Click here As we settle into the year 2022, it is time to take stock of what one needs to purchase and invest in, to ensure financial security. We list the 5 most important things you must buy for a successful 2022:
#1 A good health insurance plan. Given that the dreaded Coronavirus continues to rage around the world with its different variants, it pays to be financially secured against future illness. As healthcare costs rise exponentially in India, it is always better to have a trusted health insurance plan under one’s belt. It is inconceivable that one may not have health insurance in these turbulent times. If you don’t, or have one but want a better plan to invest in, then you should consider the Arogya Sanjeevani policy. It has a maximum sum insured of Rs 10 lakh and affordable premiums, apart from benefits like coverage for all day care procedures, cumulative bonus, inclusion of AYUSH treatments and cataract surgeries, lifelong renewal, etc. You can also avail of treatment costs up to the sum insured limit. #2 Term life insurance. Apart from a good health insurance plan like the Arogya Sanjeevani Policy, it is time to invest in life insurance. The best option is to take a term life insurance policy. Term life insurance has affordable premiums and some of the highest sum insured amounts, from Rs 1 crore and above. The term life insurance pay-out is made to the insured’s nominated family member(s) and it is often adequate to help one’s family members pay for expenses like household maintenance, children’s education and wedding, spousal support and retirement, medical costs, etc. The pay-out is not made if the insured outlives the policy tenure. However, it is immensely beneficial to the family in the absence of the insured person’s income. #3 Your first home. Having a roof over one’s head is a luxury most of us take for granted. However, it is not enough to simply have shelter in lieu of a rented home. As one ages and their family grows, one needs the stability that comes with having a home of their own. Rental accommodation may provide a home for a short while, but one must move every few years and adjust to the house as it comes, without the liberty to modify the premises. Besides, one loses a lot of money over the years paying rent and utility bills for a home that does not belong to them. Instead, this money can pay EMIs on the home loan that you take to buy your first home. #4 A family car. By now, we’ve seen that the Coronavirus is here to stay. Mutating constantly, it throws up new variants that cause infection in different ways. This simply means that one must continue isolating themselves as much as possible, and avoiding places and events where there may be large numbers of people present. One of the biggest transmitters of the virus is public transport. Take the safer route to protecting your family’s health by investing in a family car. Whether to take holidays or simply drop the kids to school or yourself to work, a car creates a bubble from the outside world to keep your loved ones safe. #5 A savings account for your child. Those with young families need to think about raising the funds required to fund their children’s expensive future education. Start a savings account in your child’s name and deposit money in it every month. Over the years, you can invest some of the money for high returns. to edit.
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A life insurance policy is one of the best investments as well as security made by an individual for the whole family. An individual usually makes a life insurance policy during his or her early years, usually after beginning to work. The premium is usually lower at lesser ages and gradually increase with increasing age. There is a sum assured, which is paid out to the nominee in case of death of the person whose life is insured. The individual also receives rebates on income tax under section 80C of the income tax act upto a limit of Rs 1250,000 in a year. A life insurance policy is also seen as a moderately good investment, and the individual receives the sum assured along with bonuses and loyalty additions, and the entire amount is tax-free.
