The Importance of Purchasing Term Insurance Online

 

There are compelling reasons to consider buying term life insurance online. One of these is the convenient access to information about various term plans. You can easily search for different term insurance options online, allowing for quick comparisons. This approach enables you to take significant steps toward securing your family's financial well-being in a shorter time. The straightforward purchasing process is why many people nowadays prefer to buy term insurance online.

Advantages of Lower Premiums

The availability of online life insurance plans appears to be a trend supported by the Internet, but it offers more than that. When you opt for the online route, you deal directly with the insurance company, bypassing intermediaries like agents or advisors who might influence your decision. Choosing to purchase a term plan online helps save on distribution costs, commissions, and other expenses for the insurer. These savings are then passed on to you in the form of reduced premiums.

Considering the cost-saving aspect sheds light on why purchasing term insurance online is beneficial. Lower premiums can also make obtaining life coverage promptly feasible if cost has been a limitation.

Another perspective is that through an online life insurance plan, you can choose a higher sum assured for a specific premium amount that fits your budget. Edelweiss Tokio Life Insurance offers various online term plans to cater to its diverse clientele. You can explore these plans in detail and purchase them online, ensuring adequate life coverage.

User-Friendly and Secure Buying Process

Many individuals are familiar with online shopping and the advantages it offers. They understand the benefits of making online purchases at the right time. For these individuals, the question of "Why should I buy term insurance online?" has multiple answers. Firstly, the platforms that sell term insurance plans online are user-friendly. This means even those with limited experience can easily grasp the process of purchasing life insurance products. The entire user journey on such platforms is broken down into simple steps, making it easy to follow.

You can start by using an online term plan premium calculator to estimate your premium. Then, you can choose the right sum assured, policy period, premium payment schedule, and payment method (monthly, semi-annual, or annual). Finally, you can proceed to pay the premium online. The simplest way to understand the benefits of buying term insurance is by acquiring one to safeguard your family.

Secure payment processing is another significant reason why buying term life insurance online is preferred. While paying premiums, you can select secure payment options like net banking, digital wallets, credit cards, or debit cards. These payments are processed through secure gateways, providing instant payment receipts and a reassuring sense of security.

Selecting an Appropriate Online Term Plan

Beyond grasping the importance of buying term insurance online, it's essential to understand how to choose the right plan for your family. Several factors define the total coverage under a term insurance plan. Therefore, you can't solely judge a plan based on its life coverage, policy period, or other benefits. What truly matters is its suitability for your specific needs.

If you've moved beyond the question of "Why is buying term insurance necessary?" you can begin the term insurance selection process by following these steps:

• Assess Your Needs

Consider the analogy of grocery shopping. When you visit a local market, numerous vendors offer various products. What would you do next? Would you ask other shoppers what they intend to buy to determine your needs? Probably not, as you already know what you're looking for when you enter the market.

This concept applies to term insurance purchase decisions. When you want to provide financial protection for your family in the event of your unexpected passing, you understand their needs better than anyone else. Start by understanding your financial requirements. To determine the sum assured, create a list of your goals, current assets, liabilities, and lifestyle expenses. This list will guide you toward selecting a suitable life cover.

• Choose an Appropriate Policy Period

When people inquire about the necessity of buying term insurance with sufficient coverage, they often ask about the policy period next. Selecting the right policy duration is as crucial as choosing the sum assured.

Ideally, you'd want life coverage for as long as you live. Aside from whole life insurance, most individuals seek term insurance protection until a point after retirement, perhaps around 65 or 70. This aligns with the average age in India. If you married late and had children at a more advanced age, you might consider extending this age for protection.

A simple method for determining the policy period is to think about the age following your retirement, usually five to ten years after you stop working. This approach also emphasizes why buying term insurance online early on is advantageous.

• Evaluate the Insurer's Claim Settlement Ratio

Assuming you buy a pure term plan that only offers death benefits, you'd want to ensure your family can easily receive the claim amount. After all, you're obtaining the plan to provide financial support in your absence.

