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!

how to stay fit and pay less for insurance premium?

  • Easypolicy
  • 04 Mar 2014

To avail discounts from insurance companies, you need to be in the pink of your health. The healthier you are, the more discounts the companies will give you and you are able to save on insurance premiums. Especially, when it comes to Term cover, insurance companies offer lucrative discounts which these companies might not be able to offer on health covers. When you compare insurance premium, you would be able to get the optimum returns on your investment.

When you compare online insurance, you will find that women and non-smokers are charged lower premiums. When the insurance companies calculate premiums, there are many factors that are considered. The most critical factor is how healthy the person is. If the person is obese, with high blood pressure or diabetes, he/she  is bound to pay a higher amount of Premium when compared to someone who is healthier. In short, staying fit and healthy is the key to obtain lower premiums.
There are some policies for which blood tests are a requisite. These do not have very low premiums but these can be availed by the healthy people with no lifestyle diseases. As a proof to your sound heath, you need to submit the reports of your tests to the insurance company.

Some insurance companies offer better rates to the High Network Individuals (HNIs). This is usually given as many companies have assumed that HNI’s nowadays have lower mortality rates and lead better lifestyles with more health care facilities available to them. The HNI’s are also classified as smokers and non smokers which also has an impact on the premium they pay.

It is advisable that before you compare and buy insurance, you should ensure that you do not have any unhealthy lifestyle habit. To get the best possible discounts on insurance policies, you need to tweak your habits like smoking and drinking. Smokers need to shell out higher premiums. People suffering from obesity or any other diseases like diabetes, High B.P etc. have to bear the high costs of insurance premiums.

If you plan to buy the insurance Policy online, make sure you compare the Coverage and premium rates of different insurance providers. Group policies cost you relatively less as there are more people who are covered and henceforth insurance companies offer discounts. So, you can consider going in for group policies, if saving money on premiums is your priority.

rising inflation: how much cover is enough?

  • Easypolicy
  • 01 Mar 2014

People buy life insurance with an objective to ensure financial security and comfort of their family in their absence. Ideally, the Insured would want a cover that is big enough to help their dependents pursue the same quality of life as they are doing today. Most people tend to decide the required sum Assured or insurance cover based on the current cost of living for their family, but what they forget to incorporate in their calculation is the impact of inflation. As a result, many of us are under insured and though we may have brought a life insurance policy, but it really is not fully serving the objective.

Inflation is a monster which deteriorates the value of money with time. Over the last few years we have witnessed how rising Inflation can not only deteriorate the value of your savings, but also your ability to save. Inflation as measured by the consumer price index, commonly known as CPI was 10.9% in 2013 and 9.9% in 2012. This implies that basket of consumer goods/services which were available at INR 100 in 2011 will now cost you about INR 121. The other way to look at it is the value of your money has eroded to the extent of 21% over two years.

Hence, while determining the amount of money that your family would need in your absence, be sure to incorporate the impact of inflation. If your family needs INR 4 lakhs today for maintaining a quality of life you would aspire for them, you would then need to plan for a cover that should assure them a significantly higher amount than 4 lakhs, because inflation will eat away a lot of value as the amount of services and goods that you can look to buy with INR 4 lakhs today will not be the same in the future. You would be able to afford much less.

To determine the ideal Sum Assured of your insurance plan, you need to know how inflation would shape up over the next few years. The best way to do so is take the historic inflation numbers as guidance for the future. If historically, the inflation in the country has averaged at around 6%, you may apply this factor on your estimated cost of living and determine the amount of sum assured that would be enough for your family.

Once you know the right cover you need for your family, it is time for you to compare insurance online to know which Policy offers you the desired sum assured at the lowest insurance Premium cost. Once you have zeroed in a policy, you can also buy online insurance.