Benefits of endowment policy

The most important endowment policy benefit is that it offers better returns on regular savings than deposits like fixed & recurring deposits or simple life insurance policies.
These plan's maturity benefit includes terminal bonus and reversionary bonus. Also, the policy holder gets excellent tax benefits on investing in endowment plans.
Hence, with an endowment plan the policy holder is not just investing money and gaining returns on it but also arranging for a valuable corpus of money that his family can use in his death. The endowment plan results in a long term savings fund that can be useful for a variety of personal expenses or simply in times of need by your loved ones.

Example:

Mr. Anuj Shetty has opted for a Money Back Life Insurance Policy. His plan has a Sum Assured of 10 lakhs for a policy term of 20 years. He would need to pay premiums for 20 years. And he would get back a part of the Sum Assured at regular intervals. For example, for a policy of 20 years, he would get 20% of Sum Assured after the 5th, 10th and 15th year of the policy i.e. he gets 20 X 3 = 60% of the Sum Assured as Survival Benefit. On Maturity of the policy he would get the remaining 40% of the Sum assured and bonus.

Depending on the type of policy the payback schedule might vary. So you would need to check the individual plans for the same.

Liability protection

Loans are trending nowadays where every need can be funded by a loan. As attractive as it may sound, loans involve repayments and repayments involve a steady source of income. If the earning person dies besides the loss of income, the family also gets burdened with the outstanding loan repayments. Having a term insurance plan is the solution to this problem as well. The benefits under the plan can be utilized to pay off the debt burden and provides protection against liabilities also.

Peace of mind

When our future is secured, our emotional stability is also ensured. A term plan, besides providing financial security, provides mental security too because we know that our finances, assets and liabilities are protected from any contingency caused due to untimely death. And as experts say, peace of mind is something which cannot be bought, but when we talk about the financial aspect of the statement, a term plan delivers a spot on result.
Since there is both Maturity Benefit and Death Benefit, the premium is usually on the higher side in Money Back Insurance Policies. Also the Death Benefit is not reduced till the policy matures and hence the company’s risk also continues till the end even as liquidity benefits are provided to the customer.

Highlight of Money back plan:

Money Back Insurance Policies should be taken by someone who might require money at regular intervals chosen by proposer, like children’s education, marriage 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 3rd 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 is tax-free.

Before investing everyone wants to be sure about the returns and the benefits that they will get in the future. Today the cost of education is so high that most of the parents are unable to provide their children the level of education they want. If this is the situation today, then you can imagine what would be the scenario in the future when the inflation will be much higher.
A child future plan is to meet your child's future financial needs. Child investment plans are important to meet the needs of providing the child with the best of education and to make sure that the funds are there at every crucial stage of your child's growth. Therefore, it become necessary to invest for your child today in order to have funds available at the time when the actual need arise.
Basically life insurance for children provides you the flexibility to choose according to your economic status and financial plans. The rate of premium can also be settled as per your interest.
In the case death of the policy holder in the period of policy term, the child is allowed to receive all the benefits of the plan (if the rider is attached to the policy).

Tax benefit

The child policy in India provides tax benefit that can be availed on maturity/death claim profits under Section 10 (10D) and assumption from income for the expenses of premium under Sec. 80(C).

Benefits of keyman insurance :

A company buying keyman insurance for its employee can claim a deduction for the premium paid for the policy as a business expense under Section 37(1) of the Income Tax Act. No advance intimation/approval is necessary from the Income Tax authorities to claim deduction of insurance premium payment. This policy can be used as either an extra superannuation benefit or an ex-gratia payment to the key employee during the service period. If the company receives the proceeds on maturity, then they are taxable. The directors can also safeguard their immediate family from getting affected by the vagaries of the industry and the various business cycles that a company has to face. Insulate the risk of financial loss against loss of a Keyman. Interest on loans taken against a keyman insurance policy may also be allowed as business expenses. Premiums paid by the company on the life of a keyman would not be treated as perquisites in the hands of such a keyman when the company’s request is accepted by the assessing authority. Keyman Insurance policy is a positive measure to improve the retention of the keyman in the company.

Disadvantages of Keyman insurance :

The amount on claim or maturity under a keyman insurance policy is not exempt under Section 10 (10D) of the Income Tax Act if the company is paying the premiums. In case of .S.B. is payable under the plans, will be considered as the business income of the company & will be taxable under section 28 (vi) of the income tax ACT. If the policy has been assigned to the key man, the policy-proceeds including bonus will be taken as profit under section 17 (clause) of the income tax Act.

