LIFE INSURANCE FOR WOMEN

There is a myth in india that life insurance is only for men. In simplest form, life insurance means protection against risks in life. While men might not give it due attention, risks also exist in a woman’s life, sometime even more than a man’s life.

Even though a woman may not be considered a breadwinner in the conventional manner, she also needs to protect against life’s risks, and thus needs life insurance.

In today's world, a woman's contribution to the finances of a family cannot be ignored. Besides, they provide much more than men in household matters. But women are seen to be holding themselves back when it comes to buying life insurance. 

While most men are aware of the fact that life insurance can be an emergency fund and help meet one's objectives or protect their families, it is time women know their importance in their loved one’s lives. They need to get themselves insured, in fact, adequately insured. 

Why women must buy life insurance?

The biggest reason a working woman must buy life insurance is because she is adding to her household income. Of course, about 100 years ago, the value that women were providing to the home wasn't considered worth insuring, but not anymore. Today the woman’s salary provides equally for the family, sometimes even more. 

Now as a woman, you can actually put a number to the value you provide to the household and help your family to continue living at their current lifestyle.

So the reason you need a life insurance is to ensure that your family has the income to stay afloat even if something happens to you – like permanent disability, accident, or untimely death.

Now, if you are a single, working woman, the reason you must purchase life insurance is when you have ageing parents (or any other dependents like younger brother or sister) that you're caring for. 

What kind of insurance women should buy?

What are the various types of life insurance?

There are two basic types of life insurance policies viz. Traditional Whole Life and Term Life Insurance. A whole life is a policy you pay till death of the policy holder and term life is a policy for a fixed amount of time.

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The basic types of life insurance policies are:

Term insurance

Term plans are the most basic form of life insurance. They provide life cover with no savings / profits component. They are the most affordable form of life insurance as premiums are cheaper compared to other life insurance plans.

Online term insurance plans provide pure risk cover, which explains the lower premiums. A fixed sum of money - the sum assured – is paid to the beneficiaries if the policyholder expires over the policy term. If the policyholder survives, there is no pay out.

Endowment plans

Endowment plans differ from term plans in one critical aspect i.e. maturity benefit. Unlike term plans which pay out the sum assured, along with profits, only in case of an eventuality over the policy term, endowment planspay out the sum assured under both scenarios – death and survival. However, endowment plans charge higher fees / expenses – reflected in premiums – for paying out sum assured, along with profits, in either scenario – death or maturity. The profits are an outcome of premiums being invested in asset markets – equities and debt.

Unit linked insurance plans (ULIP)

ULIPs are a variant of the traditional endowment plan.They pay out the sum assured (or the investment portfolio if its higher) on death/maturity.

ULIPs differ from traditional endowment plans in certain areas. As the name suggests, performance of ULIP is linked to markets. Individuals can choose the allocation for investments in stock/debt markets. The value of the investment portfolio is captured by the NAV (net asset value). To that end, there are many similarities between ULIPs and mutual funds. ULIPs differ in one area, they are a combination of investment and insurance, while mutual funds are a pure investment avenue

Whole life policy

A whole life insurance policy covers a policyholder over his life. The main feature of a whole life policy is that the validity of the policy is not defined so the individual enjoys the life cover throughout his life. The policyholder pays regular premiums until his death, upon which the corpus is paid out to the family. The policy expiresonly in case of an eventuality as there is no pre-defined policy tenure.

Money back policy

A money back policy is a variant of the endowment plan. It gives periodic payments over the policy term. To that end, a portion of the sum assured is paid out at regular intervals. If the policy holder survives the term, he gets the balance sum assured. In case of death over the policy term, the beneficiary gets the full sum assured.

Steps to Manage Your Finances, during Layoff!

Big IT companies could hand out pink slips to hundreds of mid and senior-level employees as it carries out its bi-annual performance review amid a challenging business environment.

The development comes at a time when its peers Wipro and Cognizant are taking similar measures to control costs.

Cognizant Technology Solutions offered its top executives - directors, associate VPs and senior VPs - a voluntary separation package , a part of its plan to shift operations to automation and digital technology.

It was reported that at least 1,000 executives are expected to go. The company is expected to eventually cut at least 6,000 jobs, or 2.3 per cent of its total workforce.

