Monday, 16 April 2018

How Life Insurance Can Be An Effective Tax Planning Tool !!

It is commonly believed that the start of the financial year is the correct time to start tax planning. However, it is the March Quarter when most salaried individuals undertake the process. Most people invest in tax saving products without evaluating their features and understanding their benefits. When comparing different instruments, it is always advisable to choose an option that offers the mutual benefits of wealth protection, flexibility, value appreciations and tax savings.

One of the many tax saving instruments that people come across is Life Insurance. The main objective of a Life Insurance policy is to provide financial protection for an individual in the face of uncertainties; it also acts as a rewarding tax shelter. Some of the preferred Life Insurance products include terms plan, Money back, Whole life Policies and ULIPs (Unit Linked Insurance Plans). Term plans gives you full protection whereas others are mix of Insurance & Investment. However for availing tax benefits all these are treated equally by the Income Tax Department.

Let’s understand tax benefits offered by Life Insurance products:

One can avail a tax benefit by way of deduction towards premium paid on Life Insurance Policies Up to Rs 150,000 under section 80C of the Income tax act 1961. This also includes premium paid by the persons for Life Insurance for his/her Spouse or Child.
Under Section 80CCC if one has taken any pension/annuity plan, he/she is allowed a deduction up to Rs. 1Lakh.On Maturity of the accumulated amount, 2/3rd of the Income gets taxable, while the remaining 1/3rd is tax free.

Life Insurance has an additional EEE (Exempt Exempt Exempt) benefit- the amount one invests, the amount that one’s investment earns and the amount that one finally receives is all exempted from Income Tax.

However before choosing Life Insurance as a tax saving instrument one must keep in mind the following points: A Life Insurance Policy Qualifies for a tax deduction (in case policy is issued after April 1, 2012) only if the premium does not exceed 10 % of sum assured. For policies issued before this date, premium should not have exceeded 20 % of the sum assured.
If the Policy Holder Surrenders the Insurance Policy before Two years & Five years (for traditional & ULIP Policies respectively), the tax deduction will also get reversed.

For More Details Visit: LifeLine Insurance & Financial Expert

Friday, 6 April 2018

The World Health Day is a Global Health Awareness Day !!

The World Health Day is a Global Health awareness Day Celebrated every year on 7th April, under the Sponsorship of the World Health Organization (WHO), as well as other related Organizations.

In 1948, the WHO held the First World Health Assembly.They decided to celebrate 7th April of each year, as a WHO with effect from 1950, as the World Health Day. The World Health Day is held to Mark WHO's founding. World Health Day is one of eight Official Global Health Campaigns Marked by WHO, along with World Tuberculosis Day, World Immunization Week, World Malaria Day, World No Tobacco Day, World AIDS Day, World Blood Donor Day, and World Hepatitis Day. The WHO puts together Regional, Local, and International Events on this day related to that theme.  Local governments also tend to jump on this band-wagon,after all, global health means everyone. On this Day you may take some extra steps to care for your Health, consider getting a Gym Membership, Starting a Diet.. Even Better, Get involved with the Local Events or Organize one yourself. Spreading the news of health and threats to the same can be an excellent way to celebrate this holiday, and inform others of the important issue of Global Health.  

Themes throughout the years have varied, but always covered important issues of the day, covering everything from the Global Polio Eradication, staying active while aging, even Road Safety. All of these issues were deemed to be important enough to Global Health that they merited an occasion of their very own on this Date. The World Health Organization is an agency of the United Nations that focuses on the public health of the world at Large.  
The WHO has a constitution that countries involved in the United Nations had an opportunity to sign, and unanimously did, agreeing to the tenets laid out within to promote the general health of the globe.Through its efforts we have seen the eradication of Small Pox, and its focus then turned to Communicable Diseases, with a particular focus on Tuberculosis and HIV/AIDS. As you can see, Celebrating World Health Day is very important, and you can use it to Organize Fund-Raisers to support Local Free Clinics and other public Health Sources.  Everyone can take a Hand in improving the overall Health of the World, just by starting with Yourself, your Family, and your Community.  Blood Banks are often taking Volunteers to Help out with their efforts, and the ability to have Healthy, Fresh Blood on Hand is Central to Saving Many Lives.

