Life Insurance and Premium

31A Insurance protects you from financial loss and risk of loss is transferred to another party through a contract. The insured receives a contract called the insurance policy. Insurance is a contract between the insurance company and the life assured (insured) and the premium is the consideration which makes the contract complete. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.

Life insurance vs Non-life insurance

Life insurance is an insurance cover that gives out a certain amount to the insured or their nominated beneficiaries upon a certain event such as death of the individual who is insured. The risks that are covered by Life Insurance include – premature death, income during retirement, illness.

Non-Life Insurance covers things apart from the things covered in Life Insurance. The coverage period for most non-life insurance policies and plans is usually one year, whereby premiums are normally paid on a one time basis. The main products of non-life insurance includes – motor insurance, fire/house owners/householders insurance, travel insurance.

Insurance Premium & Level premium

An insurance premium is generally expressed as premium per thousand rupees of sum assured and is illustrated in the form of tables of premium rates by insurance companies. Premium varies across insurance plans, policy terms, sum assured and the age of the proposer. Periodicity or mode of premium payment depends on the type of policy chosen and also on the payment options that the policy offers.

When the premium charged under a policy remains the same throughout the duration of the contract, it is called level premium. In this case premium level is guaranteed and cannot be changed by the company at a later date. This is advantageous for both the life assured and the insurance company and therefore most life insurance plans except some term insurance plans involve level premium payment.

Importance of Life Insurance in your life

Life 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. By buying life insurance, you buy peace of mind and are prepared to face any financial demand that would hit the family in case of an untimely demise.

Life insurance as an “investment”: The total amount invested in life insurance goes towards providing for the risk cover, while the rest is used for savings. In life insurance, unlike non-life products, you get maturity benefits on survival at the end of the term. In the unfortunate event of death within the tenure of the policy, the family of the deceased will receive the sum assured. Thus, insurance is a unique investment avenue that delivers sound returns in addition to protection.

Life insurance as “Tax planning”: Insurance serves as an excellent tax saving mechanism. Buying a life insurance plan entitles you tax benefits on:Your premiums under Section 80C. Maturity or death claim proceeds under Section 10 (10D).

Important types of life insurance policies

Here are a few common types of covers, including whole life and term insurance policy.

Term Plan: Term insurance policy offers coverage only for a set period of time. On the occurrence of death or permanent disability during the tenure of the plan, the beneficiaries will be paid benefits to cover income loss or unpaid debt. However, if the insured survives the term of the plan, no such benefits are paid.

Whole Life Insurance: Whole life plans strive to give you lifelong protection. Such cover comes with death benefits, meaning your family can continue to be financially stable after your death. It also comes with maturity benefits, after the expiry of the term. Most people use this type of policy to create an inheritance or estate for their children.

Savings and Investment Plans: There is a savings quotient linked to such policies. They come with a specified maturity period, as decided by the insurer. On the occurrence of any unforeseen event of the death or permanent disability, during the tenure of the policy; the sum assured will be received by the said beneficiaries to the policy. If the insured survives the term of the policy, the agreed maturity benefits become payable.

Retirement Plans: Insurance plans that ensure financial independence after retirement.

Child Plan: These plans can be taken in the name of the child or the parent. However, it is only for the benefit of the child. This helps parents mobilize finances when the child reaches a particular age or stage of life.

What is Riders?

Life insurance riders are contingent additional benefits over a primary policy, which come into play in case of a specific eventuality. They offer financial cover over and above basic sum assured in a life insurance policy. Critical illness rider, Disability rider, Accidental death benefit rider, Term rider and Waiver of premium rider are some of the different kinds of life insurance riders.


Protect your family with life insurance
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Reference/Source:
https://en.wikipedia.org/wiki/Insurance
http://www.careerride.com/view/difference-between-life-and-non-life-insurance-9834.aspx
http://economictimes.indiatimes.com/tdmc/your-money/important-things-to-know-about-paying-life-insurance-premium/tomorrowmakersshow/48574922.cms
https://insurance.kotak.com/insurance-guide/about-life-insurance/roles-of-life-insurance
https://epolicy.sbilife.co.in/FAQ/e-Shield_faqs/Terms_Insurance_Policy.html
https://www.hdfclife.com/insurance-plans/riders-in-insurance

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SBI launches realty portal-SBI Realty

India’s largest commercial bank State Bank of India (SBI) launched its dedicated portal ‘SBI Realty’ that provides an opportunity to its customer to purchase a plot for construction of a dwelling unit. The customer can also avail another Home Loan for construction of house on plot financed under SBI Realty.

