What Are Your Investment Objectives?

In today’s world, financial security is supreme. The dynamic economy of India requires people to curtail their expenses in order to secure their future. This means that, if you don’t start saving from an early age, you can face difficulty during your retirement age. Moreover, most of us are interested in increasing our bank balance whilst storing money in our accounts.

Hence, this article provides you with some of the best policies to place your money on. Tax saving investments are abundantly present and you can easily spend some money on these schemes to have a better retired life.

·         Life Insurance

Life insurance isn’t a typical form of investment, but because of its lucrative offers, it can be counted as a tax saving investment.

Here are some of the features and benefits of Life Insurance policy:

1.    The premium paid on the life insurance policy is deductible from your wages, thus lowering the income tax factor.

2.    The premium paid for Unit Linked Insurance Plans are completed exempted from taxes, thus making life insurance a devoured tax saving investment.

3.    Life insurance policies provide one with backup money to the nominees in case of the investor’s demise.

4.    The total amount paid to the benefactor is not taxable in case of contingency.

·         Health Insurance

Unlike life insurance, health insurance might not be a conventional form of tax saving investments because it does not offer any cash return. However, the amount received by the health insurance coverage makes this a coveted investment platform.

·         Here are some of the features and benefits offered by the Health Insurance policy:

1.    The money paid to the insured is not taxable, in case of disability.

2.    This scheme allows tax deduction on the premium amount paid.

3.    Senior citizens get the benefit of increased tax deduction on the premium, that is, up to Rs. 20,000.

·         Public Provident Fund

The Public Provident Fund accounts are extremely flexible, convenient and efficient. You can receive maximum tax savings with relative ease therefore, making PPF one of the best tax saving investments. Many major banks offer this facility to its customers so you don’t have to look very far to invest in this scheme.

·         Here are some of the features and benefits offered by the Public Provident Fund:

1.    Partial withdrawal is available after completion of 5 years of policy term.

2.    Loan can be extracted against this policy upon completion of 5 years of policy term.

3.    The interest paid on PPF accounts is tax liberated.

4.    It has a guaranteed return policy of up to 8%.

5.    The amount contributed to the PPF account is tax deductible.

·         Senior Citizens’ Saving Scheme

You can never be too old to invest in tax saving investments. The government enabled, Senior Citizen’s Saving Scheme allows retired citizens of India to spend some money on authorized cash back policies.

Here are some of the features and benefits offered by the Senior Citizen’s Saving Scheme:

1.    Interest is provided in the form of interest, regularly.

2.    Although, the interest on this scheme is taxable, most senior citizens earn their income in the form of pension, which is lesser than the taxable limit, thus the taxability of the interest is rendered null and void.

3.    The policy term is of 5 years but withdrawal can be consented subject to certain terms and conditions.

4.    The compound interest provided is about 9.2% and compounded on a quarterly basis.

5.    The lower limit of payment is Rs 1000, whereas the upper limit is a whopping Rs. 15 lakhs.

6.    The interest is deposited to the linked accounts of investors on March 31^st, December 31^st, June 30^th and September 30^th, irrespective of when the investor makes the deposit.

Other tax saving investments include tax free infrastructure bonds, mutual funds, pension schemes, etc. But some can prove to be a very high risk investment from which people that are uncomfortable in donating a lump sum amount on a high risk, high return policy should stir clear.

The above-mentioned schemes are most trustworthy and efficient. You can apply to these policies whenever mentioned by your banks, because most of these schemes are enabled by the banks.

Discovering HDFC Super Investment Plans- Important Things You Must Know

The idea of putting time and worth in any investment plan is to get to a secure, more convenient future. HDFC Life insurance reviews or investment plan reviews do provide a clue about what suits who and what is a total waste. However, motivating from the concept of ‘you benefit from what you understand,' here is a quick tale of three Super plans by HDFC.

Which is the Best Tax Saving Investments?

