Save Your Unwanted Tax deduction and Assure Family Security. - Classified Ad

Save Your Unwanted Tax deduction and Assure Family Security. - Classified Ad

Financial Planning For Future.

Financial plans are series of an individual additive attainment of which is designed to accomplish a financial goal or set of circumstances, e.g. Elimination of debt, retirement readiness, etc.

Financial planning may easily be understood as, the method of meeting our life goals through the proper management of our finances. Life goals might include buying any home, saving for your child's higher education or planning for retirement. The financial planning process consists of some basic points keep in mind that assist you take a 'big picture' cross-check where you're presently. Using below given points, you'll be able to work out with a good financial plan, and may check where you're presently, what you'll need in coming future and what you should do to succeed in your goals. The process requires a smart way of planning and expert help.

The benefits of financial planning

Financial planning provides direction and meaning to your financial decisions. It allows you to understand how each financial decision you make affects other areas of your finances. For example, buying a particular investment product might help you pay off your mortgage faster or it might delay your retirement significantly. By viewing each financial decision as part of the whole, you can consider its short and long-term effects on your life goals. You can also adapt more easily to life changes and feel more secure that your goals are on track.

5 golden rules of financial planning-

1). Have a financial goal, be rich

Financial goals can't be an afterthought, or your efforts are likely to fail. To succeed at anything, you have to make it a priority in your life. Commit your goal, if you're not clear on your commitment, other things will always get in the way. A plan acts as a guide through your financial journey and, even if domestic and global upheavals dent your investments, it will help you get back on track. At the macro level, planning affects every aspect of personal finance, be it taxation, insurance or achievement of goals.  As with everything, it's all about the choices you make.

2). Make a budget or spending plan

Command your expenditure from being overflow. Track your expenses. A simple step you may have in practice is to right down every single thing you spend money on and analysis at end of month.

Imagine it as your spending plan initially. After that you may frame it as regular or traditional budgeting, in which you allow a certain amount of money for each of your spending categories, including long-term savings and emergency savings, for example. Or you can think of it as a reflection of your values. Monitor your expenses and see is it helping you to achieve your goal that we discussed earlier.

3). Save your money

Saving is another earning. You can’t be rich if you will spend all your money, in this sense it is important to focus on saving your earnings. if you are not saving a penny you'll always be treading water. From saving your money we mean living beneath your basic means and increasing your income. You may find many ways to save a few dollars off of expenses, such as buying generic, travelling with public transports, commanding over unnecessary expenses and via other ways you may save some extra dollars every day. By the way, it’s your money, Enjoy Your Money! But care more about How to Make It, Save It, Invest It and earn more.

4). Ensure your family & finances

Most people are so intent on investing, handling daily life and building assets that they forget to cover their risks. It is always crucial to secure your family and finances by creating an adequate insurance portfolio. A majority of the people buy insurance to save tax and as an investment, with life insurance the second most favored investment destination after fixed deposits. Please don't mix your insurance and investments. Command your investment, but insurance should be flow continuously.

5). Keep yourself updated, be aware & alert

As time changes there is always some new rules are being updates. A good financial planning should include above stated points but this is also important to be alert about the plan’s status. A good financial plan doesn’t only means investing in the right avenues and monitoring the plan's progress, but also ensuring that you don't lose your hard-earned money to frauds, identity theft and sheer ignorance. Financial knowledge and caution can translate into higher gains and fewer losses for you in any market condition. You may compare various market strategies, have guidelines from experts like Thepolicykart to ensure your safety.

LIC e-term Plan Online.

A person who is comfortable with internet services and has some experience of having made an online purchase, buying life insurance online will always be a logical option to him. Of course it should be, as It's fast, easy and secure. Just fill in some required basic details and make the online payment. No tension for visiting offices etc. And also its hassle free process. Apart from the convenience, online policy is also cheaper than the offline version as online rebate is also available. LIC's e-Term is a regular premium non-participating "on-line term assurance policy" which provides financial protection to the insured's family in case of his/her unfortunate demise.

LIC's e -Term Policy

LIC's e-Term policy is a pure life cover policy. Under this insurance policy, against payment of regular premium, the insurer agrees to pay your beneficiaries the sum assured in event of your premature death during policy term. However, if you survive till the end of the policy term, nothing is payable to you.

