It is essential to invest in life insurance to ensure your family’s financial well-being in your absence. Term plans have gained popularity due to their simplicity and affordability.
A regular term insurance plan is a pure life cover that pays the benefits to your nominees if an unforeseen event occurs during the policy period. Since there are no maturity benefits, a term plan comes at an affordable premium, allowing you to avail of higher coverage at a cost-effective rate.
Insurance companies offer a wide range of policies. So, along with understanding the term insurance plan meaning, you need to consider a few key factors to make the right choice. Here are five factors that you keep in mind before purchasing the policy:
- Calculate the adequate sum assured (SA)
It is possible to be attracted to a particular policy due to the lower premium. However, the SA may be insufficient to cover your family’s financial requirements in your absence. To determine the ideal SA:
- Estimate the monthly expenses and take the future inflationary increase into account
- Add your outstanding liabilities, such as home loan, car loan, or personal loan
- Deduct your liquid investments like stocks, fixed deposits, and mutual funds
- Consider any future financial requirements, such as children’s education or wedding or retirement corpus for your spouse
Based on the above calculation, you can determine the required coverage to ensure that your loved ones can meet accomplish their life goals even when you are not there with them. You need to pay more premium to get a higher SA. However, an amount of up to INR 1.5 lakh paid is eligible for term insurance tax benefit under Section 80C of the Income Tax Act, 1961.
- Determine the duration
After computing the SA, you need to ascertain the duration for which your family members require the insurance coverage. Ensure that the tenure is not less, as the coverage will discontinue before meeting the financial objectives. Conversely, if the term plan is active even after your family’s life goals are achieved, you will end up paying a higher premium.
You can calculate your net worth after reducing your debts to finalize the suitable duration. It is advisable to invest in a term plan until the age when you can clear all your liabilities through your liquid net worth. So, you can choose a tenure accordingly.
- Opt for the necessary riders
Insurers offer multiple riders (add-ons) along with their online term plans. These add-ons provide additional insurance coverage over and above the basic plan. Some commonly available add-ons include accidental disability, critical illness, income replacement, and waiver of premium. Before you add one or more of these riders, bear in mind that every additional inclusion increases the premium. Therefore, consider your family’s requirements and invest in the necessary riders for maximum coverage at the least possible cost.
- Review the claim settlement ratio
The claim settlement ratio depicts the efficiency of different insurance companies. It is the ratio between the total number of claims settled when compared to the total number of claims received by an insurer during a particular period. The higher the ratio, the greater is the insurer’s efficiency in settling claims. Opting for an online term plan from an insurer with a higher claim settlement ratio reduces the chance of rejection if your nominees need to file a claim in the future. As per Section 10(10D) of the Income Tax Act, 1961, the amount paid to your nominees qualifies for a term insurance tax benefit.
- Compare different plans offered by insurers
Most insurers offer various forms of term policies. So pick the most appropriate provider to maximize the benefits. Take your time to research the many options available online. You can evaluate different product offerings based on the inclusions, exclusions, available riders, premium, and other related parameters. Do not invest in a plan simply because it is economical. Consider other aspects and then make an informed decision.
Now that you know what to do before purchasing a term plan, follow these tips and avail of a policy as soon as possible.
5 Mistakes to Avoid While Searching For a Pre Owned Car Online
The used car market is multiple times larger than the new car market and offers virtually endless choices to a car buyer. If you’re planning to get yourself a vehicle this year, then shopping for ones that are pre-owned is something that you should seriously consider. Also, with relaxed used car loan eligibility criteria, availing a used car loan is also now easier than ever. That said, many buyers tend to make several mistakes while on the lookout for a pre-owned car online.
Here are 5 mistakes that a prospective used car buyer should avoid.
1.Shopping on obscure and unknown websites
Not all used car websites that you find online are reputed. Some of them might employ unscrupulous tactics to scam potential used car buyers, while others may not provide you with the necessary sales or after-sales support, leaving you in the lurch. And so, it is extremely important to shop for pre-owned cars from reputed websites that have a strong track record.