Whether you’re a salaried individual or a businessman, you’ll definitely agree that it is often painful to give a substantial part of your hard-earned money in taxes. It gets especially disappointing when a considerable amount of your salary goes into taxes due to unawareness about tax saving investments available at your disposal.

Tax saving remains one of the most sought after activities for anyone who is concerned about saving money. You’ll be surprised to know that there are various ways by which you can save taxes and also save a huge sum of money that will come in handy in the times of need. One such tax saving investment that provides you an optimal solution is life insurance.

Now, let’s discuss what all life insurance products can help you save sizeably on taxes and build a huge corpus to help you in the times of need.

So, let’s dive right in! Shall we?

Unit Linked Insurance Plans – Unit Linked Insurance Plans remain one of the best tax saving investments for anyone looking to save taxes. These amazing life insurance plans not only provide tax saving, but also help policy holders with huge savings and comprehensive life cover. With ULIP plans, you get to save taxes on the premiums that you pay to your insurer. In addition, you also get to save on the maturity proceeds that you get with these ULIP plans.

Listed below are the details of the tax exemption on Unit Linked Insurance Plans.

§  The maximum tax exemption allowed for ULIP plans is Rs. 1 lakh.

§  You can avail tax benefits on the premiums paid under section 80C of the Income Tax Act.

§  You would need to make premium payments by Cheque or Online transfer in order to avail income tax deductions on your premiums.

§  The minimum sum assured for getting tax exemption is 10 X the total premiums paid.

§  The proceeds of Death Benefits are completely tax exempt under Section 10(D) of Income Tax Act.

§  If you surrender the policy or if your policy is terminated within 5 years, the proceeds of tax deductions availed by you are liable to be added back to your income and taxed.

Pension Plans - Pension plans, commonly referred to as annuity plans, are yet another type of insurance plans that double up as tax saving investment for an individual. Pension plans work in an altogether different manner as compared to the ULIP plans. Typically, there are two different stages of a pension or an annuity plan. These are accumulation stage and the withdrawal stage. You can only avail tax benefit in the accumulation stage and not in the withdrawal stage.

Listed below are the details of the tax exemption on Pension or Annuity Plans.

§  The maximum tax exemption that you can claim with pension plans is Rs. 1 lakh.

§  You can avail tax deductions on the premiums that you under Section 80CCC of the Indian Income Tax Act.

§  You would need to make the premium payments through Cheque or Online transfer in order to get the tax exemption.

§  1/3rd of the maturity proceeds are liable for tax exemption, whereas the other 2/3rd of the maturity proceed is liable to be taxed.

§  Proceeds of death benefits are completely tax exempted.

Term Insurance Plans – The last on this list and perhaps the most popular type of tax saving investment amongst tax payers is Term Plan. As term plans do not offer anything on maturity, it is fairly easy to save taxes through term plans. Term Insurance ensures a comprehensive financial protection for the family of the policy holder and secures their future in case of the sudden demise of the policy holder. But what typically makes Term Insurance plans so popular tax saving investment is the fact that it is cheaper than almost all other insurance products.

Listed below are the details of the tax exemption on Term Plans.

§  The maximum tax exemption allowed with term insurance plans is Rs. 1 lakh.

§  Tax deductions can availed on the premiums under Section 80C of the Indian Income Tax Act 1961.

§  You would need to make the premium payments through Cheque or Online transfer in order to get the tax exemption.

§  Proceeds of death benefits are completely tax exempted under Section 10 (10) D.

In the End

In addition to these life insurance products, many other tax saving investment products are easily available at one’s disposal. You may choose to invest in National Saving Certificates, Senior Citizens Saving Scheme, Employee Provident Fund, Public Provident Fund, Tax Saving Fixed Deposits and much more. 

Tips to make tax saving investments easy!

When you have been looking towards to have a better tax saving regime then do check for the tips that we have to tell you here. There are many deductions which are made in your income and that comes under the Indian Income Tax which is being paid by all the salaried people or those who have a source of income.

