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Earn Bonus in Life Insurance Policies

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  A bonus is usually referred to an extra amount of money or reward one receives in addition to the base amount. The same concept goes with bonuses payable to the policyholders in a life insurance policy as an amount accumulated on a yearly basis and payable on the life assured death, surrender, or maturity of the plan. Hence, this bonus amount is payable over and above the benefits applicable under a life insurance policy. How is Life Insurance Bonus generated? A huge portion of the premium paid by the policyholders is invested in government-secured debt and some in equity. The insurer’s claim experience, returns on investment, and actuarial factors together are responsible for profit. The insurers distribute the profits to the participating policyholders based on the earnings received as a return on these investments. Any excess of assets after the valuation of the company’s assets and liabilities, may also generate an extra amount to be distributed as a bonus. Types of bonuses: ...
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MONEY MANAGEMENT

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  Your financial planning is most likely to fail if you don't have a good hold on your money, regardless of how much (or little) you know about investments, stock markets, credit cards, and insurance. Understanding your finances or your financial status thoroughly and being able to handle them wisely is the first and perhaps most important step in financial planning. So, what is your financial situation? 1) Earnings and Expenses : In order to assess how much money, you have in hand after taking care of your requirements and goals, what you make will be less important than how much you spend. To be in a better financial situation, one needs to set a ‘balance’ between earning and spending habits. And the same can be used as a benchmark to plan your finances. A positive or zero bank balance at the conclusion of most months corresponds to a weak financial trend, whereas a healthy bank balance at the end of the month typically indicates a tendency towards a strong financial position. 2)...
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Location: India
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WHICH TAX REGIME SHOULD YOU SELECT? ARE YOU CONFUSED?

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Old Regime has Deductions and Exemptions but the New Regime has Lower Slab Rates and Fewer Exemptions. When the fiinancial year begins, employees must inform their employers of their chosen tax structure.  WHY DO YOU HAVE TO OPT FOR A TAX REGIME?  Employers are seeking information from their Employees on which regime they wish to opt for because CBDT (Circular no 04/2023) made it COMPULSORY for the Employers. Employer will be deducting TDS accordingly. You have to select between the New and Old Tax Regime, else the Employer will take the New Tax Regime as DEFAULT and deduct TDS accordingly. Whether you choose Old or New Income tax regime, the purpose of TDS on Salary has no impact on filing Income tax return by the assessee. You can change it while filing your ITR. TIPS ON WHICH IS THE RIGHT TAX REGIME FOR YOU  For Income up to Rs 7 lakh the New Tax Regime is better  In case you don’t have Tax savings and Deductions to avail then consider the New Tax Regime  In ...
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Location: India
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UNDERSTANDING MUTUAL FUNDS

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  What are Mutual Funds? A mutual fund is a scheme that pools money from a lot of investors and invests it in stocks, bonds, and other types of short-term debt. All the mutual fund’s holdings collectively is known as the mutual fund's portfolio. Owners of mutual funds purchase shares and hence, are called shareholders entailing a portion of the fund and the money it produces. Why to buy Mutual Funds? Mutual funds are one of the best investment instruments to invest into because of the following features which they offer: -  Professional Management : A group of professional fund managers take care of the fund performance based on detailed research. Diversified portfolio: It is commonly said that “Don’t put all your eggs in one basket.” Same principle applies to the mutual fund investment. Mutual fund investment across a wide range of sectors and companies helps reducing the risk of losing money even if one company fails. Affordability: For first investments and subsequent pur...
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Location: India
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ALL YOU SHOULD KNOW ABOUT E-INSURANCE ACCOUNT

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Introduction We are currently living in the digital era, as we all know. The digital revolution has caused everything in our surroundings to transition from mechanical and analogue to digital form. The distinguishing feature of this period is our capacity to employ digital tools to create new things, processes and commercial operations as well as modify existing ones to meet the requirements of a market that is always changing. About E-Insurance Account (EIA) EIA stands for "e-Insurance Account". A person's electronic insurance policy portfolio is managed by an E Insurance account using an insurance repository. One account to manage and maintain all life and non-life insurance policies from different insurers. "E-insurance policies" refer to all life and non-life insurance policies that are kept in e-insurance accounts as a whole. Features of an e-Insurance Account Only one e-insurance account is allowed in an individual’s name. An e-insurance account holder can...
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Location: India
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LIFE INSURANCE: ENDOWMENT POLICY

