Credit Rating Agencies in India or CRAs are the financial rating agencies or companies who rate the debtors on the basis of their loan repayment ability including the interest levied by the creditors. They also calculate the probability of defaulting the loan amount.

Credit Rating Agencies vs. Credit Information Companies

1. CRAs analyze the creditworthiness of the lenders or debt issuers and provide credit ratings to them.
2. These may be companies, NBFCs, state governments, local governmental bodies, non-profit organizations and also Countries i.e. these credit rating agencies provide credit rating to the said organizations not individuals.
3. Higher credit rating of these entities mean lesser interest rate offered to the organization.
4. Credit score or credit report for the individuals is created by special credit bureaus also know as Credit Information Companies.

Credit Rating Agencies in India with their grading system

There are 6 credit rating agencies in India as per the Reserve Bank of India. They are CRISIL, CARE, ICRA, FITCH Ratings India Pvt. Ltd, Brickwork Ratings India Pvt. Ltd. and SMERA.

1. CRISIL Or Credit Rating Information Services of India Limited

CRISIL (“crisil[dot]com/“) is one of the first credit rating agencies in India, and was established in 1987 as a risk and policy advisory and credit rating company based in Mumbai. Basically, CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. CRISIL’s majority shareholder is Standard & Poor’s, a division of McGraw Hill Financial and provider of financial market intelligence.

They are India’s foremost provider of ratings, data, research, analytics and solutions and operate from India, the US, the UK, Argentina, Poland, China, Hong Kong and Singapore.

CRISIL works with various governments and policy-makers in India and other developing nations to enhance and improve the infrastructure and meet the demands of the region.

Nomenclature of minimum investment grade credit rating (MIGR) of CRISIL ranges from FA- (FA MINUS).

2. ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited)

ICRA Ltd. (“icra[dot]in/“) is a Gurgaon, Haryana-based investment information and credit rating agency which is also a joint venture between Moody’s investors and many other financial services companies under its wing. ICRA Limited is an Indian independent and professional investment information and credit rating agency.

It was established in 1991, and was originally named Investment Information and Credit Rating Agency of India Limited.

Nomenclature of minimum investment grade credit rating (MIGR) of ICRA ranges from MA- (MA MINUS).

3. CARE Ratings

CARE Ratings (“careratings[dot]com/“) commenced operations in April 1993 and in over 25 years, it has established itself as the second-largest credit rating agency in India. It has emerged as the leading agency for covering many rating segments like that for financial institutions such as banks, sub-sovereigns and IPO grading, state governments and municipal bodies, public utilities and special purpose vehicles.

CARE ratings has partnered with Brazil, Portugal, Malaysia and South Africa to launch International credit rating agency ‘ARC Ratings’.

Nomenclature of minimum investment grade credit rating (MIGR) of CARE ranges from CARE BBB (FD).

4. FITCH Ratings India Pvt. Ltd

FITCH Ratings – India Ratings and Research (Ind-Ra) is India’s one of the most respected credit rating agencies committed to providing India’s credit markets accurate, timely and prospective credit opinions. Built on a foundation of independent thinking, rigorous analytics, and an open and balanced approach towards credit research, Ind-Ra has grown rapidly during the past decade, gaining significant market presence in India’s fixed income market.

Ind-Ra (“indiaratings[dot]co[dot]in“) currently maintains coverage of corporate issuers, financial institutions (including banks and insurance companies), finance and leasing companies, managed funds, urban local bodies, and structured finance and project finance companies. Ind-Ra is recognized by the Securities and Exchange Board of India, the Reserve Bank of India and National Housing Bank.

Ind-Ra is a 100% owned subsidiary of the Fitch Group which is a global leader in financial information services with operations in more than 30 countries. Fitch Group is comprised of: Fitch Ratings, a global leader in credit ratings and research; Fitch Solutions, a leading provider of credit market data, analytical tools and risk services; BMI Research, an independent provider of country risk and industry analysis specializing in emerging and frontier markets; and Fitch Learning, a preeminent training and professional development firm. With dual headquarters in London and New York, Fitch Group is majority owned by Hearst (“hearst[dot]com/“).

Nomenclature of minimum investment grade credit rating (MIGR) of India Ratings and Research ranges from tA-(ind)(FD).

5. Brickwork Ratings India Pvt. Ltd.

Brickwork Ratings – credit rating agency (“brickworkratings[dot]com/“) offers bank loan ratings for external commercial borrowings, term loans, working capital loans, buyers credit, cash credit/packing credit, overdraft, bank guarantees, bill purchase/discounted, and letters of credit.

A leading public sector Canara bank is the promoter and strategic partner of Brickwork.

Nomenclature of minimum investment grade credit rating (MIGR) of Brickwork ranges from BWR FBBB.

6. SMERA

SMERA credit rating agency (“smeraonline[dot]com/“) was founded in 2005 by Small Industries Development Bank of India (SIDBI), Dun and Bradstreet Information Services India Private Limited (D&B) and various public, private sector and other MNC banks of India as only credit rating agencies for Small and medium enterprises.

Grading of various instruments like IPO, bonds, commercial papers, NCDs, fixed deposits, security receipts, etc. is done by SMERA which can be used by all banks for capital adequacy requirements calculation as authorized by the RBI.

Nomenclature of minimum investment grade credit rating (MIGR) of SMERA ranges from SMERA A.

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Credit information companies in India or CICs are the credit health rating agencies who collect individual’s and firm’s financial data related to their loan and debt repayment history and provide these inputs to financial institutions such as banks and NBFCs as Credit Score whenever an individual approaches a bank/financial institution to avail loans.

The repayment capacity can be traced from the loan repayment history of the individual, collected by Credit information companies (CIC). Then these CICs assign points to those individuals often called credit score or credit points etc.

Let’s take a look, what is credit score which is required by the banks when you look for any loan or credit card from the bank.

What Is Credit Score & How To Improve It

A credit score is based on your credit history, like repayment of EMIs and credit card dues. The CIBIL TransUnion score is a 3 digit numeric summary of your credit history (CR). This score is derived by using the details found in the “Accounts” and “Enquiries” section on your Credit Information Report (CIR) and ranges from 300 to 900. The closer your Score is to 900, the more favorably your loan application will be viewed by a credit institution. The Score plays a critical role in the loan approval process. A score more than 700 considered to be good.

Credit Information Companies Regulation Act (CICRA)

CICs acts based on Credit Information Companies (Regulation) Act, 2005 (CICRA) which is binding for the Credit information companies as well as for financial institutions.

As per Section 15 of the CICRA, every Credit Institution (like banks) should be a member of at least one CIC. Besides, CICRA also stipulates that a CIC may seek and obtain information from its members only.

Following the CIC Act, 2005, the RBI and the Government of India enacted the CIC Act, 2006.

List of Credit Information Companies In India

As per RBI, there are four credit information companies working in India viz. Credit Information Bureau (India) Limited, Equifax Credit Information Services Private Limited, Experian Credit Information Company of India Private Limited and CRIF High Mark Credit Information Services Private Limited have been granted Certificate of Registration by RBI. These CICs are different from Credit Rating Agencies in India.

1. Credit Information Bureau (India) Limited

CIBIL or Credit Information Bureau (India) Limited is one of the most prominent credit rating agencies in India founded in 2000, which is associated with a larger number of banks and NBFCs. It provides portfolio review reports services, company credit information reports, etc. Reserve Bank of India (RBI) has mandated banks and financial institutions to check the CIBIL score of every loan / credit card applicant before approving the same as an improvement process to safeguard against banks’ loans into turning into non-performing assets (NPAs).

It is considered to be the first Credit Information Company of India having over 2400 strong member base including public and private sector banks, non-banking financial institutions and housing finance companies now known as TransUnion CIBIL.

CIBIL score, which was launched in 2007, ranges from 300 to 900 and as per CIBIL, a score above 700 is considered good.

2. Equifax Credit Information Services Private Limited

Equifax credit information services started operations in India in 2010 and provides a variety of services to individuals such as risk scoring, portfolio reviews, credit information reports, etc. whereas enterprise-level services such as credit and fraud management etc. are provided to companies.

As a consumer credit reporting agency, it collects and aggregates information on over 800 million individual consumers and more than 88 million businesses worldwide. Founded in 1899 and based in Atlanta, Georgia, it is one of the three largest credit agencies along with Experian and TransUnion.

Equifax is considered to be one of the oldest credit information companies in the world.

3. Experian Credit Information Company of India Private Limited

Experian is an International credit rating and analytics company with over 17,000 employees in 37 different countries. In India, the company provides its services under the name Experian Credit Information Company of India Private Ltd. which is a joint venture with Sundaram Finance Ltd, Indian Bank, Axis Bank, and a few other such entities.

Experian plc is a consumer credit reporting agency. Experian collects and aggregates information on over one billion people and businesses including 235 million individual US consumers and more than 25 million US businesses.

4. CRIF High Mark Credit Information Services Private Limited

CRIF is India’s only “all-rounder” credit rating company that caters to all kinds of borrowers, let it be retail consumers, MSME and commercial borrowers, microfinance borrowers, etc. It provides credit rating and analytics services apart from encouraging a mature credit culture in the Indian economy.

Established in 1988 in Bologna (Italy), CRIF High Mark, a RBI licensed credit bureau in India, with its extensive bureau database provides information and analytical solutions to banks, NBFCs, insurance companies, telecom service providers amongst others. It is present over 20 countries including Italy, India, the Czech Republic, the Slovak Republic, Ireland, Philippines, Jordan, United Arab Emirates, Jamaica, Russia etc.

Other than this, there are six credit rating agencies named CRISIL, CARE, ICRA, FITCH Ratings India Pvt. Ltd, Brickwork Ratings India Pvt. Ltd. and SMERA.

Credit Bureaus Around The World

Since Credit bureaus are new to India, but they have been around for over a century in some countries such as USA and UK.

