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Information provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. insurance2all.com and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. insurance2all.com, its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.
In today’s fast-moving life, it is best advised to get everything insured to avoid any unexpected loss. However, many people feel that having insurance is like carrying an umbrella along all the time. No doubt, it may be an extra burden most of the times, but yes, won’t you feel glad when it rains? The umbrella is there to protect you! In the same way, a right insurance policy is a key to a healthy and prosperous financial life. There are a plethora of insurance plans available in the market, and most financial experts advise that it is very important to have these insurance policies in place, at the right age. While purchasing an insurance plan, it is always important to keep in mind your specific situation and several other factors.

Here, we have briefly explained which insurance plan is important for you and at what age you should purchase them. As you read through, do remember that insurance policies are largely personal and as your life changes, so must your coverage!

Life insurance is one of the important insurance plans to buy in your 20s in order to protect yourself against unexpected risks. The key benefit of purchasing a term insurance plan at a young age is lower premium rates. Anyone purchasing a term insurance at the age of 25 is supposed to pay a premium of Rs 7,000 for a period of 30 years, while someone taking the same policy at the age of 30 pays a premium of Rs 9,000. Health insurance is another vital insurance plan that you must take at this age. With the sedentary lifestyle we follow today, the chances of getting a lifestyle disease are quite high. Moreover, an accident can occur at any time and any place. But with the right health insurance plan, you are effectively covered for years for the treatment of any lifestyle disease or accidental injury. The health insurance plan can be further enhanced by adding riders, including critical illness cover, maternity cover, etc. Often people in their 20s feel the urge to own a car or a bike and it is very important for them to understand that getting a motor insurance is as important as getting a Driving Licence to drive that car or bike. The premium rates for both four-wheeler and two-wheeler insurance totally depend on the age, make, model and engine capacity of the vehicle.

As you enter in your 30s, life usually begins to settle down and your priorities tend to shift with career and family taking the top position. And with these great priorities come extra responsibility. To best take care of yourself and your family, make sure that you stay covered in a few important areas. namely – Health Insurance, Life Insurance, Disability Insurance, and Home Insurance. Without a proper insurance, adequate healthcare in India seems unaffordable for many. And in case you skipped buying a health insurance in your 20s, don’t skimp now. Do not ever make the mistake of going for the bare minimum, rather find a substantial policy that works best for you and your family. Like life and health insurance, home insurance is also equally important. While taking a home insurance, it is very important to tally up all your valuables accurately so that you get the best value.

As you set in your 40s, you are more prone to many illnesses that usually come with the age. Moreover, in your 40s, good health cannot be guaranteed even by exercising or eating just healthy food. Your family would also have grown, and if you buy a family floater medical insurance plan, it will certainly help you. For complete protection, you can also add various add-ons and riders like critical illness, restoration, OPD cover and many more to your health insurance plan. Most of these policies pay the total sum assured in a lump sum on diagnosis of a critical ailment. As a policy seeker, you can always choose the most suitable plan that best suits your requirements and covers the premedical history. However, it must be noted that buying a health insurance policy at this age calls for a higher premium.

Source:Financial Express

As per the current world scenario, each one of us needs an adequate health insurance coverage. Health insurance cover is a very important product that provides financial as well as mental support in case of any medical emergency by covering the cost of medical care of the insured individual. With a plethora of choices of health insurance plans available in the market, the range and scope of coverage completely depend on the type of health cover you are seeking. Like every other insurance, health insurance is also renewed each year and in order to enjoy continuous coverage, it is mandatory to renew health insurance every year. However, before you plan to renew your existing cover, it is very important to compare different products available in the market to finally select one that can serve your needs in the best way possible. This is when you need to assess your health insurance.

Assessment of your Health Insurance Cover

It is quite possible that with the significantly rising health care costs and regular inflation, your existing health insurance cover may fail to provide you with adequate coverage. To avoid such a situation, it is important to assess your current health insurance plan. Health insurance cover assessment refers to the process of assessing one’s current health condition and benefits provided by the existing policy. It is smart to assess the policy before making an annual renewal or if you do not have a health insurance policy, buy one plan after evaluating your healthcare needs. This is the easiest way to choose the most beneficial health insurance plan in minimum time. In order to review your existing policy, try and find out if your health insurance cover worked well for you during your last policy term. Where you really satisfied with the services and benefits provided? Apart from this, do even check whether you or anyone insured under the policy have developed any specific medical condition that needs immediate attention or treatment within the policy term. It is equally important to assess the claim experience if any, and the benefits enjoyed under such circumstances. Check out for the deductibles if any as deductibles play a very crucial part in a health insurance policy. You even need to review and enhance your policy if you got recently married and are planning a kid soon. Finding adequate answers to all such small yet important questions play a major role in zeroing the best health insurance plan for you.

