Insurance - Every child is precious to their parents

Every child is precious to their parents. Every parent wishes for their child to get the best possible education and other amenities. This can be achieved by planning your investments and savings systematically. There are various ways in which a parent can secure their child’s future.
It’s advisable to start saving and investing at an early age, ideally even before you have a child. The earlier you start the more benefits you get, like – long term capital gains, longer term horizon which reduces the risk and also results in a higher corpus.
Now you would wonder how much to invest, where to invest and also how much you should save from your income. To achieve the desired goal for your child you need to save and invest regularly.



Here are a few things which one may consider while planning for a child’s future:
  1) Saving
  2) Insurance
  3) Investing



One can either hire a financial planner to make a proper plan for their child’s future or even do it on their own by consulting bank managers, insurance agents and mutual fund advisors.

To conclude preparing for your children’s future is a simple process – reduce your expenses, increase your savings, invest properly and regularly and get insured early!

 

Faceoff between Myths and Reality of ULIP

Recently, on the game show “The Financial Wizard” (name changed), the participant was asked a question pertaining to Unit Linked Insurance Plans (ULIPs) – Do ULIPs allow debt investments? The participant had to choose between “Yes” or “No”. Being quite confident, without making use of any lifelines, he chose “No”. Do you think he was right or wrong? Well, he was wrong. Yes, you may be startled to know that ULIPs do allow debt investments…

Now, take a minute to think, why were you startled when you heard the correct answer? Well, the reason is that there are many myths surrounding ULIP plans, which have led to many viewing ULIPs with scepticism. This, despite the inherent benefits offered by these plans – a life cover + market linked returns. The market linked returns allow you to quicken the wealth creation process and the life cover ensures that in case of an untimely demise, dependents are financially secure.

Life Insurance- tax planning.

Term Life Insurance also serves as an excellent mechanism for saving taxes. The Government of India has offered tax incentives to life insurance products in order to facilitate the flow of funds into productive assets. Under Section 88 of Income Tax Act 1961, an individual is entitled to a rebate of 20 per cent on the annual premium payable on his/her life and life of his/her children. The rebate is deductible from tax payable by the individual or a Hindu Undivided Family. This rebate is can be availed up to a maximum of Rs 12,000 on a payment of yearly premium of Rs 60,000. By paying Rs 60,000 a year, we can buy anything upwards of Rs 10 lakh in the sum assured (depending upon the age of the insured and term of the policy.) This implies that we get Rs 12,000 as a tax benefit. But many people make the mistake of burdening themselves with too many life insurance policies to the detriment of the quality of their lives while they’re alive. 

Having come to terms with the importance of insurance now comes the dilemma of which insurance policy to choose since the Indian market is already saturated with about 23-odd players, each offering some benefit or the other. This is where IndiaFirst Life, a joint venture between Bank of Baroda, Andhra Bank and UK’s Legal & General, steps in to clear the worries and offer simple easy-to-use solutions. With its “customers first” approach, IndiaFirst Life has adopted a simple and transparent approach, doing away with technical jargons and huge policy statements which confuse and confound a customer. At IndiaFirst Life, rather than we telling the customer about an insurance benefit, the customer is the one who chooses an insurance policy. We follow a simple process by which the customer looks into the various policies on our website and makes a choice according to his requirement. There is not trouble of going through elaborate policy statements involved in this process. Our main is to provide reasonable and honest deals to the customers and not coax him into taking up a policy which he does not want. 

Remember, an insurance acts like a ceiling above your head providing you the shelter and protection from any untoward incident. With life having become fast paced nowadays, there are very few things we can hold on to. Our life’s pleasures have become momentary now and if we want to enjoy them for a prolonged time, we must ensure that the little necessities of our life are well insured.

Investment Plan for Children’s Future

Investment Planning for Children’s Future

Every child is precious to their parents. Every parent wishes for their child to get the best possible education and other amenities. This can be achieved by planning your investments and savings systematically. There are various ways in which a parent can secure their child’s future.
It’s advisable to start saving and investing at an early age, ideally even before you have a child. The earlier you start the more benefits you get, like – long term capital gains, longer term horizon which reduces the risk and also results in a higher corpus.

Now you would wonder how much to invest, where to invest and also how much you should save from your income. Investment plan should be taken after analyzing all the things and needs. To achieve the desired goal for your child you need to save and invest regularly.

preparing for your children’s future is a simple process – reduce your expenses, increase your savings, invest properly and regularly and get insured early!