A credit bureau in USA known as Consumer Reporting Agency whereas it is Credit Reference Agency in UK, and a Credit Information Company (CIC) in India.

Roles and responsibilities of Credit Information Companies

1. Credit information company provides factual data based on loan and repayment scenario of an individual.
2. The credit information provided by the CIC’s is based on credit information only
3. They offer the report to the Banks/NBFC’s based on the knowledge, experience and expertise
4. They create data diligently with the help of technology for helping customers in making intelligent decision in entire stage of customer life cycle.
5. As on the responsibility front, CIC’s do not provide any opinion, indication or comment pertaining to whether credit should or should not be given to the needy in their report. This decision to credit or not to credit is taken by the credit granter only.

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The Indian financial system is regulated by independent regulators also called statutory bodies or Financial Regulatory Bodies in India in the field of banking, capital market, commodities market, insurance, pension funds, trade, telecom and electricity.

However, Government of India plays a significant role in controlling the Indian financial system and influences the roles of such regulators at least to some extent and plays a key role in financial regulation.

1. Reserve Bank of India (RBI)

RBI was established on April 1, 1935 under RBI Act, 1934 under the recommendation by Hilton Young Commission. It is headquartered in Mumbai having offices at 31 locations throughout India.

RBI is composed under General superintendence & direction by 21-member Central Board of Directors: the Governor, 4 Deputy Governors, 2 Finance Ministry representatives, 10 government-nominated directors to represent important elements of India’s economy, and 4 directors to represent local boards headquartered at Mumbai, Kolkata, Chennai and New Delhi.

RBI issues bank notes of all denominations. As an agent of the Government of India, it has right to distribute one rupee notes & the small coins throughout the country and stands one of the most important Financial Regulatory Bodies in India and also called the Apex Bank of India.

2. Security & Exchange Board of India (SEBI)

SEBI full form is Security and Exchange Board of India, which was established in 1988 through an executive resolution and then upgraded as a fully autonomous body (a statutory Board) in 1992 with the passing of the Securities and Exchange Board of India Act on 30th January 1992.

It is headquartered in Mumbai & has Northern, Eastern, Southern and Western Regional Offices in New Delhi, Kolkata, Chennai and Ahmedabad respectively having local offices at Jaipur and Bangalore.

It protects the interest of investor, provide safety of investment, check price rigging, prohibit insider trading, fraudulent and unfair trade practices etc. Since this deals with stock market and other financial activities of market, this is one of the most significant Financial Regulatory Bodies in India.

Forward markets commission or FMC was a regulatory authority for commodity futures market in India under the Ministry of Consumer Affairs, Food and Public Distribution. FMC has been merged with SEBI to streamline the regulations and curb wild speculations in the commodity market.

3. Insurance Regulatory & Development Authority (IRDA)

IRDA full form is Insurance Regulatory and Development Authority, which was constituted under the Insurance Regulatory and Development Authority Act, 1999. It is headquartered in Hyderabad, Telangana.

It is composed of Chairman & nine members of whom five are whole-time members and four are part-time members. All the members including the Chairman are appointed by the government of India.

It is an autonomous, statutory agency to regulate and promote the insurance and re-insurance industry and to safeguard the interest of and secure fair treatment to insurance policy holders as well as issue a certificate of registration, & renew, modify, withdraw, suspend or cancel such registration of insurance companies.

IRDA is one of the most important Financial Regulatory Bodies in India which controls all types of Life Insurances and General Insurances and its claims in India.

The IRDA Act, 1999, Malhotra Committee report (1994) recommended to establish an independent regulatory authority for insurance sector in India, then it was formed and incorporated as a statutory body in April, 2000.

The IRDA Act, 1999 also allows private companies to enter into the insurance sector in India besides a maximum foreign equity of 26 per cent in a private insurance company having operations in India.

Services: It serves as an Authority to protect the interests of holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith.

IRDA Duties, Powers and Functions

• • IRDA can Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration.
  • IRDA Protects the interests of the policyholders in matters concerning assigning of policy, nomination by policyholders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance.
  • IRDA specifies requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents
  • IRDA specifies the code of conduct for surveyors and loss assessors.
  • IRDA promotes efficiency in the conduct of insurance business.
  • IRDA promotes and regulates professional organizations connected with the insurance and reinsurance business.
  • IRDA controls and regulates the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business
  • IRDA specifies the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries
  • IRDA regulates investment of funds by insurance companies, regulates maintenance of margin of solvency, adjudicates the disputes between insurers and intermediaries or insurance intermediaries, supervises the functioning of the Tariff Advisory Committee, specifies the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations, specifies the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector and exercises other powers as may be needed.

4. Pension Fund Regulatory & Development Authority (PFRDA)

PFRDA full form is Pension Fund Regulatory and Development Authority, which was established on August 23, 2003. The Pension Fund Regulatory & Development Authority Act was passed on 19th September, 2013.

It is headquartered in New Delhi to perform promotional, developmental and regulatory functions relating to pension funds. This is one of the most important Financial Regulatory Bodies in India which controls employee pension fund and its regulations, claims among the companies.

5. Competition Commission of India (CCI)

CCI full form is Competition Commission of India, which was established on 14th October 2003 under the Competition Act, 2002.

It is headquartered in New Delhi composed of a Chairperson and 6 Members appointed by the Central Government. It enables common man with the broadest range of goods and services at the most competitive prices.

6. Telecom Regulatory Authority of India (TRAI)

TRAI full form is Telecom Regulatory Authority of India, was established on 20 February 1997 to regulate telecom services and tariffs. Earlier it was done by the Central Government. It is headquartered in New Delhi, composed of a Chairman and at least two and at the most six members, all appointed by the Central Government.

TRAI regulates telecommunications and DTH operations in India and becomes one of the most important Financial Regulatory Bodies in India among the telecom and DTH consumer section.

According to the TRAI act, amended in 2000, the functions of the TRAI have now been divided between two separate bodies namely-

1. 1. The Telecom Regulatory Authority of India (TRAI) and
   2. The Telecom Disputes Settlement and Appellate Tribunal.

7. Central Electricity Regulatory Commission (CERC)

Since electricity is one of the key drivers for rapid economic growth and poverty alleviation, Central Electricity Regulatory Commission (CERC) has been set up in 1998 as a statutory body functioning with quasi-judicial status to promote competition, efficiency and economy in bulk power markets, improve the quality of supply, promote investments and advise government on the removal of institutional barriers to bridge the demand supply gap and thus foster the interests of consumers.

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You should be little cautious before investing in insurance plan. There are scores of insurance companies who are selling their insurance products day and night to the individuals and in such situation where plethora of insurance products are there in the market, buying the right insurance policy is one of the most important investment decisions for every individual, which should meet your requirements as well.

Various insurance products covers two vital aspects – the risks associated with our life and our property such as land/house and vehicles which comes under Life insurance and General insurance respectively.

>>> Why You Should Not Fall for Guaranteed Life Insurance Plans?

It happens most of the time that we buy an insurance plan through our colleagues, friends and other well-wishers without knowing the intricacies of the policy. Once the policy is bought and after some time it does not suit your requirements then you try to cancel or surrender your policy resulting loss in your invested money. Hence, it makes sense first to do your own due diligence and then invest your hard-earned money in the right insurance policy.

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To make it even simpler for you, we have listed below the top 5 points you need to carefully consider before investing your money in an insurance plan.

1. Draw your financial roadmap and set target

Investment decision should be taken with a proper roadmap including your entire financial situation if it is your first investment on insurance or any other long term investment or you already possess other insurance policies. Investment goals and risk tolerance should be figure out before investing.

2. Before investing on any insurance policy, do a background check

Extensive background check on the insurance companies on your list should be done before the investment on the insurance made. You should know the network & distribution structure, policy offerings & details, customer support contact details and assistance for online investments listed on their website.

3. Create and maintain an emergency fund before investment

Sudden investments should not be done rather you should maintain some emergency funds before any kind of investment. Such emergency funds can be maintained in a savings product or other short time recurring or fixed deposits to cover an emergency such as sudden unemployment. At least six months of income should be maintained in savings so that it may be used in need.

4. An informed decision is always better

You should know the insurance products such as ULIPS (Unit-Linked insurance Plans) – a combination of life insurance and investment plans, Pure Term Insurance Plans – to protect your liabilities in the long-term and Endowment Plans – that offer guaranteed returns for investors with a low risk appetite. Always check the performance of the fund you are interested to invest in such as ULIP (Unit-Linked insurance Plan). All this information is available in fund’s website online. As a suggestion, always choose a stable fund with a consistent track record of growth and assured returns.

5. Check the Lock-in Period and claim settlement process

Always check the lock in period of the investment policies with the surrender value (when policy is surrendered before the maturity after lock-in period) before making any kind of investment. Only oral commitment from the insurance agent is not sufficient rather a well documentation regarding the same should be there, if it is available online then take a printout keep it with you with the fund/policy papers. You should keep your policy papers with safety as they would be required at the time of claim settlement or at the time of maturity. Since the Indian insurance industry is highly regulated, yet you can check the claim settlement ratio of the company from IRDA (irdai[dot]gov[dot]in/Defaulthome[dot]aspx?page=H1) website.

Conclusion

Above points one should remember before investing in insurance plan or policy or any other investments you are planning. You should also care for the other benefits which insurance company is providing to the policyholder though it may differ from company to company. While every insurance policy provides the standard protection against loss of life/property, many also offer several additional benefits such as top-ups and extra bonuses as well. As a pre-caution, always invest in the policy/fund which is regulated and licensed by IRDA (Insurance Regulatory and Development Authority).

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Choosing an appropriate investment option is a very tiresome and confusing task for any would-be investor. With the availability of numerous options in the market, more often than not, an investor is always on a lookout for the most reliable and most feasible investment option.

