Skip to main content

Getting covered for life’s emergencies is crucial

 

You have just landed a well-paying job, after your post-graduation from a premier institute. Your ascent towards the career you have always dreamt of has started — a journey that seems simple and sans hurdles, given the minimal responsibilities you have to shoulder during the initial years. Your parents — as is the case with several urban Indian families today — are yet to hang up their boots, and are not dependent on your income, which translates into complete financial freedom for you. However, amid the euphoria generated by the first pay cheque, it is easy to forget the basic step that every earning individual needs to take as a shield against unforeseen emergencies. This does not necessarily mean signing up for a life insurance policy, which may seem like the most natural thing to do, with agents of life companies chasing you. Life insurance is critical, no doubt, but not necessarily so during the initial couple of earning years. There are other covers that need to be considered, though, which could add to your newly acquired financial independence.

Health Insurance

No matter how fat your pay packet or how robust your family's financial situation is, the first thing you need to do upon securing a job is to buy a health insurance policy for yourself as well as your family — if they are not covered by one already. This is applicable even to those who are covered under their employer's group health insurance schemes, as individual mediclaim comes in handy when you switch jobs, besides offering tax deduction of up to Rs 15,000 under Section 80D of the Income Tax Act. Moreover, the sooner you start, lower will be the premium.

Personal Accident Policy

You could look at supplementing your health cover with a personal accident policy. This policy should be the ideal cover for those who have recently started working. It could feature three components — temporary disability, permanent disability and a death cover. If the insured is unable to resume work temporarily due to the accident, the insurance company will pay a weekly compensation. That is, if the sum insured is Rs 1,00,000, the policyholder will be entitled to receive say 1% of the amount or Rs 1,000 every week, subject to the maximum period specified under the policy. This kind of cover is critical particularly if one relies on a two-wheeler to commute to work. However, find out if such a policy is offered complementary to your credit card. In such a case, the basic health cover should suffice. In case of permanent disability, the claim payable will depend on the type of handicap. Before signing up for the policy, ascertain if the coverage includes partial/temporary disability or merely permanent and total disability.

Critical Illness Cover

Else, they could opt for a critical illness policy offering a wide coverage, including total disability caused by accidents. The policy is primarily meant to cover the insured in the event of certain ailments like cancer, kidney failure, paralysis and so on. The claim — a lump-sum — is paid out upon the diagnosis of specified diseases. While health insurance could take care of the hospitalisation costs, this cover could help meet other expenses, particularly if the policyholder is not in a position to work while undergoing treatment. Both life and general insurance companies offer this cover. Like in case of health insurance, it makes sense to start as early as possible, since age plays a role in determining the premium.

 


Popular posts from this blog

Post Office Deposits Interest Rates

Best SIP Funds to Invest Online   SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich For further information on Top SIP Mutual Funds contact  Save Tax Get Rich on 94 8300 8300 OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com

How Tax Deducted at Source (TDS) works?

    THE tax season is here. And if you are an employee you can't blame your employer for deducting large chunks of money from your salary towards tax deducted at source ( TDS ), which he is legally obliged to do. Your bank will also deduct some percentage from your FD interest of Rs 10,000 or more towards TDS! So what is this TDS all about? How is it computed? Are there any changes this year? Read on... What is TDS? TDS reduces your taxable income and could even provide tax relief! The TDS collections account for 40 percent of the total taxes collected in the country. As the name suggests TDS is the amount of tax that is deducted at source in certain types of income . The TDS thus collected is deposited in the Government treasury within a specified time. How is it computed? Some of the types of income where TDS is applicable include salary, interest, rental fee, interest on securities, insurance commission, dividends from shares and UTI/Mutual Funds, commission and brokerage

Modern day balanced mutual fund approach

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India)   In reality, most balanced funds have a strong tilt towards equity instead of a mix of equity and debt THERE are various types of mutual funds available to investors with specific features. Often investors have a particular idea about a specific type of funds in terms of their features and risks, but that is not what is actually available. Therefore, it is necessary for an investor to understand the actual position before picking up a fund. This requires some work on the part of the investor. One example can be the situation with balanced funds. Name is not representative: One of the first things that an investor has to understand is that the name of the fund is often not representative of its investment pattern. The name often represents only the aim of the fund, and not what it actually is.

ELSS Tax Saver

ELSS Stands for Equity Linked Savings Scheme.   ELSS Fund are mutual funds with 3 years of lock in period and offer income tax benefit under section 80C. They are open ended to purchase. Not all Mutual fund Investments are eligible for tax exception. List of Tax Saving Mutual Funds   Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.   Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)   Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications   These Application Forms can be used for buying regular mutual funds also   Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds ) HDFC TaxSaver ICICI Prudential Tax Plan DSP BlackRock Tax Saver Fund Birla Sun Life Tax Relief '96 Reliance Tax Saver (ELSS) Fund IDF

Should you invest in tax-free infra bonds?

THOSE looking to save tax should take note of the latest buzz in the debt markets. Power Finance Corporation ( PFC ) and Housing Urban Development Corporation (Hudco) have launched bonds that will help you save more tax than your regular infrastructure bonds. Soon, IRFC and NHAI are likely to follow suit with similar bonds. KP Jeewan, general manager, debt markets, Karvy Stock Broking, says: "The coupon in these bonds are completely tax-free and those in the highest tax bracket can expect an effective yield of 10.75 per cent, compared to the 9.5 per cent a 10-year public sector bond would offer." The PFC and Hudco offerings are of 10- and 15-year tenures, with coupon rates of 7.5 and 7.75 per cent, respectively. Unlike other regular tax-free infra bonds, the tax benefits in these bonds are not capped at ` 20,000. Even besides these tax free bonds, those in the highest tax bracket have had plenty of opportunities to invest in tax saving infrastructure bonds under 80 CCF i
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now