Skip to main content

Three Insurance covers you must have

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

 

The recent Uttarakhand tragedy has prompted many individuals to review their insurance cover and also do a reality check on their contingency arrangements. While this behaviour is not new, it's quite natural for most of us to react only after a particular tragedy, rather than being prepared in advance. A holistic financial plan takes into consideration the planning for contingency events as well as risk management. It's not advisable to start investments first without providing adequate protection in terms of relevant life and health related cover.

 

 

Today, there is definitely more awareness about the need for insurance protection than there was a decade back. But still the feeling that "nothing will happen to me" plays in the mind of most people and unless some close family member or friend is hit by a tragedy, the seriousness does not set in. In order to protect yourself and your loved ones from the uncertainties of life, there are certain insurance covers that one should have. Let us take a look at some of them.

 

Personal Accident Insurance:

 

People who are very young and fresh into their new jobs, should ideally buy accident insurance first. At the young age the chances of an accident are higher than any major illness.

 

You could argue that there is no need for such a cover if you are young since your parents are most probably working and have their own income. But in case you meet with a serious accident that results in a permanent or partial disability or an accident due to which you may be unable to get back to work for a prolonged period of time, then you would be dependent on your parents. In such a situation an accident cover will at least provide you with some kind of compensation. It will offer some financial support to meet your expenses Even for those who commute to work or travel long distances for work purposes, it is advisable to have adequate personal accident insurance.

 

The premiums are reasonable with a cover of ₹ 25 lakh costing around ₹ 3,000 per annum.

 

Health Insurance:

 

Many people who are covered for health insurance through their employers, do not feel the need to take a separate health cover for themselves. They ignore the fact that at times the hospitalisation expenditure can exceed the cover provided by the employer. There also chances that in case of a job loss they will be without a health cover. So, even if you are covered by your company, it is advisable to take an additional health insurance to supplement it. If not a second health insurance policy, you can take a top policy, which will kick in once you exhaust the limit of your primary policy, which is the one provided by your employer.

 

In addition to this, if you have aged parents, it is advisable to take health insurance cover for them early.

 

But most of think us of covering our parents only when they actually suffer from some ailments. Or if we hear about the high hospitalisation charges when someone else among our family or friends being hospitalised.

 

So, by the time you actually start looking for an ideal insurance cover for your parents, they could already be suffering from some ailment or illness, which might not be covered due to its pre-existing nature or may get covered only after a specific period. Fortunately, today there are a number of health insurance products which caters to the senior citizens category. Look at such policies, since one cannot afford to compromise as far as health is concerned.

 

Life Insurance:

 

Even today we come across people who have several life insurance policies, but the total cover is minuscule. In case of an unfortunate event with the main bread earner, the family's existing lifestyle may get affected. Several people carry a lot of liabilities such as home loan, car loan, etc. which also need to be factored in while estimating your required insurance cover. The thumb rule for buying a pure life term insurance is that the cover should be 10 times your annual income.

 

Earlier premium for a huge insurance cover was quite high. But today with several insurance companies offering pure term insurance products, taking an adequate insurance cover has become economical. With severe competition among life insurance companies, the term insurance rates are further coming down. The earlier in life you buy insurance, the cheaper it will be. As you age, your premium will rise.

 

Once you have taken care of the above, there are other areas where you can consider buying insurance, for example, insurance cover for vehicle, home contents, etc. Remember that every day we face uncertainties and therefore it's better to make a quick assessment of where you stand and buy adequate insurance covers rather than wait for some tragedy to take place.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

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 )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

Birla SunLife Manufacturing Equity Fund

The Make in India program was launched by Prime Minister Naredra Modi in September 2014 as part of a wider set of nation-building initiatives. It was devised to transform India into a global design and manufacturing hub. The primary motive of the campaign is to encourage multinational as well domestic companies to manufacture their products in India. This would create more job opportunities, bring high-quality standards and attract capital along with technological investment to bring more foreign direct investment (FDI) in the country.   Why India as the next manufacturing destination?   The rising demand in India along with the multinational's desire to diversify their production to include low-cost plants in countries other than China, can help India's manufacturing sector to grow and create millions of jobs. In the words of our Honourable Prime Minister- Mr. Narendra Modi, India offers the 3 'Ds' for business to thrive— democracy,...
Read more

Kisan Vikas Patra - KVP

  Kisan Vikas Patra (KVP) First launched in 1988, the Kisan Vikas Patra (KVP) is one of the premier and popular saving scheme offering from the Indian Postal Department. This product has had a very chequered history- initially successful, deemed a product that could be misused and thus terminated in 2011, followed by a triumphant return to prominence and popular consumption in 2014. The salient features of KVP are as follows- The grand USP- Money invested by the applicant doubles in 100 months (8 years, 4 months). KVPs are available in the following denominations- Rs.1000, Rs.5000, Rs.10,000 and Rs.50,000. The minimum purchase value for the KVP is Rs.1000. There is no maximum limit. KVPs are available at all departmental post offices across India. These certificates can be prematurely encashed after 2 ½ years from the point of issue. KVPs can be transferred from one individual to another and from one post office to another. ----------------------------------------------------- Inve...
Read more

Mutual Fund Review: Reliance Regular Savings Equity

    Despite high churn, Reliance Regular Savings Equity has managed to fetch good returns   In its short history, this one has made its mark. Though its annual and trailing returns are amazing, the fund started off on a lousy note (last two quarters of 2005). It managed to impress in 2006 and was turning out to be pretty average in 2007, till Omprakash Kuckian took over in November 2007 and wasted no time in changing the complexion of the portfolio. Exposure to Construction shot up to 28 per cent with almost 21 per cent cornered by Pratibha Industries and Madhucon Projects . Exposure to Engineering was yanked up (18.50%) while Financial Services lost its prime slot (dropped to 6.69%) and Auto was dumped. That quarter (December 2007), he delivered 54.66 per cent (category average: 25.70%).   When the market collapsed in 2008, thankfully the fund did not plummet abysmally. But even its high cash allocations could not cushion the fall which hovered around the category average. ...
Read more

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...
Read more

How to generate a UAN Online

Best SIP Funds Online   In order to make Employees' Provident Fund (EPF) accounts portable, the Employees' Provident Fund Organisation (EPFO) had launched the facility of Universal Account Number (UAN ) in 2014. Having a UAN is now mandatory if you have an EPF account and are contributing to it. So far, you got this number from your employer and every time you changed jobs, you had to furnish this number to the new employer.  However, in order to make it easier for you to get a UAN , and without your employer's intervention, the EPFO now allows you to go online and generate a UAN on your own. This facility can be used by freshers, or new employees, who are joining the workforce as well as by employees who have older EPF accounts but do not have a UAN as yet. As a new employee, you can simply generate a UAN and provide the number to your employer at the time of joining, when you need to fill up forms for your EPF contribution. As per a circula...
Read more
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