While looking for a long-term investment which provides them with the maximum returns, investors often end up choosing between unit-linked investment plans and mutual funds. In order to safeguard their future financial needs, it is very important to understand the difference between these two popular instruments of investment in detail.

Although both these investments rely on the state of the financial market, they have their respective benefits.

Unit Linked investment plans are instruments of investment which allow the investor to get the dual benefit of getting a source of income as well as insurance. These options are most feasible for investors looking to combine and reap the benefits of investment with insurance.

The basic features of investment, that can help in making a distinction between the two long-term options, are-

1. Debt Benefits

Overall, ULIP investments carry a debt burden. In the category of ultra-short bond investments, which bear fixed returns, mutual funds outperformed ULIP investments. In short bond category of investments, mutual funds beat the returns of ULIPs by reaping 7.30% over the 6.6% earned by the ULIPs.

Other than having lower returns, ULIP investments also carry multiple overhead charges which reduce the overall returns, such as mortality charges, premium allocation and policy administration. The major reason for lower returns on ULIPs is due to the high charges of fund managers which range from 0.65% to 1.5% in comparison to 0.28% to 1.48% charged by fund managers of mutual funds.

2. Equity Benefits

The 3 main categories of investment in equity are-

• Large-cap funds which require a large investment and provide an option of earning high returns.
• Mid-cap funds are the funds that have investment options for middle-ranged companies and stocks
• Balanced funds are the investment options for investors who wish to invest in shares and stocks which provide a safe return on investment with minimal risks.

In the category of balance funds investment, ULIPs fall behind mutual funds, which have performed better consistently. Though the difference between the two investments is not big, mutual funds are said to perform better than ULIPs for this category. Numerically, in a 3- year tenure of investment, ULIP vs mutual funds returns are seen to be at 7.37% and 7.75% respectively while in 5-year tenure of investment, 9.21%, and 9.74% returns were seen for ULIP vs mutual funds.

In the category of mid-cap and large-cap funds (fincash[dot]com/l/best-large-and-mid-cap-funds), ULIPs perform better and have better returns than mutual funds in a three-year tenure of investment. While in five-year tenure of investment, mutual funds perform marginally better.

3. Overall Returns

Although there are no large gaps between the returns earned from ULIPs and mutual funds, the following table illustrates the various returns in both three and five-year tenure of investment.

An investor should carefully assess his investment goals, study the performance of both the instruments of investment and decide the time for which he wishes to make the investment. Only then will he be able to ascertain the most appropriate long-term investment option out of mutual funds and ULIPs.

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Are you looking for a financial advisor but you do not know how to choose? Many SMEs do not have a financial department and therefore the director or administrator has to carry out several positions at the same time. In these cases, they seek external help from financial advisors and this is where the dilemma of how to find a good financial advisor begins and what the characteristics they should have are? Counseling involves a monthly cost but in the end, it is cheaper and will save you more time.

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Financial Advisors: Who are they?

For different management and important decisions for your company, it is advisable to hire or take suggestions from an external advisor or hire them. There are different types of financial advisors, depending on the area in which they specialize they can be an administrative accountant, fiscal accountant, administrative consultant or if they provide advisory services in the legal framework they can be commercial lawyers or criminal lawyers. In addition, depending on the size of the advice can be independent consultants or large consultancies that deal with different areas. When choosing a financial advisor before you should be clear about what you need.

Independent Objectives of Financial Advisor

A financial advisor can only be considered independent when working with a variety of entities and products and puts the client’s interests first. This feature is one of the main differences between a financial advisor and a bank that usually tries to place its customer’s products of the bank, although not necessarily the most appropriate. You should also bear in mind that bank employees’ bonuses depend on the number of banking products they manage to sell and not on finding personalized solutions for their clients.

Good Communication and availability of Financial Advisor

Questions and questions on account issues may arise at any time and it is important to be able to communicate with your economic advisor with maximum ease. You must make sure that your financial advisor has good office hours and is accessible by phone and email. Here there is a difference between the online consultancies that offer the advantage of having a more complete communication service and instead the consultancies with a physical presence that are less flexible but you can meet in person with the manager. The fundamental point is that the advisor is accessible and that you feel comfortable – we advise you to avoid those advisors who use too many terms and financial abbreviations for no reason!

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Financial Advisor should be available in directories on web and recommended by its Users

Online management directories allow you to analyze and compare different services in one place. You can also make a more informed decision by guiding yourself through comments and ratings that other customers have left. In this way, you will be able to find the service that most responds to your requirements and avoid dislikes when choosing an agent.

Financial Advisor should have an extensive and varied customer portfolio

Following the previous point, it is advisable to look for an advisor who manages your finances at workplace and who has an extensive and varied portfolio of clients in terms of sector and size of the companies. This would ensure that the consultant has sufficient experience to be able to offer you a more personalized service adapted to your requirements.

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Investing in gold can be a wise way to diversify your holdings and preserve money. Knowing the differences between actual gold, exchange-traded funds (ETFs), and mining equities is essential. As with any investment, you should think about your risk tolerance, do a lot of research, and, if needed, consult financial experts. With an informed and planned approach to gold investing, you may be able to take advantage of the precious metal’s timeless appeal and stability in the ever-changing financial landscape.

However, like everything in life, an investment that suits one may not suit the other and just like that investment in gold could flatter the financial needs of some people but maybe a poor security decision for others.

Listed Below Are Some of the Ways of Investing in Gold

• Buying of Physical Gold in the Form of Jewelry – adding to investment, these ornaments are of value as they can be used on daily basis. This is the most common way of investing in gold in most of Middle East and Asia.
• Bullion investment – this is physical form of buying gold in the form of coins or bars.
• Buying gold stocks – these are investments in companies dealing with gold mining but not directly investing in the gold.
• Gold exchange foreign trade funds – these are indirect investments into securities that are backed up by physical gold.
• Additional forms of investments are gold accounts, certificates and trusts. These transact on the price performance of gold but no actual ownership of the same.

Before, you take a decision, take a look at the below mentioned pros and cons of investing in gold.

The Pros of Investing in Gold

• Insurance against inflation – With currencies fluctuating on a daily basis, gold insures a significant stable value. There are policies that hold the currencies steady but once a currency begins a downward spiral, it becomes difficult to control inflation. In such scenarios, gold is a safer option to indulge in. The stock market is a gamble against factors such as company performance and people find it convenient to invest in something they can control at least to some extent.
• Valuable Asset – the demand centered on gold will always be of value no matter how bad the economic conditions. Investing in gold is therefore a way of having a valuable asset against economical and geopolitical crisis or the uncertainties of monetary assets.
• Simple and Easy – Buying gold is way easier than other options such buying stocks, bonds, properties etc. as you need to do a thorough research on them and find the right one to indulge in.
• Physicality – People prefer to invest in things that have a tangible value to them. Shares or crypto currencies are skeptical because people don’t trust the value of an electronic file. While buying gold, the investor can test the content of gold and this gives them long-term assurance of its value.
• Diversification – The value of gold is best known in times of crisis and therefore it is considered one of the best ways of diversifying the investment portfolio. In times of need, when stocks or deposits cannot be easily liquidated, gold can be sold at any point of time and easily converted to cash.

The Cons of Investing in Gold

• No return – if you invest in some form of deposit, you earn interest. If you invest in property, you can collect rent however, investing in gold does not yield any such returns. More often or not, people need to sell the gold they have to get any monetary value. So, the idea here is to buy it and store it away and hope for a good deal in the future.
• Transaction difficulties – Dealers often charge a significant fee towards buying and selling gold. The costs tend to cover factors such as minting, distribution and marketing. You also need to be certain that the seller is an authenticated gold dealer or you might get caught in scam.
• Security – After investing in physical forms of gold, it is also difficult to keep it safely. Keeping it at home can be unsafe due to possibilities of theft or fire. In fact sometimes, it can be considered as a negative yield due the cost of keeping it somewhere safe when it is bringing in no income.
• Uncertainty – it is never clear on how much the value of gold will be in the future. There is always an estimated value of how much a certain quantity of gold would be in the future but this value could fluctuate.

Investing in bonds, shares, stocks, etc. insure some return on investment whereas investment in gold insures a safety net for the future when all of these fail to yield any value. After weighing your options by reading the above pros and cons, it is always a wise decision to consult a financial adviser. Any form of investing comes with certain amounts of risks and a financial adviser will consider the best for your situation and guide you accordingly.

Gold has been valued as a store of value and a sign of prosperity for a very long time. Civilizations have been drawn to this valuable metal for ages, and it’s still a wise choice for investments in the present day. This article is intended to give you a thorough understanding of the gold investment market including pros and cons so that you can make well-informed judgments if you’re thinking about getting started.

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In simple words, a debt consolidation loan means a loan taken to pay off earlier or existing loans and liabilities. This loan helps in refinancing the past debts of an individual, a business or a nation as a whole. In many countries, the government also uses it to pay off various corporate loans or to get over its fiscal policy. Such loans prove to be helpful when an individual or a particular entity wants to have a systematic way of paying off his entire loan only to a single debtor.

Process and Policy

The method of applying for a debt consolidation loan varies from nation to nation as per the country’s rules and regulations. In some countries, it may even vary from region to region depending upon its governance.

Usually, an individual debt comprises of housing loan, credit card bills, medical bills, and education loans, etc. On providing the listed set of documents, a debt consolidation loan is given by a lending and secured institution. The receiver of this loan can then pay off this loan in installments within the desired period (usually a month). These consolidations loans, however, charge a specific rate of interest, fees, points, etc. on the amount borrowed.

Eligibility

Not all individuals can apply for such a loan; there are certain constraints to it. The following factors are taken into consideration while approving these loans:

• The individual should be an earning person, and his salary should be little more than the total cost of his installment.
• He should be an adult and must complete a certain age as per the country’s rules and regulations.
• He should not be bankrupt which means that he should have a certain amount of savings and should be earning a favorable income to maintain a balance between his personal life and financial stability.
• Other factors such as the desired credit score, residential stability, job stability, etc. also matter in general but may differ from nation to nation.