The Insured person will get lifetime coverage along with guaranteed premium size for a limited premium payment term. The premium is constant throughout the premium payment term. Sum assured is guaranteed and the bonuses are declared based on the performance. Some companies offer survival benefit from the end of the premium payment term till the policy matures. Tax benefits are also available to the insured under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

Whole Life plan is also called as straight life, ordinary life. It remains throughout the insured whole lifetime provided the premiums are paid. A certain aforementioned amount is paid to the nominee in the event the insured dies. The policyholder at any time withdraw the policy or borrow against it. The maturity age for this policy is 100 years. If the insured lives past the maturity age, the policy will become matured endowment. The death benefit under this plan is tax free.

While all of us would like to retire comfortably, the complexity and time required in building a successful retirement plan can make the whole process seem nothing short of daunting. However, it can often be done with fewer headaches (and financial pain) than you might think - all it takes is a little homework, an attainable savings and investment plan, and a long-term commitment. Retirement happens to be an inevitable part of most of our lives. Individuals in the favor of Retirement view it as one such period in their life that allows them to spend some quality time with their family and friends. However, the group that is not so much in favor of Retirement views this stage as a period of financial dependency. The post retirement regular inflow of income is stopped and thus it is vital to enjoy sufficient financial back-up.

Advantages of Car Insurance

Among a pool of insurances available online and offline both are giving coverage as below.

• Loss or damage to your car due to natural calamities Fire, explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide and rockslide.
• Loss or damage to your car against man-made calamities Burglary, theft, riot, strike, malicious act, accident by external means, terrorist activity, any damage in transit by road, rail, inland waterway, lift, elevator or air.
• Personal Accident Cover Coverage of Rs. 2 lakh for the owner-driver of the vehicle while driving or travelling and mounting or dismounting from the Four-wheeler. Optional personal accident covers for Passenger/ Paid Driver/ driver/ Insured are also available
• Third Party Legal Liability Protection against legal liability due to accidental damages caused to the surrounding property and/ or resulting in permanent injury or death of a person.

There are generally two types of Motor insurance coverage in India:-

Third Party Liability Coverage:
Under this feature, insurer provides coverage to damages caused by you to the Third Party. This plan does not cover the losses, damages or the injuries to the insured person. It refers to the minimum risks which are covered under the Auto Vehicles Act 1938. Under the law of India, Third party liability coverage plan is compulsory to have by each and every owner of the car.

Comprehensive coverage:
This is a plan which provides wider coverage to the insured and Third party as well. Apart from the basic third party liability coverage, the comprehensive feature of the insurance covers the maximum expenses that can occur due to the damages caused to a car in case of an accident or loss due to theft or any other reason. This plan provides coverage to all the damages which are caused because of natural calamities, accidents, theft, fire and much more. The insured person can extend the policy for increasing the additional benefits. It is recommended to choose comprehensive plan as it covers maximum things and provide helpful benefits.

It is important to evaluate the cover you are opting for your policy and look for specific features you need along with the premium discounts. We the finsure connect team helps you in choosing the best policy for your favorite car.

How to Choose Best Car Insurance Plan?
Car insurance is the arrangement between the insured and the insurer wherein the coverage is provided by the company to the insured in case of any financial loss due to the damages to the car. It is mandatory in India under the Motor Vehicles Act. It is also known as motor insurance policy provides coverage for the maximum losses that you might face in the case of damaged or stolen car. The amount of the premium related to your auto plan depends upon the Insured Declared Value (IDV) of your car. The more the IDV the more will be the premium amount, the less IDVs leads to low premium amount. It is vital to compare features or plans before buying or renewing the current policy. There are some things that you must check while purchasing an insurance policy. Auto insurance policy majorly covers the loss that occurs because of theft, scratch or accidents.

Nowadays there are many insurance companies which are offering the towing facility, depreciation and other value added services, thus it is essential to check all the terms and condition while purchasing the insurance policy. Carefully read through the policy documents and compare various plans before making a final choice.

Policyholders can avail multiple benefits like pre and post hospitalization expenses, cashless treatment, room rent, ambulance charges, and much more. The health insurance premium amount mainly depends on the sum insured amount as well as the number of members covered under the health insurance policy.

Benefits of Health Insurance

Health Insurance plans are to cover a wide range of requirements, like a family health plan offers complete cover to all members of a family under a single umbrella.

Medical Bills: Coverage against medicinal expenses incurred, including pre and post hospitalization.

Coverage for any pre-existing disease is provided to you after a certain waiting period.

Claim Reimbursement: Coverage for expenses incurred for hospitalization due to a medical emergencies.

Tax Rebate: Annual premium paid for health coverage are subject to tax exemption u/s 80D of ITA, 1961. Tax exemption ranges from Rs. 25,000 to Rs. 60,000.