The Claim Settlement Ratio of an insurance company indicates the number of policy claims settled by the insurer each year. A higher ratio suggests a more dependable insurance company. Checking this ratio is vital because having a claim rejected would defeat the purpose of buying term insurance online. You can purchase plans from Max Life Insurance online according to your requirements.

Frequently Asked Questions (FAQs)

1. Should I purchase term insurance online from any insurer?
2. Similar to understanding the advantages of buying term insurance online, selecting an insurance company requires careful consideration. Base your choice on the company's reputation, current claim settlement ratio, and benefits offered by their term insurance plans.
3. Is price the sole reason for considering online term insurance?
4. There's a difference in premiums between online and offline term insurance plans. However, making purchase decisions based solely on price isn't advisable. It's crucial to find a way to maximize life coverage without straining your finances.
5. Can I buy term insurance online without using premium calculators?
6. Utilizing online term insurance calculators provides an estimate of the premium required for a specific life cover. This information is valuable for planning how to manage other expenses while including term insurance in your financial strategy.
7. Why is it crucial to buy term life insurance at a young age?
8. The younger you purchase a term plan, the lower the premium will be. This is because the risk of diseases or premature loss of life is lower at a young age.
9. Why is buying term insurance necessary for individuals with dependent parents?
10. With a term plan, you can ensure that your dependent parents won't face significant financial difficulties if something happens to you unexpectedly. The insurance coverage they receive under the plan can help them lead their lives with financial security.

Why You Should Invest In Debt Mutual Fund

 

When you hear the word "investing," you might think of a stock market or bonds, but one particular type of investment has been steadily rising in popularity over recent years - debt mutual funds. These funds invest in bonds and other debt instruments, which can be used to generate income on a regular basis. 

What is a debt mutual fund? 

Debt mutual funds are a great way to invest your money. Debt mutual fund investments are typically made in bonds, which are long-term investments that provide stability and income. The fund generally invests in a variety of debt securities, including corporate, government, and municipal bonds. 

These funds are a great way to invest your money. Debt mutual fund investments are typically made in bonds, which are long-term investments that provide stability and income. The fund generally invests in a variety of debt securities, including corporate, government, and municipal bonds.  

Debt mutual funds can be a great way to diversify your portfolio and gain exposure to different types of debt products. They can also offer you the potential for above-average returns over time. They allow investors to purchase a pool of loans, which are then reinvested to help pay dividends and grow. Debt mutual funds are a great way for investors to diversify their portfolio and achieve higher returns while also taking on less risk.

Debt Mutual Funds - Benefits 

Investing in a debt mutual fund is one of the smartest things you can do for your financial future. Debt mutual funds are designed to provide stability and growth for their investors by investing primarily in high-quality debt securities. This allows debt mutual funds to provide a higher return than most other types of investments, while also providing the added benefit of stability. One of the biggest benefits of investing in a debt mutual fund is that it provides you with a way to diversify your portfolio. By investing in debt mutual funds, you are able to gain exposure to a variety of different types of investments while still keeping your overall risk level low. Additionally, debt mutual funds are typically very liquid, meaning that they can be easily sold or exchanged should you need to make a change in your investment strategy. Overall, investing in a debt mutual fund is an extremely smart move that can help you achieve long-term financial success. If you are interested in learning more about this option, be sure to consult with a qualified financial advisor. 

Choosing Debt Mutual Fund Over Regular Mutual Fund 

There are a few benefits to investing in a debt mutual fund over a regular mutual fund. Debt mutual funds are designed to invest in high-yield debt securities, which tend to offer higher returns than other types of securities. This means that debt mutual funds may provide a higher return on investment (ROI) than traditional mutual funds. Additionally, debt mutual funds typically have lower fees than traditional mutual funds, making them a more affordable option. 

Debt mutual fund is a type of mutual fund that invests in debt instruments. Debt mutual fund is different from other mutual funds because it invests in debt instruments, which are typically considered to be low risk investments. This is because debt instruments are backed by the issuer or creditor, which means that the issuer or creditor has agreed to pay the holder of the debt instrument back in full if the issuer or creditor cannot repay the debt instrument. Debt mutual fund also benefits from being diversified, which means that it will invest in a variety of different types of debt instruments. 

