Buying term insurance online!

The traditional way of selling a term insurance plan involved dependence on agents, brokers, consultants, and insurance companies’ in-house sales support. However, over the years, this method has proved inefficient and costlier. Buying term insurance plans online, directly engages insurance-seekers through portals and ensures seamless ‘delivery’ of the insurance product. Without the involvement of an agent, there is no payable commission. Online purchase of insurance policies is therefore quick, transparent, effective and economical.

Here are a few reasons why purchasing term insurance plans online is a smart choice:

Cost-effective

Buying a term insurance plan online is a lot more economical than offline. Since there are no intermediaries and one directly deals with the insurance company, it eliminates the intermediary costs.

Low premium for a higher cover

Online term life insurance plans with massive life covers are available by paying just a few thousands as premiums, in contrast to similar policies bought offline. This concept is only available for online insurance buyers, because the company saves on the insurance agents’ commissions and passes on the benefit to buyers.

Range of plans

Buying term insurance plans online allows consumers to compare various plans before the choose the one best suited to them. This makes it easier for insurance-seekers to understand which term plans offer maximum benefits at affordable premiums, and are best aligned to their needs.

Buy Insurance Yourself

The old school way of buying life insurance policies was synonymous with cumbersome paperwork and meeting agents. But, buying term insurance policies online yourself, involves filling up simple forms online with relatively lesser but accurate information on that specific term policy.

Transparent

While buying term insurance policies online, everything about the product, like it’s features, tenure, etc. are open to all. Insurers can therefore no longer keep any information from a prospective buyer, ensuring complete transparency while buying term plans.

On-the-go access

When a person buys a term insurance policy offline, they are unable to access their policy details as and when required. However, if you buy the same term insurance policy online, you can log in to your account to check all policy details at any time.

Change the Policy anytime

An online term insurance policy offers flexibility in the sense that at any time information can be altered. This applies prior to submitting the form, during the purchase and even after the policy has been bought.

Considering the above factors, buying term insurance plans online wins hands down. It offers several benefits and no advisory is involved.

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What are joint life term insurance policies?

Joint life term insurance policies are gradually gaining pace in India, given the rising number of working women and the vital role they play in contributing to the household income. Basically, a life insurance policy was a safety net for the rest of the family when the main earner of the family passed away. Today the situation is different, given the modern family structure where both the spouses are earning, the need is to ensure that both husband and wife are insured so that if anything happens to either of the spouses, the other remains financially stable.

Joint life term insurance policies provide coverage for two people instead of one. For joint life term insurance policies, both the partners must shell out premium for a fixed tenure. Within this duration, you can make claims for the coverage amount in case of death of either of the spouses.

Here are the benefits of Joint Life Term Insurance Plans:

-        Depending on the policy that you purchase, you have the flexibility to choose the kind of claim you want to make. Certain policies make pay outs for the entire amount based on the first claim, following the death of one spouse, after which the policy lapses. In other plans, the nominees can choose to make separate claims on the death of each insurance holder.

-        You can opt for a policy which will continue paying your surviving spouse a regular income following your demise for a period of time apart from providing the assured coverage. 

-        Certain policies provide coverage against accidents amounting to fatality.

-        Joint Life Term Insurance plans are definitely a better investment option if you are running on a tight budget and do not want to spend much on buying two individual covers for yourself and your spouse, making it very cost effective.

-        Joint life term insurance policies will lessen your hassles of maintaining two separate insurance policies. You will have one premium to pay and can easily manage your account. Also, it will bring you peace of mind when you are assured that both you and your spouse are adequately protected.

-        It’s not a hard and fast rule to buy joint life term insurance policies with your spouse. You can easily buy one with your child. In case of death, it will serve the same purpose as your life insurance policy would, and safeguard your child’s financial future, provide medical coverage and take care of his or her education costs, which are rising exponentially.

On buying a joint life insurance plan you are also eligible for availing tax benefits on the premiums paid as per the Income Tax Act of 1961.

Choose an Investment that suits your financial needs!

Investment in terms of financial context, means any money that is spent today in the hope of financial benefits that may be reaped in the future. An investment is the act of buying or creating assets with an expectation that the same would yield interest earnings or dividend compared to the money put in initially. Almost all investments are differentiated from other kinds of transactions based on the aim of the money spent. Money spent on making investments is primarily with the aim of obtaining some sort of return in a specific period.

In this article you will find different kinds of investment options. Many options are available today for a person to invest his money and make a decent return. Let’s skim through a few of these schemes.