Strategy

Many times, it happens that even after several attempts an individual fails to get his loan. In this case, he can follow the following ways to get one instantly:

• Online application – In the modern times, there is nothing that one cannot find online. The internet has access to almost each and everything today. You can search for online loan providers as there are many available in the market. Many times, online loan applications are straightforward, less documentation is needed, and approval also is quick; hence it’s not a bad option to apply online.
• Approaching local banks – Local banks are the one who usually does not ask for a lot of documents as the account holders are a part of their bank since a long time due to which the application process is applier friendly. The bank considers its account holders as loyal people as they have an association with the bank for a long time it grows the chances of approval of a debt consolidation loan.
• Securing loan against property – Though, this option is not recommended, but if one is urgently in need of a debt consolidation loan then he can secure his assets such as a house, vehicle, jewelry, etc. and apply for the desired loan.

Factors leading to a denial of debt consolidation loan

Sometimes it can happen that even after many attempts the individuals’ application for a debt consolidation loan is rejected. The following are some of the possibilities for the rejection of application:

• Low income: One of the main factors for denial may be low income. If an individual has a favorably low income to repay his debt amount his application can get rejected on his income basis. The approval of a debt consolidation loan needs certain income requirements, and if it does not meet its need, it’s denied.

• A bad or low credit score: If an individual has a poor score his application is rejected as debt consolidation loan requires certain criteria of credit score so that they can be able to grant the loan. Also, if the applier has a history of late payment of dues or no payment at all, there are high chances that the bank will reject his debt consolidation loan application. The lending institutions generally check the credit background of the applier and offer them a loan. 

• No security against loan: Sometimes it is vital for an individual to secure his loam against some of his assets so that the lending institution can recover their loss in case the applier fails to repay his debts. So, if the borrower does not have any asset to secure against his loan his application the bank can reject the loan. 

• High debt: Usually the lending institutions offer debt consolidation loan on a particular ratio against the income of an individual. In case the income of the individual does not match with the desired ratio and his debt ratio is too high the authorities deny lending debt consolidation loan to any such individual. 

• Stability factors: The lending institutions generally look up to certain stability factors when it comes to approval of debt consolidation loan. In this case, the bank considers the stability of the borrower regarding professional background and residential changes .E.g., if they notice that the individual is a frequent job changer, then there are chances that his debt consolidation loan application can get rejected.

From the above overview of the debt consolidation loan (DCL), on the whole, we can say that this is an excellent option for individuals who are stuck up in different loans. Debt consolidation loan offers a significant amount to the individuals so that they can pay off their several small loans. Usually, not much documentation is needed for applying for such loans, but you must keep certain factors in mind before applying for the same.

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Debt settlement companies are the mediators between you and your financial institutions from where you have taken loan or credit cards and you are unable to pay off. You may use your credit card for a variety of purposes. After all, it is a very convenient way for you to make payments. However, you need to earn sufficient income to meet your household needs and repay such dues on time. If this is not the case, you could end up accumulating a lot of debt. Then, you will have to come up with a viable strategy to manage it effectively. Otherwise, it can play havoc with your personal finances. If you are not careful with your money, you may have to declare yourself bankrupt. This is something you want to avoid at all costs. This is why it is prudent of your part to seek the help of debt settlement companies.

How can debt settlement improve your personal finances?

Debt settlement is a process where you enter into negotiations with the officials of your credit card company. Your objective is to request them to write off a small percentage of your overall debt. In return, you offer to pay them a lump sum payment for the remaining amount you owe them. If you are successful in reaching an agreement, you could waive off almost 70% of your overall debts. This fact which you should seriously consider. After all, it can help you to get your personal finances in order. You may be wondering why the top managerial personnel of such a corporate enterprise will accept such a proposal. This is because, they know that if you file for bankruptcy, they may not be able to recover anything from your estate. Under this scheme, they are able to get a lump sum of money for the outstanding amount you owe them.

Why hire the services of debt settlement companies?

Most financial experts admit that entering into such negotiation with credit card companies is a tall order for most people. You could be one of them. You may not be in a position to convince them to agree to such a proposal. This is why it is prudent on your part to seek the help of reliable debt settlement companies.

This point out the following five important reasons why you should consider opting for this course of action:

1. Avoid becoming bankrupt

When people accumulate debts which they cannot repay, filing for bankruptcy is the obvious course of action. However, they do not realize that it can do more harm than good. It can ruin their reputation because people in the market get to know they are insolvent. On top of this, it leaves an in erasable stain their credit report for at least a decade. During this period, they cannot apply for any kind of loan whatsoever. Even if they try to conceal this fact, they will be guilty of fraud. This is not the type of situation in which you want to fall in. Hiring the services of a reliable debt settlement company is your best option to avoid declaring yourself bankrupt. As a result, you will not have to suffer its adverse consequences.

2. Industry experience

Most people do not have the relevant experience and knowledge to conduct negotiations with credit card companies. You could be one of them. You may not know how to convince the top management of such corporate enterprises about your present financial condition. This is not so when you hire the services of a reliable debt settlement company. The professionals of such organization can hold talks on your behalf and secure a viable deal of you. However, in order to choose the right service provider, you should browse through debt settlement reviews of such establishments.

3. Lowers your overall debt

A successful debt settlement program helps you gain control over your personal finances. Instead of worrying about multiple credit card dues, you only make a single monthly payment. This makes it possible for you to clear your entire debts with a couple of years. Moreover, you do not have to incur any late payments, administrative charges, and hidden fees. This helps you to save some money in the process. It can also enable you to regain the peace of mind you deserve.

4. Avoid paying any upfront fees to credit card company

Working with a debt settlement company to repay your credit card dues helps you to save money in other ways. Such an organization will assist you in reaching an agreement with your creditors on this issue. Until you clear your overall debt, it cannot charge you any upfront fees for the services it provides. In any of any violation of this rule, you can appeal to regulatory authorities like Federal Trade Commission.

5. Create a strategy to help you reduce debts

The professionals of a reliable debt settlement company go out of their way to help their clients. They will not hesitate to apply the same policy in your case. They chalk out an effective plan to enable you to reduce your overall debts. They will give you an idea of how to deal with the officials of your credit card company when sitting on the negotiation table with them. Before signing any agreement with such a service provider, their experts are under an obligation to tell you:

The fees such a company charges for the services it provides;

• • The time period under which such specialists will hold takes with your creditors;
  • The type of offers they will make official of your credit card company;
  • How they intend to protect your best interests in any negotiations;
  • The circumstances under which they may suggest you stop making payments; and
  • The likely consequences you may face if you abide by their recommendations.

Hiring the services of a reliable debt settlement company can help you get your personal finances in order. You just need to go through the above five important reasons to know that this is the right decision to take. It can enable you to clear your personal debts once and all. This can give you a new lease on life. However, you need to opt for an organization with a good reputation in the market. Only then can you get the results you are looking for.

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Consider taking for a personal loan or debt to cover debt consolidation if you find yourself in debt, having to make payments to multiple creditors and paying different interest rates.

This type of loan can definitely help you with debt management skills. The even personal loan is categorized as a consolidation loan, which provides you fund to just pay off some of your current debts. Instead of coming up with multiple payments at various rates of interest, you can easily make single monthly payment for each month and pay off the personal loan. There are multiple options available for you to follow and steps designed to get the personal loan at the best rate possible.

1. Get the personal loan for debt consolidation

Even though there are multiple avenues designed for personal loan approval, you have to take your time in researching and come up with the best option. Borrowers who have a higher credit score can easily qualify for some of the better loan terms. On the other hand, you have borrowers with lower credit score too. They might find it hard to get the personal loan sanctioned. So, they have to work hard in researching to find some of the most favorable offers when it comes to interest rates, loan amounts, and fees.

2. Easy directions to follow

There are some directions available on ways to consolidate debt with a help of the personal loan. Once you follow the rules, there is no looking behind.

3. Start checking credit score and report first

Even before you head for a loan, you need to be suitably aware of credit score. Each lender comprises of its own credit requirements for borrowers, but all lenders will check credit.

• • You need to be aware beforehand if your credit report has any negative information in it or not.
  • Federal laws give you the opportunity to actually entitle a free copy of credit report from any one of the major credit bureaus, Experian, Equifax and TransUnion for every 12 months. You can order for that online by clicking at their respective sites. You can check the credit rating agencies here.
  • You can further purchase the credit score without paying a single cost from credit card firm, free online service or bank. You can use Credit Karma or Credit Sesame to help you big time in this regard.

4. Check out for lenders offering you your much-needed amount in personal loan

There are some companies which offer personal loans only for the sake of debt consolidation, within an amount of $3000 to $100,000. Borrowers who are lucky enough to have excellent credit, they can try out the credit card consolidation to 0% APR credit card. On the other hand, for borrowers with a good form of credit, peer to peer lending platforms can offer personal loan starting from $2000 to $35,000. In addition to that, credit unions will provide you with lower requirements than banks for the consolidation loans.

5. Start listing the credit card and loan balances

This seems to be the next step of procuring a personal loan to cover debt consolidation with ease. For that, you can try heading for debt consolidation reviews to get an idea about the debt consolidation loans and other related information, subject to vary from one company to another. You have to work hard to include some monthly payments and annual percentage rates for each debit over here. You have to understand in details about each owned debt and how much money you have to borrow for repaying the debt.

6. Try going for the debt consolidate calculator

Here, you need to enter the debts that you are planning to consolidate into an online debt consolidation based calculator. It will help you to see the ways in which personal loan can actually benefit you. Even though single monthly payment might help in saving some time, but it is also quite important to find a loan with some favorable terms and rates.

