In order to build your wealth, you will want to invest your money. Investing allows you to put your money in vehicles that have the potential to earn strong rates of return.
If you don’t invest, you are missing out on opportunities to increase your financial worth. Of course, you have the potential to lose your money in investments, but if you invest wisely, the potential to gain money is higher than if you never invest.
Here are few reasons to invest your money:
1. Grow your money
Investing your money can allow you to grow it. Most investment vehicles, such as stocks, certificates of deposit, or bonds, offer returns on your money over the long term. This return allows your money to build, creating wealth over time.
2. Save for retirement
As you are working, you should be saving money for retirement. Put your retirement savings into a portfolio of investments, such as stocks, bonds, mutual funds, real estate, businesses, or precious metals. Then, at retirement age, you can live off funds earned from these investments.
Based on your personal tolerance of risk, you may want to consider being riskier at a younger age with your investments. Greater risk increases your chances of earning greater wealth. Becoming more conservative with your investments as you grow older can be wise, especially as you near retirement age.
3. Earn higher returns
In order to grow your money, you need to put it in a place where it can earn a high rate of return. The higher the rate of return, the more money you will earn. Investment vehicles tend to offer the opportunity to earn higher rates of return than savings accounts. Therefore, if you want the chance to earn a higher return on your money, you will need to explore investing your money.
4. Reach financial goals
Investing can help you reach big financial goals. If your money is earning a higher rate of return than a savings account, you will be earning more money both over the long term and within a faster period. This return on your investments can be used toward major financial goals, such as buying a home, buying a car, starting your own business, or putting your children through college.
5. Start and expand a business
Investing is an important part of business creation and expansion. Many investors like to support entrepreneurs and contribute to the creation of new jobs and new products. They enjoy the process of creating and establishing new businesses and building them into successful entities that can provide them with a strong return on their investment.
6. Support others
Many investors like investing in people, whether they are business owners, artists, or manufacturers. These investors feel good helping others achieve their goals.
7. Be part of a new venture
New ventures need the backing of money, and they look to investors for that backing. Some investors may like the excitement of investing in a new, cutting-edge product or service, or being part of something like a business or film that introduces them to a glamorous world.
Tax planning is an essential part of your financial planning. Efficient tax planning enables you to reduce your tax liability to the minimum. This is done by legitimately taking advantage of all tax exemptions, deductions rebates and allowances while ensuring that your investments are in line with your long term goals.
What tax planning is not
- Tax Planning is NOT tax evasion. It involves sensible planning of your income sources and investments. It is not tax evasion which is illegal under Indian laws.
- Tax Planning is NOT just putting your money blindly into any 80C investments.
- Tax Planning is NOT difficult. Tax Planning is easy. It can be practiced by everyone and with a very little time commitment as long as one is organized with their finances.
Planning taxes this year
a. You will have certain needs and goals to meet. Understand what those are and then figure out how to maximize tax efficiency in your effort to meet them. Tax planning should be a part of the overall financial planning that you must do.
For instance, you might be getting married and need to buy a house. In this situation you need to get insurance to protect your spouse if they are financially dependent upon you, as well as you need to get a home loan. What should you prioritize and what do you have the capacity to afford? If you blindly put money into an insurance policy, it might not even be sufficient to give you adequate insurance cover. However, if you choose to pay off the principal on your home loan, that could be a better option in this situation.
b. Do not blindly invest money with the first agent that you might come across. You might end up making mistakes. A lot of people end up buying insurance policies with minimal insurance coverage or putting money in instruments where they cannot access the money when they need it.
c. Do not make last minute decisions just because your payroll department has reminded you that the internal deadline for submitting proofs is approaching. Tax planning involves planning in advance to avoid the last minute scramble.
Selecting tax saving investments
You should think about the following criteria, before selecting your tax saving investments for the year:
Liquidity: How quickly will you need the money? Will you need to access the money within the next year or two years or over what duration?
None of the above instruments let you withdraw your money quickly, in fact there is a minimum three year lock in for all tax saving investments.
Risk and Return: How much risk do you want to take? There is a tradeoff between the two, some instruments are very low risk, but as a result they give low returns which are capped.
Inflation protection: The instruments that give you a low return typically are the worst type of investments regarding inflation. This is important because many of the instruments give you a fixed rate of interest, and lock in your money for a long period. This is not a good protection against inflation.
Tax Exemption: All tax saving investments under Section 80C are alike in one respect that they are tax exempt when they are invested. But they differ with respect to the tax on the income you earn from such an investment as well as the tax on the maturity of the investment
Why Life Insurance?
Life insurance is a financial resource for your family and loved ones in case of your death. It is a cover which allows your family to maintain a standard to living as they are currently, and meet their financial obligations. It also serves as an effective investment and tax saving tool.
We prioritize insurance planning is a must because it is protection to the life cover risk. It will help you understand whether you are under-insured or over-insured and the existing policies can be earmarked in the financial planning structure.
Life insurance is important to people who want to protect their family from financial distress after their death. It can be used to provide financial security for loved ones.
The proceeds from a life insurance policy are paid to the beneficiary on a tax-free basis, which provides a lump sum that can be used for a number of purposes. Depending on the type of policy chosen, life insurance can also provide a savings component for the policyholder.
Why consult us?
- We are an independent and unbiased investment advisor, suggesting products and service that are best for you, not for us.
- We search the market to find the best options for you.
- We have a research team that helps us scan through various products from across the market place to pick only those that meet your standards.
- We are IRDA approved and we have a track record of ethical dealings for the last several years and have had the honour of helping our investors to achieve their financial objectives.