Eligibility-

·         The person should be Resident Indian residing in India.

·         He should not be Non-Resident Indian(NRI), Overseas Citizen of India(OCI) or Person of Indian Origin(PIO).

·         Minimum entry age: 18 years (Completed).

·         Maximum entry age: 60 years (Nearest Birthday)

·         Maximum cover ceasing age: 75 years (Nearest Birthday)

·         He/she must have own earned income.

·         One cannot propose for anyone other than self.

·         One should have annual income around 3 lacs to purchase under Non-smoker rate.

·         Income should be sufficient to cover all existing and proposed insurance cover under all insurers.

Benefits-

Death Benefit - In case of unfortunate death of the Life Assured during the policy term SumAssured shall be payable.

Maturity Benefit- On survival to the end of the policy term, nothing shall be payable

Details Of Money Back Plan.

Money Back Plan is a special type of life insurance policy that falls under Endowment Plans. In Insurance language it is called Anticipated Endowment Plans and commonly known as Money Back Policies. It simply means that in Money Back Plans, the money comes back to the Life Insured after a specific interval of time as Survival Benefit. However, if the Life Insured dies during the policy term, then the Death Benefit would be paid to the nominee and the policy would be terminated and no further money would be paid to him on the intervals.
 

Thus, a Money Back Policy is an endowment with a liquidity benefit. The Maturity Benefit comes in installments instead of a lump sum at the end. It is called ‘Survival Benefits’. Each installment is a percentage of the sum assured. The remaining bit comes as Maturity Benefit at the end of the policy term.

Unlike ordinary endowment insurance plans where the survival benefits are payable only at the end of the endowment period, this scheme provides for periodic payments of partial survival benefits as follows during the term of the policy, of course so long as the policy holder is alive.

For example, suppose if you are having a 20-year Money-Back Policy, 20% of the sum assured becomes payable each after 5, 10, 15 years, and the balance of 40% plus the accrued bonus become payable at the 20th year. And for a Money-Back Policy of 25 years, 15% of the sum assured becomes payable each after 5, 10, 15 and 20 years, and the balance 40% plus the accrued bonus become payable at the 25th year.

An important feature of this type of policies is that in the event of death at any time within the policy term, the death claim comprises full sum assured without deducting any of the survival benefit amounts, which have already been paid. Similarly, the bonus is also calculated on the full sum assured.

Who should buy Money Back Insurance Policies?
 

Money Back Insurance Policies should be taken by someone who might require money at regular and specific intervals, like children’ s education, etc. Also because the Death Benefit is guaranteed irrespective of the Survival Benefits already paid. Thus, if the Life Insured dies on the year of the policy maturity even after receiving 4 Survival Benefit, the nominee would get the entire Sum Assured and not a reduced one. You can also save tax as the premiums paid and the money received in installments are tax-free.

You should always compare and consult with experts like Thepolicykart to find the best money back policy for your family before making a purchase.

All About Pension Plan.

Pension plans are individual retirement plans that keep a future point of view and thus let you allocate a part of your saving for your future, and foresee financial stability basically for after retirement periods. Even if a person has a good amount of earnings or saving, neither earning makes them guarantee for their secure and easy old age life nor their saving, a retirement plan is nevertheless crucial.

Money is just like flowing water, saving gets exhausted after some time or once if any emergency happens, in this case having a good retirement plan ensures your cash flow to meet your daily basic needs after retirement.

Actually a pension plan can be understood as a plan that guarantee you to provide a good salary after your retirement, when no one will be there to help you, it will be, to provide a financial support to you. These policies are most suited for senior citizens and those planning a secure future, so that you never give up on the best things in life.

There are several types of qualified pension plans and must noticeable points-

1). Defined benefit plans (DB)-

·         Defined benefit pension plan guarantees a certain payout at retirement, for life.

·         Amount of pension is paid according to a fixed formula which usually depends on the member's salary and the number of years' membership in the plan.

·         If the pension plan allows for early retirement, payments are often reduced to recognize that the retirees will receive the payouts for longer periods of time.

