Is child plan better than a fixed deposit?

We all want to accumulate enough wealth to give our children the best education and throw a wonderful bash at their wedding. While the plans are big, sometimes a lot of us rely only on fixed deposits and other risk-free instruments to fulfill our dreams. However, have you ever realised that your fixed deposits may not be sufficient?

The cost of education is rising day by day. With rise in inflation, it is hard to ascertain the cost of a management program or a medical degree in 2030. Here is a snapshot of how things might be then:

Estimated cost of education after 15 years (under certain assumptions on inflation and historical trends)

With the current inflation rate and the trend in hike in fee of elite institutes, it can be very difficult to afford quality education for your kids. Then how does one get the maximum returns from our current investment so that it gives us a huge corpus in a few years to sustain the major expenses in our children's lives. Historical data suggests that a market-linked investment with a diversified portfolio over a long enough duration, such as 10 years, will give one of the best returns. However, we must not forget the risks involved with market fluctuations.

A child plan serves a dual purpose of protecting your child under any unforeseen circumstances and accumulating funds for her future.

Lump sum assured and a fund value: A child plan is designed to provide a lump sum to the child at maturity. It also provides financial security to a child, even in case of the death of the parent (insured) during the policy term. A fixed deposit, on the other hand, also provides the lump sum to the proposer at the time of maturity.

Payments at regular intervals: Besides the maturity proceeds, a number of child plans offer cash payments or withdrawals at specified intervals. The withdrawals or part payments can be used to fund your family's needs at critical times or support financial obligations that might be there. You get the dual benefits of life insurance coverage and the flexibility of periodic payments. A fixed deposit, however, does not lend such flexibility.

Waiver of future premiums: In a child insurance plan, a small portion of the premium is used to provide life cover to the parent and the remaining sum is invested as per the choice of the insured. In case the parent (insured) dies before the premium paying term, the insurance company waives off future premiums, if any, and funds them on its own. This way, the child gets the sum assured and all other benefits and bonus. For instance, if a parent expires after paying five premiums for a policy of 20 years, the rest of the premiums will be paid by the insurance company on behalf of the child and the fund value will be provided at maturity of the policy.

Child insurance plans offer liquidity. Insurance companies allow withdrawals after a stipulated time period. However, in case of such plans, you are not advised to exercise this option frequently as it can eat into your investment pool. Such insurance plans also do not levy any surrender charge after four policy years, i.e., an investor gets the full market value of his investments, net of charges, till date. This is unlike a conventional fixed deposit scheme where individuals tend to lose out on money on surrendering their FD.

Points to be considered while taking a child plan:-

·      Understand your risk appetite. High-return investments such as equity funds will have a higher risk attached to them compared to debt funds.

·       Analyses rates from major life insurance providers to find low-cost insurance plans for your child. You can compare different products available in the market easily through any online aggregator websites, along with the illustrations for each plan.

·       Always choose a policy that pays in the event of the policyholder's death.

·       Some child plans also insure the child's life, along with giving other benefits. You may like to have this additional cover.

·       There are certain plans in the market that allow you to withdraw money anytime. Look for such plans as they lend you the flexibility to access your money at will.

The author is chief executive officer of Policy Bazaar, an insurance portal. This article is for information purposes only and readers are advised to consult their financial planners before making a decision.

Chennai Super Kings won the 2010 Indian Premier League

Explore the world through the lens of your digital SLR

For all you photography enthusiasts who always wished for a professional equipment to unleash your visual skills but unable to afford one, here's the good news - the prices of digital SLR (Single Lens Reflex) cameras have dropped considerably - Olympus-E-450, Nikon D60 and Canon-EOS 1000D.

So what is a digital SLR?

A digital (Single Lens Reflex) is a type of camera whose lens, shutter and mirror are positioned in such a way that the image finds its way to the viewfinder and then onto the focusing screen. The advantage that DSLRs have over other 'Point & Shoot' cameras is its compatibility with a very wide range of focal lenses, thereby an increase in flexibility & quality.

While it's often suggested that you first excel at a conventional camera and then familiarize with the basics of an SLR before purchasing one. However in today's generation has found a better alternative - explore & learn.

