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

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...
Read more

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. ...
Read more

Avoid NFOs

  Don't get taken in by the flurry of new fund offers. You will be better off sticking to the tried and tested schemes.   For the past one year, to cash in on the bull run in equities, mutual fund houses have gone on a new fund offer (NFO) overdrive. But experts are unanimous in their advice: avoid NFOs . While past performance is not an indicator of how a fund will fare in the future, it does tell the investor how skilful the fund manager is. This crucial information is missing in an NFO. Not only is there no track record to judge an NFO by, many NFOs are similar to funds that already exist. If the new fund is similar to existing funds, you are better off investing in the latter. Around 67% of the new launches in 2014 were closed-end products. Investing in the NFO of a closed-end fund is doubly risky. In case the fund's performance is lacklustre, a closed-end fund does not allow you to exit. Even though closed-end funds are listed on the stock...
Read more

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...
Read more

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...
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