There are little things one can do Every day to keep your fitness on point. Here are some things which you can do to stay Healthy: Get Enough Sleep, Regular Check-Ups, Eat a Healthy Balanced Diet, Drink plenty of Water, Do not take Stress.

Wednesday, 4 April 2018

Tips to pick the right Health Cover to suit your needs !!

It takes an Agent Several Days, even weeks, to convince a customer to Buy Health Insurance.

Introduction of new Medical Technologies, over-prescription by Doctors, and a General rise in Medicine Costs.The treatment protocol for angioplasty today is vastly different from that followed five years ago. Many of these advanced medical technologies and procedures cost more. For Ex- Someone is now looking for a Health Insurance policy for his family. However, the vast array of choices before him is confusing. There are individual policies and family floater plans, policies that restore the limit after the claim and plans that cover critical illnesses or offer cash benefits on hospitalization. How does one pick a suitable plan from this clutter? The answer is that your needs should define the type of policy you buy. Each type of Health Insurance policy fulfills a certain need . The choice depends on the Buyers age, family size and Structure, and existing Insurance Cover.

Young nuclear family:

If you have a nuclear family, a family floater plan will suit you best. In these plans, the cover is shared by the entire family. The premium per Rs 1 Lakh may be higher compared with an individual policy, but the premium per person works out to be lower. Its a calculated risk you can safely take. It is unlikely that all the members will require hospitalization in the same year. For newly married couples, who intend to start a family in a few years, it makes sense to plan accordingly. Though most health insurance policies do not cover maternity costs, some do. However, these costs are covered only after a waiting period of 2-3 years. Buy a policy that covers maternity costs immediately after marriage.

Covered by employer:

Some people believe that if they are covered by their employer, they dont need to buy a separate policy. This can be a costly mistake. While such covers are useful, they may not be sufficient. If you lose your job or switch to another company, you may be rendered uninsured. Even if you buy a fresh cover immediately, keep in mind that there is a mandatory 45-day cooling period during which certain claims will not be paid.

Before you switch to a new insurer:

Besides, there is a 2-3 year waiting period for pre-existing diseases. This is where the employer-provided cover is very handy. The waiting period for a pre-existing diseases cover is taken care of by the group cover.

Watch out for sub-limits:

While supplementing an existing cover, you can either buy a normal policy or a top-up plan. A top-up policy is cheaper because it will cover expenses beyond a certain initial threshold. For instance, Someone, his wife and child already have a Rs 2 Lakh Health Cover from their employers. They should ideally supplement this cover with a top-up policy. If they buy a normal cover of Rs 5 Lakh, their premium will be at least Rs 10,000 per year. However, if they buy a top-up cover of Rs 5 Lakh with a Rs 2 Lakh deductible, it will cost them only Rs 4,100 a year, a saving of Rs 5,900 per year. Their existing policies can take care of the initial Rs 2 Lakh, which wont be covered by the top-up plan. Let us look at some other situations. 

Self-employed or businessperson:

Health insurance is especially important for people not in formal employment. For them, a simple indemnity plan that covers hospitalization expenses will not be enough. They also need to insure themselves against loss of income due to hospitalization. Most salaried people get paid medical leave, but if your company does not offer this benefit, a fixed benefit plan comes to the rescue. Self-employed professionals should supplement the base cover with a fixed benefit policy, which pays them a certain amount for the period that they are out of action.

Living with dependent parents:

The family floater plan is not a good option if you want a cover for an older relative as well. This is because the premium rates in these plans are determined by the age of the oldest member. If you live with aged parents, it is advisable to go for individual policies rather than a family floater. Buy individual plans for them so that the premium for the rest of the family does not shoot up. Also, there is a greater likelihood of making a claim for an older person. So the floater plan will miss out on the no-claim bonus it might have otherwise received.         