Here are DSLR basics you need to know while exploring-

• Shutter speed is the exposure time of the camera lens. The duration of light captured by the image sensor depends on the shutter. For instance, to capture rain droplets you would need a higher shutter speed, around 1/500. On the other hand, action images like the F1 race cars in motion a lower shutter speed, say 1/2 a second would be apt.

• Aperture is the amount of light allowed to the camera lens. Wider the aperture (low aperture value), more light goes through. A high aperture of f/2.8 will use natural light; while lower aperture images are brighter. Aperture also affects the depth of the field, for example a picture where once a section of the image is in focus while rest is blurred.

• ISO sets the sensitivity of the sensors to absorb light. By setting the ISO you can improve the quality of images shot at dimly lit places or during the nights.

Additionally, do try seeing your target form different perspectives, shooting pictures from different angles. And during photo-production you can also experiment with the contrast, temperature & exposure and play with different file formats (JPEG, RAW).

Common mistakes to avoid when getting a Home Loan

Many people, especially first time borrowers, make some mistakes when taking a home loan that can cause a lot of problems and delays. Through this article we hope that you can raise your awareness so that you can avoid making some of these common mistakes.

1. Not starting early: If you do not start early to prepare for your home loan application, it can cost a lot of time and cause you frustration when you begin the process of buying a property. Familiarise yourself with the process and the requirements, especially all the paperwork you need to do, well in advance of when you might need the loan. The more time you take to start, the longer your home loan process will take, and delays will harm no one else but you.

2. Incomplete documentation: If you have incomplete documents, it can delay the processing and ultimately the sanctioning of your home loan. If your application has documents missing, the lender will not start reviewing your case until the required documents are complete. You can make the process more efficient if you provide complete documentation during your first interaction with the lender, and in the form that the lender wants.

3. Taking a home loan beyond your affordability: You must stick to your means and not try to get a higher EMI than you can afford. Don't overestimate your earnings just to get a higher loan. Lenders are very diligent in verifying your earnings capacity and how that translates into your ongoing ability to fulfil your EMI obligations. You must take into account your existing monthly income, debts and realistic prospects for future income to consider the amount of loan you can afford. By asking for more than your affordability you will only delay the process.

4. Choosing a lender only on the basis of low interest rates: You should not blindly opt for lenders that offer cheaper home loan rates and no other value add. Usually these interest rates are valid only for the first few initial years and not for the entire tenure of the loan. When rates reset, you might find the EMI payment suddenly balloons to a much higher level than you can afford. Apart from the interest rate offered, you also want to satisfy yourself that your lender will offer good service and not create administrative hassles or delays going forward.

5. Under-estimating the impact of your credit history: You must recognise the role that your credit history can play in getting a home loan. A negative credit history can affect your loan eligibility because its indicative that you are not disciplined about paying back your dues. Building a good credit history is essential if you want to purchase a home, and you must start working on it much before you apply for one. Keep in mind, that now there are many organizations in India that collect and track how you deal with credit card payments and other debts you might have. The factors that could have a negative impact on your credit history are:

a) Payment default like absconding from creditors to avoid payment of debts
b) Delayed payments on your credit card, generally being more than 30 days
c) Irregular payments on your personal loan, car loan or any other loan

With a little bit of planning and foresight you can avoid making the above mistakes and make your home loan process easier for yourself and free from delays.

A man's guide to skincare

Gone are the times when men could get away with tanned, patchy skin and an unkempt beard. Today he is taking care of his skin like there is no tomorrow. And guess what? His woman is loving every bit of it. 

Most men don't spend a lot of time worrying about skincare. They wash their face, they shave, and they go about their business. 

But maybe you should think twice about what you're doing to your face. While you don't go through the elaborate skin care rituals that women do, there are products you can use and steps you can take that will protect and nourish your skin, keeping it looking younger longer. 

Grooming 
There are certain skincare products you should have on hand for daily skincare: 

Face cleanser: You should wash your face twice a day with a good cleanser. If possible, it should contain an alpha hydroxy acid to help wash away dead skin cells, keep the pores clean, and reveal new skin. 

Shaving cream: You'll want to buy a product that will properly lubricate the skin so the razor blade will glide over it, preventing razor burn. You can choose a shaving cream or gel in pressurised cans, or you can buy shaving soap that comes in a small tub and is applied with a brush. Some believe the brush makes the hair stand straighter for easier shaving. 