2.Glossing over certified vehicles
Many well-respected pre-owned car websites come with a section where they display certified vehicles. Certified cars often are in a very good condition with little to no mechanical or electrical faults. These cars are basically thoroughly inspected and then certified by a professional. While such certified cars might carry a slightly higher price tag when compared with non-certified ones, they’re almost always worth it. However, many choose to ignore such cars, which can be a major mistake.
3.Focusing on add ons and extras over performance
When shopping for a pre-owned car online, many car buyers tend to get sidetracked and focus more on the fancy gadgetry, features, and add ons that the vehicle carries. This is a mistake that many first-time and even second-time buyers make. Always ensure that you give more importance to the car’s engine and its performance instead of focusing on these additional features.
4.Giving more importance to low-priced cars
As a prospective buyer, it is quite natural to gravitate towards used cars with low price tags. While that’s not necessarily a mistake, focusing too much on the price can sometimes lead you towards a bad investment. If you manage to find a good car at an ultra-low price, be aware that there’s almost always a reason for it. For instance, there might be something wrong with the vehicle or it may need some heavy repairs that may not always be apparent. Searching for a used car in a good condition even if you might have to pay a little extra is a much better idea.
5.Ignoring safety features
Cars these days come with several safety features such as airbags, traction and stability control, and Anti-Lock Braking Systems. These are some necessary features that a prospective used car buyer should never underestimate. In a bid to cut costs, many shoppers tend to ignore such safety mechanisms, which is a grave mistake. Therefore, when you’re shopping for a pre-owned car online make sure that you consider vehicles with such features built-in.
By not making these 5 mistakes while searching for a used car online, you can to a large extent ensure that you get the best vehicle. With used car loan interest rates being lower than ever, what are you waiting for? Avail a used car loan right now and get yourself a pre-owned car!
Enhance Your Hair Style with Beautiful Colours
Whether you are a male or female; your hair gives you an experience that you desire for. They make you look smart, stylish and good. You can always have hair that adds up to your beauty. But what if you are not taking proper care of your hair? Of course, there are many people who take their looks for granted. If you are one of them then you are doing the wrong thing. You cannot just take your face or looks for granted.
Have you ever applied Burgundy hair color on black natural hair? Well, yes, if you have natural hair but you want to wear a colour and you are worrying that the colour would spoil your natural hair then you are wrong. There are natural colours that are absolutely safe and effective for your hair. Your hair would stay good, effective and smooth.
A great hair style
You can wear a great hair style with colours too. If you think that your colour would damage your looks and you would be restricted to a specific look then that is not the scene. Whether you have long straight hair, fluffy hair, blond hair, curly hair or any other type of hair; you can easily wear a colour that enhances your looks. You can look spectacular and smart with the colour on and nothing would get compromised.
Safety is ensured
Once you use the right and organic colours on your hair you are not going to experience any hair issues. Your hair would not get dry or not even fall. Your hair will look good, smart and absolutely shiny. Safety is one such thing that comes to mind prior to anything else. If you are using organic colour products they would make sure that your hair look good and stay strong and smooth. Even if your hair is natural and smooth; natural colours would not harm them at all. Often synthetic colours harm the effectivity of your hair colour and texture. But that is not the case with natural colours. They always keep your hair clean, safe and smooth.
Read about the ingredients
No matter you want brown colour, bland colour, burgundy shade or any other shade; you have to make sure that you have read the ingredients of the product carefully. You can pick the products that are effective, safe and healthy. Once you read the ingredients of the colour product you would know what it has. You can take a decision about which product to choose by comparing. When you compare the products and their ingredients you can reach out to a good choice. Most of the times these natural products have good ingredients like milk, butters, and herbs and so on. So, you need not to worry about anything. One thing that you can do is you can make sure that you are picking a good quality product. Yes, once you have picked good company products; you can be sure that it is safe and sound.
Thus, you can always use the dark burgundy natural hair for your hair shine and smoothness. In this way your hair would look wonderful and stay perfect too.
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