A policy for senior citizens:

While Buying a policy for your parents, study its features in great detail. Most health insurance policies dont offer coverage beyond the age of 70 years, but some policies now offer a lifelong cover. "If the cover ceases at the age of 70, no other insurer will provide you one at that age.  However, do the math when you buy a health cover for someone over 70 years. The premium is prohibitively high and you could be paying Rs 24,000-30,000 a year for a cover of Rs 1.5 lakh. Some may find that putting away the premium money in an emergency fund for medical expenses is a better idea than buying insurance at that age.     

Friday, 23 March 2018

Tax planning Income Tax Returns !!

If your employer’s deadline has passed, you can still claim deductions while filing income-tax returns.
With March 31 approaching fast, most employees should ideally have given all their tax planning proof to their respective companies. If you have still not done so, it’s time to rush.


If an under-construction property is not completed within 3 years, you stand to lose 85 per cent of the tax benefit under Section 24.
If premium is paid in cash for health insurance under Section 80D.
If donations made in cash exceed Rs 10,000 under Section 80G.
If freelancers or businesses make cash expenses of over Rs 20,000.

There are some key documents you need to submit as soon as possible. If your employer is still accepting documents, you will be able to claim reimbursements such as leave travel allowance, medical and telephone. A person can claim house rent allowance while filing returns but not the rest. If a person has missed the deadline for submitting tax-related documents, all deductions from Section 80C to 80U can be claimed directly while filing the tax return. Those who could not meet the employer’s deadline can make the required investments now and claim deductions at the time of filing returns.

Use technology: Thanks to technology, you can do almost all transactions on the internet. But, for certain transactions, like mutual funds, you need to complete the “Know Your Customer” (KYC) formalities. Many online mutual fund platforms such as FundsIndia or Aditya Birla Money’s MyUniverse can help you do this online, too. An Aadhaar card can also fast-track the KYC procedure for some instruments. These facilities should help you get done with your entire tax planning.

Do the numbers: First, check the deductions you can claim under Section 80C, which has a limit of Rs 1.5 lakh. There are about 15 types of investments and expenses a person can claim deductions for in this section. Before shortlisting the right products, check the amount already exhausted by the Employees’ Provident Fund (EPF). Subtract the EPF amount from Rs 1.5 lakh to know the available limit.

Investment options: Options that don’t require recurring payments include a five-year tax-saving fixed deposit, National Savings Certificates and an equity-linked saving schemes (ELSS). Of these, most investment advisors suggest a person should look at ELSS if they have risk appetite for stocks. The preferable route to invest here is via a systematic investment plan (SIP) but as you are already late, you can invest a lumpsum, according to a certified financial planner. Given the market conditions, even a lumpsum amount won’t hurt. "Most SIPs made in the last year have negative returns. A lumpsum will not hurt investors at present .If you already have a PPF account or ongoing term plan, you must make use of it.

Insurance benefits: Many people buy a term plan and also take an add-on critical illness cover. While life insurance gets a deduction under Section 80C, critical illness is covered under Section 80D. Many people don’t remember to separately claim these two.

Benefits through senior citizens and dependents: If your parents are senior citizens and you pay for their health insurance, you can get a deduction up to Rs 30,000. In the case of parents over 80 years, who might not be eligible for insurance, medical expenses up to Rs 30,000 can be claimed for both. Additional deductions are provided for parents over 80 years for medical treatment such as cancer or neurological illness.

For More Details Visit: LifeLine Insurance & Financial Expert

Wednesday, 14 March 2018

Why Do You Need Travel Insurance !!

Traveling has become an integral part of our Modern Society. We could be traveling for reasons like a Business Trip or Much Awaited Vacation. But one cannot deny the fact that there are several things that could go wrong when one travels. Disruptions like Cancellation of Flights, Loss of Baggage, Medical Emergency are some of the unforeseen events that could catch you off guard. So whether you are off to your favorite destination for a Holiday or going on a Business Trip - an Adequate & Complete Travel Insurance is a must have.