·         In most pension plans, the employee, the employer, or both may make contributions.

·         Plans are better for people who have 20 years until retirement or less, since the annual contributions can be larger.

·         If there is any shortfall in the money required, your employer must pay the difference.

2). Defined contribution plans (DC)-

·         With a DC plan, contributions are guaranteed, but retirement income is not.

·         An individual account must be set up for each participant in the plan.

·         DC allows the employer and/or employee to make contributions, so that the final benefits depend on how much was in the account and the rate earned by the account's investments.

·         A defined contribution plan will provide a payout at retirement that is dependent upon the amount of money contributed and the performance of the investment vehicles utilized.

·         You are responsible for investing all contributions to grow your savings. In this way, the plan is similar to an RRSP (Registered retirement Saving Plan).

·         The amount available for your retirement depends on the total contributions made to your account and the investment returns this money earned.

Compare and buy the best retirement plan at Thepolicykart

A pension plan ensures that a financial support and independency will be safe in your old age after retirement, even when no sources of income will be there for you. That’s the reason it is always advisable to compare the best pension plans available in market to be update about the best plan and make unbiased decision to ensure the best plan for your future. We at Thepolicykart understand you and know that a right pension plan makes a secure plan for your retirement in a phased manner. So it is always advisable to choose the best retirement plan that can act as a savior of your life in those golden years.

LIC New Jeevan Anand Plan Calculator

Importance Of Insurance In Life.

Life is full of risk and unexpected happens, damages may be from house, car, health, property or even to life. Risks are unpredictable, usually we can’t stop these things from happening, but we can opt to give our lives a bit of protection and backup, that always makes us strong against bad situations. Whatever risk is, a backup is always there as insurance policy. Insurance is an arrangement under which a company or state agreed or undertake to provide a compensation for specified loss or damage, it may be from a small object, giant property or even a human life. An insurance provides a legal contract (policy) in which an individual or entity receives financial reimbursement or compensation against losses for the specified thing for which the insurance is, from that particular insurance company. The company pools clients' risks to make reimbursement more affordable for the policyholder.

To get benefitted by these insurance policies, one has to make an undertaking with an Insurance company, for which insurer or company and the insured or policyholder both have to be agreed upon certain terms & conditions. The amount of money to be charged by insurer, for a certain amount of insurance coverage is called the premium. By paying premium to an insurance company, policyholder gets a promise in return that insurer will pay the compensation related to incidents covered under T&C of the policy.

Before taking an insurance policy, look for best priced pack available with different insurance companies, and be sure about terms of Insurance companies and the policies they offer, as they might differ with company to company. Different insurance policies are available there, like life insurance, health insurance, travel insurance and many more. Before having one, make sure which one you need, and compensation or coverage against damage they provide is as per your choice or not. Better will be to consult with policy experts like thepolicykart. Life is most precious, so think about more than just the price. Invest like an expert.

LIC Jeevan labh (Table No.836) Presentation.

[slideshare id=57370587&doc=42786153960749146831451691441969-160122125256]

LIC Jeevan Labh (Table No 836) Plan Details.

If you are planning your tax-saving investments now,Life Insurance Corporation of India (LIC) has launched a new limited premium paying, non-linked, with-profits endowment plan called Jeevan Labh. The plan is being sold on the basis of the limited premium paying feature. So, although premium is paid for a limited period,policyholders can enjoy life cover for the entire term of the policy. The plan is available from policy term of 16, 21 and 25 years with premium paying term of 10, 15 and 16 years respectively. The maximum age at maturity is 75 years. The minimum basic sum assured is Rs 2 lakh, while there is no limit on the maximum. On maturity of the policy and the policy holder surviving to the end of the policy term, basic sum assured along with vested simple reversionary bonuses and final additional bonus, if any, shall be payable. The highlight of the plan is that premium is payable for limited period and risk is covered for the whole policy term. The plan is suited to those who want premium commitment for short duration having life coverage and benefits for a longer period. On payment of higher premium the plan also offers two riders, as an option. These are the Accidental Death and Disability Benefit Rider and New Term Assurance Rider. The riders offer an additional sum assured, apart from the basic sum assured, in case the policyholder dies during the policy term. But there are limits with regard to the sum assured for the both riders. The policy offers guaranteed returns, but the returns are minimal.