Why You Should Invest in Debt Mutual Funds 

It seems like there is an investment opportunity no matter what part of the world you are living in. That said, one sector that always offers a high degree of risk and potential for large gains is debt mutual funds. Why take the chance? Because even though debt mutual funds carry a high degree of risk, they offer investors the potential for significantly higher returns if things go their way. Debt mutual funds help individuals and businesses to access capital when it may not be available otherwise. They make equity investments in companies or governments with high credit ratings and then bet on those companies or government securities to pay off.

How to decide the right amount to invest in a SIP?

 

If there is one route to accumulating wealth, it is through savings and investments. However, several individuals shy away from this because they do not want to lock away their liquidity. If this is you, a SIP scheme could be the way forward. A SIP allows you to benefit from the price increase in stocks and bonds through a systematic investing regime. You get the freedom to put your money bit by bit as you earn. 

Investing in a SIP scheme is now as simple as clicking a few buttons from the comfort of your home. However, deciding the amount one wants to put away in a SIP is a dilemma that most investors face. 

Let us look at how you can decide the amount when you invest in a SIP.

Define Your Goals

Different individuals have different financial goals. Some have a short-term goal of buying a car, while others have a long-term view of planning their children's education. 

When your goals are defined, you will know exactly how much you want in the end. You can work back from there to calculate your SIP instalments.

For instance, suppose you want to buy a car worth Rs 10 lakhs after four years. To be on the safer side, you can consider the annualized rate of return at 11%. It will give you an idea of the amount you will need to put into your SIP scheme. 

Combining Financial Goals

If you have multiple goals, you would want to start saving for each of them. Now that you know what a SIP is and how it works, it will become easier to do the math. However, the total amount of monthly investments can seem exorbitant. More so if you have just started earning.

In this situation, take a step back and ask yourself if your salary will be the same in the next 5-6 years. No, right. As your salary increases, it will become easier to increase your SIP amount without impacting your monthly expenses. You can top up your SIP or increase the amount when you feel you have more disposable income.

The idea is to start early to benefit from the power of compounding. Moreover, it will help in averaging out the cost due to the cyclical nature of the stock market.

Retirement Planning

Have you planned for most of your financial goals? Even in that case, you will still need to plan your finances. Think about your post-retirement life. You would want to enjoy at least the same standard of lifestyle that you have right now. To be able to do so, it is advisable to chart out a suitable financial strategy.

Financial experts suggest that every individual must save at least 30% of their monthly income for wealth creation. If you do not have an emergency fund, first start with that. Ensure that you have at least six months of your monthly salary in this fund to manage health emergencies or job loss.

Once you have done that, you can invest in equity mutual funds through SIPs. If putting all your money into one instrument makes you uncomfortable, you can consider diversifying your investments.

How to Select the Best SIP?

Now that you have figured out how much is good enough for you, it is time to pick the SIP scheme. You can look at the past performance of the scheme and see how it has delivered in market ups and downs. Secondly, it is advisable to use a reliable AMC to safeguard your interests.

The Final Word

SIP schemes allow investors an easy way to save and grow their money through mutual funds. Depending upon your risk appetite and financial goals, you can select a scheme that best fits your needs. The information shared above will help you determine the amount you should set aside for your safe and secure future. You can also use a SIP calculator for this purpose.

How safe it is to buy term insurance online?

 

When you purchase life insurance, you’re probably not thinking about the fact that you’re doing it online. But, as you’re about to see, there’s a reason why so many people tend to shy away from buying life insurance online. There’s a lot of uncertainty involved with buying life insurance online, and that’s because it’s not always the most secure way of getting a policy. In this article, we’ll discuss whether it’s safe to purchase term insurance plan online and how secure life insurance is in general. Read on to learn more.

What Is Life Insurance?