What if such a situation hits you? Are you prepared to deal with such an unexpected storm?

Here are some Tips to manage your finances during Layoff

Determine How You Are Spending Your Money

When times are good, most people do not think about how they spend money. We know how much the mortgage or rent and monthly car payments are, but we don't pay attention to daily spending. How much do we spend going out to eat? What is our weekly grocery bill? What about utilities and insurance? Being more aware of how you spend your money will cause you to spend it more carefully.

Your next priority should be your grocery expenses. You have to eat to survive and be shipshape to go out in search of another job. Visit your nearest discount stores and check who sells your items of daily need cheaper. This exercise may help you save some dimes but if you are laid off or fear a layoff every penny should count.

Look at health insurance options.

Health insurance covers cost of an insured individual's medical and surgical expenses. Subject to the terms of insurance coverage, either the insured pays costs out-of-pocket and is subsequently reimbursed or the insurance company reimburses costs directly.

Health insurance is a type of insurance coverage that covers the cost of an insured individual's medical and surgical expenses. Depending on the type of health insurance coverage, either the insured pays costs out-of-pocket and is then reimbursed, or the insurer makes payments directly to the provider.

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Look Into your Investment 

When you find out you’ve been laid off, one of the most important (and potentially urgent) things to do is take a look at your portfolio to see if it needs any changes.

In general, the primary factor in determining your asset allocation (i.e., how much you should have in stocks and how much you should have in fixed-income) is your risk tolerance—that is, both your financial and your psychological ability to handle volatility.

For many investors, when they get laid off, they find that both of those things change dramatically. They can financially afford less risk, because money that they had previously not expected to spend for a decade or more might now be spent in the not-so-distant future. And they can psychologically tolerate less risk, because their life suddenly feels much more tumultuous and scary.

Prioritize Bills

When cash gets tight, you might need to prioritize which bills you need to pay first. For example, it’s better to push off a medical bill than a mortgage payment, Additionally, you should let lenders and service providers know about your financial situation before you miss a payment.

“Once you skip a payment or two, and they send you to collections, all bets are off

You might be able to lower the amount you owe each month by taking advantage of programs for those in need.

MAKE YOUR KID A MILLIONAIRE WITH “SYSTEMATIC INVESTMENT PLANNING (SIP)”

Yes, a millionaire! Certainly your kids have the chance to become millionaires as they have huge time advantage, compared to rest of us, when it comes to getting rich. It is an irony of life that you do not have money in hand to invest when you are as young as 20 years. And when you are 45 years old, you have money, but not enough time for your investments to reap benefits.

Time is the key for compounded growth to work magic! Your child exactly has that ‘time’ in hand. And you can invest for your little one to make him a millionaire! SIP is a way to go!

How Does SIP Helps Getting Rich?

SIP is an investment method that helps compounding your wealth. Getting richer is a lot simpler if you have time in hand and you invest regularly. Here is how Systematic Investment Planning helps your child become rich.

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Start With What You Can.

Starting early with what you can is the first step to getting rich. When it comes to investing through SIPs, you do not have to wait to collect a huge amount to invest at once. They are affordable and these little investments help you achieve your long-term costly goals like child education, retirement and child marriage.

The beauty of investments through SIPs is that it has compounding effect on your little investments. As low as INR 5,00 monthly investment, swells up to a huge corpus, in the long run. If the investor starts early, he can start with even lower monthly investments. The investor also has the option to increase the monthly investment amount at any time.

Regular Investments Help.

Investing a fixed amount regularly for a pre-determined time period helps. This is a more successful strategy that helps you beat overcome the market conditions. Even though you tide over the market’s ups and downs, you would not end up with losses. Thus, returns from SIP investments are unaffected with the market’s volatility. Is it not a simple way to getting rich!

Easy to Invest.

Unlike your household bill payments, your SIP amount can be automatically debited from your bank account on the predetermined date. It can be achieved through Electronic Clearing Service (ECS) facility, thereby not disturbing a fixed amount every month.

In conclusion, the best part of SIP investment is that it is designed to beat the lows and highs of the market in long run. Thus, it offers stability to the invested amount.