One has to proper tax planning in order to save the tax otherwise a major chunk of your income may get depleted while paying up the tax.

Section 80C, 80CCD and 80CCC

Under the above provisions, you can save up to 1.5 lakh which is exempted from any kind of tax. Under the Tax savings investments vehicles there are many provisions that you should know about. No matter how much you invest under different tax schemes, you still will be able to save up to the upper limit only.

Government on its part has come with many schemes which you must know about. These schemes are quite popular and you can save a huge amount of your wealth under these plans. There are numerous funds which come under the different tax sections as specified above which you should have the complete knowledge of:

·         ELSS

·         ULIP

·         NPS

·         VPF and PPF

·         Sukanya samriddhhi yojana

·         Senior savings scheme

·         FDs and NSCs

·         Pension plans

·         Insurance policies

How to save if you are a salaried person?

There are easy ways to save your money under the Tax savings investments. The most obvious option is the section 80 C under which you can get to save lots of money is you have picked the right kind of plans for yourself. At the most you can save your money up to 1 lakh and there are very few options which you can avail for yourself.

You may also resort to the options which are beyond the section 80C and that include 80G and 80D. Home loans are also a great Tax savings investments which makes you have two-sided benefits under which you can buy your house and also will be able to save your money from paying in the taxes.

Your loan will be included in the section 80C and the interest that you pay on your loan will be covered under section 24 which is up to the limit of 1.5 lakh. You leave travel allowance also makes it apt for you to claim the benefit of the tax rebate.

Education loans and tax savings

Your loan will be covered under section 80E and this education loans can be for self, taken for the purpose of higher education or for spouse or your kids of whom you are the legal guardian. But the deduction can be allowed for repaying the interest rates and not the principal amount.

For the Tax saving investments schemes, section 80CCG is also a good option and the deduction done under this is called as the Rajiv Gandhi Equity scheme. You can have your share of mutual funds and though the scheme is a bit complicated, it matters a lot that you can save yourself from the complication by hiring a good financial expert to guide you through.

Tax savings investments under section 80G can also come up as a big gainer for you if you end up as a philanthropist or are donating in the National Relief Fund. For the charity purpose, you can check for the concerned rules that can be very fruitful in saving your income to come under the tax barrier.

For the purpose of the Tax savings investments, equity also serves as a great option that can make your living a lot easier than you can imagine. 

Guide for Planning Life Covering Investment Strategy

Considering upon the facts and realities of life, it is essential for everyone to insure themselves properly. Benefits of life insurance plans not just cover you but also guarantee a secure financial future for your loved ones even when you are not there to look after their needs. Currently every investment plan is incomplete without life covering insurance plans. Through this traditional life insurance plans you are actually taking small steps today to build a massive fund for tomorrow. Beside the coverage, you can even save huge on taxes as these plans also fall under the category of tax saving investments.

   

 In this write-up, we will try to discuss some points with our readers to make them understand how to outline your investment planning that will earn you both good return and security for your hard-earned money.

Start Early:

Age matters and when we are talking about life insurance, it matters the most. Premium for any life insurance policy is calculated on the basis of a person’s age. The younger you are, the less you have to pay for premium. Our advice is you set your financial goal and implement an investment plan early in your life to avail long coverage period in lowest cost.

Aim:

Before you start investing in various life insurance plans, get a clear idea on their purpose. Although you are investing the money but the policies are designed in a way to benefit your immediate family. Primary intension of these policies is to offer financial help and support to your family in case of your death.

Calculate Your Financial Need:

Just the way every individual is different from the other, their financial goal also differs from each other. As life cover insurance plays a vital role in your investment planning, they should be chosen wisely. Consider the coverage you need for yourself and your family and your financial responsibilities of present and future before taking any investment plan.