A survey of the best There are several good life insurance plans, and there are several sites such as policy bazaar that review the best life insurance plans and provide comparisons for people to choose the best life insurance plans most suited to their needs. Some of the best life insurance plans have been rated on the basis of the claim ratio, the death benefits offered, and flexibility in the plans tailored to individual requirements. The claim ratio is a computation of the number of claims cleared, and a life insurance plan in India with a higher claim ratio essentially indicates that the family of a deceased policyholder will receive claim payout early and with minimum hassle. Max life insurance ranks one of the highest with a claim ratio of 99.2% and a policy term from 10 years to 35 years with modifications in individual plans based on customer preferences. The age factor is important, and this is well demonstrated by the fact that an individual buying a life insurance plan at the age of 30 years will need to pay just Rs 1000 per month for an assured sum of Rs 1 crore at the end of the term. Another unique feature of the Max Life Insurance plans is the facility of adding Covid 19 rider. The addition of this unique feature will mean that an individual will receive a claim of Rs 2 lakhs for covid 19 treatment even for home confinement and an additional payout of Bharati Axa life insurance ranks high with a claim ratio of 97.4%. The maximum coverage term is 85 years. This life insurance plan has provisions for heart diseases and cancer and covers 35 critical illnesses as a comprehensive cover and 15 major illnesses. One of the best features of the Bharatiaxa life insurance plans is the option to pay the death benefit in the form of a monthly income for 15 years, the income amount increasing by 10% every year. Any list of leading life insurance plans in India would be incomplete without including the Life Insurance Corporation of India. This is one of India's oldest life insurance companies and has one of the widest networks, with branches in even small towns. Life Insurance Corporation of India is so ethnic in its image that every Indian household trusts it though its claim ratio is much lower at 94.45%. The processes of application and claim settlement are slower. SBI life insurance is the life insurance division of the State bank of India and is well supported by the wide network of SBI branches. Though the claim ratio of SBI life insurance is still lower at 92.13%, the best part of SBI life insurance is an increase in the sum assured by 10% after every 5 years. SBI life insurance is also popular with people below the poverty line for its policies, and the maximum sum assured for life insurance plans in this category is Rs 50000. Another unique feature of SBI life insurance is the discount in premium on the large sum assured, and the discount can be as high as 30%. There are also several other life insurance plans besides the ones listed above. Customers can browse through the details of the plans and even refer to reviews to choose the best life insurance plans for themselves. The world revolves around keeping one’s family safe. Family members are the reason why we earn sufficient money. It is easier to take care of them while you are earning a handsome salary. For the betterment of their lives, you must also consider what would happen if you lose your job and your life.
A term insurance plan is the first investment done by a fresher. People already established in their respective fields also get into term insurance plans later in their lives. The objective is simple: to keep the future of loved ones safe. How To Choose The Best Term Insurance Plan For Your Family?Having said that, you must understand how you can choose a term insurance plan that is best for you and your family. The points below explain what one must consider before choosing a term insurance plan. 1. Review Lifestyle With time, the term lifestyle has more than one meaning attached. The basic meaning stands to be the spending habits and standard of living of a person. Both these combined form a true meaning of lifestyle. Review your lifestyle with a realistic approach before finalizing a term insurance plan. Consider the rise in prices in the future. Don't prepare an estimate based on the currency expenses. The cost of college education can be ₹50,000/- per semester in graduation right now. Four years later, there is a chance that it increases to ₹80,000/- per semester. Avoid compromising with minor details. Project the final coverage of the term insurance plan that you really want for your family. Chances are, they may still need to order food online every weekend as a part of growing up or coping with an incident. 2. Understand Coverage Coverage in this point refers to the instances and illnesses that a term insurance plan has listed on the final signing paper. A term insurance plan may require you to pay an additional amount to cover certain risks and illnesses. Experts recommend that instead of hesitating to pay a smaller amount, a person must get those risks and illnesses covered in the term insurance plan. Coverage can be for accidental impairment, critical illnesses, or hereditary diseases. Some providers allow their customers to customize the term insurance plan as they proceed in life. This means that you can change your term insurance plan after getting married and/or becoming a parent. 3. Consider Company’s Performance Invest your money where you know you will get returns. A term insurance plan is no different. It follows a similar ideology. You must buy a term insurance plan only from the provider you know is doing better in the market. Getting a term insurance plan from a provider that is about to declare bankruptcy may cause you trouble. The financial performance of a company also affects its claim settlement ratio. Review the ratio in which the provider accepts and rejects claims for all the term insurance plans. Based on the data that you get, decide which one is better and then get a term insurance plan for you and your family. 4. Analyze Existing Debt Getting a loan has become the norm. The purpose may differ, but almost every household has now got a loan on their head. A term insurance plan can be bought based on how much debt or loan you are left with. Cover your family for the entire amount so that they do not suffer financially to make ends meet. If you have got EMIs remaining for 10 years, they make sure that your term insurance plan covers you and your family for the next 10 years. This is a nice gesture to provide adequate support to everyone who is currently depending on you financially. 5. Know Your IncomePremium is a very small amount of income. If you opt for a term insurance plan with huge coverage , it may exceed your estimate. Whether from a job or business, your current income must be able to support the premium that you have finalized with the provider. If it lacks support, then the premium on your term insurance plan will become an additional burden on you. Start by evaluating the limitations of your income. This can be the frequency or the amount that you receive. It may also be the source of your income. Take care of your family members while you are in good health. Only then will they have a steady life after you have suffered from an unfortunate incident. Getting car insurance can be a tedious process but it is not something you should be without. Other than being a mandatory requirement in the UAE under RTA law, it also has a variety of benefits to offer you. There are two types of car insurance in UAE- Third Party Insurance and Comprehensive Car Insurance. The policy duration for both is the same - thirteen months, post which you are required to renew your car insurance.