Use online financial advisory services from Moneymindz to build your personalised plan. Start your Financial Planning now to reap golden benefits for child’s future.

Question you may feel Embarrassed to ask your insurance agent ?

Applying for life insurance means answering some pretty personal questions. For example: How much do you weigh? (We’re talking the actual number, not the aspirational estimate on your driver’s license.) Do you smoke? Whom do you want to get the life insurance money when you die? Wait — not your spouse?

Don’t let any of that stop you from getting a life insurance policy. Here are the answers to five questions you might be embarrassed to ask your insurance agent.

1. Am I too fat to buy life insurance? 

Probably not.

Even if you’re overweight according to your body mass index (BMI), a common measure of fat based on your weight and height, you can still qualify for good rates with a lot of companies 

The key is applying for coverage with the right companies for your situation, which an agent can help you do.

“Some companies have very strict height and weight guidelines, some are much more lenient, and some companies don't use them at all,” 

Even if your weight keeps you from getting the best rates, Andrew says to apply for coverage when you need it, rather than wait until you shed the extra pounds. You put your family at financial risk if you go without coverage, and you could develop a health problem in the meantime that could drive up your rates if you wait. Apply for coverage now, he says, and if you lose weight later, you can ask the insurer to adjust your rates accordingly.

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2.Am I too old for a policy? 

The cutoff age to buy term life insurance, which provides temporary coverage for a certain number of years, is age 70 or 75 with most companies, Andrew says. You can buy smaller whole life insurance policies to cover burial and other final expenses at almost any age.

Most people need life insurance when they’re raising a family. The good news is that a term life insurance quote is going to be low and affordable when you’re young and healthy. Life insurance quotes increase as you get older. 

3.DOES MY DEATH-BENEFIT ADJUST FOR INFLATION?

Before buying one, ask your agent if your policy automatically adjusts for inflation. Because, inflation increases at an approximately 10% every year and if the policy is not adjustable, it wears down with time, even if you do not miss a payment.

Whereas some policies automatically adjust to inflation or can be improved with additional riders. Remember that INR 30,00,000 may look huge today, but may not be the same 25 years down the road.

4.WHAT IF MY HEALTH CHANGES AS TIME PASSES?

You may have to go for a medical evaluation before buying a health insurance policy. But during the course of the policy, your health may change for better or worse. So, it becomes important to ask if there is a chance to improve on your rating if your health improves. Understand what happens if your health deteriorates or you become un-insurable.

5. Can I leave the money to someone other than my spouse? 

“You can dictate whoever you want as your beneficiary,” 

The policy owner — the one who pays for the coverage — has the sole right to designate the beneficiary, the person who receives the money when the insured person dies.

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Practical method to consider While Buying a motor insurance?

Your motor insurance premium is determined by four factors- make, model, location and year of manufacturing

The Motor Vehicles Act, 1988, under section 146 mandates that every vehicle should be compulsorily insured for third party risk. The reason is because of the growing number of accidents that causes fatalities and disability among the victims.

The objective of such insurance policies is to help the victims and the legal representatives of the deceased victims to secure substantial compensation. The compensation can be obtained only if the motor vehicle that was involved in the accident is insured. If the vehicles are not insured, then recovery of the compensation is a distinct possibility. 

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For this reason, vehicle_insurance benefits both the accident victims as well as the vehicle owners as they are saved of paying any compensation out of their pocket.

Claim settlement ratio:

Would you like to get proper settlement ratio to recover any loss or damage? So, choose the insurance company with a high claim settlement ratio because there is a high probability that this company will settle your claims.

Network garage: ( Importance of Car Insurance)

If you take your two wheeler to a network garage for repairing, the insurer will pay all your expenses. What a customer should look for is the quality and number of network garages because a wider network gives not only multiple options but also ensures quick claim settlement.

Customer service and support: 

You expect your insurer to help you in the case of any unforeseen situation, like accident or theft. Therefore, you should compare and ask people around you for their experiences with a particular insurer before finalizing the policy. Also, there should be 24x7 customer support so that you can contact the insurance company whenever you need.

Coverage: 

Choose the right insurance policy that suits your requirements. A standard bike insurance consists of a third-party liability cover and an own damage cover. According to Indian law, it is mandatory to have a third-party liability cover. However, it is strongly advised to go for both the policies to get a comprehensive cover, including coverage for accidental damages and third-party losses.