Life insurance is a type of insurance that protects you in the event of your death or the death of a loved one. It’s typically purchased by people who are looking to protect their assets, provide for their loved ones, and plan for their future expenses after they die.

Why Purchase Life Insurance Online?

While it might seem more convenient to purchase life insurance online, there are reasons why so many people opt to purchase a policy in-person. For one thing, the policies are more secure when they’re purchased in person. The person will have to sign off on the papers right then and there, and the agent will usually ask for some form of ID as well. Another reason why you might not want to buy life insurance online is because of cost.  You’ll often find that policies via an agent or broker cost less than if you were to purchase them online. Agents will typically be able to help you find a policy that best fits your needs as well. If you decide not to buy life insurance through an agent or broker, know that you run the risk of fraud and scams. This is because without someone else verifying your information and identity, it’s easy for people to take your money and run. You should always do your research before purchasing anything online, no matter what it is. If you find that buying life insurance online doesn’t work for you, don't worry! There are plenty of other options out there!

Is Life Insurance Purchased Online Safe?

It’s common for people to buy life insurance online because it’s easy and convenient. However, it’s not as safe as buying from a local agent or broker. There are many concerns when you buy life insurance online that don’t exist when you buy offline. One of the main concerns is protecting your personal information. You have to enter your Social Security number and other sensitive information, which means there’s a chance it could be stolen or compromised. Another concern is the coverage factor. Some policies will only cover $50,000 while others offer $2 million in coverage, so finding out what the company offers upfront is important before you purchase anything on the site. Lastly, there are cases where customers have found that their policy is no longer valid due to errors made by the website or even those who bought “term insurance” but never had a policy come through because the company was fraudulent.

Limitations of Buying Life Insurance Online

The first thing to think about when you’re thinking about buying life insurance online is that you will be limited in the amount of coverage. It’s not so much that the maximum coverage limit is lower, it’s just that you won’t have access to as many options for how long the policy will last. Additionally, if you are a smoker or a heavy drinker and are looking to buy life insurance online, be aware that your application may be denied. You may also be denied if your medical records show that you have certain diseases or conditions like HIV/AIDS or diabetes. This is because these factors increase the risk of death. Moreover, when you buy life insurance online, there’s no one to talk to in person about your situation and needs – which means you might not get the best deal possible. Even if this seems like it could be an easy process at first glance, there are some drawbacks associated with buying life insurance online.

Conclusion

Term insurance is a simple and affordable way to protect your family and your loved ones. Buying term life insurance online has its benefits, but you want to make sure you are fully aware of the risks before you buy. But if you are looking for an affordable way to get the protection you need, life insurance can be purchased online. Term life insurance is a simple and affordable way to protect your family and your loved ones. Buying term life insurance online has its benefits, but you want to make sure you are fully aware of the risks before you buy.

Flexi-Cap Funds - A Beginner's Guide

 

Flexi-cap funds are mutual fund instruments that invest in equity associated and equity instruments across market caps like large, mid, and small. Flexi-cap funds are dynamic equity funds that balance the portfolio's risks and returns by shuffling between stocks with varying market capitalisations. For this reason, it provides both growth and value to the investors with greater investment diversification. 

Learn About Flexi Cap Funds

According to SEBI (Securities and Exchange Board of India) guidelines, flexi-cap funds must invest at least 65% of the total Asset Under Management (AUM) in equity and equity-related investment instruments. The best flexi-cap mutual funds offer diversification to investors since they invest in equity shares across market capitalisations. Hence, these funds can reduce portfolio risks significantly for investors who want capital market exposure.

The fund manager in flexi-cap funds estimates the growth of different companies regardless of the companies’ size. After getting an estimation, they invest money in the best stocks with better-than-average growth potential.  

Who Should Invest in the Best Flexi Cap Fund?

Investing in flexi-cap funds is no mean feat. One of the most critical points to keep in mind about flexi-cap fund investments is to find out what you can gain from them. Before investing in the best flexi-cap fund, you must identify your financial goals. Additionally, it would help to be mindful of the risks when choosing the fund scheme you think is right.