Various Plans are available according to every Individual's Travel needs:

 Corporate Travel Insurance: Under this plan, Employees of an organization can receive coverage for   both Domestic and International Trips.

       Domestic Travel Insurance: In this type, Coverage is offered for Death, Medical Emergencies,         Permanent Disability, Personal Liability, Delays and Lost / Theft of Checked-in Luggage.

      International Travel Insurance: It gives a comprehensive Coverage for Medical Costs overseas, Trip Delays, Loss of Travel documents besides the regular coverage.

      Senior Citizen Travel Insurance: This plan covers people in the age group 61-70 years.

Besides providing general advantages, it also gives Cashless Hospitalization Coverage and Dental Treatments.

Key Features of Travel Insurance:

1) Coverage offered for Medical Expenses.
2) Coverage for expenses related to Trip Delays
3) Coverage for Loss of Passport and Luggage
4) For contingencies related to personal possession

Get  Various Travel Insurance Informations, Features and Benefits Visit: LifeLine Insurance & Financial Expert !!

Tuesday, 6 March 2018

You Have At Least 2 Years To Revive A Lapsed Policy !!

If You miss paying the premium on your Life Insurance Policy, and as a result, your policy has Lapsed. For people who may find themselves in situations like this, Life Insurance companies offer a small window of opportunity to revive the policy during the revival period.
The rules state that insurers need to offer a revival period of at least 2 years within which you can reinstate your policy. Here is how you can revive a Lapsed Life Insurance Policy.

When Insurance Policies Lapse?

A Policy Lapses when you skip paying its premium, not just on the due date but even within the grace period which is typically a month. However, not all Policies Lapse automatically. For instance, a term insurance policy Lapses if you skip paying the premium. In this case, you forfeit the insurance benefit as well as the premium paid towards the policy thus far.

In the case of a Unit-Linked Insurance Plans (Ulips), if you skip paying the premium in first 5 years, or during the Lock-in period, the policy is considered Lapsed and the Insurer moves the money (or the fund value) to the discontinuance fund and levies a discontinuance charge which is a maximum of Rs6,000 if discontinued in the first year, and reduces to Rs2,000 in the fourth year, and nil thereafter. If you skip paying premiums after the lock-in period, the Insurer lets you choose between surrendering the policy, reviving it or converting it into a paid-up policy with reduced sum assured.

In the case of traditional plans, if you don’t pay the premiums before policy becomes paid-up that is, before it acquires a surrender value you risk forfeiting all the premiums. However, once the policy is paid-up, the policy doesn’t Lapse but automatically continues with a reduced sum assured.

How to revive a Lapsed policy?

In all of these cases, Insurers may give you a window of at least 2 years to revive the policy. In the case of Ulips, Insurers will reverse the discontinuance charges that were levied upon revival. After 2 years, Insurers may not entertain a request for revival, especially if it’s a term plan because it comes with a very high Insurance Cover.

But Insurers do relax these rules on a Case-to-Case Basis.

The ease of reviving a policy will depend on the time that’s passed since the policy Lapsed. In case of an early Lapse, that’s within 6 months, Insurers may even allow you to revive the policy online on the basis of a declaration of Good Health. However, if the policy has lapsed for more than 6 months, then insurers may insist on fresh Medical Check-Ups. This will also depend on the Sum assured & your age; the Older you are & the Higher the Sum assured, More are the chances of being sent to Medical Tests. In order to revive the policy, you will need to pay all the Due Premiums, along with Penalty Interest. But Insurers sometimes waive these conditions, especially during Revival Campaigns. They may also Waive the need for Medical Check-Ups, and Reduce the Penalty Charge or Waive it completely.

For More Details Visit: LifeLine Insurance & Financial Expert

Saturday, 24 February 2018

Medi Classic Individual Health Insurance plan !!

Medi Classic is a Health Insurance plan that provides for  reimbursement of Hospitalization Expenses incurred as a result of illness, diseases, sickness or accidental injuries.