Insurance plans are available for:
- Life Insurance
- Retirement
- Child Plans
How does life insurance provide financial security ?
The main reason people consider buying life insurance is to protect the people they leave behind. Having coverage in place is especially important during the policyholder's main earning years. During this time, he or she may have major expenses such as a mortgage, car payments and the like.
He or she may have young children that need to be cared for, and/or aging parents that require assistance. In the case of a stay at home parent or spouse the funds may be used to pay someone else to perform the tasks, like cooking, housekeeping and child care, that the deceased once provided.
The death benefit that an insurance policy provides is meant to replace income so that the policyholder's family is less likely to have to face a major lifestyle change in addition to dealing with the loss of someone who is very important to them. Most people are underinsured, as opposed to having enough coverage.
Ideally, the level of protection chosen should be enough to replace the policyholder's gross income for a number of years. Where the policyholder has a young family, it's not unrealistic to look a plan that will pay out an amount that is equal 10 years of earnings or more.
What can a death benefit be used for ?
The death benefit that is paid out under a life insurance policy can be used for any purpose the beneficiary deems appropriate. It's very common for the proceeds from the policy to be used to pay bills and debts the deceased has left behind. That way, his or her survivors are not required to pay them on the deceased's behalf.
The cost of final arrangements is something that can be pricey, even for a very simple cremation or burial. An insurance policy can also be used to pay for funeral expenses and take that pressure off the family.
Proceeds from a life insurance policy can also be used to pay off a mortgage or for general living expenses. If the policyholder has young children, the money may be used for childcare expenses or to hire a housekeeper or nanny. The funds can also be used to pay for post-secondary education for the insured's children, if desired.
Anything that the policyholder's salary was used for when he or she was alive can be paid for with the death benefit that an insurance policy provides. The funds can also be invested to provide a source of income for the surviving spouse or partner in retirement.
How can life insurance provide savings ?
Some types of life insurance plans have a savings component as well as provide protection if the policyholder dies. When the person chooses a permanent, universal or whole life insurance policy, part of the money that he or she pays in premiums is used to fund an investment savings plan. The money grows over time and the policyholder can use the money as collateral for a loan from the insurer if he or she needs to get access to cash in a hurry.
The policyholder also has the option of canceling the policy and gaining access to the pool of funds if he or she wishes to do so. This is not a move that should be taken lightly and the policyholder should contact his or her agent or insurance company to discuss options before taking this step.
The individual may also choose to cancel the existing policy and replace it with a term life policy that still provides a level of financial protection but does not include the savings component.
Life insurance is a product that should be included in a plan to protect the policyholder and his or her family from financial disaster. Life insurance is important because it can be used to pay bills and expenses on behalf of the deceased. The funds from a death benefit replace the policyholder's income and can be used to help to maintain a lifestyle similar to the one the policyholder's family had before disaster struck. It is one of the most loving things that a person can do for his or her family, since the person who is insured will not be benefiting from the coverage - the ones he or she loves the most will instead.
Individual Mediclaim
Features
Your family deserves the best especially when it comes to medical care.
With medical expenses shooting sky high, Mediclaim Insurance Policy helps you meet hospitalisation costs. We free you from financial worries so that you can give your full attention to your loved ones.
Key Advantages
Hospitalisation Care for the Family
- Mediclaim Insurance Policy covers you and your family for hospitalisation and related expenses.
- Family members between the ages of 5 and 80 years can be covered.
- The policy also provides health insurance for children between the ages of 3 months and 5 years if one of the parents is covered concurrently.
Claim-Free Bonus
- We reward you with a no-claim bonus of 5% on every claim-free renewal. This can be accumulated up to a maximum of 50%.
Tax Advantage
- With health insurance you not only protect your family but also can avail of tax benefits under Section 80D of the Income Tax Act.
Policy Coverage
Mediclaim Insurance Policy will cover various hospitalisation expenses.- Hospitalisation Expenses – These include room charges and operation theatre charges, nursing expenses, fees of medical practitioner, anaesthetist and consultants.
- Medicine, Consumables and Diagnostic Expenses – Cost of anaesthesia, blood, oxygen, surgical appliances, medicine and drugs, diagnostic material and X-rays, dialysis, chemotherapy, radiotherapy, pacemaker, artificial limbs and organs.
- Day Care Treatment – The policy will cover expenses incurred towards technologically advanced treatment that does not require hospitalisation for 24 hours or more.
- Domiciliary Hospitalisation – We also provide cover for treatment administered at home, subject to specified conditions.
- Pre- and Post-Hospitalisation – Mediclaim Insurance Policy covers medical expenses for treatment up to 30 days before and up to 60 days after the hospitalisation.
Value Added Benefits
Mediclaim Insurance Policy offers you value-added benefits to give you extra cushioning and added cover.
- The policy will cover pre-hospitalisation expenses for 30 days and post-hospitalisation expenses for 60 days.
- It also provides you with health cover for technologically advanced treatment that does not require 24-hour hospital stay.
- No medical check-up upto the age of 45.
- Free medical check-up after 4 claim-free renewals.
Exclusions
At General Insurance, we would like our policy to be as transparent as possible.To ensure that you do not face any unpleasant surprises when you make a claim, we would like you to know some of the major exclusions under the policy.
This policy does not cover:
- Any pre-existing illness
- Specified illnesses for the first year
- Specified illnesses in the case of domiciliary hospitalisation.
- Any treatment for the first 30 days from the time of inception of policy, unless due to an accident.
- Treatment related to HIV / AIDS
- Treatment due to abuse of alcohol or intoxicants.
- Vaccination and inoculation.
- Nuclear and war perils.
- Naturopathy treatment.