It is crucial to get this done before your car insurance expiry date comes around. While it may be the easiest to just click on auto-renew and carry on, there are a few factors that you should pay attention to. You should know about the following factors which are crucial to getting the best deal on your car insurance renewal. Renewing car insurance before expiry of policy A car insurance contract in the UAE is for 12 months with one extra month as a grace period to complete your car insurance renewal process. Failure to do so can result in problems like facing late registration fines or your car being confiscated. To avoid this, keep track of your insurance dates and make sure you renew your car insurance in UAE on time. An insurance broker will help you negotiate a better deal with multiple insurance companies to ensure you get the best price and deal for the money paid by you. Explore Car Insurance renewal options with Brokers The auto-renewal button on your current car insurance company page may be tempting to click, but you may be missing out on better offers. Car insurance companies in UAE are constantly upgrading their offerings, making this a good time to take a look around the car insurance market, so you get the best deal. Approaching a well-established Insurance broker will provide you with more options and deals which may not be given by the insurance company. You should explore these options with an insurance broker to ensure you’re getting the best rates and benefits that suit your unique needs. Scan the market for the best car insurance Everyone has different needs when it comes to car insurance, and you need to first figure that out before purchasing. For this, you should first list down your requirements, make a budget and use this as a base to understand your coverage needs. If you do not have time to do so, you can approach well-established insurance broker to help you break the clutter and provide you the best car insurance policy as per your needs. Documents Required for Renewing Car Insurance policy There are few documents that you need to provide while you renew your car insurance in UAE. If you are carrying out the renewal process online then you must arrange for scans of these documents. If you are doing this in person, remember to carry physical copies of them. The list of documents needed for renewing car insurance in UAE include:
Renewal Process Renewing your car insurance in UAE is online is a quick and easy process. For this, you need to:
In India, you can seldom find an individual who has never invested in a life insurance policy. Irrespective of one's income, people invest in such policies to lead a happy life. However, while investing in a life insurance policy, people rarely look beyond the Sum Assured (SA), the amount the policyholder's nominee receives in case of a claim. Hence, they may or may not get the same returns as a fixed deposit (FD). Typically, life insurance returns are 1% to 2% lower than the prevailing FD interest rates. But, informed investors know that there exists a special life insurance policy that generally provides higher returns than conventional policies - Unit Linked Insurance Policy or ULIP. As the name suggests, ULIP is a market-linked insurance policy. In a ULIP, a part of your policy premium goes to the capital or secondary market, while the other goes to the life cover. Since both ULIPs and life insurance policies offer the same tax saving, wise investors prefer ULIPs more. However, besides returns, there are a few other factors that differentiate ULIPs from life insurance. The following sections discuss the top differences. source The Difference in the Types of Policies: You can buy three types of life insurance policies in India - term, whole life, and endowment.
A ULIP offers you three broad fund options to park your money - equity, debt, and balanced, besides deducting a specific amount for the life cover.
Usually, equity funds offer maximum returns. Hence, a ULIP is the best-suited when you want higher returns plus life cover. The Difference in Risk and Returns Let's start this section with a fact - Unlike ULIPs, conventional life insurance products from reputed insurers provide assured returns. Still, most modern investors prefer investing in ULIPs. Conventional life insurance policies are not linked to the market, meaning they inform you of the Sum Assured and returns when the policy commences. In contrast, a ULIP policy mentions the Sum Assured, but the returns depend on market conditions. Back-of-the-envelope calculations suggest that ULIP policyholders earn more significant returns than conventional life insurance policyholders. Moreover, since you can freely switch between equity, debt, and balanced, informed investors use this feature to maximize their returns. For example, if the market tumbles, you can invest in equity to capture the momentum and earn more when the market resumes its upward journey. And, when the market reaches its peak, you can conveniently switch to debt to protect your capital. A ULIP is a dynamic investment. If you choose to invest in debt or equity, you may have to monitor your investment often. Conversely, investing in a balanced fund is wise if you do not have the time or know-how to handle the switches. source
ULIP vs. Life Insurance - Which Is Better? Both ULIPs and life insurance offer tax savings, safety, and decent returns. But, since the Indian economy and the stock market are growing faster than before, Indian investors are turning more towards ULIPs. Hence, if you want decent returns and sizeable tax savings, look no further than a ULIP. Edelweiss Tokio has set a benchmark ULIP industry. Its flagship product, the Edelweiss Tokio Life Wealth Secure Plus, is ranked number one ULIP in India by CRISIL. The fast-paced lives we lead today have taken over our ability to think about a time when the work we are doing now will soon vanish. Post-retirement life might just come back to where it was all started. To avoid such situations insuring and planning are very important.