7. Try shopping around for lenders with favorable interest rates

You can try checking out with other lenders which provide personal loan rates at minimum rate of interest and less other charges. This way will help you to currently check the rates available online with no such impact on the present credit score.  Then you have other online platform as well which presents you with fixed rates under personal loan with autopay option. This service will help you to check the rate without any risk at all.

8. Best personal loan application depending on your situation

After you shopped around and decided on the type of loan, it is time to apply for it. Now you have the right to use funds for paying off the current debts. The entire process might be a bit time consuming at first, but you will definitely get a hang of it for good. For any other help, personal loan lenders are always available with step by step help.

9. Avoid adding extra debts on present ones

After you have successfully paid off all your debts, there are high chances of temptation to use some newly available credits for making next set of purchases. Yes, it is understandable that you are trying to keep credit cards in play, but it is quite unwise to charge purchases which you won’t be able to pay easily each month. Charging up your current paid-off cards will force you to be back in the jungle of debt. If you don’t want that, avoid adding those extra debts in your kitty as of now!

10. Always keep old accounts active

Do not ever try to close credit card based accounts once you paid it off. Part of the credit score solely depends on the length of credit history. So, the longer you have an active account under your name, the better it might be for the credit score. Also pay the credit balance, if any, time to time and utilize maximum 30% only of the card limit for the better credit history and credit score.

11. Make the right choice

Whether you are planning to use the personal loan for the credit card based debt consolidation help or willing to pay a mix of credit cards and loans, you have to shop around for the best rates you can qualify for. Also remember, just because you are consolidating, that does not mean you will pay less in long run.

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Credit Information Companies (CIC) or Credit Bureaus such as TransUnion Cibil, Equifax Credit Information Services Pvt. Ltd, Experian Credit Information Co. of India Pvt. Ltd and CRIF High Mark Credit Information Services Pvt. Ltd are operational in India to provide credit scores to the individuals and enterprises.

These CICs have tied up with several fintech companies/startups to provide customers credit scores, credit reports as well as monthly updates. For this you need to provide some information such as your name, PAN number, date of birth etc.

Various fintech startups are providing free credit score to the individuals and for the same Wishfin has tied up with Transunion Cibil to provide credit scores through WhatsApp, for this follow below simple steps:

1. Give a missed call on 8287151151
2. Alternatively you can enter your mobile number on Wishfin’s website (wishfin[dot]com/cibil-score)
3. If you give miss call on above given number then you will get a WhatsApp message from a verified business account “Wishfin CIBIL Score”
4. You can share your name, date of birth, gender, address, permanent account number or PAN and email etc. visiting site of Wishfin.
5. By following above steps accurately, you will receive your credit score instantly but if you want your detailed credit report then, you need to get registered in Wishfin’s website and login there

You can get your report, and 12 monthly updates free of cost as of now.

Gold is considered to be one of the best investments today. Indians mostly prefer traditional forms of investment and prefer investing in gold jewelry, coins or gold bars. But with the changing culture and advancing technologies there are many more gold investment options available in the market today. An open minded approach towards gold investment will go a long way in bringing investors lucrative returns in the long run.

India and gold can be considered as synonyms to each other. Every Indian household be it middle class, upper middle class or rich has at least one article of gold which they love flaunting at that paparazzi party or save for a rainy day.

Have you ever wondered what could be the negatives of investing in gold in its physical form?

Cost: At first you are already putting in huge amounts of money for buying gold and if the ever increasing gold rates weren’t enough, you have to pay additional locker cost as you need to keep your gold safely.

Resale Value: Once you have bought gold jewelry, after some time you may feel like exchanging it for a new design. The resale value as compared to the gold price today would not be the same and you would be at a loss as the jeweler would be deducting some charges and would only buy it at the current day’s gold rate.

Purity: You can never be sure about gold’s purity in spite of all the claims being made by the companies today. As the gold prices keep increasing, jewelers often try making more and more profits by any means.

There are a lot of risks to be in possession of gold in its physical form – locker rent, and fear of theft being some of the associated risks. What then are the best ways to invest in gold in India? Let’s find out:

1. Gold Shares or ETFs

These are representation of physical gold in paper form. You just need to open one Demat account with any of the banks and you can start buying gold through it online. One gram of physical gold is equivalent to one gold share. You need not be worried about any additional charges here as compared to physical gold, for example making charges, etc.

2. Government Gold Schemes

With the ever increasing demand of gold and more and more people being inclined towards e – gold investment, Indian Government launched 3 gold schemes in 2015. The main idea for this initiative was to reduce import of gold and rather have the Indian economy benefited. The three schemes launched are:

• • Indian gold coin scheme
  • Gold monetization scheme
  • Gold sovereign bonds

3. Gold Mining Shares

This is one of the most interesting and equally benefiting forms of gold investment. You just need to do a little smart research and you are done. In this type of investment you buy shares of the company which is involved in gold production. Indirectly you are part of that company involved in gold buying process. You just need to be a little watchful of the background of the company.

4. E-Gold

National Stock Exchange or NSE introduced the concept of E-Gold investment in the year 2010. You do not have any upper or lower limit for this investment and it all depends upon you. At any point of time you can sell e-gold and buy physical gold from it.

5. Gold Futures

This is one of those investments which we call as hit or miss. It is a contractual investment where you get into a contract with an initial installment and pay the remaining amount at the closure of the contract. Now the catch here is you will have to close the contract even if you are at a loss.
Though there are many investment options available in the market today but investing in gold remains one of the best. Gold will always be an asset and help you in the longer run so keep yourself invest in gold.
One should ideally be setting aside at least 2% to 8% of the income towards gold investment. You should not expect immediate returns on this. However it would be an added asset in the future. Although physical gold or gold jewelry remain to be the best options, there is no harm in exploring other gold investment options as well.

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SIP stands for Systematic Investment Plan. It is basically a systematic approach in terms of saving money.

What is Systematic Investment Plan (SIP)?

It is a plan that allows one to invest their money into mutual funds so that a large sum is accrued for fulfilling your needs in the future years to come. With a SIP, you can invest your money which is predetermined into the mutual funds at regular intervals like quarterly, monthly, weekly, etc.

A small amount of amount is invested in a systematic investment plan in the market. The deposit has to be made again and again at certain intervals, regularly. One invests into the systematic investment plan in accordance with their monetary needs that they need to achieve by saving their money by investing in the systematic investment plan. You can choose the interval periods that you want to invest through. Once you start investing in the systematic investment plan, the amount of your investment money will be automatically debited from your account which you had registered with and invested in the SIP. This money will be invested into a mutual fund scheme. After that, the investor is given a certain number of units which are based on the market rate; this is called the NAV or the net asset value.

It works in a way that each time your money goes into the investment amount, more units of the scheme will be added to your SIP account.

SIP allows you to save regular and continuous savings you can calculate through any SIP calculator. You are committed to saving at regular intervals so that a good and huge amount can be accrued in a time period so that it can be used later. It can be more useful if the Systematic Investment Plan with a purpose of long-term investment plans. The SIP is very flexible in terms of the investor having the control over whether they want to continue or discontinue the Systematic Investment Plan (SIP), at any time. The investor has superpowers over the Systematic Investment Plan that they invest in as they are the ones who have the power to decide if they want to decrease or increase the amount of investment. It is super easy as well in terms of regular investments. There is absolutely no problem if you forget to make the payments as you can give your bank an instruction to auto-debit the investment amount from your account during every interval. The returns from the investments that you make into SIP are pretty good because of the rupee – cost averaging.

Five Step Guide to Systematic Investment Plan (SIP)

1. Figure out why and how much you want to invest

The most important thing before you invest into the SIP is to figure out your risk appetite. How much can you afford to invest in mutual funds that do not have a 100 % guaranteed return! Assess your risks carefully and then understand why you actually want to invest and what is your purpose of doing so. If you know why to want to invest and how much you want in return, it will help you to invest the amount closest to what could be appropriate for the returns that you are looking to get.

2. Mutual Fund

Many mutual fund schemes are available for you to choose from to invest your money into. The risk appetite helps a great deal in settling on a mutual fund scheme(s) to invest into. Before you select a mutual fund, asses the performance of that scheme for the past few years to see how good their returns have been in the current economic situation.

3. How to invest in SIP?

• • • The first step is to fill up the SIP application form.
    • Then, submit a cheque for the SIP amount for the month (offline)
    • Or, fill up your ECS form (online).
    • Submit a canceled cheque
    • Give your Residential proof
    • Submit your KYC form

4. Select your dates and duration for SIP

As you already know that the money you are investing into SIP can get auto-debited from your bank account, you will need to select your dates for the money to be deducted from your account and invested into the mutual funds. Most of the firms offering investment options into SIPs offer the following dates: 28^th, 20^th, 15^th, 10^th, 5^th and 1^st. As an investor, you can calculate the amount of money that you need to fulfill your future goals and requirements like your child’s education, building a house, etc. After you calculate the amount that you need to accrue, then deciding on a time period that will be your duration for the SIP is easy.

5. Online or Offline? And till when to stay invested?

This is an important decision to make. There are both options available for you to choose from which offers you the choice if you want to invest in the SIP online or offline. You do not have to go through the hassle of remembering the dates for the transfer of the money to be invested into your SIP account as the plan works on the basis of auto-debiting. So, even if you forget, your money will automatically be invested every month or year, whatever payment mode you choose. Also, it is the best to stay invested in your SIP for the time that you have decided upon by selecting the duration as a SIP is designed in a way that it gives maximum returns through long-term investments.

Conclusion

Follow these 5 golden steps to your Systematic Investment Plan to invest online in SIP and have an easy long-term investment with high returns without the worry of getting reminded every time to pay your investment money as it is an auto – debit plan.