The SBI Realty website has been developed by SBICAP Securities in association with PropEquity in terms of data support, project information, etc.

SBICAP Securities Limited through its division SBI Realty Solutions provides a unified platform for exchange of information & facts for buyers, builders & sellers. “State Bank of India has taken another step towards customers’ convenience by launching ‘SBI Realty’ – a one stop integrated website www.sbirealty.in for home buyers,” the bank said in a statement.

Source: http://economictimes.indiatimes.com/industry/banking/finance/banking/buying-a-house-has-never-been-so-easy-sbi-launches-realty-app/all-for-you/slideshow/59650510.cms

GST in India from 1 July

The official launch of Goods and Services Tax (GST) will be on June 30th midnight. The GST will reduce tax burden on goods by replacing the indirect taxes like VAT, Service tax, Excise etc levied by the central and state governments. GST seeks to bundle state and central levies into one and create a seamless national market throughout the country.

The GST Council (GSTC), the apex decision body for the new tax, also approved the creation of an anti-profiteering authority that will exist for two years. According to the source, the norms for filing returns have been relaxed for the first two months until September 2017. This will help Small business and traders who may not be ready for migration to GST.

The idea of moving towards the GST was first mooted by the then Union Finance Minister in his Budget for 2007-08. There would be four tax rates namely 5%, 12%, 18% and 28%. The Council has asked the Committee of officers to fit various goods and services in these four slabs keeping in view the present incidence of tax. GST would be applicable on “supply” of goods or services as against the present concept of tax on the manufacture of goods or on sale of goods or on provision of services.

According to the source, the GST returns would be applicable for business where turnover is more than Rs 20 lakh. Hence the small business and traders with turnover less than Rs 20 lakh will not have to file any return. Under GST, you need not give any details of invoices but disclose the total turnover.

A mega rehearsal has been planned tomorrow in the Central Hall of Parliament ahead of the historic GST launch on the midnight of 30 June. Tomorrow’s rehearsal has been organized to ensure that everything is well-organized and there is smooth conduct of the launch event, the sources said. The final event is likely to start at 11 PM on 30 June and will be on till half past midnight the sources said.

  • Businesses having a turnover of more than Rs 20 Lakhs have to get registered mandatorily under GST.
  • The norms for filing returns have been relaxed for the first two months until September 2017.
  • There would be four tax rates namely 5%, 12%, 18% and 28%.
  • Under GST, you need not give any details of invoices but disclose only the total turnover.
  • GST allow sellers to claim the tax already paid, so that the final liability on the end consumer is decreased.
  • From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods.

Reference:
http://www.cbec.gov.in/resources//htdocs-cbec/gst/gst-concept-status-ason05Apr2017.pdf
http://economictimes.indiatimes.com/news/economy/policy/guide-to-filing-gst-returns-revenue-secretary-hasmukh-adhia-makes-it-easy-for-you/articleshow/59337150.cms
http://economictimes.indiatimes.com/small-biz/policy-trends/gst-council-gives-relaxation-of-2-months-for-filing-of-gst-returns/articleshow/59213188.cms
http://www.firstpost.com/business/gst-from-1-july-govt-to-rehearse-launch-ceremony-in-parliament-tomorrow-3751263.html
https://cleartax.in/s/gst-law-goods-and-services-tax

Home loans to get cheaper

Home loans for affordable housing to get cheaper as SBI, HDFC, ICICI Bank and Axis Bank slash rates. Axis Bank on Thursday announced 30 basis points (bps) reduction in its home loan interest rates to promote affordable housing finance. The revised rates will be available with effect from May 16.

Private sector lender ICICI Bank on May 15 reduced its interest rates by up to 30 bps for home loans of up to Rs 30 lakh. HDFC reduced its rates for women borrowers to 8.35 per cent and others to 8.40 per cent for home loans of up to Rs 30 lakh.

State Bank of India (SBI) had announced a reduction in the home loan rates by 25 bps from 8.60 per cent to 8.35 per cent per annum. SBI, was the first to reduce interest rates on home loans earlier this month, followed by ICICI and HDFC.

Source:
http://www.hindustantimes.com/business-news/after-sbi-hdfc-icici-bank-cut-home-loan-rates/story-41nKZpomc7PPzDa5qCMGNO.html
http://www.business-standard.com/article/economy-policy/home-loans-to-get-cheaper-sbi-hdfc-icici-bank-axis-bank-slash-rates-117051900203_1.html

Do you know why you must have curd during summer?