Tenure: 

Though you can buy the policy for 1 year, you should go with long-term policies offering coverage for 2 or 3 years as these policies can save you from the hassles of renewing your policy every year. Also, you can get discounts on own damage premium rates and stay unaffected from the annual hike in premium rates, if any.

Price: 

The cost should not solely drive the decision of buying a policy. Usually, there are various factors like age of the vehicle, geographic location, driving skills, etc.; which decide the premium of a policy. Remember, two-wheeler insurance is a necessity, not a luxury and therefore, pick the one that suits your budget.

Exclusions: 

While it is imperative to know, what is included in the policy, it is equally important to know what is not. You don’t want your claim to get rejected just because it falls under the exclusion list.

How to Plan a perfect budget vacation?

Travel is a way to explore joy in life and discover self. Going on a holiday and taking a break from your personal and professional routine, helps in many ways. 

“The world is a book and those who do not travel read only one page.” – St. Augustine

However, it could get difficult to accomplish your travel dream, if you are left with a limited budget and improper planning. If you wish to sneak in a great vacation, read through the post for the best tips to plan a gateway within your budget.

Set Up a Travel Savings Account:

Set up a targeted savings account for travel and keep adding to it, regularly. Saving in advance facilitates worry-free vacation. You will not have to go swiping your credit card and thereby avoid building up of the debt. A dedicated travel account would allow you to keep a track on your budget and spend within a limit.

In simple words, your vacation costs should not show an impact on other aspects of life like altering your credit score, disturbing your saving towards your kid’s education, etc.

Plan Ahead:

Decide your destination well ahead. Forecast your trip cost and keep saving accordingly. Once you decide on your destination, create a proper travel budget that includes costs on travel tickets, food, shopping, lodging, sightseeing and research about the cab expenses to travel one place to another.

Planning ahead aids in booking tickets at a lower cost. Last minute purchases are often expensive. Avoid plans during peak time or in the last hour. Off-season trips are always affordable. 

Get the travel insurance on the day you book your travel ticket. 

It’s a cool insurance to cover your neck, when you are stuck at a remote airport because of flight delays, or get food poisoning because your stuff everything you see down your throat. According to the IRDAI, “Travel Insurance protects you and/or family against travel related accidents, unexpected medical expenditure during travel, losses such as baggage loss, loss of passport etc. and interruption or delays in flights or delayed arrival of baggage etc.

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Now Question arises is it really necessary?

Yes, if you like your money, yes! When you are on an adventure trip and go for treks around scenic locations, the last thing you want is to worry about medical expenditure. Accidents can happen any time, any place, so it’s best to insure yourself for them. By personal experience, I got bitten by a bug (ugh) in Singapore, and was walking around with a swollen eye! It got medically treated and fully covered by travel insurance!

Stick to the Allotted Budget:

Check for budget-friendly packages. Do not forget to check for reviews or get a feedback on those who already availed the deal. It helps you pick the best available service.

Cut off on relying on credit cards during the trip so that you neither cross your budget nor increase your credit card debt.Avoid relying on tourist hotels for food. Research locally available food and drinks. It is not just a way to save money, but a chance to 

experience the local, seasonal tastes too!

Conclusion

A well-planned vacation helps you accomplish your travel dream within your budget. The Same formula applies, when it comes to your life journey. With complete financial planning based on your income, expenditure and assets, you could aspire to meet all your money goals in life.

For a holistic advice on financial planning to lead a stress-free life, approach online advisory like Moneymindz. Fulfill your life journey as desired.

SMART CITIES : CENTRAL GOVT MAY SOON PAY HOUSE RENT OF URBAN POOR.

The Prime Minister Narendra Modi -led Indian Government is planning to help the urban poor pay the house rent. It is going to roll out a scheme in which the Centre will give rent vouchers to the urban poor.

According to Census 2011, about 27.5% of urban residents lived in rented houses in 2011. 