Savings:

Life cover insurance policies can be a great option to save tax. Generally you can claim tax deduction under Section 80C of Income Tax Act on the amount you paid towards the policy premiums. Without putting your money in danger by involving any market related risk factor, you are saving handsome through these tax saving investments.

Inflation:

Most of us tend to evaluate the future financial requirements on the basis of today’s scenario. But this deadly sin can jeopardise both your financial goal and your family’s future. The amount of money which looks sufficient today will not be sufficient enough after 10 years. Inflation rate will surely cut your fund short. So design your accordingly to reverse the effect of inflation on your savings.

Compare and Choose:

How do you know which insurance plan is right for you from this vast number of life cover insurance plans? Internet comes with a solution. Do your research work by browsing the web. You can have all your queries answered here. Compare between policies before you make your mind. You can even bypass the agent as every company comes with online policy registration option. It saves your money, energy and time simultaneously.   

Factors That Determine Premium Amount:

Your age plays the primary role in determining policy premium for you.  The younger you are, the less you have to pay for premium. There are many other factors too which are taken under consideration before the insurer sets your premium value. As women live longer, they can enjoy slightly lower premiums than men. If you consume tobacco in any form, be ready to pay little more. Medical history of your family also can increase or decrease the premium rate.

How Smart is Life Insurance as an Investment? Things to Ponder

When it comes to life insurance as an investment, term life insurance is the best choice for most individuals. The life insurance plans are the least expensive plans and allows the insurer to leave money free for other investments. Having a permanent life insurance allows individual to accumulate cash whereas term does not. Here we have discussed some of factors to validate the point, whether life insurance is a good investment option.

Decide how much Life Insurance you actually need-

Prior purchasing any life insurance policy it is important to know that how much life insurance you actually need. This is important for a couple of reasons. First you will purchase the policy as much as you need. This will help you from getting into unnecessary purchase of policy and putting yourself in trouble of paying more premium. After all your point of purchasing insurance is to provide protection to your family members in your absence. By deciding on the amount of life insurance you should have, you can also plan your investment simultaneously in order to achieve the financial goal.

You can keep the policy until age 100, as long as you pay premiums-

One of the best reason to have a life insurance is that as compared to term insurance in life insurance the insured does not lose the coverage after a particular term of years. The tenure of the policy comes to an end, when the insured reaches to his/her term end i.e. 60 or 70 years. If the insured survives the whole tenure of policy and dully pays off all the premium, then a maturity benefit as sum assured amount and additional bonus is offered to the insured after the completion of policy tenure. If you have a permanent life insurance policy then the beneficiary of the policy is also eligible to get death benefit in case of uncertain death of the policy holder during the term of policy.

Tax Benefit is one Major Advantage-

Life insurance plans as well as investment plans provide tax benefit to the insured under section 80C, 80D and 10D of Income Tax Act. This benefit of cash- value component means that the insured does not need to pay taxes on any interest. Moreover, the maturity benefit is also exempt to tax deduction under the applicable section of Income Tax Act. Some of the insurance policies like endowment plan, ULIP plan, money back plan, etc. allows the insured to cash out their insurance at the end of policy tenure. Moreover, the policy offers a permanent life insurance that grows in value over time and can ultimately be cashed at the end of the policy term. Apart from the investment returns having a life insurance policy allows the insured to avail the advantage of tax- benefit under the applicable section of income tax act.

Affordable Life Insurance can provide more Opportunity of Investment-

One don’t need to buy a policy that is too expensive and comes out of your affordability. Depending upon the health and income individual cab buy a policy according to their suitability. In today’s time one can surf online get a wide options life insurance policy. To choose the most suitable plan according to your own needs you can compare the plans online and choose the plan that provide maximum coverage in minimum premium. With the minimum premium rates you can plan your investments accordingly and can get good returns once the policy tenure comes to an end.

Although using life insurance as an investment can be risky, if it is planned in an intelligent way it can be very beneficial and can give good returns of investment.