Reasons to Invest in Flexi Cap Funds

There are different reasons why you should invest in flexi-cap funds -

Mitigate Risks

Asset allocation flexibility lets these funds invest in mid, small and large stocks. The risk of the portfolio decreases due to diversification. The fund managers of flexi-cap funds keep the market conditions in mind. They sell or buy stocks of various market capitalisations and industries to maximise the wealth of the investors, which is why you should invest in the best flexi-cap mutual funds.

Allocation of Corpus

In a flexi-cap fund, fund managers can invest across large, small, and mid-cap companies' stocks. This allows investors to get stellar returns. You can get stability when the fund managers increase the weightage of large-cap stocks in your portfolio. They may also increase the small-cap stock exposure to generate higher returns when the market conditions are conducive.

Splendid Opportunities

Fund managers of flexi-cap mutual funds constantly look for opportunities to beat benchmarks and offer excellent returns. These managers are trained experts who can efficiently pick, analyse and invest in the best stocks and time-tested impactful decisions.

Should You Invest in Flexi-Cap Mutual Funds?

You should invest in flexi-cap mutual funds only if it is according to your investment objectives and if you are comfortable taking on such risks. Flexi cap funds can invest in small and mid-cap stocks. You can invest in these funds if you are an aggressive investor with an investment horizon of more than five years.

Considerations before Opting for Flexi Cap Funds

Here are the top things you must consider when investing in the best-flexi cap funds: 

Expense Ratio

The expense ratio is a fee that a mutual fund house levies on investors every year. Fund houses need this money to run the mutual fund scheme efficiently and pay staff salaries. It is better to check and compare multiple flexi-cap funds’ expense ratios before investing.

Fund Manager’s Experience

After complete research and analysis, flexi-cap fund managers make all purchase and sale decisions. The scheme's performance depends heavily on the fund manager's competence. Hence, checking the fund manager's track record before investing is important.

Past Returns

When looking at a flexi-cap fund's past returns, it will be easy to determine if the funds are consistent or not. You will also discover how they perform in different market cycle phases.

Conclusion

Finding the best flexi-cap fund is no more a challenge when PGIM Mutual Fund is by your side to assist you. Experience income stability with PGIM's profit-making mutual fund schemes and get unparalleled returns on your investments.

Various Types Of Insurance Plans - How To Choose The Right Plan

 

There are a plethora of insurance plans in the market, and choosing the right one needs careful study. Any insurance plan which you select must fulfil your goals. That is to say, your financial goals. If you wish to grow your money, a unit-linked insurance plan, or ULIP, may be suitable. However, if the idea is to just get a life cover and accept the amount the insurance company wants to payout at maturity, then a simple term insurance plan is enough. 

Term life insurance plans are generally a life cover in their basic form. This offers a life cover of a certain sum in exchange for a fixed premium payable annually. However, this type of plan has certain advantages. The premium for these is lower than for other plans. The maturity amount includes the premium paid as well as interest and bonus. 

Therefore, the insured knows that he will get a certain sum at a specific time in the future. Such plans are useful for planning financial goals, such as expenses for higher education for siblings or marriages. Then again, loans are available against such policies, so that sudden requirements of funds can be met by taking a loan against the policy. 

Term life insurance policies may also be modified to include a clause that ensures that double the sum assured is payable in the case of accidental death. This means a slightly higher premium but is certainly a useful clause to have.

However, if the idea is to increase the amount of premium that the insured is paying, then the best idea would be to invest in a unit-linked insurance plan. This is known as ULIP in short. The benefits of such a policy are dual. The first benefit is that there is a life cover, which is usually 10 times the premium. A higher sum assured can be negotiated with the insurance company. Therefore the basic function of life insurance is present in this policy. 

The other advantage of such a policy is that a portion of the premium can be deployed as an investment in market instruments. This means that the money being paid to the insurance company as a premium will grow. The maturity amount will obviously be higher. 