Important points of the new rental housing policy are: 

• The Rs 2,700-crore welfare scheme will be implemented in 100 smart cities to give rent vouchers to the urban poor

• The policy has been made with the aim of targeting the urban poor and in helping the migrant population 

• Under the scheme, urban local bodies would distribute rent vouchers to the identified families 

• The tenant would give these vouchers to the landowner, who in turn would be able to redeem them at any citizen service bureau 

The implementation of the scheme is expected to cost the exchequer Rs 2,713 crore every year

What if the rent is higher than the amount mentioned in the voucher?

In this case, the tenant will have to pay the difference between actual rent and the amount mentioned in the voucher, in cash to the landlord.

Who will determine the value of the rent voucher?

The urban local body will be entrusted with the task of determining the value of the rent voucher on the basis of class or size of the house and the prevalent rent in the city. 

A senior official of housing and urban poverty alleviation ministry told ET, “The rental voucher scheme is being looked at as a means to complement the Prime Minister Housing for All scheme.”

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Financial tips for women

Every young Indian woman who are employed has wide range of priorities. We work hard, we save and we like to enjoy a fair degree of financial independence. However, here is when we should pause and ponder about what it really means to be financially free.

Family Fund: 

A woman working in an I.T. Consultant saved up money from her very first job and when her mother was sick and required expensive treatment, she pitched in - to the surprise of her father who was so proud of her daughter. That in fact, is true independence, when someone else can depend on you, to get through his or her financial troubles. Be it your child, your ailing parent or your partner who lost his or her job to external factors.

What should be the solution:

 Ideal thing is to save 10-15% of your salary towards a ‘Family Fund’. Assuming you already save up for this cause, it would be a smart move to transfer your savings into a debt mutual fund, for better returns as well as security. Be there for your loved ones in many ways, because that is how you look after your family.

Dream Fund: 

I remember earlier about a friend, saving up for an expensive LV bag. Some called it an irrational thing to own but that is my dream indulgence and I can save for it, no matter what somebody else thinks. After you have taken care of yourself and your family, you can now afford to indulge a little. If you have saved a sufficient amount in the other two funds, you can now start saving up for your dreams. A trip you have been putting off for a while, luxury purchases you have been craving for, or even a hobby you thought was too trivial to pursue. Well, it is time to invest some time in you.

Try this easy method: 

The wittiest idea is to save at least 5% of your salary towards this. You could also allocate your annual bonus or any other windfall of money towards this dream fund. Depending on how big this dream is, you can choose equity mutual funds or debt mutual funds to convert this dream into reality.

Take a decision today to save towards these funds, and the rest will take care of itself.

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Do not step forward without proper advice: A couple’s horrifying tale

Nothing looks sweeter but a couple, who got into each other since college days and ended up getting married. Travelling under the night sky, stars blinking billions of light years away, and head rested on his shoulder, silent look into each other’s eyes with no one to bat eyes on them. Automatically a rendition of soulful piano and violin starts playing inside – a story about two young adults as they grew up together making memories. Ranjan, a banker married Tia, a digital marketing executive and are happy when a blessing news wrapped the couple in felicity. Tia was pregnant and she had plans for their future. Let us get into the accounts of one of her horrifying tales.

“I knew that having our first child meant that getting life insurance should be a top priority for both me and my husband. We researched policies, got a quote for an affordable term life insurance policy and had our medical exams. Imagine my surprise when, a few weeks later, the agent called me back and told me my new adjusted rate.

The cost of my policy had gone from a reasonable monthly fee they had quoted me—to nearly four times that amount. The reason, he said, was that my cholesterol levels were high. I called my doctor in a panic. Cholesterol levels always spike during pregnancy, she reassured me, and they probably will not be back to normal until a few months after you give birth.

After doing some research, I found that it is nearly always better to get a life insurance policy before you get pregnant to avoid potential price hikes brought on by temporary conditions during pregnancy. While some companies account for the fact that I gained weight due to the pregnancy, factors like higher blood pressure or postpartum depression can also affect your ability to get the best rates.

Now my daughter is three months old, and I am still waiting for my numbers to dip before starting again. I really wish I had known to start this process when trying to conceive instead.”

A blunder can harm people so much, maybe a lifetime. Therefore, it is better to take an advice before vouching for personal choices. Contact, Moneymindz, the best free financial advisory services. An advice should pass rather than keeping to oneself.

