Posts tagged: insurance

Personal Financial Management – A knowledge base

manageable financesFinancial management has to be one of the most daunting and demanding tasks that can cause an individual stress. There is simply no margin for error, and a slight misappropriation could have far reaching effects in the immediate future or sometimes later in life. Now, more than ever before, personal finances are at a greater risk thanks to the availability of easy digital spending platforms. Purchases are made easier by swiping or just by a touch of a button, and bank accounts are accessible through a myriad of services. With a few clicks a person can have thousands of dollars of credit and being destroying their financial future.

The Essence of Personal Financial Management

Basically, personal financial management entails understanding your financial situation at current state, and making plans for the future with what you have. It could also be taken to simply mean watching your spending, and saving what you can. It is important to be careful as someone can easily overextend themselves with just a couple bad moves.

The Specifics of Managing your Finances

Income and Cash Flow management

The easiest way of making the most out of your income is by putting in place a mechanism to track and understand what you get versus what you spend, and finally being able to gain capital for covering other additional concerns, as well as setting the stage for a bright future. However, what challenges most individuals is the means of tracking those finances.

Tracking your finances

Financial experts will tell you that the best way to track your finances is by keeping records of every single financial activity. It’s that simple.

Your financial trajectory will be drawn by calculating your monthly, weekly, or daily income against the amount you spend over the same period. Remember, in addition to your daily expenses and other miscellaneous expenses, other amenities such as rent, insurance, subscriptions, etc, should be included in your record. That way you’ll be in a good position to see the real picture and take the necessary steps.

By having such a detailed record, you will be able to qualify expenses in order of necessity, and somehow cut down on the ones you deem unnecessary, or those that you can do without. Luckily, today there are apps dedicated for the purposes of recording personal emoluments instead of keeping an Excel sheet (which is not a bad idea at all). When you can look at all of your expenditures at once, it makes it much easier to figure out where you are going wrong.

Financial Security and Growth Management

Insurance and investment have been listed by experts as areas of great importance. However, these are areas associated with persons who qualify, or can afford some expendable capital even after balancing their other expenses.

Insurance, for instance is listed as a basic requirement for modern living. You will need to identify a good insurance that promises to secure the well being of your family when hard times come, and no one knows when they do.

Investment on the other hand is dictated by a number of issues, like how and when to venture. It boils down to thinking strategically and taking risks, through what is projected to provide financial stability in future.

The best way to go about it is through starting off with a professional to manage your investments. It is an expensive venture, but the importance of lowering the risk outweighs the deal.

Putting up Liquid Savings

Part of the money meant for savings and growth should be accessible should an emergency arise. This could mean either maintaining a savings account with an emergency clause, or investing in a long term venture but with the ability to secure quick transactions during emergency. Ideally, it’s good enough to have enough money to live on for six months or more if a major issue arises.

Summary

The idea here is to practice individual financial discipline and to understand the different strategies of financial management, and how and when to execute them. A complete financial plan is what constitutes a stable financial future, but discipline is paramount. It takes dedication and sacrifice to attain the above, even when low or high risks are involved.

To learn more about investing and finance, check out this website.

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.

Need Urgent Cash? Try These Tips

need money urgentlyCash in a Flash! Well, How to Generate Funds Quickly, Anyway

Short of robbing a bank (which incidentally, we’d NEVER advocate, just for the record) there’s precious few ways to get our hands on a lump of cash in an instant. Or so you might think. However, there are far more legit ways to fund ourselves, which involve neither masks depicting former Presidents of the United States and/or a job lot of Mini Coopers, if we’re mixing our heist movie metaphors. So, what other avenues can you venture down to put your hands on a shed load of money before you can say “This is a hold up!”

Which of course, it isn’t/won’t be.

Finding ourselves short of cash at times when we need it most in our life is not unheard of. On the contrary, as most of us will experience this feeling at some point in our natural, as it can happen to pretty much anyone. Scenarios which tend to create this sense of dread and subsequent cold sweat/blind panic include unforeseen car problems, unpredicted job losses and/or an undetected illness coming to bear. The question is, who do you turn to for help in your darkest hours?

Many people would suggest that you try a good payday loan lender, and there’s many arguments as to why this would be amongst the best choices you could make when faced with this situation. But then you must also be aware that aside from payday loan lenders there are a number of alternative methods you could look into, all of which might be able to free up some much needed funds here and now. Below we take a quick look at just a few of these.

Cash in Your Life Insurance Policy – Not all of it, obviously. It’s just that should you have been in possession of a whole life insurance plan for so many years; the chances are that you’ll have accumulated a decent amount of equity that you could, hypothetically, borrow against. Understandably, if you exercise this right at this juncture, the upshot is you’ll reduce the amount paid out at a later date, but on the plus side at least you won’t be accountable for any taxes if you choose to cash out (as it were) right now.

Home Equity Loans – Adhering to a similar principle to the one outlined above re: life insurance policies, providing that you’ve paid a decent amount into your existing mortgage plan already, you could be able to borrow against the equity of your property. Reverse mortgages could also be a makeweight at this testing financial time in your life, although they only really come into play for those who own their homes outright. But as a cautionary note, it’s worth remembering that both these types of get out of jail free cards come at a price. That price being both types of short term loans to yourself will need to be repaid further down the line. Failure to do so might put your home in jeopardy.

Consider Visiting a Pawn Shop – Careful how you spell/pronounce this one, but actual pawn shops (the modern, more socially acceptable version of these being the likes of Cash Converters et al) are in the business of giving you no-questions-asked short and medium term loans. And the best bit is, there’s usually no restrictions placed on the arrangement of said loans or how you choose to spend the funds recruited. The flip side is that pawn shops only ever lend you a percentage of your item’s monetary worth, plus they do have a habit of charging significantly high interest rates. Oh, and don’t forget. If you fail to repay the loan, your possessions become the loan providers. So think on, if it’s a family heirloom you’re swapping for some much-need folding stuff. That said, if needs must there are worse ways…..