Other Benefits: As an innovative feature, OPD expenses are now covered under few Insurer plans and don’t require hospitalization for minimum 24 hrs to claim reimbursement. Stand alone OPD plans are also available in the market.

Before buying Health Insurance it is mandatory to know about Sum Insured amount, List of network hospitals, Waiting Period (for PEDs)Co-pay and Claim Settlement Ratio and Sub-limits (if any).

Property insurance can also cover the building itself if you are the owner. For those who lease space to run their business, it refers to everything inside the offices, warehouses, and other space occupied by the company. For many businesses, the loss of this property would be catastrophic. Property insurance is thus one of the most basic types of commercial insurance.

Depending on your type of business, you may need some different forms of liability coverage in addition to the general policy. Common types are what are known as professional liability coverage, which comes in a few forms. Some companies require errors & omissions coverage, which is a type of liability coverage that protects from mistakes, often in paperwork, made in the course of helping a client. Often people like tax preparers and lawyers require this type of coverage. It is similar to another, better known type of liability coverage, malpractice insurance, but has some differences. Most people think of malpractice in relation to doctors, but it can actually apply to a wide range of professionals; it protects from errors seen as being below the standards expected of the professional.

Here are some of the features of a marine insurance policy –

1. Open Policy – The inland marine insurance policy covers the inland movement of a consignment for a specified duration of time, which is generally of one year. The policy is apt for companies which are indulging in numerous transactions around the year as it also offers continuous cover.

2. Comprehensive Protection – The policy offers protection against various types of losses or damages like a total loss of goods, partial loss of goods, related expenses while still in transit, etc.

3. Customization – As per your business requirement, it is feasible to customize the policy.

4. Mark up Value – The policy allows a portion of profit to be included in the sum insured. It is known as a mark-up in the marine insurance industry.

In the eventuality when goods are destroyed, damaged or stolen, it becomes important to file a marine insurance claim immediately with the insurer. Then the insurer will take all efforts to find out whether the reasonable care was taken while transporting goods or not in order to ensure no deliberate efforts were made in order to file a claim.

Here, it is important to understand that just because you have a marine insurance policy, it doesn’t mean you can act carelessly. You are expected to take care of your goods in the same manner you would have done in the absence of a marine insurance policy. Also, there is a time-window of usually one year for filing a claim with a marine insurance company at the time of any loss or damage.

Though, marine insurance offers comprehensive cover, there are some instances which are not covered under the policy, like,

• Loss or damage due to willful negligence

• Loss or damage due to improper packaging

• Removal of wreck

• Contamination due to radioactive rays

• Loss or damage due to riot, strike, civil commotion, etc.

Groups – for this purpose - can be employer-employee groups or non-employer-employee groups as defined by IRDA’s group insurance guidelines.

These days more and more companies are becoming employee-centric and every now-and-then introduce various benefits for employees’ betterment. Group insurance has emerged as one of the most preferred benefit. Group insurance ensures better health benefits for employees and increased employee satisfaction. Through this an employee can avail various benefits which are otherwise non-affordable in individual insurance policy

Today there are several options available in health insurance sector in India. They have been formulated to resolve the healthcare needs of people across the nation. Healthcare needs differ from individual to individual as well as from family to family. So, personal healthcare needs must be analyzed before finalizing any health plan.

Some features are available in market as below.

• Individual Health Coverage

• Family Health Coverage

• Group Health Coverage

• Senior Health Coverage

As per the need, all of us can buy the plan and enjoy best healthcare without any financial crisis. Among them, group health insurance is the one offered by corporates.

With such variety of health plans available, it enable citizens of India to find a suitable healthcare coverage for self. The option of Group Health Insurance can offer appropriate coverage to the employees.

Healthcare coverage is imperative for all. Today it is no more a choice but has become a necessity. There are innumerable plans available in the health insurance market. They offer wide range of choice to people. Each one of us can select the plan that can ensure best coverage while facing health mishap. Under the coverage of the policy, one can seek health treatment even on cashless basis. The benefit of cashless mediclaim enable the covered members to enjoy required treatment on cashless basis. There are other additional benefits like critical illness coverage which will offer security from certain specified critical illnesses.

Once insured, people need not worry about the hospital bills. With the help of policy, best treatment can be availed without any fiscal hassle. Paying policy premium on annual basis is better than meeting expensive treatment cost on urgent note. Without even putting any financial burden, the insurance cover can relieve all the healthcare worries. With a Group Health Insurance you can enjoy insurance services as and when required.

So, don’t delay your healthcare coverage any further. Get insured today under the best plan and get relieved of medical care worries.