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Life Change? Update Your Life Insurance Policy

                           

Many types of insurance are present in the market and very difficult to choose with one insurance scheme in India. The cheapest form of life insurance offering the death benefits to the beneficiaries of the policy holder is known as the term life insurance.

Need For Term Life Insurance:

People must have browsed through various kinds of life insurance. Term life insurance is way above the rest. In India slowly people are showing signs to take up this Term life insurance. People in India live on a limited budget, for a particular time period.

Types Of Term Life Insurance:

There are various kinds of term life insurance available in the market. Some of the interesting concepts of the term life insurance are as follows:

Guaranteed Level Term Life Insurance:

In simple English, a guaranteed level term life insurance is insurance product/services offering the insurance protection for a particular time. Available in 10,15,20,25 year term periods.

Annual Renewable Term Life Insurance:

A unique kind of term life insurance, where in the plan/policy can be renewed on a yearly basis. As the insured person gets aged, premium will rise over the period of time.

Return Of Premium Term Life Insurance:

A unique term life insurance having a condition, playing a vital role in refunding the life insurance premiums, when the term period ends is known as return of premium term life insurance.

Decreasing Term Life Insurance:

A spectacular life insurance, offering death benefits, getting reduced at a pre-determined rate is known as the decreasing term life insurance.

Modified Term Life Insurance:

A unique policy using various alternative payment structures to normal life insurance, offering the same level of protection is the modified term life insurance.

Advantages of The Term Life Insurance:

Major advantages of the term life insurance are given below as follows;

• Premium of the policy will be definitely lower than normal type of insurance. 

• Very easy to analyse and understand. 

• Required to meet the specific financial obligation, like repayment of loan. 

• Many term policies can be converted to cash value insurance, if the insurance plans and the policies change. 

• It is said to be very flexible, and can also select years ranging from 3 years to 10 year options.

• This kind of insurance is very less expensive, compared to normal insurance. 

• Superb plan for young and single families in India. 

• Helps in offering peace of mind, without putting any pressure on your wallet

Disadvantages of The Term Life Insurance

Some of the disadvantages of the term life insurance are given below as follows:

• Term life insurance is offering coverage for limited period of time. 

• Renewals of term policies are rare. 

• Premium rates are guaranteed until the end of the term like 5,10,15,20 years.

• If you are experiencing health issues, term life insurance is not your cup of tea. 

Hence I would recommend people in India to have a good term life insurance.


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Life Insurance vs Vehicle Insurance

                 
Interestingly, insuring one's life costs is half of what it costs to insure a car. Yet, under-insurance in life coverage exists. Get high-cover term insurance at low-cost to be properly insured. For most of us, owning a car has been a dream that we all have developed since our childhood. However once it is a way we protect ourselves financially in case of any damages caused by accidents or theft. While people insure a car for Rs 10 lakhs at an annual premium of Rs 35,000, many are still insured for as low as Rs 1-5 lakh, when it comes to our life cover. This need to be addressed and getting adequate life coverage should become a priority.

Why adequate coverage is important?

As a sole earner of the family, one has financial responsibilities to take care of. In case of any unforeseen crisis, one has to not only provide enough financial support to the family to enable it but to maintain the same standard of living as before and also ensure that the long-term goals of dependants are not jeopardised. Life insurance acts as an income replacement tool. Without it, one's investments or assets will have liquidated to meet the financial obligations. However, buying insurance without properly estimating the amount required is of no use. One must adequately cover their family to provide a sizeable amount to the surviving members.

Start with an example –

How much does it cost to insure one's car and one's own life? Car insurance has a cap and cannot be more than its ex-showroom price. In reality, Insured Declared Value (IDV) denotes the amount of car insurance. The premium calculated on IDV keeps reducing each year. On the other hand, there is no insurance cap put on human life value and the actual amount of coverage would largely depend on one's income.

Assuming an IDV of Rs 10 lakh for a car, the annual premium in the first year comes to about Rs 35,000. For the same amount of annual premium, a 40-year-old can get life insurance cover for 30 years through a pure term insurance plan for a sum assured of about Rs 1.75 crores. Else, by paying half of what one pays for car cover, i.e. Rs 14,000, the same individual can get a life cover of Rs 70 lakhs.


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