Cards are a Gift Horse – A recent study revealed that in the region of £300 million worth of gift cards went unused in the past few years, which is a staggering amount of money to be sitting on and not actually doing anything for you. Collectively, that is. There are various ways in which to cash in your unused or wanted gift cards too, where monetary recompense isn’t quite the face value, but nevertheless better than the nothing it’s generating sat in your wallet or purse.

Rent a Room out – Most people are under the wrong impression that Airbnb rentals are all about summer holidays, and homeowners who allow you to rent out their gaff whilst they themselves are away somewhere for varying lengths of time. But this couldn’t be further from the truth, as a growing number of the website’s listings encompass both extra and/or shared room arrangements. So, effectively, you still live in your house but allow other (rent-paying folk) to come and go. Works better of course, if you live in a picturesque area and not next to a cement works or something.

The Risks Of Living Without Insurance

insurance to liveWhen you’re looking for ways to save money, it can be easy to make chops and changes to the things you need in life. There are a lot of expensive areas in life, and the ones at the forefront will usually take precedence over the less important. Of course, though, things like insurance are only less important until you need them. Living without cover for certain areas of your life can be very risky, and to help you understand, this post will be going through some of them. Along with this, it will also be helping you to save some money without cutting them out.

Health And Life

If you’ve ever been to a hospital before, you probably already understand the great costs which can come with it. Even an ambulance ride could set you back several thousand, and this is before you’ve been treated. You can’t avoid these costs, but, with health insurance, you can have someone else pay for it. Along with high hospital bills, a lot of people fail to consider the costs of their funeral and other arrangements when they pass on. To cover this, companies like lifeinsurancequote.co can be used to provide life insurance to those with dependents. It’s always best to start something like life insurance nice and early, as you usually have to save a certain amount before the company will pay anything to your loved ones.

Car

Next, you can start to consider the other important areas in your life. Most people can’t live without a tool like their car. You use it to get to work, and you probably use it for other important parts of life, too. But, if you were to have a crash or had your car stolen, you would be left without until buying a new one. Car insurance can protect you from these sorts of issues. In most places, this sort of cover will be a legal requirement, and you will get in trouble without it. You can use comparison sites to find the best value car insurance, but it’s also worth shopping around yourself, too.

Home And Possessions

With your car sorted out, you can start to think about the other possessions you own. To start with this, it’s best to think about the biggest item you own; your home. In the case of a catastrophic event, like a fire or a storm, you might not be able to afford to repair your home. Along with this, in cases of theft and burglaries, it can be almost impossible to get your hands on the items you’ve lost. Home and contents insurance can cover this sort of area for you, and websites like www.usa.gov can help you to find the best options. It’s important to do plenty of research when you’re choosing cover like this, as a lot of the options you have could be very confusing.

Hopefully, this post will give you a good idea of what can be done when you’re trying to assess the risks of living without insurance. In most cases, it’s best to make sure that you have as much as your life covered as you can. Of course, though, not everyone can afford this sort of expense. So, it could be worth thinking about the most important areas surrounding your life before you choose which options to go for.

Business Senses

business health insuranceThere’s no doubt that the idea of adding to your business costs is rarely a popular idea. When you’re so focused on seeing through each month and generating a profit, it can feel like every debit you have to make to your business accounts is a huge drain. So being told that you need to think about employee healthcare coverage? That’s probably not the most welcome of statements.

The truth is, however, that the health of your employees is vitally important to your business. Without a healthy staff, you’re going to suffer from chronic problems and a huge loss of productivity caused by sick days and absences. Investing in how healthy your employees are is an investment in the future of your business – so if you try and think of it like that, it might be easier to handle the loss to your finances.

Should you make the decision to invest in healthcare coverage, this gives birth to many additional decisions you have to make. What type of coverage should you offer? What is important to prioritize in the coverages? What exclusions can you expect?

All important decisions that are worthy of your time, but for the moment, let’s focus on a more macro level. While general healthcare coverage is great, you’re also going to need to think about using business senses to give your employees the best healthcare they need. And that’s ‘business senses’ in a very literal way…

Sight

A general healthcare policy might not cover employee vision and sight health. Why do you need this area covered?

  • Poor eyesight can cause headaches and fatigue, meaning your employees won’t be at their best.
  • If someone is struggling to see properly, they are less likely to be able to spot errors in fine print – which could cost your business substantially.

So it’s always worthwhile to check out business vision insurance rates if your policy doesn’t cover eye and sight costs as standard.

Hearing

If you have an older workforce, then natural degeneration in hearing is an area you need to focus on. It’s also a priority if you work in an industry that involves employees being exposed to loud noises, such as construction.

  • If you don’t provide the correct sound-blocking technology for employees, then you could be vulnerable to a future lawsuit. Doing this and offering proper healthcare to ensure the measures you have taken are effective is a perfect way of covering yourself for the future.
  • Older employees have a lot to offer in terms of experience. Don’t allow them to be left behind by not being able to hear in meetings or struggling with phone calls.

Try and find a policy that covers not only regular hearing checks, but anything that offers assistance with the cost of a hearing aid.

Taste

If there is anything you can do to ensure your employees are eating a healthy diet, then it’s a great investment. Not only will they be healthier in general, but it also means fewer claims on your company policy.

By focus on the above areas, you can be confident of a comprehensive coverage for your employees health – benefiting your business in the long run as well!