Discount of 5% in case the term is 2 years
The sum insured is automatically restored by 200% when basic insured is fully exhausted
More than 100 Day care treatments are covered
No Medical tests are required up to 50 years of age
Non-allopathic treatment is also covered
Hospital Cash benefit available, if opted
Network of more than 6000 Hospitals accorss India
Tax rebate available as per provision of Income Tax Rules under section 80-D

Room Rent Limit-Up to 2% of sum insured, max 5000
Pre-Hospitalization Expenses-60 days
Post Hospitalization Expenses-90 days
Minimum Hospitalization Period-24 Hrs
Automatic Restoration of Sum Insured-Up to 200% of basic sum insured
Pre-Existing Disease / Illness coverage After 48 months
Waiting Period for New Policy-30 days
Co-Payment-Up to 10% for age above 60 years

For More Details Visit: LifeLine Insurance & Financial Expert

Saturday, 17 February 2018

How to Save and Invest for Child's Education !!

Find out how you can accumulate enough funds for your children’s studies when Higher Education costs are shooting up. 

The class of 2018 of the Indian Institute of Management-Ahmadabad will pay Rs.19.5Lakhs for the two-year course. This is 400% higher than what the premier B-school charged in 2007. If the fees  of the two-year management course continues to rise by an average 20% every year, it will cost roughly Rs.95Lakhs in 2025.

Even undergraduate courses have not been spared. The tuition fee for engineering courses in the Indian Institute of Technology (IIT) has been hiked from Rs.90000 to Rs.2Lakhs per annum. This is just the tuition fee--the total cost is much higher. At an average running inflation rate of 10%, a four-year engineering course that costs Rs.8Lakhs today is likely to set you back by Rs.17Lakhs in another eight years’ time. By 2030, the same would cost more than Rs.30Lakhs. If you have not planned well, you could get a rude shock, falling way short of the required corpus when your kid is ready for college. In fact, for engineering and medical aspirants, the costs start even while the student is in high school. Coaching institutes charge anywhere between Rs.80000-Rs.1Lakh a year for preparing the student for the entrance exam.

This sharp spike in fees is a wakeup call for parents saving for the higher education of their children. “Higher education costs have the highest inflation rates in the country. Parents need to realize it is going to be an expensive affair.

As mentioned earlier, the cost of higher education is shooting up. Many parents who started late or chose the wrong investment vehicles may find themselves woefully short of the target. If you face a shortfall, don’t be tempted to dip into your retirement corpus to fill the gap. This is a mistake. Your retirement should be given priority over your kids’ education Instead you should take an education loan with the child as a co-borrower.

As mentioned earlier, the cost of higher education is shooting up. Many parents who started late or chose the wrong investment vehicles may find themselves woefully short of the target. If you face a shortfall, don’t be tempted to dip into your retirement corpus to fill the gap. This is a mistake. Your retirement should be given priority over your kids’ education Instead you should take an education loan with the child as a co-borrower.

The entire plan can crash. The only way to guard against this is by taking adequate Life Insurance. A term plan does not cost too much. For a 30-35 year old person, a cover of Rs.1Crore will cost barely Rs.10000-Rs.12000 per year. That is too small a price for something that safeguards your biggest dream.

For More Details Visit: LifeLine Insurance & Financial Expert

Saturday, 10 February 2018

Why we don’t have to ignore Life Insurance during Financial Planning !!

A financial planning not only helps to provide adequate resources for your current needs but also helps to save enough to meet the future financial goals of your family.A financial planning is to ensure that the lifestyle and life stage goals of you and your Loved ones are fulfilled. Life Insurance is often purchased more from either an investment / tax savings perspective rather than its true purpose of protection.

It is our primary responsibility to safeguard the future of our families in case something was happen to us. Without a Life Insurance policy, If the breadwinner is not around anymore wealth creation plans will remain incomplete. Hence, before anything else happen, it is critical to determine your Life Insurance need for the sake of your family.