Aftershave lotion : Many of you use an aftershave lotion to soothe the skin after shaving. The lotion may contain an antiseptic to prevent infection, a moisturizer, or fragrance. 

Moisturizer: Skin tends to dry out as its essential oils diminish with age, but a good moisturizer can help. You might want to choose a moisturizer that contains antioxidants like vitamins A, C, and E, which can protect skin cells from aging. Steer clear of creams or lotions with sodium lauryl sulfate, which tends to remove natural oils from the skin. 

Sunscreen: Sunscreen is the best thing you can do to prevent aging of your skin, and it should be applied whenever you expect to spend time outdoors. Some experts even recommend applying sunscreen right after shaving. Make sure it has an SPF factor of at least 15. 

A close shave 
Shaving has hidden advantages — the exfoliation that takes place every time you shave can keep the skin of your face looking young and healthy. But if you shave improperly, you can cause razor burn or razor bumps, which form when facial hair cut too short curls back into the skin. To shave properly, follow these steps: 

Soften your beard: Thoroughly wet your face with hot water. Prior to wetting the beard, you might even want to apply a warm washcloth to further soften hairs. 

Apply shaving cream: Cover your entire beard with shaving cream. Work it in well to make the hairs stand up and to lubricate the skin. 

Shave: Use a sharp razor, and shave in the direction the hairs lay. Avoid repeating strokes, and keep your skin relaxed. 

Rinse: Rinse the remaining shaving cream off your face. Use cool or warm water, as hot water will dry out your skin. 

Saving face 
The best anti-aging product you can use is sunscreen, which both moisturizes your skin and prevents sun damage. However, to treat skin that is beginning to show signs of age, like fine lines and dullness, consider a tretinoin gel or emollient (Retin-A Micro, Renova). These vitamin-A derivative topicals enhance the natural production of collagen and elastic fibers in the skin as they treats discoloration, wrinkles, and the degeneration of elastic tissue. They're available only by prescription, so talk to your doctor. 

Gifts you must avoid giving your girl!

Make your girl feel loved and pampered by buying her gifts. But you need to really think through her likes and dislikes before you go ahead and buy her something. Here is a ready reckoner of what not to buy for your beloved. 

These are some of the gifts that you must surely avoid giving your girlfriend. 

Clothes of wrong size: Men, it’s time to realize that girls usually (or maybe mostly) lie about their sizes. By doing so, they try to be as close as perfect, at least to you! So avoid buying stuff basis the size that she’s casually told you about as it could turn out to be a disaster. Call center executive Poonam Singhal shares her experience: “My boyfriend once wanted to surprise me with an ‘unexpected and sexy gift.’ I kept on wondering what it would be till he got me an expensive Gas dress that I had once looked at while on a shopping spree, but had to drop it because it was a size small. I, of course, didn’t let my boyfriend know and said it was highly priced. And then I saw it in front of me and felt terrible.” So guys, this is a cue for you to take your girl out shopping. Never buy stuff unless you are sure of her size. We mean, really sure! 

Cheap jewellery: Most women don’t like to be gifted inexpensive jewellery. You might spot her picking up stuff from a local flee market, but when it comes to gifting, do not even think of giving jewellery unless you can afford some really precious stuff. “My fiancé once gave me a piece of jewellery that looked very tacky. He felt pretty excited so I wore it on one of our dates, but the next day I developed a skin irritation and felt horrified,” says content writer Prachi Uppal. Same applies to cheap cosmetics. It will give a very wrong impression about you. 

Gym membership: You see your girl incessantly talking about a treadmill, power yoga, spinning and you imagine that giving a gym membership would be the most valued thing you could gift her. Wrong! This will send out a very wrong message to her that you want her to work out more and lose some unpleasant fat. 

Pup or a kitten: On the face of it, the idea sounds pretty cute and romantic, but, do not land yourself into trouble unless your girl has asked you for one. It is because once she gets over the initial excitement, she will realize that pets are just not adorable things; they also need a lot of care and time. The pet needs food and walks poop training, not to forget the occasional vet visits. She might think that it was the worst gift given to her. So your pooch love can wait! 

Something that you need: A gift that you are buying for her is not for you. So, do not even dream of giving her tickets for a cricket or football match or passes to a concert with free beer with one of your male buddies. 

