Posts tagged: claims

Term and insurance and tax deductions -What you should know

insurance and taxWe all know that saving money is an art, but saving money on tax is a bigger art. Well, we all are aware of different tax rules associated with our daily life. And who doesn’t want to save money on tax? We basically evaluate all our expenses and savings and try further to save money on tax. One of the most common and highly effective tools associated with tax saving is the investment in life insurance policy. Yes, in India, life insurance is eligible for tax deductions under Section 80C. But do you really think it is simple, there are many terms and conditions associated with the same.

Tax rules you must know

1. When it comes to the tax deduction, there is a certain limit associated with the same. For all those policies which were issued on or before March 31, 2012, the maximum premium amount that will be eligible for tax deductions will be around 20% of the total sum assured. Anything in excess to this will not be liable for any deduction under Section 80C.

2. The maximum premium that is eligible for deduction for the plans that are issued on or after April 1, 2012, will get 10% of the total sum assured as the tax deduction. For example, if you invest in an insurance plan and that too which carries the sum assured of Rs 10 lakhs. Keep in mind that the annual premium which will be eligible for tax deductions would be around 1 lakh cannot be claimed for tax benefits. However, if the person is suffering from an illness that is listed under Section 80DDB or has a disability listed under Section 80U, an additional deduction in premium of around 5% is permitted. Therefore, in such cases, the maximum premium which will be eligible for deduction under Section 80C will be 15%

3. Premium amount that is paid someone else like other than children, spouse and self will not be liable for deductions.

4. In case of maturity, if an individual is fine with all the above-stated criteria, the maturity benefits stand exempted from tax. But if in the case where the annual premium exceeds the percentage limit which is mentioned above, the tax will be levied in accordance with the income tax slab

5. In case of demise of the insured person, the death benefits are not taxable.

Moreover, the good thing is that the term insurance plan which is a strong form of life insurance is not much affected with the same. And, in today’s market, there is the multiple and wide range of such plans is available in the market. Such effective plans carry a sum assured which is much higher than the annual premium. So investing in the same is not a big deal and it always comes out with a wider range of benefits.

However, it is important for you to understand that the concept can be different with single premium policies. As a part of these policies the sum assured is not high just to improve the returns. Therefore the premium amount associated with the same fall low, creating not enough percentage difference between the sum assured and the premium.

Under such policies, the sum assured will not be more than 1.5 times the premium amount. As a result single premium plans will not be liable for the tax deduction.

It is true that a life insurance plan demands a long-term commitment that may last for a couple of years. It is obvious that between the tenure policy you don’t want to discover that you made a huge mistake as your premium will not be liable for tax deductions. Then it will become quite late. Even if you want to cancel the policy then you have to pay unexpected charges.

So it is important for you to pay attention to the tax laws, study the same properly before investing in any insurance plan. Term insurance plan comparison is a great choice if you are planning to invest in the term plan. It will provide the needful financial cover to your family in your absence and will be liable for tax deductions. For making an investment in a term insurance plan, you can take help of PolicyX.com which is a great platform and assisting customers in choosing the right plan for them.

How to Secure Your Life after Retirement

money for retirementRetirement is often considered to be the icing on the cake when it comes to enjoying different phases of life. While planning your life after retirement, you must set aside all of your current responsibilities and worries. Retirement leaves you with rare opportunities for participating in recreational activities, traveling, and nurturing certain hobbies. However, you mustn’t forget that you won’t have any regular source of income for the rest of your life. You must remember that you need funds to sustain all health issues and financial challenges after retirement. By making a few crucial investment decisions, you’ll be able to spend the rest of your life in leisure and comfort. Financial planning should be initiated now when you’re working and in good health.

It’s a truly daunting task for you to compare various pension plans and achieve an uninterrupted flow of income after you get retired. It’s certainly going to be a taxing issue for you to narrow down your choice of a pension pay-out although even after you select a beneficial pension plan. Apart from seeking professional assistance, you must also do extensive research on the factors that count for retirement planning.

Tips to acquire funds for your post-retirement years are mentioned below:

Calculate your basic living cost

You must choose a pension plan that yields a good return for covering all of your basic monthly expenses. You must assess your regular expenses just to determine your mandatory expenses in the future. In order to arrive at an accurate figure, you must include your sundry expenses, transportation cost, expenses pertaining to clothing and food, utility bills (including gas and water), and housing costs in your list of expenses.

Consider the effects of inflation

Inflation is bound to take a toll on all goods and services making the living cost dearer with each passing year. Indians are witnessing an inflation rate worth 4% of late and this is likely to rise during the coming years. This way, you’re bound to experience a rise in pension pay-out based on the rate of inflation. On the contrary, the amount that you receive won’t prove to be adequate for meeting your basic expenses. This way, you may even be compelled to seek financial assistance while you aren’t working anymore.

