Why should you get a travel insurance plan?

Are you trying to escape the monotony of your office life and planning a trip? The checklist of your journey is carefully drafted, and you just can’t wait to take an off. However, life can be a bit uncertain. What would happen if you misplace your baggage or passport; worse still, you face a medical emergency abroad. Are you ready for an eventuality like this?

Travel insurance can protect you during such occurrences. It will provide you with monetary compensation and ensure you against a financial loss. Travel insurance is a legal contract created by the lawyers. Read the fine print and description of the coverage (policy wording) thoroughly before selecting the plan. Here are some reasons for investing in a travel insurance plan.

1) Support in  a medical emergency:
Adventures like parasailing or hiking can be a once in a lifetime experience, but what if something goes wrong in these faraway places? Medical help will be difficult and expensive too. That's when a comprehensive travel insurance policy can come in handy: It can help you avoid out-of-pocket expenses. It will cover the patient treatment, diagnostic tests, ambulance charges, evacuation charges and travel cost to the hospital. Most importantly, the policy could give you the facility of cashless hospitalisation.

2) Trip delays or missed connecting flights:
Cancelled or rescheduled flights can wreak havoc even on the best-made travel plans. Weather, strikes and technical issues could lead you to miss your connecting flight. Hence it is a reason to invest in the best travel insurance to cover these expenses, so you won’t be over budget before you even set off.

3) Replacement for lost or stolen luggage:
Losing your luggage amidst travelling can be frustrating. Even if you are travelling light, the cost to replace everything can be high. You may need to pay to renew your passport and any other travel documents for example or buy a new set of clothes. Travel insurance in India and abroad can reimburse you for these expenses.

4) Peace of mind:
Travel is unpredictable. If you’re involved in an incident where you are found legally responsible for someone else’s injury or damage to their property, travel insurance can help you cover up to the amount specified under your plan.

5) Pre-existing illness:
Insurance is crucial for a stress-free trip, especially when you are suffering from a pre-existing illness. The insurance company will honour your claim arising due to pre-existing illness, in case of any life-threatening events or acute pain.

Whether you’re in an unfamiliar country or at home, getting proper travel insurance for your needs will keep you at ease and allow you to recover your losses against any unforeseen eventualities. Check out travel insurance online on various banking sites to get better deals.

How to choose a life insurance policy?

Introduction:

A life insurance policy is a contract between an insurer and policyholder in which the company promises to pay a designated amount in exchange for a premium, upon the death of an insured person. Buying a life insurance policy may seem bewildering for most of us. It's hard to know where you must start with the selection of plans. If you have decided to get insured, then your next step is to go through types of life insurance and make sure you buy the right one.

1) Purpose:
Often the purpose of buying life insurance depends on personal reasons. If your salary is supporting your family, paying the mortgage or other recurring bills, or sponsoring your kid’s education, you should consider life insurance as a way to ensure that these financial obligations are protected in the event of your death.

2) Types of insurance policies:
Insurance companies offer various life insurance policy plans depending on the needs of the individuals. These policies include whole life, term life, variable life, and universal life. The primary objective of having an insurance policy is protection against unforeseen activities. Ideally, experts believe one must consider term plan, as it gives you a higher sum assured for a lower premium.

3) Life insurance costs:
The factors that decide the cost of life insurance plans vary as per the chosen policy. It may depend on how much you buy, the underwriter's practices, and how much commission the company pays your agent. Life insurance policies often have hidden costs, such as fees and large commissions, that you may not find out about until after you purchase the plan.

4) How much coverage you need:
The amount of life insurance you require depends on factors such as your sources of income, the number of dependents you have, your debts, and lifestyle. However, a generally it is advisable to acquire a policy that would be worth between 5 and 10 times your annual salary during the occurrence of your death. Beyond this, you may want to consider consulting a financial planning professional to determine how much coverage to obtain.

Conclusion:
When picking life insurance, use the internet's resources to educate yourself about basics of life insurance, find a broker or officer you trust, then have the recommended policies assessed by a fee-only insurance adviser. Experts believe people often mix insurance and investment plans. Know that these are two different entities and life insurance policy plan is a must.

Important things to look for in a savings account

A savings account is an excellent place to store your emergency fund. You can tap for this fund during rainy days like car repairs, medical crisis, etc. and informed about all options. A savings account is one of the most basic and reliable financial products of all times.  With the introduction of the Jan Dhan scheme by the government, there has been a substantial rise in the number of savings bank account.

Here we discuss some of the essential things to watch out for while planning a savings account that suits your requirements.

1) Interest rates:
Some savings account work at a fixed rate that pays a fixed set of return during the term. Accounts usually have a one-year term, but you can also lock up your savings for as long as five years. The highest rates tend to go to users who are prepared to tie up their cash for the longest period.