Curd is a delicious and nutritious coolant that helps to keeps you hydrated throughout summer. It is one of the richest sources of calcium, a good source of protein, has vitamin D, vitamin B12, zinc and phosphorus. Adding curd to your meal is beneficial for your health and helps to keep you cool during summer. You can make a glass of lassi, or just add some fruits to make it delicious and lip smacking.

Applying curd on skin, enhance your beauty by making your skin smooth and soft. Vitamin E, zinc and phosphorus present in the curd will improve your complexion.

Having a small cup of curd or dahi will give a better relief from dysentery. Daily consumption of curd will help to prevent diseases like osteoarthritis and osteoporosis. Helps in strengthening your bones and teeth. It helps in curing many stomach infections including H.pylori infection. It also manages blood pressure and promotes heart health.

Just have chilled curd or dahi when you are tired and experience yourself why curd is a must-have during summer.

Image Source: marudhuskitchen.com

Read more at: http://www.boldsky.com/health/wellness/2017/curd-benefits-during-summer/articlecontent-pf159413-113838.html

Indian women’s cricket team sets world record

The Indian women’s cricket team partnership score is the first 300 plus stand in Women’s ODIs. The base for this record score was setup by openers Deepti Sharma and Punam Raut who combined for a women’s world record of 320-run stand for the opening wicket with Sharma scoring 188 and Raut scoring 109.

Indian women’s cricket team posted their highest ever team total, surpassing their previous best of 298 for two against West Indies women made in 2004. India scored 358 for three in match eight of the Women’s Quadrangular series at Senwes Park, Potchefstroom against Ireland women.

Sharma’s score of 188, that came in 160 deliveries with the help of 27 fours and two sixes, is now the highest individual score by an Indian women’s cricketer. India’s previous highest individual score was 138 not out made by Jaya Sharma against Pakistan women at Karachi in 2005.

India women went on to beat Ireland women by 249 – the six largest victory (runs) in Women’s ODIs – bundling out their opposition for 109 runs.

Read more at: http://timesofindia.indiatimes.com/sports/cricket/news/womens-cricket-india-openers-put-on-a-world-record-320-run-stand/articleshow/58684729.cms

7 Fruits for Summer in India

Seven fruits that helps to keep you cool and healthy in this Summer.

1) Water Melon: This fruit is number one in the list as it helps to protect the skin against sun damage and has high water content. This helps to keep you hydrated and refreshed. Good source of Vitamin A and C

2) Mango: Who can avoid this fruit which also known as the king of all the fruits. Mangoes are native to South Asia and it won’t be wrong if we say the National fruit of India. A summer drink called aam panna, a thick juice made of mangoes with sugar and milk and famous in this season. Rich source of vitamin A, vitamin C as well as minerals like potassium, calcium and phosphorus.

3) Papaya: A delicious tropical fruit that helps in the proper digestion of proteins. Extremely high in vitamins A, vitamin C, folate and other phytochemicals. If used for skin or home made treatment gives the fresh glow to skin and slow down the ageing process.

4) Banana: Highly nutritious food to keep you energetic and active. Banana has vitamin A, phosphorous, carbohydrate, and iron and when the banana get ripen, it comprises glucose, fructose, sucrose and fibre. It enhances the mental alertness and boost brain power.

5) Lemon: Like Water melon, Lemon is also an important fruit for summer which is advised to be taken as juice with salt or sugar mixed in water/soda to quench your thirst. Lemon is rich in Vitamin C.

6) Orange: Orange helps in refilling the lost potassium through sweat and the source of vitamin C, thiamin and folate for you which provides you natural UV protection, brings down stress levels and enhance the production of red blood cells in your body. Also replenish the potassium lost through perspiration and provide relief in muscular cramps.

7) Grapes: Grapes are an obvious summer choice – readily available, easy to eat and excellent in quenching hunger and thirst and thus best choice for summers. Low on saturated fat, cholesterol and sodium. A good source of Vitamin C and K.

Source:
http://www.lifehacker.co.in/jugaad/7-Best-Fruits-To-Eat-In-Summers/articleshow/34056184.cms

http://insightsindia.blogspot.in/2013/06/top-15-fruits-for-cool-summer.html
http://timesofindia.indiatimes.com/life-style/health-fitness/diet/Fruits-of-summer-and-their-benefits/articleshow/33242199.cms
http://www.gyanunlimited.com/health/banana-benefits-banana-for-weight-loss-and-weight-gain/5974/

Image Source:
http://www.languageties.com/sites/default/files/images/lexical/fruit-salad.jpg