Skip to main content

Return of Premium Insurance Plans

    Invest Online and Get Rich 


Everybody loves something extra. An unexpected complimentary chocolate brownie with a cup of cappuccino at the newly opened coffee shop brings a smile on your face. Or that cherry pudding cake served on-the-house after a sumptuous meal at your favourite restaurant enhances your dining experience. This is an inherent psychology among Indians.

But besides the discounts and free offers, companies like to reward the consumer for being associated with it as well. Now imagine, if you found a similar deals in your investment or insurance plans as well. Something like this with your term plan would almost seem impossible. Where you can get your life protected and if you survive the policy term, you get your premiums back.

A basic term plan covers your family against any unwanted situation but doesn't return the premiums. To make term plans as attractive as traditional life-long policies, insurance companies have designed term plans that return the entire premium paid by the policyholder on maturity, if the policyholder survives the term.


Despite the benefit of capital protection, majority of the amount received at the end of the term is taxable in case of traditional policies. Moreover, the cover offered is too meagre as compared to the premiums paid.

Ideally, insurance should not be bought for investment. But those looking for a bigger insurance cover along with capital protection should opt for Return of Premium (ROP) plans. As the name suggests, all the premiums are returned as maturity benefit. This works out for those whoare looking for guaranteed cash value while buying an insurance plan. One can select the term period that match specific needs of the individual.

If you are the only breadwinner in the family, any investment expert would suggest you to buy a pure term insurance plan. But every individual's needs are different. There are multiple reasons that influence the amount of life insurance coverage and the type of plan bought. One can evaluate both the elements keeping few things in mind.

Factors to watch out while buying a term plan
• Annual Income
• LifeStage - whether single or married
• Number of dependents- Kids or parents
• Family members' capacity to handle finances
• Home loan, other liabilities

Insurance is not a one-size-fits-all concept. A basic term plan may not be adequate for everyone. For the return-savvy investor, ROP is a value-for-money policy. You can get customised plan according to your needs, on your own terms.

You can decide on the term as per your financial situation. For instance, you can buy a 30-year term life plan if you have a 30-year loan to pay. If something happens to you during the term, you won't have to worry about the loan. And if you outlive the term, 100% of your premium will come back to you.


Most of the ROP plans come with conversion option and riders. Unlike the normal term plans, you can change the premium term as per your needs. When it comes to cost, premiums may appear on the higher side but sometimes it's worth it to spend more to protect the ones you love the most.

Moreover, returned premiums are not taxable in the hands of the policyholder. So, you get the tax benefit advantage throughout the term in addition to the refunded premiums at maturity*.Most of the insurers limit the age at which you can purchase these plans so it's wiser to make the choice at the earliest to get that extra advantage over normal term plans. It may be difficult to get the ROP option after 50.

So, if you are still in your 30s, it's time your customised plan for a better future ahead. HDFC Life Click 2 Protect 3D Plus offers 9 options to suit your needs. So, get ready and build your own plan for the day you won't be able to plan.



 


Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300

Popular posts from this blog

Jeevan Labh

 The Life Insurance Corporation of India has announced Jeevan Labh , its limited-premium, with-profits endowment plan .   It comes with a premium paying terms of 10, 15 and 16 years for corresponding policy tenures of 16, 21, and 25 years respectively. ----------------------------------------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saving Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in india for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Franklin India TaxShield 4. ICICI Prudential Long Term Equity Fund 5. IDFC Tax Advantage (ELSS) Fund 6. Birla Sun Life Tax Relief 96 7. DSP BlackRock Tax Saver Fund 8. Reliance Tax Saver (ELSS) Fund 9. Religare Tax Plan 10. Birla Sun Life Tax Plan Invest in Best Performing 2016 Tax Saver Mutual Funds Online Invest Online Download Application Forms For further information contact Prajna Capital on 94 83...
Read more

Liquidity Adjustment Facility

Liquidity adjustment facility (LAF) is a money market tool used by the central bank of a country (in India it is the Reserve Bank of India ), to infuse funds into the country's banking system when liquidity dries up. Again, in case there is excess liquidity, the central bank uses some tools to help banks manage their surplus liquidity. Usually the RBI uses the repurchase facility (called Repo ) to give short-term loans to banks to meet their temporary liquidity shortage. On the other, hand RBI uses reverse repo facility to help banks park their excess liquidity with it. Banks usually use various securities, which are approved by the RBI, as collateral when they take money from the RBI to meet their short term liquidity requirement     Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara...
Read more

NPS for Tax Saving

The NPS is a great way to save tax if you don't mind locking in your money till you retire. Till last year, the taxability of the NPS was a big issue. But last year's Budget changed the rules and made 40% of the corpus tax free. The PFRDA wants that the balance 60% to be exempt from tax as well. The emphasis is on increasing pension coverage. So, allowing EEE status (to NPS ) is our major demand (in the Budget NPS is especially useful for investors who may have exhausted the `1.5 lakh investment limit under Section 80C but want to save more.   Another way the NPS can cut tax is by rejigging the salary.If a company deposits up to 10% of the basic salary of an employee in the NPS under Section 80CCD(2d), the amount will be tax free. Turn to page 28 to see how much tax this can save. However, the take-home pay of the employee will come down. Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 10 Tax...
Read more

BHIM App

What is BHIM? BHIM stands for Bharat Interface for Money , which is an easy way of transferring money from one bank account to an other via a smartphone using the Unified Payments Interface (UPI) platform . It is an instant payments application meant for sending money as well as requesting for payments. How is it different from UPI? BHIM is no different than UPI. But in the case of BHIM, customers don't have to download mobile applications of multiple banks, instead a single BHIM app downloaded from Android Play Store is sufficient. Other than that, payments can be made through a virtual payments ID or through account number and IFS code, same as UPI. What you need to use BHIM? BHIM can be used across an droid smartphones with version 4.0 and above, also it will be made available on iPhones and Windows smartphones very soon. Further, for feature phone users they need to use the USSD feature by dial ing *99#. Why was the need for BHIM felt when UPI is already in place? With various...
Read more

General insurance

  General insurance has evolved to become as important as life insurance. A look at some categories which can no longer be over-looked…    Insuring your belongings can help you cushion yourself against financial losses. While life insurance takes care of your loved ones, it is equally important to safeguard your treasured possessions. Here's a quick look at the 'must-haves' under general insurance…     Travel insurance Accidents can happen anytime – worse if they happen when you are in a foreign land. You may get sick and meeting your medical bills in a foreign currency can be quite frustrating! Besides, there may be other tricky situations such as accidents, loss of baggage or passport, trip cancellation, flight delays, plane hijack, etc. Whether you travel for leisure, business or studies, travel insurance comes handy to safeguard your trip against contingencies and that too, at a fraction of the cost of your trip.     Home insurance For most of us, the home is the...
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