Individuals who want flexibility with your savings can prefer to have a variable rate account. With variable returns though, rates can change at any time, so you should always watch the amount of interest you are earning.

2) Transaction charges:
Before opening a savings account, make sure you research and compare the services charges levied by various banks. Comparisons should be made on bank services such as outstation cheque collection, cheque return charges, annual fees for debit cards and costs for issuing duplicate passbooks, statements and chequebooks. Select the type of savings account best suited to your needs.

3) Minimum balance criteria:
Some banks require you to deposit a minimum amount to open a savings account.  Often, individuals need to maintain a minimum balance requirement while handling the savings account. However, with changes in government schemes, banks do offer Basic Savings Bank Account. These accounts need no minimum balance requirements, provide essential banking services and have restrictions on the number and amount of withdrawals, transfers, deposits, and ATM transactions.

4) Debit card offers:
Most banks provide free insurance cover on debit cards. Some debit cards offer discounts, zero surcharges at petrol pumps, EMI facility, airport lounge access, reward points and cashback offers. Therefore, when choosing a type of savings account, compare the deals available with the debit card offered.

With the power of the internet, you can easily apply online savings account with a bank to park your money. You can earn interest on the amount you deposit in your savings account and enjoy the flexibility. Prominent banks like ICICI, HDFC Bank, Axis Bank, Yes Bank, Kotak Mahindra Bank have developed 24*7 secure netbanking facility. You can efficiently conduct all bank operations without any hassles.

Why is gold loan finance is better than personal loans?

For most of us, when facing a financial dilemma, the first thing that comes to mind is opting for a loan. There are several types of loans available in India. The newest block in the list is the Gold Loans. Now we know gold holds a special emotional connect for most households and taking loans against gold is not considered a preferable option. However, the value of gold is continuously rising, and it makes sense to utilise its power.

In this loan, one has to deposit the household gold in the form of jewellery with the bank or financing agency and get a loan of up to 80 per cent of the value of the gold deposit. The interest rate for gold loans in India is much lower than that of personal loans. To draw a better comparison, we have got a list of the benefits of gold finance.

1) Faster processing:
Banks consider lending against gold as a safer investment. The overall loan processing time for a gold loan is quite less, and you get the approval within a few hours. Banks have the option of selling the gold in case you default in repayment. Therefore, banks usually disburse the loan in few hours.

2) Lower interest rates:
As these loans are secured form of investment, banks charge lower gold loan interest rates as compared to unsecured credit such as a personal loan. The interest rates for a gold loan are generally in the range of 13 to 14% while personal loan interest rates usually start at 15%. Also, if you attach another security as collateral, the gold loan interest rate can be reduced further.

3) Limited repayment woes:
The worst-case scenario in repayment of the gold loan is losing the precious gold. If you are not able to recover your gold loan finance, the bank will take possession of the pledged gold or jewellery to recover its dues. There is no unwanted recovery problem as in the case of unsecured loans like personal loans or loan against property which is claimed through the sale of the property.

4) Bad credit history is not an issue:
Even though you have a bad credit history in the books of account, banks are least concerned when it comes to gold loans. Therefore, if you are in urgent need of funds, try availing gold loans irrespective of bad credit score.

5) Hello Digitisation:
With the advent of digitisation, you can easily apply online for a gold loan instead of visiting the bank. Visit the bank’s official website and calculate the loan amount to borrow on the online gold loan calculators. You can fill the application form available on the site. After submitting the form, bank officials will get in touch with you through call or SMS concerning the application.

Documentation and Eligibility for PPF account in India

Introduced in 1968, the public provident fund is a savings-cum-tax saving investment vehicle. The scheme is one of the most sought-after investment plans to park your savings for retirement. PPF is a 15-year plan, which can be extended for a block of 5 years. You can open the account in a designated post office or a bank branch. One can open a PPF account in almost all Indian nationalised banks like SBI, Bank of India, and Central Bank of India as well as private sector banks like HDFC Bank, ICICI Bank and Axis Bank. 

One of the advantages of investing in a ppf scheme is the tax benefits. Under Section 80C of the Income Tax Act, 1961, PPF contributions made every year are eligible for tax deductions. The tax deductions are eligible only for PPF contributions up to Rs 1.5 lakh in a financial year. Interests earned on PPF deposits are tax-free, while wealth tax is not applicable on PPF accounts. Therefore, PPF benefits you triple exemptions– the deduction on deposits, tax-free returns and no wealth tax. To claim these benefits on your public provident fund account, you need to submit the details of the PPF investments made in a year in your income tax returns.

Therefore, if you are looking for a safe investment option, you should consider opening a PPF account and earn guaranteed returns. Here is the documentation and eligibility process for the ppf scheme.

Eligibility:
Residents of India can open a Public Provident Fund account. A minor can open the account as well, but parents or guardians will operate it. Minor can hold their accounts after attaining the 18 years of age.