Key Features

o    High Bonus Attracting Plan

o    Premiums need to be paid for less number of years than Maturity year

o    Ideal Plan for planning Child's Education and Marriage

o    Options to avail accidental benefit and term riders

o    Paid premiums are exempted from income tax under 80C

o    Maturity amount is tax free under 10 (10D)

Plan Parameters

Minimum Age at Entry	8 Years (Completed)
Maximum Age at Entry	59 Years for 16 Year Term
	54 Years for 21 Year Term
	50 Years for 25 Year Term
Premium Paying Mode	Yearly, Half Yearly, Quarterly, Monthly (ECS Only)
Policy Term (Premium Payment Term)	16(10), 21(15), 25(16)
Basic Sum Assured	2,00,000 and above (in multiple of 10,000)
Premium Payment Mode rebate	2% on yearly, 1% on Half Yearly, Nil on Quarterly & Monthly
Rebate on High Sum Assured (Per 1000 of Sum Assured)	0% up to 4,90,000
	1.25% for 5,00,000 to 9,90,000
	1.50% for 10,00,000 to 14,90,000
	1.75% for 15,00,000 and above
Loan	After 3 years
Surrender	After 3 years of full premium payment

Critical Illness Rider Should Be Required In Term Plans.

When one thinks of life insurance they must consider opting for a term plan. This is the simplest and most cost effective insurance product. Term insurance plans are designed to ensure that in the event of the policy holder's death, the family gets the sum assured (the cover amount). Under the term plan, the policyholder has to pay premium regularly or a one-time payment depending upon the type of policy purchased. A sum of money (death benefit) is paid to the nominee if the policyholder dies during the period for which he/she is insured (policy term). The policyholder also gets a range of options to get enhanced protection. Some term plans also provide protection to the policyholder in the form of cash payouts on diagnosis of major illnesses like cancer, or heart attack or organ failure. Critical illness can dry out a person's finances in an unprecedented way and since they come without a warning, its best to have a term plan with a critical illness benefit. 

Five Reasons why your term plan must come with a critical illness benefit: 

1.Acts as an income replacement 2.Premiums stay the same 3.Double tax Benefits 4.Gives you a large cover that can take care of medical & day-to-day expenses 5.Increases chances of survival

A term insurance plan that comes with a critical illness benefit can cover both hospitalization and non-hospitalization expenses too and may also provide much needed cash flow during the recovery period. Alternatively, you can go for a higher health cover as a regular health cover provides a much wider coverage. 

When one is very ill, the medical bills mount up. Things get worse if the patient happens to be the sole bread earner as then there is no source of income at all and the going gets tough.

Take cancer, for instance, that alone accounts for 7 per cent of deaths in India. The cancer drug Herceptin, one of the most effective drugs for breast cancer, costs Rs 75,000- Rs 1 lakh for a vial. Patients typically need anywhere from 6 to 17 vials for treatment. Similarly, Avastin, another popular drug, costs anywhere between Rs 25,000 to Rs 50,000 a cycle, with patient requirements being 5 to 10 cycles per course. With the cost of treating this disease running into several lakhs of rupees, cancer patients often prefer to abandon the treatment rather than run into penury. Oncologists have plenty of depressing stories about families who have been completely destroyed in meeting the mounting treatment costs. 

Therefore, it is important for all of us to be prepared to handle such a situation and insurance builds our confidence to face such a challenge. With a critical illnesscover along with a term plan, one can get a tax-free lump sum in a one-off payment if one is diagnosed with a serious illness that is covered by insurance companies. 

You should use it in such a way that it pays off your mortgage, debts or any other liability you may have, or even pay for alterations to your home like getting a hospital bed installed or a wheel chair - should one require it. 

The critical illness benefit will pay out if one goes through the specific medical conditions listed on the policy. For instance some term plans cover critical illnesses like heart attack, stroke, certain types and stages of cancer and conditions such as multiple sclerosis. Many policies may also waive off future premiums if one is permanently disable. This is because on permanent disability it is most likely that you may lose your source of stable income and may not be able to pay future premium.

