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

Mutual Fund Exit Load Changes

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Mutual Fund Exit Load Changes AMCs don't communicate about any change in exit load directly with investors, but do update on their website   The exit load applicable to your investments is the load which existed at the time when you invested in the particular fund. Any subsequent changes in the exit load will not be applicable to your investments.   However, Asset Management Companies ( AMCs ) periodically publish addendums in the newspapers, which state any change in exit loads of specific schemes managed by them. Such changes are also posted on their websites. However, a direct communication to an investor is not made, considering the costs involved in doing so. In their own interests, investors should not only track the performance of the funds they i...

Debt Mutual Fund Dividends are Taxable

DDT is deducted when a non-equity fund declares dividends. Equity and balanced fund dividends are tax-free The AMC is correct to deduct the dividend distribution tax (DDT) as it is mandated by tax laws. DDT in mutual funds is deducted every time a non-equity fund declares dividends. Equity fund and balanced fund dividends are tax-free . It is possible that you have invested in a non-equity fund for the first time or have received the dividend under a non-equity fund for the first time. That is why this is the first occasion when you have come across DDT.   The rate at which non-equity schemes deduct DDT has also gone up after the July 2014 budget. This is due to a change in calculation methodology. Earlier, if the fund has to declare a dividend of R 100, it used to make a provision for R 128.3, paying R 28.3 to the taxman and distributing the balance to the investor. This allowed the investor to bear less tax since the effective tax rate was 22.07 per ce...

L&T Income Opportunities Fund dividend

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 L&T Income Opportunities Fund declares L&T Mutual Fund has announced dividend under the following schemes: Scheme Dividend ( R /unit) L&T Gilt Investment-DQ 0.3 L&T Gilt Investment Direct-DQ 0.3 L&T Income Opportunities Ret-DQ 0.31 L&T MIP-Wealth Builder-DQ 0.3 L&T MIP-Wealth Builder Direct-DQ 0.3 L&T MIP-DQ 0.3 L&T MIP Direct-DQ 0.3 L&T Short Term Opp-DQ 0.26 L&T Short Term Opp Di...

Franklin India High Growth Companies Fund

Franklin India High Growth Companies Fund Online One of the key developments that the Street is keenly waiting for is a cut in interest rates by Reserve Bank of India . With demand rising gradually, a rate cut is expected to boost earnings growth for companies. In such a situation, schemes which invest in high growth companies are best suited, especially when seen from a long-term perspective. One such scheme is Franklin India High Growth Companies Fund. Fund managers Anand Radhakrishnan, Roshi Jain and Srikesh Nair strictly follow valuation parameters when it comes to choosing stocks.Valuation parameters, such as enterprise value, price-to-earnings growth ratio, forward price-to-sales ratio and discounted earnings per share, play a critical role in selecting companies for investments. Taking into account these parameters, the fund managers invest in companies which are poised for high growth in their respective sectors. This approach has been in favour of the scheme and it has perform...

Atal Pension Yojana contribution Tax Benefit for spouse

Contributions to Atal Pension Yojana (APY) are eligible for the same tax benefits as the NPS. This means that the contributions can be claimed under Section 80CCD (1B). The current limit for Section 80CCD (1B) is   Rs   50,000, over and above the   Rs   1.5 lakh limit under Section 80C. Section 80 CCD (1) is a different one, meant to cover employers' contribution towards NPS . You cannot get tax benefit by investing in the name of your spouse under Section 80 CCD . ------------------------------ ----------------- 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 Saver 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. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. ...
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