Most of us tend to splurge our hard-earned money on things that we consume or enjoy in the present. The lives we lead are also equally demanding. But a slight bit of thought about or life after few decades make us realize that saving up to lead a comfortable life till the very end is extremely crucial. To ensure a peaceful and dignified life post-retirement investing money right now is very pertinent. What are the best Insurance companies in the market? With the insurance sector being open to private participation, a lot of competitive options for the investor have mushroomed in the market. The Indian market currently has 24 Insurance companies that have been approved by the regulator IRDA. Hence insurance market is thriving with a lot of reliable insurance companies. Some of them are:
Advantages of having an Insurance plan:
Given the number of plans available the investor is advised to thoroughly check all the terms and conditions before taking up a retirement plan. Introduction to Child Plans
A child plan is a dual benefit plan which caters to the financial needs of children. These child insurance plans avail a life cover which can be utilized as a lump-sum amount of money is paid at the time of maturity. It provides both, investment and protection and thus can be utilized for education, marriage, travel abroad, and much more. Parents are quite sensitive and sensible these days towards providing the best resources to their children and do not rely on their running income for the same. They are skeptical people who have become extremely smart in investing money from the very beginning to meet the ever-surging educational expenses for their children. The need for a child policy arises keeping the following in mind:
Factors to consider before investing in a child plan Before buying a beneficial child policy which is a very crucial investment, one must consider the following factors:
Best Child Plans
For tax saving, insurance plans are considered one of the best options. There are many different plans which offer tax saving up to Rs 1.50 lakhs as per Section 80C of Income Tax Act, 1961. There are many tax benefits offered under tax saving insurance plans. Some of the benefits are mentioned below:-
Tax Savings Available Under Insurance Plans The following are the sections under which tax-saving insurance plans holder can get:- Section 80 D - Under Section 80 D of Income Tax Act, 1961, one can save up to Rs 1 lakh. For such tax rebates, one needs to buy medical health insurance to get savings on the premiums paid up to Rs 25,000 in a particular financial year. Under a health insurance policy, one can get covered against the hospitalisation costs and also get tax benefits at the same time. Section 80 C - Under Section 80 C of Income Tax Act, 1961, one can save up to Rs 1.5 lakh. For similar tax rebates, one is required to buy insurance plans to get tax exemption on the premiums paid. This plan also has maturity and death benefits. Further, plans which are taken for couples have double benefits. As per Section 80 C, they can save tax up to a maximum of Rs 3 lakhs. Section 10 (10D) - Under this section, one can get a tax exemption on the maturity or death or any lump sum benefit which is paid by the policy on the maturity or death benefit of the policyholder. Section 24(b) - Under Section 24(b), one can save tax up to 2 lakhs by investing in house property for extra tax savings. Section 80 E - There are some insurance plans which also offer loans for kids. Under Section 80 E the interest on an education loan is completely deductible. Tax Saving Insurance Plans Some tax saving insurance plans are:-
Hence insurance policies play an important role in saving tax. Life is uncertain. No matter what the present holds for an individual, it’s the hope of success and fear of failure in the future that drives us all to make important decisions today. Buying a life insurance plan that is worthy of one’s financial goals is among the most critical decisions to take for the betterment of near and dear ones. For individuals who are the sole breadwinners in their family, having a life insurance policy protects the future of his/her dependents, the absence of which could render them unable to afford their standard of living. On the unfortunate event of the demise or disability of the earning member, life insurance secures the financial future of his/her family to pay for household expenses, clear debts, etc. It is thus important for one to look into the underlying benefits of buying a life insurance policy early on in life. Reasons to buy life insurance
As an earning member of the household, there is an overarching need to protect the future of one’s dependents. In the event of the unfortunate demise of the earning member, a life insurance policy would help them replace lost income, afford educational expenses and other unforeseen events that arise later in life.