Safeguard yourself from credit card frauds

In recent times, there have been a spate of news items revealing a credit card fraud. In one such item, two youngsters were caught duping credit card holders by offering them new credit cards with higher credit limits by trading in their old credit cards. The youngsters then used the old cards to make their purchases, mostly electronics. This is how they laid the plot.

They would call up credit card holders representing themselves as employees of the credit card company. They would inform these clueless customers about a new scheme about new credit cards with greater purchase limits in exchange of old ones. Then they would also inform customers that the company's representative would soon visit them with the new card, which would be activated as soon as they filled in a form!

This news only reinstates the importance of being a vigilant customer and using credit cards with utmost prudence. Here are a few things one can do:

1. If you lose your credit card, it is necessary to inform your credit card company immediately. This will enable the card issuer to freeze the card with immediate effect and prevent any purchases on the card. The important thing for you is that your liability is limited once you inform the credit card issuer.

2. Destroy your old card completely before you begin using your new card. This is important even if your old card has expired or you are upgrading your card.

3. Keep your card in a safe place and do not allow other people to handle it.

4. Be prudent about signing up for new offers. Double-check the genuineness of the scheme. A simple way to verify genuineness of any scheme is to call up the credit card company and inquiring with them.

5. Change your PIN at regular intervals. Do not use obvious PIN like birth dates.

6. Inform your credit card company immediately if you do not receive your monthly credit statement. It could be a case of identity theft where the fraudster has changed your billing address.

7. Use chip based credit cards. These cards offer better security than credit cards with black magnetic stripes. This is because in a chip based card, all information is stored in the small chip in encrypted format and it also uses a PIN. This makes changing or copying this data extremely difficult.

8. So, the chance of data being misused while swiping the card is very remote. It is the highest level of security that credit card companies can offer at present. Citibank and Kotak Mahindra issue chip based cards to select high range customers. Axis bank's VISA Platinum card is also chip-based. HDFC Bank also has begun issuing these cards.

9. Be careful while shopping online. This is because you are required to give the CVV number for making purchases over the Internet. For this, be sure you shop only from secure websites. Ensure that the website is certified by VeriSign. Look for a yellow lock on the bottom right hand corner of the screen.

10. If you have a large credit limit on your card and use it frequently for several purchases including online and telephone purchases, it is a good idea to get your card insured. You cannot prevent credit card fraud but at least minimize its impact on your financial stability! You can protect yourself from fraudulent charges on your card up to 12 hours before reporting the loss to the credit card issuer.

World's first underwater museum

A proposed underwater museum in Alexandria, Egypt, came closer to reality when the UN established a committee to aid the design process with the Egyptian government

Shown with a 2008 illustration of the proposed underwater museum, the Bay of Alexandria once contained Cleopatra's island palace and the Pharos of Alexandria lighthouse , one of the seven wonders of the ancient world. Both of them were done in centuries ago by earthquakes. 

The proposed museum's underwater facility (at bottom in architect Jacques Rougerie's conception) will be difficult and expensive to build and is the focus of the just launched two-year feasibility study. But planners believe that the benefits of plunging visitors into the historical context of the objects--on the sunken island that once held Cleopatra's palace--will be worth the trouble.

The marble head of Roman princess Antonia Minor, mother of Emperor Claudius, rests on sand at the now sunken site of Cleopatra's Alexandria, Egypt, palace in 1998. Behind the head is a toppled statue of a Ptolemaic, or Greco-Egyptian, king in the guise of Hermes-Thoth, messenger of the gods.

An eroded sphinx, shown in 1998, isn't much more than a silhouette in the Bay of Alexandria's dusky waters. Visitors to the proposed underwater museum should be able to view these artifacts in situ, despite the current cloudiness. 

As part of a project to identify and preserve artifacts in the Bay of Alexandria, divers raise a 4-foot-tall (1.5-meter-tall), granite, first-century A.D. statue of a priest of Isis from in 1998. (AP Photo)

Laser security for the Internet developed

Experts have come up with a new security system for Internet using a special laser that may help keep hackers’ prying eyes off for good.

Scientists at Tel Aviv University have developed a digital security tool with existing fiber optic and computer technology that transmits binary lock-and-key information in the form of light pulses.