Points to consider before going in for critical illness cover: 

-Read the list of all critical illness insurance coverages included in your policy.

- Different companies offer risk coverage towards different critical illnesses. Study them carefully before incorporating them. 

While the maximum term of a plan is 30 years, it is interesting to note that the coverage continues even after claiming benefit on select critical illness. Besides, premium paid is eligible for deduction under section 80C & section 80D (the overall limit of deduction for investment u/s 80C & u/s 80D of the Income Tax Act, 1961 are Rs. 1,50,000 & Rs. 25,000 respectively, subject to conditions mentioned therein). 

LIC New Endowment Plan (814) Calculator

LIC Help 2000 Cr to Railway for complete Project.

Railways  received Rs 2,000 crore from Life Insurance Corporation (LIC), the first tranche of its financial assistance for investment in 50 projects involving construction of new lines and electrification of routes as part of its capacity augmentation programme.
Railways had signed an MoU with LIC in March this year for financial assistance of Rs 1.5 lakh crore over the next five years for construction of new lines and route electrification. There is a five-year moratorium on interest and loan repayment.
The Rs 2,000 crore cheque was handed over by LIC to Indian Railway Finance Corporation (IRFC) at a function in New Delhi. IRFC will issue bonds worth Rs 2,000 crore to LIC as part of the arrangement between railways and the national insurer.
There are several rail projects held up due to the fund constraints. Now some of these projects can be taken up with LIC fund, Railway Minister Suresh Prabhu said.
The LIC fund will be utilised for the doubling in the 653-km long Itarsi-Katni-Cheoki section, 273-km long Billupuram-Dindigul section and the 182-km long Viramgam-Samakhiyali section.
Besides electrification of the 330-km long Chapra-Balia-Allahabad route and 423-km long Barauni-Katihar route among the 50 identified rail projects across the country will be taken up with the LIC fund.
Railways have identified the projects to be taken up on priority basis where the internal rate of return is more than 14 percent.
The LIC fund will be invested in the doubling of the 263-km long Vizianagaram-Raigada-Titlagarh-Raipur section, crucial for coal movement in Odisha and Telangana.
Describing the funding as a "golden opportunity and a good beginning" for railways, Prabhu said, "It is a challenge now to invest it in a most appropriate way so that we derive maximum benefits."
Railways have drawn up an ambitious plan of Rs 8.5 lakh crore investment over the next five years.
Highlighting the importance of investment, Prabhu said, "No organisation can survive without expenditure. If we do not invest in railway, we will go down and down."
Addressing the gathering, LIC managing director SB Maenak said, "LIC
has committed to give Rs 1.5 lakh crore to railways through IRFC over the next five years and today we have the first tranche of it."
The insurance company has given the assistance money at 7.87 percent interest rate to railways.

Government Will Plan To Reduce PPF,NSC and FD Interest Rates.

The government is set to reduce interest rates on small savings products such as public provident fund and National Savings Certificate over the next few days - a move that will impact returns on your bank fixed deposits but also pave the way for banks to pare lending rates in the coming months and reduce the EMI burden. 
The new formula will see small savings rates linked to returns on government securities of comparable maturity, with the reduction expected to be up to 50 basis points (100 basis points equal a percentage point). The finance ministry is finalizing product-specific rates and sources said the impact would be higher in case of maturity period of less than five years. There are indications that senior citizens and women will be protected with products such as the Sukanya Samriddhi Yojana spared the axe, at least for the moment. The new rates are expected to be notified over the next few days with the government set to announce quarterly revision instead of an annual reset, which is the norm currently. Banks are expected to follow the small savings rate cut with lower fixed deposit rates, which over a period of a few months may translate into lower lending rates. In the past, lenders have been reluctant to pass on the benefit of lower rates to borrowers. The Reserve Bank of India and banks have been seeking a reduction in small savings rates, arguing that PPF and other products offered higher returns when compared with fixed deposits, resulting in a flight of funds to the government schemes . As a result, banks have been forced to maintain higher deposit rates, making it difficult for them to pass on the benefits of lower policy rates. Bankers have said higher small savings rates have meant that lending rates have been cut by a lower extent compared to RBI's policy rate reduction of 125 basis points last year. Although the move may trigger a fall in returns on your savings, it is seen as a reform move by the government, which recently announced a plan to end subsidies to the high-income segment. The reduction also comes at a time when the middle class has become more comfortable investing in debt and equity mutual funds, which over the past decade have emerged as an attractive savings tool. 