Life Insurance is not just about protecting Loved ones from the risk of financial stress due to the breadwinner dying too early. It also plays an important role in building of amount to meet various life stage needs through disciplined savings. To meet the dual purpose of savings and long term protection, there are many efficient endowment plans which provide life cover, create long term wealth, provide financial support to enjoy peace of mind as well as prove to be an effective tax-saving instrument.

While looking to purchase a life insurance policy, bear in mind that the insurance plan you choose should ideally offer a combination of adequate protection from risk while ensuring that your family’s financial liabilities are met without causing additional financial burden and that the continuity of the lifestyle that they enjoy is maintained. We must realize that life insurance is uniquely different from all other financial products because it has the protection of your financial interests as its core proposition and thus should be the foundation of everyone’s financial plan.

For More Details Visit: LifeLine Insurance & Financial Expert

Thursday, 1 February 2018

How Insurance Works !!

Insurance is one of the Most Important financial Investments an Individual will make in their Lifetime. Insurance Policy could ensure that your Family is looked after well & are Financially Secure in case of an Unfortunate Event.

Risks and Uncertainties are part of Life's accident, illness, theft, natural disaster they are waiting to happen. Insurance then is answer to the uncertain risks of life. If we cannot beat man-made and natural calamities, well, at least be prepared for them.

Insurance is a contract between two parties - the Insurer (the insurance company) and the Insured (the person seeking the cover) wherein the Insurer agrees to pay the insured for financial losses arising out of any unforeseen events in return for a regular payment of "premium". These Unforeseen events are defined as "Risk" and that is why Insurance is called a Risk Cover. Hence, Insurance is essentially the means to financially compensate for losses that life throws at people.

Roles of Insurance

1) Insurance as “Investment”

Insurance is an attractive option for investment. While most people recognize the risk hedging and tax saving potential of insurance, many are not aware of its advantages as an investment option as well.

2) Insurance as “Risk cover”

First and foremost, insurance is about risk cover and protection - financial protection, to be more precise - to help outlast life's unpredictable losses. Designed to safeguard against losses suffered on account of any unforeseen event, insurance provides you with that unique sense of security that no other form of investment provides. By buying Insurance, we buy peace of mind and are prepared to face any financial demand that would hit the family in case of an untimely demise.

3) Insurance as “Tax planning”

Insurance serves as an excellent tax saving mechanism too. The Government of India has offered tax incentives to life insurance products in order to facilitate the flow of funds into productive assets.

For More Details Download Insurance Guide: LifeLine Insurance & Financial Expert

Saturday, 20 January 2018

Smart Things to Know about Third Party Administrator (TPA)

TPAs function as Intermediaries between the Insurance Provider and the Policy Holder. Its key function is processing of Claims & Settlements. The TPAs issues ID Cards to Policy Holders which have to be shown to the Hospital Authorities during any Cashless Hospitalization Services.

At the time of a Claim, a Policy Holder should inform to the TPA. Policy Holder informing to the Hospital that TPA and Policy Holder are connected to each other directly. Claim Payment will be given back to Policy Holder.

The TPA issues an authorization letter to the Hospital, after which they track the case and at Discharge all Bills are sent to TPA for Payments.

TPA sends all the documents necessary for consideration of Claims along with Bills to the Insurer. 

For More Details Visit: LifeLine Insurance & Financial Expert

Friday, 12 January 2018

When we need Insurance?

We need Insurance when:

We get Married- Even if our spouse works, He or She might depend on us for financial support .Buy an  Insurance policy for yourself.

We Became a Parent- Our responsibilities shoot up after the birth of a child. Take an Insurance cover to provide the financial security for the new family member.

Our Parents Retire- Take additional Insurance Cover when our dependent parent’s stop working or their Income reduces due to any reason.

We Borrow a Large Sum- Our family will be in a spot if something happens to us and there’s not enough Money to pay the EMIs. Take a cover equal to the Loan amount.

We Start a Business- If we quit our job, we need a bigger cover because we might have lost many of the Benefits that Employee’s get in the organized sector.

How Life Insurance Can Be An Effective Tax Planning Tool !!

It is commonly believed that the start of the financial year is the correct time to start tax planning. However, it is the March Quar...