Insuring oneself with the right life policy would assist their family in dealing with future financial liabilities and debts. Whether it is an outstanding debt for a home loan, car loan, or any kind of personal loan, such an investment decision would provide them with the financial fuel to live a stress-free life without having to worry about wealth crisis.
Retirement is the phase of life where one wants to sit back and relax, live stress-free, and to take joy in his/her family. Some life insurance plans ensure a steady monthly income to the policyholder post-retirement, making life easy and immune to financial stress.
Being a long term investment instrument, life insurance assists in buying a home, an automobile, or simply providing for retirement. Depending upon individual needs, life insurance policies have diverse investment options to choose from. Some policies come with dividends linked to investment products that provide steady cash flow to the policyholder.
The policyholder can avail tax benefits under Section 10D of The Income Tax Act, 1961, regardless of the type of scheme chosen. Moreover, the premiums paid under any policy are eligible for tax benefits up to Rs. 1.5 lakh under Section 80C of the Act mentioned above.
Apart from covering one’s dependants, some life insurance schemes also provide coverage to the individual’s business. If the policyholder is a business owner, his/her business partner can purchase a part of their business, and the pay-out will be received by the family members of the deceased partner. Under this arrangement, however, the family does not get any stake in the business whatsoever.
Life Insurance, at its primary, covers risk and acts like a protective umbrella for your family in case of unprecedented events. Other market-linked investments may yield good returns, but they are also subject to market risks. Under a life insurance arrangement, the policyholder is precisely aware of the terms, and such terms remain constant throughout the tenure of the policy. Life insurance schemes have come a long way from the traditional notion of a simple life cover. They are financial instruments that offer a wide array of benefits for the policyholder and their family likewise. There is a gamut of life insurance policies available, depending upon custom requirements of policyholders. Whether it is the coverage type, rate of premium, risks covered, or simply tenure, it is always advisable to magnify into the terms & conditions of every policy available. Before buying a policy, it is best to carefully consider individual needs before zeroing down on one and make a well-informed decision. You never know when uncertainty occurs; hence, it is always better to be equipped with a life insurance plan. But, in this cluttered market, it becomes confusing to decide which life insurance policy we should buy. It is always needed to determine premium scenarios. All of us seek the premium amount as minimum as possible, but other benefits are also important to consider.
Comparing each and every insurance plan manually might take a long, and even matching all the benefits would also be critical. Here, a toolkit helps you a lot to determine which plan suits your needs best. Thus, insurers introduced a toolkit that allows you determining the premium amount along with other essentials of the life policy. Yes, we are talking about insurance premium calculators. The premium calculator asks for the basic information and analyses all the requirements. In the end, it displays a suitable quote for your policy. You need to provide your personal information such as age, gender, blood group and contact information to initiate the quote process. Later, you will be asked about your desired sum assured; i.e., the amount which will be your life cover, the tenure of the policy and so on. Later, you need to disclose all the information about your medical history, nominee details etc. At last, you will get a quote with several similar options. You can select the suitable plan and go for it by paying the premium amount online, using credit/debit card or net banking. Today, multiple premium calculators are introduced by the insurers as well as aggregators on their websites. Have a look at this- Term Premium Calculator Term insurance is the most basic plan of life insurance; it offers only death benefits for a specific tenure. Thus, calculating term premium is easy with the help of term insurance premium calculator. Child Plan Premium Calculator Be it anything, right from education to marriage; the child plan is designed to consider your financial needs towards your children. Use child insurance premium calculator to plan your child’s future correctly. Pension Plan Premium Calculator It is the time of retirement when all of us need financial security for the second innings of life. Pension plans help you get precisely the same, and you use pension premium calculators to determine the suitable quote. Not just ones mentioned above, but insurers offer premium calculators for almost all types of life insurance plans that help you get the clear picture of your policy. In short, the toolkit helps determine suitable quotes for the policies. So, use the premium calculator while buying any life insurance policy. |
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