Avail some health coverage

You must learn to cope with the increase in health care costs. Opting for a health insurance plan can actually save you from the adverse impact of unforeseen medical expenses on the monthly budget. You must plan things up in advance and work things out in an efficient manner. Try applying for a health plan that can protect you and your loved ones from all untoward incidents.

Include the cost of recreation

Retirees are often known to enjoy their pastime by pursuing their hobbies, visiting their favorite destinations, reading their favorite books, and doing a host of other things. You’ll need to pay a cost for the perks that you enjoy; you must pay things out of your pension. You must save a portion of your pension to cover your costs more effectively.

You must consider the tips mentioned above if you really wish to enjoy your golden age with ease and comfort. It will help you achieve a firmer grip over your entire financial situation. All you need to do is to pick the right pension plan and utilize the money in an efficient manner just to secure your old age.

Need to How to take advantage of a free Legal Consultation?

legal supportsFacing a legal case is a nightmare for ordinary people these days. The main reason that people try to avoid legal proceedings is the higher fees of attorneys and advocates that they have to pay for them. But a thing that provides some sigh of relief for clients is the competition between these clients to attract more people towards them. For this purpose, attorneys provide several specific and unique services.

One such tactic use by few of these attorneys is providing free legal consultation to their clients. This free consultancy on initial level is really precious in the scenario that high fee is charged on most of occasions. An ordinary person needs several clarifications before even hiring an attorney. Such free legal consultancy can be helpful in these circumstances.

But such type of free legal consultancy is not provided by all attorneys. There are several reasons for which few attorneys would like to provide free consultation to their clients. Few of these include:

  • The most important reason is competition in the market. Attorneys will compete against their counterparts for which they try to lure clients towards themselves. For this purpose, several incentives are provided that may also include free consultation services. It assists them in finding new clients and turned them into their permanent customers.
  • Different attorneys have different type of specialties and experiences and they like to evaluate cases that are fit for them. Through free consultation, they can easily figure out the nature of your case and its suitability for them.
  • On rare occasions, it is a possibility for attorney that they are going to tackle a case of a person who has some legal issue with their previous client. In this situation, attorneys prefer to leave that case as they consider it unethical.

How to find free legal consultation?

There are several ways through which you can find and locate attorneys that provide free consultation either on general cases or specific cases related to you.

  • Nowadays, most of attorneys use modern technology for progress of their business and provide important information to their potential clients. They also provide information if they are offering initial free legal consultation on their website. The easiest way to find them is by using any famous search engine through related query like free legal consultancy in New York, free PRO services in Dubai, free initial consultation etc.
  • Many law firms still use and prefer advertisement on print media and electronic media for providing information about their services. You may also find the offer of free legal consultancy through these ads on newspapers and TV programs.
  • Don’t limit yourself for latest techniques while finding free legal consultancy. Many lawyers still use old methods for their advertisement. Phone book is an example where you can find law firms advertising their services that may also include free initial legal consultancy for clients.

After finding these attorneys that provide free legal consultancy in your area or city, you can take further information by contacting them via email or telephone. Just make a list of all the necessary questions related to your case. This will allow you to get details about your potential lawyers and choose the best one suited for you.

Author Bio: Mona is working as a content writer in a Dubai-based consultancy firm, Riz& Mona Consultancy. She has experience of more than 6 years. During her career, she has acquired lot of experience in writing for various business and legal subjects including trade, finance, legal consultation, taxation, and others.

Importance of checking maturity benefits while choosing a life insurance policy

insure your lifeYou must have considered life insurance as something that only provides support in the event of a financial crisis. But you may not have considered its potential in the form of a long-term investment. Life insurance yields a great shield of safety around your household members in the event of an unforeseen wage loss e.g. accidents causing disabilities or death. The consideration of income loss for the future helps in determining the amount of compensation although the true worth of a human life can’t be measured in terms of money.

Under circumstances when the policyholder gets disabled or passes away, the family members achieve a guaranteed sum of money termed as the “sum assured”. Even with a term insurance plan, the policyholder needs to think of what he’ll achieve from this type of investment in case nothing unfortunate happens. Will he be able to meet the other inevitable expenses like that of bearing the cost of his children’s education, a world trip with his loved ones, and the marriage of his children?

Types of maturity benefit plans:

Term Life policies- Term insurance is a financial plan that reimburses extra premiums to the policyholder when the policy terms end and the insured survives through this period.

Endowment policies- The benefits of insurance and investment are combined under these plans. The money doesn’t yield great returns as it’s invested in debt funds. However, the risks can be managed more easily. The sum assured is actually not that high.

Unit-Linked policies- Compared to traditional forms of life insurance, the risk is much higher with this type of unit-linked products. The policyholder needs to bear some other associated charges, but he gains exposure to equity and obtains a fair growth of his money as against a higher return. These plans even allow money to be withdrawn partially that can be utilized for coping with the financial challenges whenever they surface. Death benefits are provided when the policyholder passes away within the tenure, but the guaranteed returns are provided when he survives before the policy period.

