5 Important Things To Know Before Buying Life Insurance Policy

No one can guess the future of life. Every aspect of life is now getting tangled with money, so you should be financially ever ready to face any kind of challenge. If anything happens to the earning person of the family and if that family needs to survive financially, life insurance plans are must.
Table of contents
1. Insurance policy is important but many people are seeing this as an investment plan or tax benefit plan. What is the advise for such people ?
2. What should be the policy value ? How to choose it ?
3. What types of insurance policies are available and the benefits that insurance companies are offering ?
4. Advice for the people who are taking insurance policy for first time.
5. How to take online insurance policies and tips that will help ?

1. Insurance policy is important but many people are seeing this as an investment plan or tax benefit plan. What is the advise for such 
people ? 
The main motive to take life insurance policy is to provide financial support to the family incase of if anything happens to main earning person of that family. Any other types of investments should not be compared to life insurance. While taking a policy children education , marriage, debts, assets, remaining service and other factors should be considered. Tax savings is always only a additional benefit.

2. What should be the policy value ? How to choose it ? 
  • A policy that is 10 times your annual salary should be taken.
  • Use insurance calculators on the company websites to decide on the policy value. This is the simplest way. 
3. What types of insurance policies are available and the benefits that insurance companies are offering ?
Insurance companies are adding new benefits to policies regularly. Unit based policies that offer savings  and insurance  and term policies which offer only insurance are getting additional benefits like children education.

4. Advice for the people who are taking insurance policy for first time.
  • Analyze your financial status
  • Evaluate future expenses and needs
  • Know the long term benefits of policy
  • Know the policy premium to be paid and the duration.
  • Do not get troubled after taking a high premium policy because it is important continue the policy.
5. How to choose online insurance policies and tips that will 
help ? 
Term policies are presently popular online policies as the insurance companies are giving more coverage with less premium. Online policies will be more transparent and you will get receipt of the payment immediately.
  • In about 3 weeks you will get policy confirmation from the insurance company.
  • You might be asked to take health tests.
  • You will get insurance policy papers by email and by post.

How To Invest in Gold In India

Gold is undoubtedly the favourite precious metal of Indians. The evertime shine, personal use as jewellery and ever increasing value has made Gold as one of the best investment options. People should do a lot of financial planning and think whether it is good or bad before investing in Gold. We are here by providing the information that will guide you in deciding.
You can buy Gold for investment in two types one is physically and other is electronically. While buying physically at shops are online in form of biscuits or jewellery the main thing to check is the quality and then store it at a safe place. If you want to buy Gold as an future investment you can do that without worrying about the quality and storage with many options.

Invest in Sovereign Gold Bonds
If you are expecting Government to be guarantee and want interest on your Gold, then go for Sovereign Gold  Bond scheme. Presently for Sovereign Gold Bonds 2017-2018 Series III could be your best option to invest in Gold. The applications are open from October 9 2017 to December 27, 2017 and bonds can be bought from Stock Holding Corporation,  post offfices and on the stock markets.

The price is adjusted every week. The current week it is about Rs 2956. There are mainly two benefits of buying these Sovereign Gold Bond. When Gold rate increases the value of your investment increases and also you get 2.5% interest. Interest will be added to your account every 6 months. In a fiscal  year individuals and HUF can invest in 4Kgs of Gold. Total tenure of investment is 8 years and after 5 years you will have exit options with certain terms. If you continue for full tenure there will be no tax on the returns. If gold bond early exit option is chosen the returns will be taxed as per short term capital gain (STCG). 

Invest in Gold ETF
Exchange Traded Funds are currently gaining popularity and these are one the best and easy way to invest in Gold. You can buy and sell these funds in stock markets but you will need a trading account to do the transactions. The rates are traded as per the stock exchange rates. The brokerage companies will charge when you buy and sell the Gold. 

Invest in Gold Mutual Funds
To buy 1 gram of Gold it would cost about Rs 3000 and to buy 1 unit in EFT it would cost the same. For many people it will not be possible to do so. People who want to invest with small amounts can buy Gold mutual funds .  Investment with Rs 500 and Rs 1000 can be made and there will be no charges for buying and selling. If you withdraw from these funds in 3 years tax will levied as per STCG.

Gather all the details from the advisor before investing in Gold schemes and funds.

Get Home Loan Benefits For Women - Low Interest Rates

Buying a house is dream of every person. To fulfill this dream majority of people take home loans. There is a mis-conception earlier that only men can take these loans but situation has changed now and more women are coming forward to get home loans. We will learn the information and loan options for women to buy a house.
home-loans-to-women-low-interest-ratesBanks and financial institutions are considering Women as the most trusted customers because in terms of credit rating, loan history and loan repayments they are more reliable than men. In terms of savings and financial consultations women are participating more and more.

All these financial factors that are positive towards Women will help them in getting Home loans at cheaper rates. There are few things to follow before applying for a Home loan that will help you to stay confident and successful.

  • Fill the application form without any mistakes.
  • Address proofs, age proofs and verification documents likes Aadhar cards should be kept handy.
  • If the loan applicant is employee, she may be asked to submit 2 years Form 16, Tax returns and 3 to 6 month's salary slips.
  • If the applicant is self employed, she may be asked to submit last 2 years balance sheet, profit loss statements and bank account details. Some financial institutions might ask additional documents as per their loan procedure.
Most of the banks and finance institutions are giving loans online, so you may be requested to upload the required documents and the hardcopies can be submitted to the representative after loan approval.

Usually Home loans are sanctioned in 10 to 12 days but it might take few more days if there are any obligations.

Co Applicant
When a women is taking home loan she can name husband, parents and children as co applicants. Incase of a joint business or joint family she can also name brother and sisters co applicants. This situation would help to increase the total loan amount. If the loan applicant is also co owner of the property then both can get tax benefits.

Clear dues
  • Keep all the loans documents at safe and handy location.
  • Clear credit card bills and other personal loans in time to get any benefits on interest rates.

Special Schemes

Indian Government and State Governments are trying to giving Home loans to Women under various schemes. There will be interest rate and certain benefits under these schemes, so please contact local authorities for more information.

Which Type of Loan Interest Rate Should You Choose?

Home loans will have generally  Fixed interest rate and Floating interest rate options. Fixed rates will have fixed equal amount installments for the entire period of time. The starting payments cover the majorly interest and the principal amount is covered in later tenures. The fixed rates are usually higher.

Floating interest rates change depending on the market conditions and interest rate change when base rate changes. As per the conditions that are today most of the Home loan borrowers choose floating interest rates.