hear the nuances that others miss. A basketball player wearing Nikes is trivial, the neighbor kid wearing them is interesting, your own teenager demanding them is an investment opportunity! Extremely successful people live in the present, with one eye on the future!
10. Repeatedly successful people respond instantly!
When an investment isn’t working out, they sell. When they see an opportunity, they make the call. If an important relationship is cooling down, they take time to renew it. When technology or a new competitor or a change in the economic situation requires an adjustment, they are the first and quickest to respond.
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