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.     



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