Tag Archive | "Investment Insurance"

Forget Vacations! This Is What Your Kids Really Want!

  • Easypolicy
  • 17 Mar 2017

These holidays, where are you planning to take your kids?

An international holiday to Mauritius, or Disney Land, or Bali, or somewhere more expensive?

Well, holidays are good and spending money on them is ok too! But, wouldn't it be great if you spent that same amount of money, or maybe even lesser and bought them the safety and security for life?

Yes, we are talking about lifelong financial planning for your kids' future, through methodical and sensible Investment Plans! Investing money for life security is way better than spending it for few days pleasure!

Therefore, more than any national or international holiday this is what they need and why:

Investment Plans

  • A sound investment plan helps you to grow your wealth and build a corpus of funds, to come in handy for your kids anytime at the time of need.
  • They provide absolute life protection to you and your kids as the main component of major investment plans remains life insurance.
  • With healthy returns at the time of maturity, they are the fool-proof planning for long-term goals of your kids' life.
  • The biggest advantage of investment plans lies in the multiple avenues they offer for earning some extra income in the form of bonuses (guaranteed & non-guaranteed), dividends, interests, and much more.
  • There is also an option to earn capital gains from sale of equities and mutual funds. Thus, generating a side-fund for your kids, as and when they want.
  • These plans bring with them an array of tax benefits. While the premiums paid towards life insurance policies are covered under Section 80C of Income Tax Act, the maturity/death proceeds are also tax-free under Section 10(D). Thus, for all the funds your kids can avail, there is never a tax liability for the same.

Term Insurance Plan

  • If you’re the sole bread-winner of the family, a term insurance plan ensures that your kid’s financial independence is retained even if you’re not around.
  • A Term plan offers massive sum Assured at extremely lower premiums that can come handy for all your kids' educational and life planning needs.
  • If you have certain loans to pay off like car loan, home loan etc. and unfortunately you pass away before they are paid off, your kids are prepared to pay-off with the financial planning you did for them through a sensible Term Insurance plan.
  • A term insurance plan is the best insurance you can buy at extremely economical premiums that easily fit into your pockets without making your kids compromise on things that matter.

Child Plans

  • With a child plan in place, the cost of basic as well as higher education can be met irrespective of the fact whether the parent is alive or not.
  • Marriage is one of the most important milestones in a child’s life and requires substantial amount of financial support. A child plan helps to build a corpus at an early age, hence, such expenses are not a threat.
  • In the unfortunate scenario of a Insured parent’s death the child plan offers a feature called Waiver of Premium (WOP) where the child is given the benefits of insurance and investment without having to pay any future premiums after the death of the insured (parent).
  • With prudent financial planning through a child plan, you can strategically mark important milestones where your child gets financial support to meet different needs at different stages of his life. A child plan ensures this pay-out both in your presence as well as absence.

All kinds of insurance and investment plans are debt, equity and hybrid based. You must know your Risk appetite and invest accordingly, so that your kids do not have to suffer. It is advisable to prioritise your kids' future and based on their life-long needs, invest in a plan that offers maximum returns in your presence or absence.

Give the best gift to your kids' which is a life saver throughout! Vacations can wait!

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How to Make Diwali prosperous?

  • Easypolicy
  • 02 Nov 2016

We are here at the most beautiful time of the year when this month of Kartika brings along all the major festivities. The soothing whether this month carries with it adds to the bliss of celebrating Dussehara and Diwali. Diwali marks the beginning of the New Year according to the Hindu calendar; it is also associated with prosperity and wealth. The festival of Diwali is called as the festival of lights and hope. People celebrate it by exchanging gifts and buying gold on Dhanteras, the festival celebrated two days prior to Diwali. This tradition is very long and to trace its existence is very difficult, it is being passed on by generations.

Gold has been bought as a sign of prosperity but how much sense does it make in buying gold from investment expert’s point of view? In his latest interview India’s star investor, Rajesh Jhunjhunwala said that investing in Gold or jewelry should be the last priority. For youngsters he advised that as soon as possible they should invest in a house as getting a house is a big worry in urbane India. Buying a house is the biggest satisfaction and provides loads of security for the individual and his/her family. Rajesh, whose portfolio is estimated to be more than INR 20,000 crore, being a man of stocks laid emphasis on buying a house first because till the time you don’t have a shelter owned by you, life would be much unsecured.