Pension Fund Regulator Organise NPS Service Week

Pension fund regulator PFRDA will organise a week-long service-oriented campaign, aimed at building awareness and improving information dissemination towards flagship National Pension System (NPS), from February 1. 
Pension Fund Regulatory And Development Authority (PFRDA), which will be completing two years of its statutory status on February 1, has "observed" that the subscribers/employees in state governments as well as the Centre are not fully aware of various functions and facilities available under the NPS. "A large number of the queries/grievances received from these subscribers pertain to elementary issues like non-receipt of Statement of Transaction, I-PIN, T-PIN etc. In order to promote awareness regarding importance of updation of latest contact details in Permanent Retirement Account Number ( PRAN), the regulator said it will be organising the 'NPS Service Week' from February 1-6 in all nodal offices under the Centre and state governments. During the service week, the activities to be undertaken include printing of transaction statement for the subscribers on specific request and updation of subscribers details. NPS is an attempt towards finding a sustainable solution to the problem of providing adequate retirement income to every citizen of India. NPS has been implemented for all government employees (except armed forces) joining central government on or after January 1, 2004. Most of the state/UT governments have also notified the NPS for their new employees. It has been made available to every Indian citizen from May 2009 on a voluntary basis. Currently, NPS has more than 1.13 crore subscribers with total Asset Under Management ( AUM) of more than Rs 1.08 lakh crore. 

Life Insurance Premium Income Gain 9% In April-November.

The life insurance industry reported 9% increase in overall annual premium equivalent in April-November, mainly due to volatile market conditions. 
The growth by supported by good show by large private sector companies. In the period, overall APE- a measure to normalize policy premium into the equivalent of regular annual premium- including individual and group business for private players was up 16% to Rs 1,25,563 crore and Life Insurance Corporation up 4% to Rs 1,50,456 crore. "Among large players, ICICI Prudential Life and Max Life, which have been more volatile in FY2016 YTD, reported you decline in individual business in November leading to weak growth for the industry. Reflecting slowdown in capital market-driven inflows in the life insurance sector, Max India and ICICI Prudential Life reported a decline in income. ICICI Prudential Life grew overall adjusted premium 17%. The insurer has been the fastest-growing among large players supported by its focus on ULIPs. In November, HDFC Life saw individual APE go up 14%, Kotak Life 41% yoy and SBI Life 45%. Bucking the trend, Bajaj and Birla reported APE growth in November 2015. Both the players have reported decline in APE for the past several quarters. Bajaj Life bounced into growth in 1QFY16 to slip back into the negative trajectory in 2QFY16. Max Life reported 8.4% decline in individual APE during November 2015. 

Guaranteed Pension Plan Launched In India.

IndiaFirst Life Insurance, a joint venture between Bank of Baroda, Andhra Bank and Legal and General (UK), announced the launch of the IndiaFirst Guaranteed Retirement Plan-a non-linked, participating, endowment, deferred pension plan. The plan offers a guaranteed return of 9% on total premiums paid during the initial years, and the benefit of participating in the company's profits in the later years.
"The current popular retirement plans available in the market are mostly unit-linked plans. The IndiaFirst plan is designed to address the needs of people who would want to create an assured pool for retirement,"
Policyholders can select a policy term depending upon their requirement and receive the funds between 40-80 years of age to purchase an annuity. The policyholder gets a tax benefit on the premiums paid, as per section 80(CCC) of Income Tax Act, 1961.
It offers policyholders flexibility in premium payment. A customer can choose to pay one time, under the single premium mode, or pay for a limited period of 5 to 10 years for a plan term of 10 to 35 years, or select a payment and plan term of 10 years to anytime between 15 or 35 years.
Customers also have the option to pay in monthly/ quarterly/ half yearly/ yearly intervals.
"Apart from providing a balance of guaranteed return and an upside through bonuses, this plan also provides customers with a lot of flexibility to plan for retirement irrespective of age.