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Policy Term: Premium Paying Term: Commission We previously spoke about how changes to the IRDA regulations affected bonus entitlements, and minimum death benefits with exclusions. Definition once again Endowment insurance plans are made to provide a significant payout in the event of death, as well as, if necessary, survival, maturity, and profit sharing. Policy term The Policy Term is the period for which the Insurance Company is under risk and signifies the existence of a valid policy contract. Premium paying term The amount of time that the policyholder must pay premiums to maintain the contract's validity is known as the Premium Paying Period. The average premium payment period corresponds to the insurance term in length. Yet, some insurance agreements permit the insured to select a premium payment schedule that is shorter than the policy term. The policy term must be no longer than the policy term. The Insurance Term may not, under any circumstances, exceed the Premium Paying ...
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Location: India
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LET’S KNOW, HOW TO CREATE A SOLID INVESTMENT PLAN?

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  What is investment planning? Investment planning is the process of establishing one's financial objectives and making a strategy to invest the funds necessary to achieve those desires, aspirations, and goals. The security of one's family, a steady income flow, investment growth, an increase in the standard of living, tax planning, and the protection of one's own and one's family's future are all helped by sound investment planning. To help a person or client in achieving their financial goals and objectives, a structural relation to investment planning and administration is essential. The key to this technique is a process that enables me to determine my investment goals and objectives more clearly, evaluate my risk tolerance, account for my financial and emotional constraints, and then create an appropriate portfolio. Creating a solid investment plan Before investing in any kind of financial instrument, you must have a solid investment strategy. Without a plan, a...
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TIPS TO BUY HEALTH INSURANCE WITH PRE-EXISTING DISEASE

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  What is Health Insurance? Medical insurance, commonly referred to as health insurance, is a strategy for financial stability that covers unforeseen expenses related to care, hospitalization, and surgery. It provides financial aid to pay for the costs of surgery, hospitalization, and medical treatment. It is a type of insurance coverage that covers the medical and surgical expenses of an insured person. What is a pre-existing illness? Diseases or health conditions that the insured had before purchasing a health insurance policy are referred to as pre-existing conditions. According to IRDAI, a condition is regarded as pre-existing if the insured person had a diagnosis of it up to 48 months before to enrolling in insurance. All chronic medical disorders, including diabetes, asthma, thyroid illness, high blood pressure, and more, are considered pre-existing conditions. Pre-existing diseases in a health insurance plan: Every health insurance policy has a pre-existing condition clause....
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Location: India
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COMPANY FIXED DEPOSITS

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What are Company Fixed Deposits? Business fixed deposits or Company Term Deposits are another name for company fixed deposits. Companies, housing finance businesses, or other categories of banking and non-banking financial institutions (NBFCs) provide these. This is a great way for businesses to request money from the general population. These FDs have excellent credit ratings from organizations like ICRA, CARE, and CRISIL, making them very reliable investments. These ratings indicate relative safety of the money deposited. The advantage for individuals investing in Company deposits is the higher interest rates compared to Fixed Deposits from Banks. Company FD Schemes Interest Rates 2023: (1-year tenure) - Company                                             Regular FD Rates               Senior Citizen FD Rates Kerala Transport Development ...
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Location: India
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ETF v/s MUTUAL FUNDS

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Exchange-traded funds (ETFs) are one of the strongest investment options, and they have recently attracted a lot of attention. To the uninformed, these funds—which pool client cash to buy a diverse portfolio of bonds and stocks—might resemble mutual funds. What specifically separates the two, then? The differences between mutual funds and ETFs aren't that great. One of the significant differences between the two is that ETF shares can be purchased through a brokerage, much like stocks, as opposed to a fund management company that offers mutual funds. ETFs operate largely like index funds. Instead, these funds look like a list of investments. The customer has the option of selecting between mutual funds and ETFs based on their convenience. If he or she already has a brokerage account, buying an ETF is quite easy and practical. A mutual fund is suggested if a shareholder doesn't have a brokerage account. What is ETF? The exchange-traded fund, or ETF, is a type of investment vehic...
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Location: India
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What does MWP Act mean?