The device, invented by Dr. Jacob Scheuer, TAU’s School of Electrical Engineering, allegedly ensures that a shared key code can be unlocked by the sender and receiver, and absolutely nobody else.

Dr. Scheuer explained: "Rather than developing the lock or the key, we've developed a system which acts as a type of key bearer.”

The researchers continued: "The trick is for those at either end of the fibre optic link to send different laser signals they can distinguish between, but which look identical to an eavesdropper."

Dr. Scheuer added: "We've already published the theoretical idea and now have developed a preliminary demonstration in my lab. Once both parties have the key they need, they could send information without any chance of detection. We were able to demonstrate that, if it's done right, the system could be absolutely secure. Even with a quantum computer of the future, a hacker couldn't decipher the key.”

The findings were due to be presented at the next laser and electro-optics conference at the Conference for Lasers and Electro-Optics (CLEO) in San Jose, California.

Why hot water freezes faster than cold

In a new research, scientists have suggested that hot water may sometimes freeze faster than cold because of random impurities in the water.

Fast-freezing of hot water is known as the Mpemba effect, after a Tanzanian schoolboy called Erasto Mpemba.

Physicists have come up with several possible explanations, including faster evaporation reducing the volume of hot water, a layer of frost insulating the cooler water, and differing concentration of solutes.

But the answer has been very hard to pin down because the effect is unreliable - cold water is just as likely to freeze faster.

According to a report in New Scientist, James Brownridge, who is radiation safety officer for the State University of New York at Binghamton, believes that this randomness is crucial.

Over the past 10 years, he has carried out hundreds of experiments on the Mpemba effect in his spare time, and has evidence that the effect is based on the shifty phenomenon of supercooling.

“Water hardly ever freezes at 0 degree Celsius. It usually supercools, and only begins freezing at a lower temperature,” said Brownridge.

The freezing point depends on impurities in the water which seed the formation of ice crystals.

Typically, water may contain several types of impurity, from dust particles to dissolved salts and bacteria, each of which triggers freezing at a characteristic temperature.

The impurity with the highest nucleation temperature determines the temperature at which the water freezes.

Brownridge starts with two samples of water at the same temperature - say, tap water at 20 degrees C - in covered test tubes and cools them in a freezer.

One will freeze first, presumably because its random mix of impurities give it a higher freezing point.

If the difference is large enough, the Mpemba effect will appear.

Brownridge selects the sample with the higher natural freezing temperature to heat to 80 degrees C, warming the other to only room temperature, then puts the test tubes back in the freezer.

“The hot water will always freeze faster than the cold water if its freezing point is at least 5 degrees C higher,” Brownridge said.

The bigger the temperature difference between an object and its surroundings, the faster it cools.

So, the hot sample will do most of its cooling very quickly, helping it to reach its own freezing point of -2 degrees C, say, before the cooler water gets to its freezing point of -7 degrees C.

No more dead skin cells!

The structure of the human skin is basically divided into two general layers, the dermis and the epidermis.
The latter is divided further into five layers. The layer at the very surface of the skin is called the Stratum corneum, which consists mainly of dead skin cells.

The body sheds these dead skin cells on its own accord, however, one needs to take care and sometimes use certain remedies to get rid of this skin.

Dead skin cells impact the skin's health. As the dead skin cells build up on the surface of the skin, they can act as a barrier to absorption of nutrients from nourishing creams.

Also, they tend to block sweat glands, which can result in whiteheads, blackheads or acne.

Here are a few ways one can get rid of dead skin...

• An exfoliating scrub is the easiest way of getting rid of dead skin cells on your face. Use one with almonds as an ingredient. The essential oil of almonds will help repair your skin.
• Lather soap on your face, or acne wash if you have acne too, and scrub with a sponge.
• Apply a thick layer of lotion on dead skin on the heels. Let it stay for a few minutes, so that the skin is softened. Apply some more lotion, and then, with the razor you use to shave your arms and legs, gently scrape off the skin. Be gentle and careful, and repeat if you need to.
• The 'before sleep CTM (cleansing-toning-moisturising) routine' will help you through this changing weather too. Splash water on your face, apply cleansing lotion, wipe it off, then with the help of cotton wool, apply toner. After a while, use a cream (or an oil free lotion in case of oily skin) on your face and go to sleep. This will nourish your skin on a daily basis, thereby preventing scope of dead skin in future