Mutual Funds

Mutual funds are financial instruments that are professionally managed and that invest money on behalf of any investor, in different securities. These mutual funds are classified into various types based on the type of securities that they invest in. Some of the most popular mutual fund types are balanced funds, stock funds, open-ended funds etc. These funds are classified based on their percentage allocation in different securities. So, an equity fund invests purely is equity and is a high risk high return product while a debt fund invests purely in debt and money market instruments and is hence a low risk low return financial product.

Fixed Deposits

As the name itself indicates, fixed deposits are financial instruments that are one of the oldest and safest ways to save money. These are not necessarily active investment tools, but are rather a passive way to save and earn returns. A fixed amount of money is kept aside with a financial institution for a fixed number of days or months or years. In turn, interest is earned on this money. The rate of interest differs with the deposit tenure and with the banking entity.

Real Estate

Property rates are soaring with every passing day which has made real estate a hot investment avenue for investors. Buying, selling and leasing of property offers substantial returns to investors. Appreciation of property makes real estate a good investment tool. With urbanization gaining ground rapidly, real estate prices in certain major cities like Mumbai, Bangalore, New Delhi, are skyrocketing. This has made these places hot hubs for real estate investors. Most investors take loans from banks to purchase real estate and then lease out or sell the same property to enjoy returns offered due to appreciation in price of the property.

Employees Provident Fund

Employees Provident Fund is a small savings scheme that is primarily offered by your employer. This includes salaried individuals of both private and public organizations. Any company with a workforce of more than 20 employees is mandated to register for the EPF scheme. Around 12% each month is deducted from the salary and contributed towards the EPF account of an employee. This EPF account is maintained by the Employees Provident Fund Organization, commonly known as the EPFO. The amount deposited towards EPF is eligible for tax exemption under section 80C of the Income Tax Act.

How to Plan for Your Child’s Future

As is the duty of all parents, making sure that their child's needs are taken care of is essential. It's the dream of every parent to facilitate the best possible upbringing for their child/children and assure the best future for them. However, for every dream to be realized, we must cross the bridge of multiple realities. If you want to fund your child’s education, you'll need to amass a large amount of money. By planning ahead, you can provide a much wider array of education options.

Starting early and consistency in savings are the two key factors in achieving your child's successful future planning. With careful planning, early savings along with realistic and practical investment approach, you can successfully give your child the future they deserve.

The best way to start is with a mix of savings in government securities (like National Savings Certificate, NSC, and Public Provident Fund, PPF) and investments in mutual funds and primary equity markets.

While the former will give you assured, though low, returns that will multiply every year, the latter will balance it out with a possibility of high growth. The first strategy will help you reduce your risks and the second will put you at higher risks with a probability of higher returns.

Never purchase insurance in the name of your child. Understand the importance and purpose of child insurance plan. It is to be purchased to manage the risk prevalent in one’s life – death, health problems, accidents. If you want your goals to be met comfortably, then proper insurance planning is inevitable.

Proper estate planning is vital. You should write a proper and tax-efficient will which helps in proper distribution of wealth among your children. You can create different tax files by not allocating the assets directly to the children but to his Hindu Undivided Family (HUF), grandson/granddaughter. You can also create a Trust through your Will. This is the most important exercise which you should perform the moment your child is born.

At the end of the day, choose a plan that can make you financially secure and meet your child’s educational aspirations, irrespective of uncertainties your life may bring. After all, your dreams lie in the dreams of your children!

Why to buy a life insurance and what is the right age for it?

Purchasing a life insurance policy is probably one of the most important purchases you’ll make in your life. A life insurance plan is the perfect way to safeguard your family’s future in your absence. Even so, there are those who still hesitate from getting one, or simply happen to think it’s not important. For them, we provide 5 solid reasons why getting life insurance is a must.

Protecting Your Family’s Future

This is the basic and most important benefit of your life insurance policy. Life is uncertain, and so it’s necessary to take necessary precautions to tackle those uncertainties. The money your family will receive in the event of something happening to you, will help them sustain their life and not put them in a difficult spot financially.

Tax Benefit

Yes, there is a tax saving benefit to life insurance as well! The premium you pay for your life insurance has a tax benefit of Rs 1.5 lakh irrespective of the life insurance policy you opt for.

Retirement Savings

Most life insurance plans come with a return of premium at maturity of the policy. A lifetime worth of premium makes for a good amount for your retirement funds.