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You have heard the famous saying, “Health is Wealth”. And yes, it is true. You work so hard to live a good life, to give your loved ones your children all the facilities. When you do this much in your life, then you also have to care about your health without worrying about the money you have to spend for this purpose. Health Insurance companies always advise you to plan your health insurance earlier, but if you haven’t purchased your health insurance till now, still it is not too late. Consult your health insurance and get the best health insurance for you and your family.

Also, remember to know about the various government schemes on different health insurances which will benefit you more. Just don’t bond yourself if your health cover plan, make its use as much as possible.

1. Recovery benefits from Health Insurance

This benefit is also known as the recuperating or recovery benefit. In this, the insurance company is responsible for the cost recovery of the insured under the project. Benefits given include additional costs that may result from hospitalization, such as loss of income. If the insured is hospitalized for 7 to 10 days, the insurance company will pay a one-time fee.

2. Alternative Treatment from Health Insurance

In recent years, the popularity of alternative therapies has increased in many ways. This has prompted many insurance companies to adopt alternative therapies such as Ayurveda, Homeopathy, and Yoga.

3. Cover Organ surgery related expenses from Health Insurance

For example- the cost of the kidney transplant could range between the Rs. 3 lacs to Rs. 5 Lacs. If you have the health insurance, it ensures that you will not have to worry about the medical expenses before undergoing the surgery. Most of the insurance companies cover organ transplant cost as their regular health insurance coverage.

4. Exceeding the days of Treatment are covered in Health Insurance

Under this section, many insurers have expanded their insurance coverage to include treatment taken under the medical supervision. Though, insurers have covered the amount and number of days for which the benefit is available.

5. Attendant Allowance is covered in Health Insurance

Insurance Companies offers this section, in which adults accompanying the insured at a hospital, provided the insured is a child. Generally, in most of the cases, the numbers of days for which an insurer pays the attendant allowance is fixed.

6. Cash allowance is also available in some Health Insurance

Daily Hospital cash allowance offers additional financial protection, in which it takes care of the expenses which are not covered under the health insurance, such as food and travel.

7. Free regular health check-ups

It is another benefit of the health insurance about which many people don’t know, it says that the policies offer free periodic health check-ups to their policyholders after every 4 or 5 claim-free years. Insurers offer cashless health check-ups if all the tests are done in the listed hospitals or centers.

8. Dental treatment in Health Insurance

Dental treatment is covered by many insurance companies once in a few years with some limits.

After seeing its benefits now, you know the various advantages of having health insurance. It makes you independent, now you are no more dependent on your relatives or any other for borrowing money for health issues. Your insurance policy supports you to get the best medication. Let us look for the reasons that why having a health insurance is important in India.

Why is Health Insurance important in India?

Living in this fast-paced world has become more and more intense and has led to major health conditions, especially among Indians. Millions of Indians die because of heart disease and diabetes. According to the World Health Organization, these are the main cause of death in India. In addition, respiratory diseases, childbirth complications, and infectious diseases are also paralyzed.

Given that Indians are more likely to suffer serious health problems, have you considered protecting your family and yourself from these injuries? Rising health care costs can lead to financial difficulties and this can further raise more difficulties and some time it has been seen that because of financial difficulties many people commit suicide so that their family doesn’t spend much on them. But these problems can be cut off by maintaining proper sanitation, health and having a health insurance.

Health insurance has many benefits, and in India, it is fruitful for those people who are fighting much due to lower financial status. Health insurance is the best way to protect yourself and your family from these kinds of problems.

Health Insurance coverage

Insurance providers offer different types of plans to maximize coverage and benefits. In some of the health insurance coverage, it includes the pre and post-hospitalization expenditure, hospitalization costs, daycare facilities and domiciliary treatment.

Two basic types of Insurance in India-

Benefits that Indian people get from Health Insurance plans

1. Financial stability

In an emergency people don’t have that much money which they can use in the case emergency and also the emergency medical expenses may result in several financial distress. But the health insurance plan helps you in this situation.

2. Best treatment you get

Due to lack of funds, people compromise on the treatment, but with the best health insurance plan, you have the assurance of procuring the best treatment to overcome any health condition.

Conclusion

After all the discussion over here about the health insurance, now you completely know about the health insurance and its benefits. If you have the best health insurance, it make-able to fight any health issue and you won’t get over from your funds and savings. You get best treatment options and many different benefits which are far more than only paying expenses for the hospitalization.

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It is a tedious job to calculate the car insurance premium. With the help of the car insurance calculator, you will be able to find out the premium very easily. The calculator will help you understand various features very easily. The online tool will save your time and effort so that you can take the best decision very easily. As you will figure out the premium that you should want to pay for your car, you can manage your finances in a very efficient way.

Benefits of car insurance premium calculator

As the car insurance is paid annually, you can use the online calculator to calculate the precise premium that you can pay without any difficulty. If you can collect few details about your car, you can calculate the premium very easily.

You will want to enter the own damage premium (corresponding to the value of the vehicle) and liability premium (which gives protection from third-party damage). The ‘no claim bonus’ and other discounts should be deducted from the total premium. As you enter the details in relevant text boxes of Car Insurance Premium Calculator, you will figure out the car insurance premium quickly.

Factors of concern affecting Premiums for Car Insurance

The following factors will affect the car insurance premium:

• IDV (Insured Declared Value) – The IDV is the maximum amount that you can claim from the insurance company when your vehicle is damaged or involved in the accident.
• Make and model of the vehicle – The brand name and model of the car will have an impact on the insurance premium.
• Depreciation – The value of the car will decrease every year and it is termed as the depreciation. The depreciation cost will be in between 5% and 50%. The value of the car will be reduced annually. The depreciation on replaced parts will be waived off by the insurance company when your car is covered by depreciation cover. Thus, you can manage higher claim amount.
• Engine size – The premium of the vehicle will increase with the rise in the volume of the engine.
• Location of the vehicle – The location of your home or office will have an impact on the insurance premium. Certain geographical locations bear higher risk factors in terms of accidents, the risk to natural calamities, etc. Hence, the insurance premium is based on the risk factors associated with the location.
• Own damage premium – The events that are outside your control are insured by the ‘own damage premium’. The premium will give your car protection from earthquakes, fire, floods, tsunami, and other factors beyond your control.
• Third party cover – The financial liabilities that occur due to the death of the vehicle owner will be borne by the insurance company. The insurance company will pay the amount on behalf of the vehicle owner. As per Indian law, it is mandatory to possess the third party cover. Hence, you should go for a comprehensive cover to overcome financial emergency when you are involved in an accident.
• Personal accident cover – Accidental death or total disability is covered by the ‘Personal accident cover’. It is not included in all insurance plans. Hence, you should ensure that the benefit is included in your cover so that you can make the most of your money.
• Add-on covers – Certain add-on covers should be included as per the risk perception. Road-side assistance, towing assistance, fueling, accommodation benefits, engine & electronic circuit cover, loss of personal belongings and return to the invoice are some of the factors that you can include in the insurance premium as per your needs.

Steps to work with Car Insurance Premium

• Check the insurance plan (new or renewal)
• Select the make and model of the car
• Select the fuel-type (diesel, petrol, CNG or electric power)
• Enter the car registration place
• Enter the car registration number
• Enter the name, phone number and email address

The above steps will help you choose the best car insurance plan as per your requirements.

You can save as much as 60% by finding the useful information about the car insurance. You should know different plans from various car insurance companies. Reputed car insurance companies manage hundreds of garages spread across the country. Hence, you can get your car repaired very easily and you can manage great peace of mind by subscribing to the best car insurance plan. Car Insurance Premium Calculator will give you various options towards the selection of the plan and the premium.

Conclusion

You should buy a comprehensive car insurance plan to protect yourself, passengers, vehicle damage and third-party liability. Car Insurance Premium Calculator will help you figure out the best car insurance plan to accomplish safe ride on road. You will get best insurance plan by entering the key information in the online calculator. The tool is useful for quick research and you will manage the most appropriate insurance plan as per the make and model of your car.

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Health insurance plan can be subscribed to get protection from various kinds of ailments and diseases. Health insurance policies are offered for newborn babies and children by various insurance companies. The life insurance plan covers the death while the health insurance covers the hospitalization. The healthcare costs are increasing in India and a caring parent should choose the best policy to offer best protection for the child. Even though you are covered by a medical insurance offered by your employer, you should go for an additional policy as per your needs.

Purpose of health or medical insurance

Health insurance will cover eventualities such as surgery, hospitalization and medical treatment. There is a difference between Mediclaim policy and health insurance. The Mediclaim is limited to the hospitalization cost. You will want to claim the medical expenses towards the treatment and the insurance company will reimburse the amount.

With the health insurance plan, you will get additional benefits. The health insurance plan will cover the medical consultation fee, medical bills, cost of diagnosis, treatment cost, boarding charges, ambulance charges, pre-hospitalization & post-hospitalization expenses. Hence, it is a comprehensive policy to take care of your health in the best possible way.

There are some life insurance products which offer medical treatment coverage due to accident or sickness. The insurance company will pay lump sum amount and it will be helpful for treatment.

Benefits of health insurance

The following benefits are enjoyed by buying a health insurance policy from a reputed health insurance company which shows Why you need to get your children insured?