Change in Network Hospitals

It is quite possible that your insurer makes a few changes in the list of network hospitals and there may be chances that your preferred hospital and doctor are removed from the list. Thus, it becomes significantly important for you to thoroughly re-evaluate your existing health insurance plan and double check the list of network hospitals and doctors. If your preferred hospital no more falls in the network of your insurer, it is wise to take a different policy rather than renewing the same policy. Look for both individual and family health insurance plans. The Cost of Healthcare Might Increase There is nothing denying the truth that healthcare costs are witnessing a constant rise in the past one decade and chances are quite high that your existing health cover may not offer adequate coverage. This is one of the key reasons why you need to access your health insurance cover before renewing the existing policy. In order to calculate how much cover you would actually need, it is better to review your previous claims and the current health status. Also, check if you need protection against some specific critical illnesses. It is very important to understand the coverage benefits for various policies before finalizing one particular insurer as assessing your healthcare needs can help you make the right decision.

As per the current world scenario, each one of us needs an adequate health insurance coverage. Health insurance cover is a very important product that provides financial as well as mental support in case of any medical emergency by covering the cost of medical care of the insured individual. With a plethora of choices of health insurance plans available in the market, the range and scope of coverage completely depend on the type of health cover you are seeking. Like every other insurance, health insurance is also renewed each year and in order to enjoy continuous coverage, it is mandatory to renew health insurance every year.

Source:Financial Express

Living with debts is the new normal. But if you can manage yourself to come out of the quicksand of debts, you will be able to stand above the rest. Such a financial stage of life is something which is dreamt by almost all the people around us.

Organize your Debts

If you have more than one debt, prior to taking any step, you are to organize your credits. You can make a list of your credits along with the due date, the outstanding amount, interest rate etc. Most of the persons with a number of debts overwhelm with the payables and lost the track of credits. To avoid such situations, it is it advised to make a list or use spreadsheets to organize your credits to understand where you stand financially.

Prioritize Repayment
When you understand the fact that you are under a debt till your neck, it is high time to prioritize your loan repayments rather than anything else. You are to cut off expenses as far as possible so that some amount can be saved. Remember the fact that small saving made daily can help you to have a really good corpus after some time. One can take small steps such as taking public transport to work, eating homemade food, avoid partying etc which are really helpful in saving a quite good amount of money every month.

Develop a Strategy

There are two strategies to make faster repayments. First is to pay off the high interest rated loans then the low-cost loans. The second strategy says that if you have a large number of small debts, get them out of the all those loans before tackling the big debts. However, the first strategy of paying down the high-interest credits first will be helpful in saving more in interest charges.

Be Consistent

Whatever strategy you may have opted, you are to stick to it till you attain freedom from your debts. When it comes to debt repayment, remember the mantra that Consistency is the Key. Being determined till your reach your goal is necessary. If you get diverted on the midway, all those efforts you had put at the beginning will give you no results. In this way, you will have to continue to live under debt for an uncertain time.  

Build your Savings Corpus

When the ultimate goal of yours is to be debt free, you are to make your savings too. Your savings and loan repayment should go side by side. Savings is recommended with loan repayment as your savings will work as your emergency fund too. If you are equipped with an emergency fund, you will not need to take an instant loan if any cash crunch arises.

Stay Away from Further Loans

Availing a loan is very easy at the present day. Just a few clicks on your smartphone and the loan amount will be in your bank account. Such easy availability of loans has convinced many of us to apply for online loans even for purposes which are not worth taking loans. You are to keep yourself away from loans which are taken for entertainment. Such are the loans which generally turn to bad debts in the future. So until and unless it is an urgency, loans are a big NO.  

Use Extra Money Towards Credit Repayments

Whatever your source of income may be, within a year it is certain that you earn some extra money on the top of regular income. For salaried people, it can be a festive bonus while for the self-employed if may be a seasonal boost in business. Whenever there is such an extra amount of money, use it towards repaying the credits. One can make part payments of loans or paying more than regular for credit cards.  Such an action of yours is certain to minimize the loan burden.

The Last Line

Whenever you make up your mind to become debt free, remember the fact that it would take a quite good duration of time. Your debts were not created in a day or two, getting rid of the same will also take time. considering the fact, one has to be determined and follow step by step loan repayment plan to make debt burden disappear from your back.