Maturity Benefit from life policies

Upon maturity of a policy, the benefits can be claimed by the policyholder. The completion of the plan tenure entitles the policyholder to receive a variable amount for ULIPs and other products linked with the market performance alongside the principal amount. However, for achieving the variable benefit, the policy needs to be concluded according to the pre-set terms. For traditional products, the owner will be entitled to receive the fixed amount only. The benefits that provided on maturity usually comprise of the sum of premiums that have been met during the entire policy tenure and the other return benefits stated in the paperwork.

The maturity benefits yield a sum of money that increases each year but is restricted to the overall premiums paid. That’s one reason why these plans are considered to be both a coverage benefit as well as an investment option. The corpus exhibits a uniform increase and the entire amount is paid out at the end of the maturity term.

Should You Borrow Or Earn Yourself Out Of A Financial Crisis?

crisis in financeIt is not unusual for family finances to take a tumble and for everyone in the family to get concerned about how you are going to get through it. Many things can trigger a very sudden financial crisis. In many cases, it is a business failure. Many new businesses fail and they can take all of the money that you have invested in the ventures with them. On other occasions, it is a gradual decline and you have been throwing good money after bad for years. Perhaps you even saw the crisis coming but chose to ignore it.

At other times, it is a job loss that triggers the crisis. Most families can survive a redundancy or a job loss of one wage earner if there is another wage earner that can support the family for a few months. However, if there is only one wage earner, a job loss can throw the whole family into financial turmoil.

For many families, it can be an unexpected expenditure or an accident or ill health that triggers a financial crisis. Perhaps you had a car accident or an accident at work and you can no longer earn the money that you used to. If the accident was not your fault, you may be able to start a personal injury claim and it is worth looking into that. You may even be able to get an interim payment of compensation to help you get by. Sometimes it is a big purchase that tips the family finances over the edge and it can be hard to get them back on track.

There are only two ways to get yourself out of a financial crisis. You either need to borrow or earn your way to financial security. Here are a few ideas to help you decide which is best for you.

Keep your outgoings to a minimum

You need to get a clear picture of how much you have to earn or borrow to get by each month before you can put a plan together. There will have to be some cutbacks in your family budget in the short-term. It is important that everyone participates in the savings so sit the whole family down and explain to them that you need to tighten your belts for a few months.

Start by listing everything that you pay out for each month. It is useful if you have your bank statement in front of you when you do this. List the large outgoings first. These are usually the items that you can’t avoid paying out and include the mortgage or rent, car loan and utility bills. You even have to list the minor items such as children’s activities and the takeout coffee you have every morning.

Try to work out which ones you can do without. Try to negotiate a rent or mortgage reduction for just a few months and agree to make up the shortfall once your finances improve.

Luxuries will have to go! Eating and drinking costs a lot and is a luxury that you can do without for a month or so. Try a takeout instead or save even more money by making your own. Healthy, home-prepared meals take a while to make but save you a lot of money and do you good!

Borrow what you need to get by

There will be occasions where you need to get hold of money fast and you will not be able to wait to earn yourself out of trouble. Quick loans give you the cash that you need when you need it. Everything is done online and there are hardly any forms to fill in so the process is much quicker and streamline. There is a credit check involved and there is a huge variety of lending options so you can always find the loan that is just right for your circumstances.

If you have fallen behind on your mortgage repayments, the last thing you should do is ignore the letters demanding money. It is important that you contact the company quickly and sort out a repayment schedule that is manageable.

Borrowing what you need can give you peace of mind and free up your time to get on with what is important which is finding another permanent source of income.

Find a new source of income

Obviously, your ultimate aim is to find another permanent job or to get another business up and running but this can take time. Dig out your CV and give it an overhaul. Refresh your personal statement and update your qualifications. Then start sending it out to potential employers.

In the meantime, it may be possible for you to take on a part-time job to help out with bills. There are always retail jobs and positions in catering and hospitality available. Could you do some babysitting in the evenings or sell some things to raise some cash?

Whilst you are finding it hard to manage financially, you must check that you are receiving all the benefits that you are entitled to. Check out with your local authorities or go online to find out more. There may also be welfare organizations that can help you.

If you have a spare room in your home, it may be possible for you to take in a lodger. The rent will help towards the cost of the mortgage and they will chip in for the household expenses such as gas and electricity.

You could also look into earning some money from home. Many people make good money working from their bedrooms! You just need an internet connection and a laptop and PC. You could work as a website tester, an administrative assistant or even as a freelance writer. There are literally thousands of jobs available through sites like Guru.

You do the jobs in your own time and so you will always be available to attend that important interview to get your new full-time job.