• Sufficient health cover – The health insurance cover offered by the corporate health cover will be insufficient to meet your children’s needs. The insurance plan offered by the employer will cease to exist as soon as you quit the job. Hence, you should want to buy a comprehensive health insurance plan.
• Ability to deal with life-threatening diseases – The number of children being treated for life-threatening diseases is increasing at a constant pace. The risk to various kinds of diseases such as anthrax, dengue, measles, rubella, viral hepatitis, mumps and acute diarrhea disease has increased in the past few years. The health insurance is a great option to fight deadly diseases. Even though the medical facilities are available, they are very expensive. With the help of a comprehensive medical insurance policy, you will get treatment and it is possible to save your child. The family will survive the financial hardship as the medical treatment cost will be borne by the insurance company.
• Healthcare planning – Your child’s health may be spoiled due to accident or injuries. If there is medical emergency, it will be borne by the health insurance company when you subscribe to the best plan. The health care planning and financial planning is essential so that you can live with great peace of mind.
• Income tax benefits – The premium paid towards the child health insurance plan will be exempted under the Section 80D of the income tax act. If you subscribe to a health insurance plan, you will get tax exemption up to Rs. 25,000 in a financial year.
• Additional benefits – In addition to the cost of treatment, you will also get additional benefits with the subscription of medical insurance plans in India. The additional benefits include daily cash allowance, recovery expense, and domiciliary treatment. You can also get additional benefits by customizing the plan as per your needs. Some insurance companies offer attendant benefit, alternative treatment and domiciliary hospitalization.
• Lifelong renewal – some health insurance plans are offered with lifelong renewal option. If you do not claim the policy in the previous year, you will get no-claim bonus.

Individual health insurance plan

You can buy an individual health insurance plan as per the needs of your child. If there are some hereditary health risks, you can choose a plan to include those risks. The sum assured will be in between Rs. 1.5 lakh to Rs. 50 lakhs. The individual health insurance plan covers the pre-hospitalization and post-hospitalization expenses.

Most of the insurance companies cover 60-days pre-hospitalization and 90-day post-hospitalization expenses.

You will get access to a network of hospitals managed by the insurance company. You can choose the policy term for 1, 2 or 3 years with a lifelong renewal option. When you buy an insurance policy at a young age, the premium will be very low.

Family floater insurance plan

The family floater plan is an affordable health insurance option. It is possible to cover all the family members with the help of the family floater plan. The insurance premium will be very low. The sum assured can be utilized by one or all the family members. Hence, one or more children plus parents are accommodated in the health plan. You can also include your parents in the family floater plan. However, the insurance premium will be high for senior citizens. Hence, instead of including parents who are above 60 years of age under your family floater plan, you can buy a separate policy to get your children insured.

Top up insurance plans

It is possible to subscribe top up plans so that the insurance coverage will be enhanced. Instead of buying another insurance policy, you can choose a top-up plan. Terminal illnesses such as cancer and AIDS are not covered by a basic health insurance policy. By choosing top up plans, you can get additional benefits. You can also subscribe to super top-up plans to make the most of your health insurance plan.

You should buy the health insurance plan by offering correct information to the insurance company so that your claim will not be rejected by the insurance company. You should also choose the most appropriate policy as per your child’s needs.

Conclusion

You can go through the various kinds of health insurance plans offered different insurance companies. The insurance plan that offers best features at a low premium can be selected so that you can cover various kinds of health-related risks very easily. A health insurance plan can be subscribed online and you will get assistance with claim reimbursement and 24/7 assistance so get your children insured.

Please refer other financial news in Newskart at Business & Finance section, also know top 20 General Insurance and Life Insurance companies in India.

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Personal finance planning is a dynamic process that adapts to the many phases of life and is not a one-size-fits-all undertaking. Whether you’re starting a family, entering retirement, or just starting your career, a customized financial plan can help you have a safe and happy future.

Managing finance is not an easy task as there are different portfolios under which you can plan to invest but for the non-professionals it is highly important to discern the right one so that you can get the maximum profit from your particular investment that you are looking forward for the investment.

Let’s examine important factors to take into account when preparing your own finances at various periods of life.

Finance Planning is important and it needs to be done beforehand so that investment plan is well made and so that you can reap the benefits to the fullest. It is necessary to have information about financial planning and its implementation as well.

Personal finance planning varies, there are various factors thus it becomes much more important to know about the process, as this would help you to have better understanding.  Finance planning and what all you need to keep in mind so that you can invest in accordance to your needs and future planning as well.

Personal financial planning is the development process where in you take up on the all the points so that you are sure that you are getting the lucrative deals that would certainly help you to achieve the financial stability. There are financial objectives that need to be done in more professional manner and this is why private wealth management is one of the best options that would help you to make the right move when it comes to investment.

It is important to be sure of the needs and current financial status and the best way is to take assistance from the professional, as they would guide you right path as there are different personal finance blogs where you can easily get the expert reviews on various investment program. To help you know about the Personal finance in India, here we bring you some of the points that would certainly help you to do the planning before investment.

One must understand the process here we bring you some of steps that you need to incorporate for successful planning. It is needless to mention that setting financial goal is must, as this will help you to streamline planning in more effective manner.

• Assessing current financial situation: it is the first step wherein you determine your current financial situation for instance savings, income, expense and debts so on. It is important to see the all these things so that you can easily do the planning. When assessing current financial situation, it is important to monitor in holistic manner so that you can carry the financial planning in most opposite way.
• Develop Economic Goals: in this step, you must know what you want to do with your money, and which area you want to invest so that your financial goals are met, and you can make the most from the single penny. A lot of time people are not aware of their financial goal it is important to foresee the needs and requirements that you will be having say 10, 15, 20 years so that you can secure your future in most exciting way.
• Know about the alternative options: it is important to know about the alternatives course of action, as this will help you to be sure of your needs and wants as well. One must be well aware of the option that could also be used in the place if the current investment is not much powerful. This will save you’re from grueling research work as all you have to do is to see the market trends and switch on to the another portfolio that is best suited as per the current financial situation.
• Evaluation of the alternatives: the next step involves wherein you have to evaluate the alternatives so that you can easily get things done and you can pick the best portfolio for the long-term investment. In the evaluation phase, it is important to seek the professional help, as he will guide you better what would be the ideal scenario to carry the investment.

1. Early Career and Education (20s – 30s)

• Financial Education
  Put your attention toward increasing financial literacy. Recognize the fundamentals of investment, debt management, and budgeting. Take into consideration utilizing retirement programs offered by your employer.
• Emergency Fund
  Create an emergency fund to pay for unanticipated costs. Three to six months’ worth of living expenditures should ideally be kept in a readily accessible, liquid account.
• Investing for the Long Term
  Invest early to take advantage of compounding’s power. Invest a percentage of your salary in retirement accounts and think about using a diverse portfolio.

2. Family and Homeownership (30s – 40s)

• Budgeting and Savings
  Make a family budget that includes money for housing, schooling, and medical care. Maintain your savings for both short- and long-term objectives.
• Insurance Coverage
  Examine and update your insurance policies, such as those for health, disability, and life. Make sure your family is covered financially in the event of unforeseen circumstances.
• Homeownership Planning
  When thinking about becoming a homeowner, evaluate your financial stability. Include down payments, interest rates, and continuing costs associated with homeownership in your budget.

3. Career Advancement and Mid-Life (40s – 50s)

• Debt Management
  Make repaying high-interest debt your top priority. To free up more money for savings and investing, concentrate on paying down credit card and loan amounts.
• Retirement Planning
  Review your retirement savings objectives and, if necessary, modify your contributions. To make sure your retirement plan fits your goals for your lifestyle, think about speaking with a financial expert.
• Estate Planning
  Launch or revise your estate plan. This includes setting up trusts, amending wills, and naming beneficiaries on bank accounts.

4. Approaching Retirement (50s – 60s)

• Healthcare Considerations
  Make retirement healthcare costs a priority. To guarantee thorough coverage, look at choices like Medicare and long-term care insurance.
• Downsizing and Lifestyle Adjustments
  Determine your housing demands and, if necessary, take into account downsizing. Determine the kind of retirement lifestyle you want and modify your finances accordingly.
• Review Investment Strategy
  As retirement draws near, adjust your investing techniques to lower risk. Prioritize capital preservation and income generation for retirement needs.

5. Retirement (60s and Beyond)

• Withdrawal Strategies
  Create a retirement account withdrawal plan that is methodical. Take into account things like required minimum distributions (RMDs) and possible tax repercussions.
• Legacy Planning
  Finalize and share legacy plans. Evaluate beneficiaries, make any necessary updates to documentation, and think about the most effective way to transfer assets to heirs.
• Social Security Optimization
  Choose your Social Security benefit claim dates carefully. Recognize how timing affects your total retirement income as well as benefit amounts.

These are the fundamentals that were previously discussed, but in order to ensure that things are done correctly, it is crucial that you obtain professional assistance. Selecting a knowledgeable specialist is essential if you want to approach financial planning in the best possible way and enjoy all of its advantages.

Proper Tax Planning not only reduces the amount of Income Tax that you are liable to pay but it also encourages you to save and invest your money so that you can fulfill your financial goals. There are a number of ways by which you can minimize the burden of Income Tax on you.  Here you will find the best five investment options for saving tax.

1. Equity Linked Savings Scheme

Equity Linked Savings Scheme or ELSS is considered as one of the best Tax saving options in terms of returns, liquidity, transparency, and taxability of income. The average returns from the ELSS category in last three years have been around 17.8%.

There is quite a high amount of risk involved with ELSS funds. But if you look at the long-term picture of 3 to 5 years of investment, you will find that ELSS funds have outperformed any other investment instruments in the market.

ELSS, however, is not the best option for everyone. Retired taxpayers, for instance, should prefer other tax saving instruments over ELSS. The best option for them is to invest in senior citizen saving’s scheme or in immediate Annuity Pension plans as there is less risk involved with them.

2. Unit-Linked Insurance Plans

Unit-Linked Insurance plans or ULIPs are the second best Tax saving options after ELSS. It has given 9.8% returns in the past three years. ULIPs are insurance cum investment products offered by Life Insurance Companies. They are cheap and offer greater flexibility to switch between funds.

All reputed Life Insurance providers in India offer ULIP products. The best part of ULIP products is that it offers life coverage. In case of the policyholder’s death, a ULIP pays out the sum assured to the nominee chosen by the Life insured.

