Skip to main content

Consider your Loans while Buying Life Insurance

Top SIP Funds Online 

Before purchasing a policy, you should calculate your total liabilities such as EMI for a home loan and other borrowings.

While purchasing an insurance policy, many of us look for one that has lower premium pay out without giving much attention to the extent of protection needed for the family. An insurance buyer should look at the cover as protection and not mainly as an investment. Thus, the cover you buy is not for you but for protecting the family if something unfortunate happens.

Before purchasing a policy, you should calculate your total liabilities such as EMI for a home loan and other borrowings, children education cost and other expenses required to meet the family's needs. Once you evaluate the need, you should buy the best suitable plan having the desired sum assumed to protect your family. However, if you do not have too much of liability, then you need to pay a lesser amount to protect your family financially.

Therefore, the premium payment would also depend on the extend of liabilities to be covered and not just your age.

Term insurance is ideal for financial protection of a family.  As a thumb rule, the sum assured in a term plan should be 10-15 times of your annual income. If you have any liability, say a home loan then you must take into account this liability, and determine a cover which can take care of other expenses, such as children's education, etc, in case of your death during the term period. So, it's clear that if you have liabilities, you will have to go for a bigger sum assured and accordingly your premium will also go up.  Let's take two examples to further elaborate this:

=> Mr A ( 35 Years Old)  is earning Rs. 5 lakhs per annum and has no liability. His family includes him, his wife and two kids. He can easily look at buying Rs. 50 lakhs term cover to safeguard his family from any financial emergency in his absence. The annual premium for Rs. 50 lakhs cover will be between Rs 6000-9000.

=> On the other hand, Mr B ( 35 Years Old) is also earning Rs. 5 lakhs per annum and has a home loan of Rs. 25 lakhs. His family also includes him, his wife and two kids. In this scenario, Mr B would have to take his loan amount into consideration and must buy at least Rs. 75 lakhs cover, so that burden of home loan does not pass on to his family and they can easily manage their household expenses. The premium for Rs. 75 lakhs cover will cost between Rs. 8000-12000, depending on the policy customer chooses.

Hence, it shows that if you reduce your liabilities or set – off the unnecessary debt amount, you will need a lesser cover to protect your family and also need to pay a lesser amount of premium which eventually, will reduce your overall liabilities during working life.                




SIPs are 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 

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

HDFC Capital Protection Oriented Fund – Series II 36M May 2014 NFO

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     HDFC Capital Protection Oriented Fund – Series II 36M May 2014 NFO will be open for subscription from 16th May 2014 to 30th May 2014. The key features of the scheme are as mentioned below:   Type of Scheme A Close Ended Capital Protection Oriented Income Scheme Benchmark Crisil MIP Blended Index Fund Manager Mr. Anil Bamboli , Mr. Vinay R Kulkarni & Mr. Rakesh Vyas New Fund Offer (NFO) Period 16 th May 2014 to 30 th May 2014. Minimum Application Amount Rs. 5000 and in multiples of Rs.10 thereafter Plans/ Options Offered Growth and Dividend Payout Facility Liquidity To be listed For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

How to PPF Account extension after maturity

A PPF account can be retained after maturity without making any further deposits. The balance will continue to earn interest till it is closed. Public provident fund or PPF remains one of the most popular savings options for the long term despite a gradual decline in interest rates over the years. PPF accounts have a maturity period of 15 years and they can be extended. If there is no fund requirement, financial planners say, PPF account holders should extend the account beyond 15 years. In terms of income tax implications, PPF accounts enjoy the benefit of EEE (exempt-exempt-exempt) status . Under Section 80C, contribution up to Rs 1.5 lakh in a financial year qualifies for income tax deduction. The interest earned and maturity proceeds are also tax free. What are your options when a PPF account matures? 1) A PPF account can be closed after the expiry of 15 financial years from the end of the year in which the account was opened. 2) The subscriber can retain his

SUNDARAM SELECT MIDCAP

Best SIP Funds Online   SUNDARAM SELECT MIDCAP is a mid-cap focused fund has shown remarkable consistency in outperforming both its benchmark index and the category over many years. It takes a sharper tilt towards mid-caps compared to its peers. While the fund manager used to take large positions in his conviction picks, he has moderated exposure to his top bets over the past year. He has also chosen to stay away from capital guzzling businesses instead favouring those with efficient capital allocation practices. SUNDARAM SELECT MIDCAP fund boasts of a superior risk-reward profile compared to many of its peers, and while it has underper formed slightly over the past one year, its proven track record in the hands of a capable fund manager provides comfort. It remains a worthy pick in the midcap basket. SIPs are 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 inform

HDFC Prudence Fund - Invest Online

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   HDFC Prudence Fund Balanced funds are excellent investment options for investors with moderate risk tolerance, since they give very good risk adjusted returns. It is very surprising why balanced funds are not nearly as popular as diversified equity funds, despite being around in India for nearly two decades. Balanced funds are essentially hybrid funds with both debt and equity in its portfolio mix, to balance the portfolio risk. These portfolios typically hold up to 70% of its portfolio assets in equities and the balance in fixed income. On a risk adjusted basis, balanced funds have delivered excellent returns compared to other equity fund categories, e.g. large cap or diversified equity mutual funds. The chart below shows a comparison of category returns between large
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