The type of investment and the portion to be invested ( from the premium amount) is for the insured to decide. He may apportion a larger amount or a smaller amount for this purpose, depending on what financial goals he has set himself to achieve. There are three ways in which this investment may be planned. The first is the steady income low, risk and low gain type of investment. Here while the gains are low, the risks are low. Then there is the high risk and high gain type of investment. If there is the capacity to take risks, then this type of investment can bring in a high rate of return. This policy offers income tax relief under Sec. 80C of the I.T. Act. Therefore savings, life cover and investment gains are all present in this policy. Young applicants should consider such a policy. However, it is necessary to plan a unit-linked insurance plan carefully. How much to invest and in what sort of market instruments. It is best to check out the plans being offered by various companies online. Also, check out sites which offer under one umbrella policies of different companies. Choose the one that suits your needs and offers the best returns.

How to Diversify Your Portfolio when Navigating the Mutual Fund Market?

 

When investing in market-linked instruments like mutual funds, diversification is an essential tool to manage your portfolio risk. In this blog, we learn more about a mutual fund, the concept of diversification and how you can diversify your portfolio when navigating the mutual fund market.

What is a Diversified Mutual Fund Portfolio?

A mutual fund is an investment medium that pools money from various investors, which a professional fund manager further invests into different stocks, securities, and other asset classes.

There are primarily two different ways in which portfolio diversification works. These are:

• Instant diversification

When investing in a particular mutual fund scheme, you buy units of a fund that invests in various securities, thus giving you the advantage of instant diversification by investing in one single scheme.

• Portfolio diversification

As a mutual fund investor, it is best to opt for portfolio diversification if you want to optimise your returns. Here, you purchase different types of mutual funds that invest in various asset classes/securities that are not correlated.

How to Diversify Your Portfolio When Navigating Mutual Fund Investments?

When looking to diversify your portfolio, mutual funds offer an excellent choice as you do not need to have a detailed understanding of each asset class to reach your portfolio diversification goals. All you need to do to diversify your portfolio is start investing in Indian mutual fund schemes that invest across asset classes to spread your risks and give you better returns.

The mutual funds you need to target to diversify your investments are-

• Equity-based mutual funds- As the name suggests, equity mutual funds invest primarily in equities and equity-related instruments. Based on factors such as risk tolerance, age, and financial goals, you can invest in various equity funds such as small-cap, mid-cap, large-cap and more. To diversify your portfolio, the key here is to analyse the schemes thoroughly and choose the ones that invest across varied industries and different asset classes.

• Debt-based mutual funds-: Debt mutual funds primarily invest in different debt instruments such as money market schemes, T-bills, corporate bonds, and more. The advantage of investing in debt funds is higher liquidity than other traditional debt instruments and better returns over a fixed period.
• Balanced mutual funds: - As the name suggests, a balanced fund refers to the hybrid mutual fund covering both equity and debt schemes. These funds are best suited for beginners with little or no risk appetite. 

Tips to Diversify Your Mutual Fund Portfolio

Here are some of the other tips to help you better understand what a mutual fund is and how to diversify your portfolio-

• Maintain a balance between various schemes 

The need for diversification varies based on factors such as age, risk appetite and expected returns over a period. For instance, while a person in their early 20s might require diversification of their mutual fund portfolio with more exposure to equity instruments, an investor in their 60s may require more exposure to debt schemes.

• Diversify based on the investment time horizon

Besides diversifying across different types of mutual funds, it is also important to consider a time horizon while diversifying your portfolio. The risk levels also vary depending on how long you are invested in a particular scheme. Investing in two different funds with different time horizons gives you the benefit of averaging out the risk.  

• Invest through different fund houses

Investing in mutual funds through various fund houses and leveraging the expertise of different fund managers allows you to beat the volatile market conditions and get better returns overall.

To Wrap

When diversifying your mutual fund portfolio, the key is to navigate the market carefully and spread your investment across different companies, various sectors, and multiple asset classes to get the maximum out of your invested funds and schemes.

If you are also looking to diversify your mutual fund portfolio, PGIM offers an excellent platform to invest across asset classes and accomplish your primary task, which is to grow your financial wealth over time while minimising risk by reducing volatility.