Being market-linked products, ULIPs also involve certain amounts of risk. But if you have a good understanding of market timing, you can switch fund from equity to debt or vice versa. Moreover, you can enjoy absolute tax exemption under section 10(10d).

3. National Pension Scheme

National Pension Scheme or NPS is the third best tax saving options in our list.  NPS has become more attractive among taxpayers after the budget 2017-18 as it has offered an additional tax deduction of Rs. 50,000/- . Moreover, the fund managers are now allowed to invest more and more in stock which is expected to give better returns.

In the last three years, the NPS returns have been 9.5% which is quite an attractive number for encouraging more investment in this scheme.

The only downside of NPS is that the annuities you receive after the maturity of the scheme are taxable. However, requests have been made and the Government is considering income tax exemption for NPS annuity income.

4. Pension Plans

Retirement plans are the best tax saving options for you if you are on the verge of retirement. Pension plans allow you to save for your post-retirement life.  It allows you to maintain a regular flow of income while providing comprehensive life cover.

Pension plans are good investment option as shows the last three years’ return rates. Pension plans can get you 7% returns, if not more. Moreover, you can enjoy tax benefits and other benefits by investing in a pension plan.

The only problem with Pension schemes is that they are expensive. So if you want a cheaper option, go for mutual funds. Pension plans launched by mutual funds are cheaper than those offered by Insurance companies.

5. Child Education Plans

If you are concerned about your child’s higher education, you should invest in a child plan. Child education plans offer risk coverage on the life of the child while bearing the cost of his or her higher education.

Child education plans guarantee that your child’s education never gets hampered in case of any unfortunate event in the future. If you die before the completion of the policy, the insurer will pay all future premiums on your behalf till the date of maturity.

Child education plans are offered by most of the life insurance providers in India. Though many people are of the opinion that insurance plans are not good investment options in terms of returns, but child education plans are worth investing because of the benefits they provide.

There are a lot of other options where you can invest your hard earned money. But in our opinion, the ones discussed above are the best investment options that you can consider for growing wealth as well as for saving tax.

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Life insurance plans are a great way to save tax. They are the most sought-after tax-saving instruments that also guarantee insurance. There are seven different kinds of life insurance plans in India.

Of them, the most preferred ones are term insurance plans, money back plans, and endowment plans. These life insurance policies come with certain guarantees. These plans are always a hit amongst those preferring tax benefits because they come with a guarantee.

Most life insurance companies endorse their best life insurance plans with guarantees. Unlike the regular policies that offer a declaring bonus that differs based on the profits made by the insurers, the plans with guarantees offer a specific amount as returns instead of the bonus. There are guaranteed returns at every stage of the policy however there are myths about the investments. The basic returns that are guaranteed include:

• A specific amount upon maturity
• Monthly payouts

Understanding Guarantees of Life Insurance Plans

Guarantees are offered as a part of certain life insurance plans and term insurance plans. They include the payment of a certain percentage of premiums per annum or a payout of a certain percentage of the annual premium each year.

The percentage of premium payments that are promised per annum vary between 7 to 10% per annum. Some insurance companies also offer maturity benefits and/or death benefits that are more than 100 of the sum assured. Certain insurance companies also offer cash benefits every month that range anywhere between 1 to 3% of the overall maturity benefit that is guaranteed.

Be it endowment plans or term insurance plans or any other kind of life insurance plans, the guarantees offered are not the same across plans. These vary from one insurance company to another. Some companies offer guarantees based on the premium the customer pays every month while some offer the guarantees based on the overall sum assured.

Some of the aspects in which the guarantees vary are:

• • The policies of the insurance company
  • The overall policy term
  • The term of premium payment (monthly/quarterly/half-yearly/annual)
  • The year in which the guarantees get added to the scheme
  • Method of payment of guarantees (monthly or lump sum)

In some plans, the guaranteed amount gets added to the plan as returns from the second year of policy induction whereas in some plans it may take a few years to receive guaranteed returns. In some plans, the returns are added to the term insurance plan or life insurance plan monthly or every quarter like a regular income whereas in some plans the guaranteed amount is paid as a lump sum only after maturity.

How Do Returns Work in Life Insurance Plans?

The guaranteed amount that is offered as benefits accumulates only on maturity. The actual returns are not what the customer perceives by calculating promised percentages. What is commonly not understood by the customer is that be it any form of life insurance like a term insurance or a money back plan, the guaranteed amount comes at a cost. The returns that a customer receives after the costs are adjusted are pretty low.

Here are some of the factors that influence the guaranteed returns:

• • Age of the customer
  • Term of the plan
  • The premium amount paid through the period of the plan
  • The mean average of the internal rate of return

For most life insurance plans including the term insurance plans, the calculated internal rate of return falls in between 4% to 6% per annum. The plans that offer exclusive guarantees offer even a lesser percentage of this return.

A Look At Life Insurance Plans That Offer Guarantees

The life insurance environment including plans like term insurance has undergone a sea of change in the last few decades. The terms that govern the plan are explained with jargon and terms that a common man may not be able to comprehend.

The following is an example of how a life insurance plan with guarantees typically works. Suppose if there is a plan with guarantees with a ten-year term in which the customer has to pay premiums for eight years. If the plan were to offer guarantees of 150% of the premium after maturity every year for a total time-frame of eight years, a customer paying a premium of Rs 10,000 for the first eight years will receive a payout of Rs 15,000 from the tenth year of the policy to the 17^th year.  In such a scenario, the internal rate of return for the above plan comes only to about 2.9% per annum.

While customers always believe in the percentage stated by the insurance company, in this case, 150%, they forget to count the number of maturity years and the internal rate of return.

Conclusion:

Choosing the right plan for you should ideally depend on the way the payouts are made. If you are someone who is looking for a regular income, choose a plan that makes payments regularly after maturity and don’t fall on the guaranteed life insurance plans rather look and go through the documents carefully. If you are not in need of such an income, choose a plan that hands out the payment as a lump sum on maturity from these life insurance companies.

Some tips to remember while choosing guaranteed plans:

• Choose it if you are looking for fixed returns
• Choose this if you have financial targets for the future
• Choosing guaranteed plans only to save tax is a bad idea
• Do not forget to calculate your ideal returns in the long term and decide if the plan is worth it
• A financial adviser would be able to offer you the best-guaranteed plans while considering your needs

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Life Insurance is an indispensable part of everyone’s life now. It is very important to have a good life insurance from a renowned insurance brand. Having a life insurance means you have complete protection for your family and home in the event of any unforeseen mishap.

Who Needs to Be Covered with A Life Insurance?

Whether you are single, married or parents, life insurance policy is a must for everyone. People should not be swayed away from making their individual life insurance policies thinking that what is provided by the employer is good enough. Employers usually get you an insurance policy equal to double or triple of your salary. This amount naturally cannot be enough to serve your family’s needs in the future in your absence, when the earning of the family is not there anymore, if you happen to be the sole bread earner of the family.

What Family Needs Can Be Met with Life Insurance?

The insurance money can be used by your family to pay off important liabilities and meet other important expenses of your family, like:

• • Mortgage
  • Medical Expenses
  • Education Expenses
  • Loans etc.

Why Should You Buy Life Insurance from a Brand?

When you buy life insurance policy from a brand, you gain the trust of the insurance company and feel safe and secured for your family. You get a peace of mind knowing that your money is safely deposited as a tool for savings which your loved ones can make use of when the time comes. Moreover, this big financial instrument stays with your family forever.

What Are the Benefits of Buying Life Insurance from Good Companies?

Good Insurance companies provide with multiple life insurance policy choices to fit every individual’s needs and pocket. Depending on your family’s requirements in the future and based on the amount that you can plan to save for your family, you can choose a policy.

Why Should You Buy Life Insurance Policy at an Early Age?

You can save some amount on your premium if you plan to buy a life insurance policy at an early age in life, before the medical complications arise. You also get more insurance choices at a younger age. However, if you already have an old life insurance, you might think about reviewing it and buying more insurance with added coverage to meet the new requirements of your upgraded family life and size.

How to Analyze Life Insurance Coverage Amount?

Deciding on how much coverage should your life insurance policy be, might sound confusing to some individuals. But this can be calculated based on the following of the individual:

• • Family size
  • Financial situation
  • Future financial requirements of your family

What Are the Varied Life Insurance Options You Can Expect from Brands?

Good life insurance companies usually have varied life insurance plans. You may choose from one of the following based on your requirement:

• • Term plan
  • Health plan
  • Savings plan
  • Child plan etc.

What Should You Research On Before Buying Your Life Insurance Policy?

Every company will offer you different life insurance plans. It is very important for an individual to research on the benefits and conditions before investing in your life insurance policy. Remember, you are buying this life insurance policy to secure your family and their needs when you are not around them anymore. So, a careful study is advisable to understand the benefits of the policy better.

1. Calculating The Premium for Your Life Insurance

It is a wise step to calculate the premium for your life insurance carefully and not just buy a life insurance cover of any amount. You are the best person to know the standard of your family and the needs of your family. No one wishes to see their loved ones in trouble when they are not around anymore.

So, try to foresee their future and anticipate their needs. As everyone knows, money can never go unwanted and no money is huge enough to meet people’s needs, so it is better to plan for a premium that should be good enough for your family, keeping in mind that future is always more expensive.

2. Understanding The Offer Document Provided By Your Insurance Company

Once you have decided where to buy your life insurance from and which plan to choose, it is time to understand the offer document provided by your insurance company. You should take time and clarify your queries regarding the policy. This is a crucial step as once you are satisfied with your life insurance policy, you really feel safe, secure and happy.

3. Free Look Period – An Advantage of Buying Life Insurance from Brands

Although you analyze, research, understand and then buy a life insurance, if it happens that you are not contented with your life insurance policy, you can return your policy to the insurance company and safely back off, provided you buy the policy from a good insurance company. Brands usually have a Free Look Period during which time policy holders can return the policy if they want so.

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