Source: financebuddha.com
Every Person wants to SAVE TAXES..!! Isn’t it..? But how could anyone do that?? How and where to Invest? What is the most tax efficient investment? Pretty much Confused. Right..?? These are some of the very common questions which can easily be seen floating around. To achieve that purpose we need to understand the concept of TAX DEDUCTIONS. Tax Deductions are the reduction in your overall tax liability when you invest in some of the specified investments. So, today we are gonna have a quick summary of the entire deductions. So, Let’s understand them:

1. Deduction u/s 80C [Most Popular Deduction]
Eligible Assessee: Individual & HUF

Deduction for: Various Type of INVESTMENTS. Some of the most common investments are as follows:-

– Payments made Toward Life Insurance Premium (for Self, Spouse, and Children)
– Payments made towards Provident Fund with a Lock in Period – 15 years
– Equity Linked Saving Scheme (ELSS) with a min. lock-in period of 3 years
– Payment made towards the Principal amount of Housing Loan
– Having a Fixed Deposit/Deposit in Post Office (Now IPPB) with a min. lock-in of 5 Years
– Amount Deposited in Sukanya Samridhi Account
– National Saving Certificate
– Purchasing Bonds of NABARD.
Max. Deduction: Rs. 1,50,000/-

2. Deduction u/s 80CCC:

Eligible Assessee: Individual Only.

Deduction for: Premium Paid for Annuity Plan of LIC or Any other Insurer.

Max. Deduction: Rs. 1,50,000 (combined with 80C)

3. Deduction u/s 80CCD: 

There is a further classification of this particular Section.

Section 80CCD(1)

Eligible Assessee: Individual Only (whether Employed or Not).

Deduction for: Payment towards the NPS Pension Account.

Max. Deduction: 10% of Salary (Basic+DA only) /20% of GTI (in case of Self Employed) [but deduction allowed in combination with 80C]

Section 80CCD(1B)

Eligible Assessee: Individual Only (whether Employed or Not).

Deduction For: Payment toward the NPS Account made by the Employee/Self Employed person can be diverted to this section when 80CCD(1) limit has exhausted

Max. Deduction: Rs. 50,000 – THIS IS AN ADDITIONAL DEDUCTION i.e. allowed without combining with 80C.

Section 80CCD(2)

Eligible Assessee: Individual Only (must be Employed)

Deduction For: Employer contribution towards the NPS account of Employee.

Max. Deduction: 10% of Salary (Basic+DA only) – THIS IS AN ADDITIONAL DEDUCTION  i.e. allowed without combining with 80C

4. Deduction u/s 80D:

Eligible Assessee: Individual & HUF

Deduction For: Amount paid for Medical Insurance Premium  / Medical Expenditure / Preventive Health Check.

5. Deduction u/s 80E:

Eligible Assessee: Individual Only.

Deduction For: Interest on Loan for Higher Education paid during the relevant previous year.

Max. Deduction: 100% Interest amount

6. Deduction u/s 80EE:

Eligible Assessee: Individual only (and only when he is purchasing First home ever)

Deduction For: Payment of Interest on Housing Loan which has been taken for the First Home Purchase.

Max. Deduction: Rs. 50,000

But deduction would be allowed subject to following conditions:

– Value of Property to be purchased should be Max. 50 Lakhs.
– Value of Loan taken should be Max. 35 Lakhs.
– The Loan must have been taken between 01 April 2016 to 31st March 2017.

7.  Deduction u/s 80TTA:

Eligible Assessee: Individual & HUF

Deduction For: Interest on Savings Account (not on FD/RD)

Max. Deduction: Rs. 10,000/- 

8. Deduction u/s 80TTB:

Eligible Assessee: Individual (Senior Citizen) Only

Deduction For: Interest on Any Account (including FD/RD)

Max. Deduction: Rs. 50,000/- 

9. Deduction u/s 80U:

Eligible Assessee: Individual (Resident) only

Deduction For: Flat Deduction even without any expense incurred. 

Max. Deduction: Fixed Deduction of Rs. 75,000 (if Disability is 40% or More) / Rs. 1,25,000 (If Disability is 80% or more). And here we go..!! Now you are all set to save some good amount of tax and make some good investments as well.

Source: taxguru.in
Please do not reply back to this mail. This is sent from an unattended mail box. Please mark all your queries / responses to webmaster@insurance2all.com.
Information provided on this newsletter has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions. insurance2all.com and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this newsletter, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. insurance2all.com, its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided on this newsletter.