You can convert a policy into a paid-up plan only if you have paid the premium for at least three years. If the policy matures in three to four years, it is not advisable to convert it because you would lose out on some maturity benefits. There is no tax implication in turning a policy into a paid-up plan. However, if you surrender an insurance policy, the value received is taxable and you lose the tax benefits claimed under Section 80C in the previous years.
The latest edition of Portfolio Doctor (Rejig your Plans for a New Dependant, February 2010) was well planned. It will be helpful for new parents as they set fresh goals and alter their financial strategies to factor in a child. I have a suggestion for increasing the reach of your magazine. Besides your own Website, www.moneytoday.in, you should provide content on networking sites like Twitter and Facebook. This will make it more convenient for readers to access information.
- Sandeep Kumar, Amritsar
The story on household carbon emissions was an eyeopener (How Green is your Valley? February 2010). I use star-rated home appliances but had completely overlooked the electric geyser. Similarly, I was unaware that refrigerators consume a lot of energy. Could you share the names of some companies that manufacture five-star refrigerators and geysers?
- Savita Chhabra, E-mail
As mentioned in the story, an electric geyser is not a green device. You should consider alternatives such as a solar water heater. Most of the manufacturers have five-or four-star refrigerators. You can access the details on their Websites.