 Documents:
1) An identity proof & passport size photographs:
PAN card, driving license, aadhar card, passport or Voter ID card.

2) A residence proof:
Electricity bill, telephone bill or ration card

3) Nomination form:
You can fill the nomination form for the ppf scheme so that the amount will be paid to the appointed nominee, in the unfortunate event of your death or due to any permanent disability.

4) Pay-in-slip:
These slips are available at the bank branch or the post office.
You are advised to carry the original documents along with the Xerox copies. The authorities will verify the original documents but submit them along with the self-attested xerox copies of the certificates.
After opening the ppf account, the bank will issue a passbook to you. It will contain accountholder’s information such as name, number, photograph and the balance. The transactions made within the account will reflect in the passbook. You can also access the account if you have an online banking facility.

Benefits of education loan for abroad studies

You are happy to receive the acceptance letter from your choice of university abroad. I am pretty sure you are excited about starting the new chapter in your life in a new country. Though the prospect of having an overseas education is thrilling, it may get tedious to manage funds. Pursuing studies outside your home country is a costly proposition. Hence, an education loan is an essential element to control funds to study abroad. We curate a list of benefits about study loans so that you clear all your inhibitions and help you make an informed decision.

1) Loan amount:
Lenders grant education loan for abroad studies depending on the fees and other costs involved in the course. Usually, you can gain a credit up to Rs 75 lakh for studies within the country, and up to Rs 1.5 crore for abroad. The loan is granted on the basis of borrower’s necessity and financial condition. Loan amount, in this case, can be as high as Rs 40 lakhs.

2) Moratorium period:
Moratorium Period or EMI holiday states to the time when borrowers don't have to pay any EMI. It usually lasts for a year after completion of the course. Education loan, hence, saves borrowers from the burden of loan repayment, and give them enough time to find a job before loan repayment starts. However, consider paying the interest during the moratorium period to avoid accumulation of interest.

3) Loan tenure:
You can avail an education loan for up to 15 years. The repayment period begins after the moratorium period, hence, you get additional time to create sufficient corpus for paying off your educational loan. You can further request your financier to extend the tenure if you are unable to service EMIs. Keep in mind that you cannot continue the tenure beyond 15 years.

4) Tax benefits:
You can gain tax benefits on interest paid towards study loan under section 80E of the Income Tax Act of India, 1961. The tax advantage is available only for consecutive 8 years or until the loan is paid in full, whichever is earlier. If you take an educational loan on behalf of your child, only the parent would be eligible to avail tax benefits on repayments. The child cannot claim tax benefits even if he/she takes responsibility for repaying the education loan. Therefore, it is recommended to try a joint loan instead.

5) Rate of interest:
The education loan interest rate is usually lower than other loan options such as a personal loan. You can get an educational loan for as low as 8.85% per annum. Female applicants can receive an additional allowance of up to 0.5% on interests. Some lenders provide credit at a lower interest rate if you seek admission in a specialised course or institute. Hence, make sure you research and compare all available options before applying for a loan.

How to make the most out of your credit card?

Credit cards have a bad reputation, and most people consider it a worthy investment. A credit card is a type of a loan, where the money is borrowed from the card rather than debiting it from your personal account. However, several benefits are associated with credit cards as well. Using credit card responsibly will improve your credit score, and this will allow you to be eligible for the lowest interest rates on new credit cards and loans. We bring you a few tips on how to use credit cards and save from costly fees and high interest rates.

1) Make sure you have enough credit:
Using your credit card for all purchases requires you to have a credit large enough to support your spending. Make sure you are responsible enough while using the credit card. You can make purchases but also pay them in full and on time each month. With time, your credit card issuer will raise your credit limit. You can also pay off the amounts often during the month to free up credit so you can continue spending with your card.

2) Try not to withdraw cash:
Credit cards in India allow you to withdraw money from ATMs. However, it is advisable not to do so. There’s usually a fee associated with cash withdrawals, and it typically derives with a higher rate of interest and no interest-free period. 

3) Keep a check on credit card limit:
The best way to check your monthly statement is to maintain all of your credit card receipts each month, then tick them off against the charges on your statement. It will help you keep a tab on the things you bought, and the fees applied.  If you find your bill overstated, contact your credit card provider immediately and get it sorted.

4) Choose the best credit card:
You don’t have to approach your bank for a credit card. Lending institutions in the market issue various types of credit cards. Users may choose the one suited best to his/her needs and lifestyle. However, the very best deals are usually reserved for customers with a sound credit record. If you’re looking to make a big purchase, then a credit card with a 0% interest rate is what you need.

5) Cashing the rewards:
One of the popular benefits of using a credit card is receiving rewards at every purchase. You can score hundreds in cash rewards, miles, or points by using your credit card for all your monthly expenses. Of course, if your credit card issuer has a cap on the number of rewards you use, you may have to switch to another card to maximise the rewards you can earn.