Debt Payment

Your personal liabilities in terms of home loans etc. will invariably fall on your family’s shoulder if something were to happen to you. In such cases, the claim amount your family will receive from the insurance will help them clear the debt in your absence.

Peace Of Mind

Life and death is not something you can control, but buying an insurance policy is something you can most certainly do. Even if your policy is small, you can live with the peace of mind that you have done all you can to cover your loved ones when you are no more.

So, now that you know of the benefits that come along with your life insurance plan, all that is left is to go about and get one. If for any reason you feel that you should wait a few more years before purchasing it as you are in the best of your health, let us tell you the sooner you get your policy the better it is. The optimal age is under 35, as your premium cost is low and the cover is high, resulting in you saving a lot on premiums and taking the benefit of a good cover. Having said that, no age is wrong to get a life insurance plan, so if you have missed on the 35 age cut, fret not, go ahead and get one now. You can choose from a wide range of Life Insurance Plan from Tata AIA Life Insurance which suits your financial requirements.

Bust The Myths Keeping You From Buying A Term Plan

A term plan has many known benefits for its takers, even so, there are many term plan myths surrounding it. Today, we are going to break some of the myths you might have heard of and expose the facts, to help you make a wise and well thought of decision.

Myth: “Life Cover should be equal to my current annual income”

The main purpose of a term plan is to cover your family’s finances if something were to happen to you. In that case, if your cover amount is as much as your yearly income, it will only be able to sustain your family comfortably for a year, after which they will be forced to make cuts in their lifestyle. Therefore, essentially your cover amount should be no less than 10 times your annual income. You can also assess what your ideal cover should be by calculating your Human Life Value (HLV).

Myth: “My assets will cover my family, I don’t need a term plan”

Unless most of your wealth is kept in a savings account, your assets may not be helpful to your family immediately after you are gone. Assets like gold, property, stocks, fixed deposits etc. do not have the necessary liquidity required in times of need. In such cases, a term plan proves highly beneficial.

Myth: “An insurance plan that doesn’t give returns has no value”

A term plan provides you with a high life coverage at a very nominal cost. It provides your family with an umbrella of security at very low premium rates, and you can also avail the benefit of premium returns when the insured person opts for a rider benefit. Therefore, as far as value goes, a term plan has plenty of it.

Myth: “I cannot increase the cover of a term plan”

This here happens to be one of the biggest myths surrounding term plans. As you age, your responsibilities may change and the number of people dependent on you may also increase along with your income. In such a scenario, you can increase the cover provided by your term plan at an additional cost, and need not opt to buy a new term plan altogether.

Myth: “It is difficult to buy term plans online”

A lot of people have a misconception that buying a term plan online is complicated and unsafe, however, that is far from the fact. Purchasing a term plan online is super easy and completely hassle free; A few clicks is all it takes. What’s more, you also save precious time and money when buying a policy online.

From the above myth busters, it’s clear that buying a term plan has many benefits, low premiums to name one. So, go ahead and get a term plan that best suits yours and your family’s needs.

Term Insurance Or Life Insurance – Which Is Better?

When it comes to purchasing an insurance, most policy buyers are unsure whether they should purchase a term insurance or a whole life insurance. If you belong to this group of confused buyers, then keep reading.

To help you make a well thought decision, let us begin with getting a better understanding of what each type of insurance means.

Term Insurance

The name term insurance itself suggests that this kind of insurance is only valid for a specific period. A term insurance offers death benefit to the nominee of the deceased insurance holder, however, if the insurance holder survives the insured period then he receives no maturity benefit. Term insurance also has lower premiums as opposed to its counterpart, however the premium amount keeps increasing with time.

Whole Life Insurance

Whole life insurance is also known as permanent life insurance, and this kind of insurance comes with death benefit along with an income benefit. Here the tax exempted cash accumulated over time can be used by the policy holder as he deems fit, or even saved for retirement. However, as opposed to term insurance the premium amount in whole life insurance is much higher, but it does remain fixed throughout.

Now that we know what each insurance means, let’s find out which one is more suitable for you.

Which insurance should you buy can be answered by considering factors such as your age, purpose of buying the insurance etc. For someone in their 20s it makes sense to opt for a term insurance policy which can later be converted into a whole life insurance, by doing so one can reap the benefit of low premiums early on in life. However, someone in their 40s should consider purchasing a whole life insurance policy to help secure the future of your dependents as well as give you a cushion for retirement.

Consider these factors before making your decision and set out to understand both types of insurance completely before purchasing your policy.