If you have secured your house, then you should invest in mutual funds or ULIPs. If you haven’t started investing you must begin immediately. To be rich and prosperous one needs financial education, i.e. how to play with money so that it grows. I was reading a book by Robert Kiyosaki, the author of the famous bestseller ‘Rich Dad Poor Dad’; according to it the biggest obstacle in the path of becoming rich and prosperous was that people don’t know how to invest money. Moreover, all the conventional education we get is aimed to enhance our employability but does not impart business building skills.

This Diwali season take a pledge that you’ll learn investment skills and spend time with a good investment advisor. No one can become rich till one is dependent on his own labor to earn money. Also, to secure your family you should invest in life insurance plans, particularly a Term insurance plan because in a Term plan with relatively lesser Premium you get a big financial cover for your family that ensures their continued financial prosperity even when you are not with them. Thus, to make Diwali prosperous some smart planning needs to be done, yes, Lakmshi Poojan will show its effect, no doubt but a different form of Lakshmi Poojan i.e. smart investments should also accompany deity worship in your journey towards prosperity.

In the advent of attainment of prosperity Risk planning should also be done, an important thing in this aspect is to get all the important insurances get done as briefed in the paragraph above. Also, it calls for diversifying your portfolio so that if some investments flunk they could be compensated by the income from others. You must have read this famous quote by the most successful investor in the world, Warren Buffet that “Don’t put all your eggs in one basket”

A Quick and Easy Method to Get a Cheap Investment Plan

  • Easypolicy
  • 27 Sep 2016

The idea of multiplying our money is very fascinating as well as intriguing. Anyone who understands the concept of time value of money wouldn’t like to keep idle cash with him and would always be on a look out where money could be invested to draw highest returns at minimum risk. A popular investing theory called Modern portfolio theory (MPT) lay guidelines on how risk-averse investors can construct portfolios to optimize or maximize expected return on a given level of market risk. It’s a general industry rule that when expected returns are high the Risk on investment would also be high.

Having a diversified portfolio is always recommended to hedge risk by spreading it over large number of investments. So the loss suffered on some investments shall be compensated by the profits in others. An icing on the cake when we talk of a perfectly constructed investment portfolio is to include investments plans of life insurance companies. Such plans not only employ your money in growth funds they also provide you a life cover. Thus, these plans act as a two birds with a single arrow scheme.

Among life insurance plans, Endowments and ULIPS can be seen as attractive investment options.  Endowments are also called traditional plans. The purposes people invest in these plans vary from person to person.  Some invest in such plans to get security, some for growth and additional earnings. Based on certain factors people make a decision whether they want to go for ULIPS or endowments. ULIPS are comparatively more flexible and give the investor the opportunity to choose the stocks in which he wants his money to be invested. ULIPS provide a transparent cost structure and one knows how much of the Premium is invested in the underlying assets and how much are the allocation charges & fund management charges. Such cost disclosure is not present in case of endowment plans. Also the freedom to enhance life cover which is provided in ULIPS is absent in endowment plans, the sum Assured and premium remain fixed in endowment plans.

Since endowments or traditional plans are debt based investments, they are considered to be less risky and thus, more suitable for people who are 45 plus. Investors of ULIPS fall in lesser age bracket as the risk element is high as they are market linked plans and returns depend on the performance of the underlying asset. Under ULIPS you get the opportunity to switch between the fund options. No such option is available in case of endowments. When you are deciding your investment portfolio it is highly recommended that you take advice from a professional financial advisor.

The construct of your portfolio should be well balanced in order to optimize growth for a given amount of risk. When you have decided which investment plans to go for, you then should compare investment plans of various insurance companies to get the plan with most attractive features and that too at most competitive prices. There are over 20 life insurance companies operating at the present and each sells a differentiated life insurance product to remain competitive in the market. Do not just invest in the company’s product of whose advertisement you see most on the TV. DO a little in depth research as its affects are going to be for a long Term in your life. These days online comparison of insurance plans on various web aggregator websites is very popular. Online plans are cheaper as no middlemen in the form of agents are involved. Youngsters these days feel safer in online transactions than offline ones. Based on your comfort level with the computer you may decide whether to g for online purchase or offline mode.