Tuesday 25 February 2020

This is the reason why an online term plan draws more attention from customers


A term insurance policy is a type of life insurance policy which offers death coverage to the beneficiary/nominee of the policyholder if the insured dies. A term insurance plan only offers life coverage for the insured for a period of time which is called the term period. If you buy a term insurance policy then you will not get any maturity benefits if you survive till the end of the term period. As you will not get any maturity benefits, the premiums for this type of policy are cheaper than other life insurance plans.

It will be better if you buy a term plan online because no fraud agents will be able to cheat you. There are many other reasons for which buying a term insurance plan is better. Buying a term insurance policy online is very easy; it's like buying something from an online store.

If you buy term insurance plans online then you will be able to explore various websites of insurance companies and it will help you to compare the features, premiums and other things. The most important thing is that the prices of the online term insurance plans are much lower than the offline versions.

The insurer calculates the premiums for a term plan not only considering the term, gender, age or sum assured but they also look for whether the plan is bought online or through an agent. If you buy a term plan online from the website of the insurer then no agent will be involved and neither you nor the company will have to pay any other commission to anyone.

Most of the companies provide online tools for customers. The customers can calculate their premiums, coverage and other things using the online tool. If you choose to buy an online term insurance policy then you will be able to get different features and riders which are not available for many offline versions of policies. The different features and riders include accidental death, terminal illness and premium waivers.

You will have to be careful about some things before buying a term plan online.

When you are going to buy a term insurance policy online, then check if the company is offering policies online in your city. Before filling the application form, make an effort to contact the insurer through their helpline services. They will let you know about the procedures and other important information.

There can be some disadvantages to online policies because there will be terms and conditions. Read all the terms and conditions carefully before buying the term plan online. This is because if you buy a term insurance policy which is not going to provide the benefits and coverage you need, then it will be a very big disadvantage.

Buying a term plan online is a very good option but before buying it, check the claim settlement ratio of the company, additional riders, service quality and add-on covers.

Tuesday 11 February 2020

ELSS vs. other investments for saving tax under Section 80C


The full form of ELSS is Equity Linked Saving Schemes and these schemes are a more efficient way to save taxes than many other investment instruments available under the Income Tax Act, 1961 and Section 80C. This article will help you to understand ELSS investments and the advantages in comparison to other investment options.

If you want to invest while saving taxes then the ELSS Tax Saving option is one of the best choices for you. These funds are managed by fund managers who are highly qualified and experienced professionals. You will be able to save taxes up to 1.5 lakh rupees but if the amount of investment exceeds 1.5 lakh then you will not be able to save any taxes according to the Income Tax Act, 1961 (Section 80C).

The two types of ELSS Tax Saving options are Growth Fund and Dividend Payout. If you are searching for a long term investment then Growth Fund is for you where you will be able to realize the value of the fund at the time of redemption. On the other hand, the Dividend Payout has two types of categories, one is Dividend Payout and the other one is Dividend Reinvestment. If you choose the Dividend Payout option then you will get tax free dividends and if you choose Dividend Reinvestment then your tax free dividends will be reinvested for higher returns.

If you want an investment which will offer you higher returns and also will save tax, then ELSS is one of the best options indeed. There are many tax saving options available in the market, such as ULIPs, PPF, etc. However, ELSS is a better choice according to several experts because if you invest through ELSS you will get higher returns on the investment. Experts say that ELSS generates a return of 12% over ten years and more while a PPF generates 8% returns at best.

If you invest through ELSS then the minimum time duration of investment is for three years but if you invest through other investments like PPF, EPF and NSC then the tenure will be longer in comparison.

The ELSS Tax Saving option is so flexible that you can move to any other fund as well. ULIP schemes also offer this flexibility but you will be able to move to other funds that are offered by that ULIP. If you are not satisfied with the performance of your current ELSS fund, you can shift to another one at any time.

You can combine your PPF with ELSS and this combination is a very good strategy to get higher and more secure returns. If you combine these two investment options, then you will get the option to get a higher return through equities and you will also get the safety of government-backed securities.

Know about all the aspects of ELSS investments before you sign on the dotted line. You can also consult an expert who will tell you about all the advantages of this investment and you can tailor the same according to your financial goals.