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We assume that a married woman can possess and manage her property without the assistance of her husband, regardless of whether it was a gift from her parents or something she worked hard for. It wasn't always like this. Typically, a wife gave up her ownership and managerial rights to her husband at marriage. The Married Women's Property Act, an important piece of legislation addressing this injustice, was adopted in 1850 as a result of early 1800s campaigns by numerous women's rights organizations. A wife was able to own and manage property without her husband's help for the first time in recorded history. Several countries quickly adopted this adjustment, and India put into effect a statute that was nearly identical in 1874. In light of the history lesson that was just provided, what significance does this have in terms of life insurance? Your loved ones might not always receive the insurance payout even if you have a life insurance policy in place and you pass away. ...
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Location: India
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ETF AND MUTUAL FUNDS

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ETF vs MUTUAL FUND Exchange-traded funds (ETFs) are one of the strongest investment options, and they have recently attracted a lot of attention. To the uninformed, these funds—which pool client cash to buy a diverse portfolio of bonds and stocks—might resemble mutual funds. What specifically separates the two, then? The differences between mutual funds and ETFs aren't that great. One of the significant differences between the two is that ETF shares can be purchased through a brokerage, much like stocks, as opposed to a fund management company that offers mutual funds. ETFs operate largely like index funds. Instead, these funds look like a list of investments. The customer has the option of selecting between mutual funds and ETFs based on their convenience. If he or she already has a brokerage account, buying an ETF is quite easy and practical. A mutual fund is suggested if a shareholder doesn't have a brokerage account. What is ETF? The exchange-traded fund, or ETF, is a type ...
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Location: India
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Everything You Need To Know About Financial Planning

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What is Financial Planning? Financial planning is a rigorous, step-by-step procedure for achieving one's own financial goals and life objectives. A financial plan serves as a guide for achieving and achieving your future financial goals. Basically, keeping track of your income, expenses, and assets can help you manage your money more effectively and accomplish your goals within the allotted time. “Financial goals should be specific, measurable, achievable, relevant, and time-bound when they are set.” The following benefits of financial planning are listed: Setting short-term, mid-term, and long-term financial goals. Increase life savings by deciding on discretionary income to save. Improve the standard of living with good financial planning without compromising the current lifestyle Crisis management with the help of a contingency fund. One must make sure to have an emergency fund that is at least equal to six months' worth of monthly income. Boost savings rate with the help of...
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Location: India
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HEALTH INSURANCE - PLAN WELL, STAY HEALTHY, AND BE WEALTHY

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What is Health Insurance? A financial safety net that covers unforeseen medical, hospitalization and surgical costs is health insurance, also referred hospitalization insurance. It offers financial assistance to cover medical, hospitalization, and surgical costs. What are the Benefits of Health Insurance? Coverage against medical contingencies: Here, "contingencies" refers to crises. Getting personal accident insurance is strongly advised due to the unpredictability of life and the steadily rising prices of medical expenses. Your medical bills and other help during these trying times will be covered by the insurance provider. Financial protection against medical cost: Health insurance sets you free from all the worry about medical emergencies. All you will need to worry about is your health and recovery, or the recovery of a loved one. Hospitalization expenses: Any illness that necessitates immediate hospitalization is covered by most health insurance plans. But claims are...
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Location: India
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RISK APPETITE AND INVESTMENT

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Know Your Risk Appetite You must be willing to invest in assets carrying the maximum amount of risk you can tolerate if you want to reach your savings objectives. Your investments should ideally be set up in accordance with your level of risk tolerance. Investors should weigh both potential risk and the investment's future growth because the risk is a crucial factor in determining whether or not to pursue a particular investment opportunity. All investments are subject to market risk. How To Measure Your Risk Appetite? Your level of risk tolerance and your ability to assess the level of risk you can tolerate is referred to as your risk appetite. Think about the following: Are you ready to deal with short to the medium-term risk associated with aspired long-term investment gains? What would you do if the value of your portfolio dropped by 30% quickly? (The COVID-19 epidemic or the 2008 global economic crisis are two examples of such severe unrest.) How will these uncertainties affec...
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Location: India
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