Travel includes a lot of excitement and enjoyable memories. However, it can be disturbed by any unexpected problems. Therefore, an individual should be prepared, if in case any problems arise. It can be sudden illness or accident, which might turn down the excitement of the trip. In addition, the medical cost in foreign countries is expensive. You can come across events like baggage loss, thefts, passport loss or monetary loss.

It can be any natural calamities or man-made riots which can affect your travel plan and your finances. Therefore, it is always safe to buy family travel insurance while planning for a family vacation.

Travel insurance provides medical and financial assistance in case of emergency to you and your family while traveling abroad. The aim behind buying travel insurance is to fly safe, worry free, and make the entire trip memorable. With the range of travel insurance plans covering leisure and business travel, you will find adequate coverage for a premium that suits every budget.

Buying travel insurance online offers you a wide range of travel insurance plans covering leisure and business travel. You can choose the insurance plan with the adequate coverage for the premium as per your budget.

Today, insurance companies offer specialized product portfolio with customized travel insurance plans:

• Individual Only Insurance
• Family Floater Plan
• Senior Citizens
• Students
• Multi/Annual Trip for business travelers

It is very important to understand the coverage offered under the family travel insurance or other plan you opt for. The most common travel eventualities covered under travel policies are:

• Emergency Medical expenses and emergency evacuation/repatriation expenses
• Accidental Death or Permanent Disablement
• Flight delay
• Loss/delay of checked baggage, Loss of personal documents
• Personal Liability

Following are the few benefits of travel insurance

Medical costs

In case of any unexpected illness, disease or accidental injuries, travel insurance covers the cost of medical expenses. The policy pays for the cost of the room and boarding expenses, fees of physicians and ambulance service, etc.

Repatriation

If you are unable to continue the trip due to any reason after hospital stay or medical treatment then the insurance company pays the cost of return to your country along with the medical bills.

Loss of baggage/personal documents

Under travel insurance, even your belongings are covered during travel. In case you lose your belongings or personal documents like identity card, passport, etc., you can claim the costs with your insurance provider.

Flight delay – If the flight is delayed from scheduled departure time then the insured will be reimbursed for any essential purchases.

Personal Liability – This cover provides third-party liability coverage if one involuntarily causes damage to third-party person or any property.

Hotel Accommodation – If the insured is hospitalized as an inpatient then the insurance provider will pay for the costs of hotel accommodation for the insured’s family member.

If the insured one is hospitalized as an inpatient, the insurance company pays the costs of the accommodation for the insured one’s family member.

All the above benefits vary depending upon the policy you choose. Therefore, always make sure to read the terms and conditions of the policy carefully.

Other things that one needs to consider while evaluating travel insurance policies are:

Look for policies that offer highest reimbursement towards

• Personal Accident
• Medical Expenses
• Loss of passport
• Personal Liability
• Trip Delay
• Checked baggage delay
• Financial emergency assistance
• Offers Accidental Death & dismemberment
• Dental care expenses

While booking flights, hotels and places also make sure to buy travel insurance online as well to stay protected. It will help you with the assurance of support being available in a foreign land in case of unforeseen eventualities. In addition, domestic travel insurance can help you to enjoy your domestic trip peacefully with your family members or loved ones.

A term insurance plan is one of the most affordable life insurance policies. It does not come with any maturity benefits. The nominees of the policyholder receive the sum assured if the insured passes away before the maturity of the plan. Both the individual and joint term insurance plans provide financial security to your loved ones.

Term insurance plan for couples

Couples can opt for separate or joint term policies, depending on their needs. You must understand these aspects of a term plan to decide which option to choose:

1. Nuclear double-income families

A working couple must opt for a term insurance plan to make sure that the future of their family is financially protected. According to experts, the sum assured should be at least ten times their yearly income.

2. Cover for life

When you buy a joint term insurance plan, you secure the future of your partner. The right term plan will offer them enough cover to run the household without having to compromise on lifestyle.

3. Future requirements

The plan that you buy decides the financial security of your children in the future. You have to decide on the sum assured depending on your future needs like children’s tuition fees and renovation the house.

4. Health concerns

The term life insurance for married couples must also come with critical rider benefits that cover healthcare bills. You will need this, as you get older when the visits to the hospitals become more frequent.

Different kinds of term insurance plans for couples

When it comes to the term insurance policies for couples, there are two options:

• Separate term insurance plan
• Joint term insurance plan

Separate vs. joint term insurance plan

Explained ahead is a comparison between separate and joint term plans based on the following points:

• Terms and conditions

Buying separate policies allow couples to select the conditions according to their personal needs.

• First death

Most term plans offer the sum assured in case of the first death or when the first claim is made. Some policies offer benefits on each death.

• Single payout

For a joint term policy, in case of accidental deaths of both policyholders, the nominees receive only a single death- benefit. In the case of separate policies, they will get two separate benefits.

• Divorce

In case of a joint term plan, the policy cannot be split if the couple decides to go for a divorce. The policy lapses if any one of the policyholders decides to stop paying the premium. Having separate policies can solve this problem.

• Affordability

The joint term plan is generally more affordable when compared to two separate policies.

• Convenience

Many couples buy a joint term insurance policy because it makes the paperwork simpler. Separate policies require couples to fill two sets of documents.

Now that you understand the differences between joint term plans and separate policies, you and your partner can decide which one to opt for according to your needs and expectations.

For financial security, it is essential to have a contingency fund that can take care of your expenses for 3 to 6 months. Such a contingency fund can help tide over the short-term loss of income such as an extended leave due to illness, loss of a job, a decline in business, etc. It can also help cope with unforeseen expenses such as medical emergencies, among other things.

Many investors park their surplus money in a savings account to serve as contingency funds. A reason for this could be they do not want to lock their money in any investments. Or, they may not know other alternatives. But what if there is a better alternative where you can park your surplus money? Liquid funds can be an excellent financial instrument from an investment standpoint.

What is liquid fund?

Liquid mutual funds are types of debt funds that invest primarily in open-ended schemes which have a short-term investment horizon. They invest in money-market instruments such as commercial papers, treasury bills and certificate of deposit up to 91 days. The main objective of short term liquid funds is to provide income via creating ample liquidity and preserving your capital. Once you know how to invest in liquid funds, you can choose to invest for a few days or months depending on your financial requirement.

Liquid fund returns v/s savings account

In 2011, the Reserve Bank of India introduced changes and deregulated the interest rate on savings deposits. Before that, every bank would offer an interest rate of 4% per annum. Since the ruling, banks are now free to provide interest they deem fit. Typically, the returns now on savings account are still around 4%. If you fall in the highest tax bracket, the post-tax returns on savings account come to approximately 2.8%. Such a return may not counter inflation or help to accumulate wealth.

On the other hand, liquid funds offer returns in the range of 7% to 9% per annum. If you consider the post-tax return on the highest tax bracket, the percentage is about 5% to 6%. This is moderately higher than what a savings account offers.

Tax treatment

Interest on a savings account is taxable. However, there is also a deduction available under Section 80TTA up to Rs. 10,000 per year. If the interest income exceeds the said limit, the amount is taxable depending on your income tax bracket.

Here are some scenarios to consider:

• If you hold liquid funds for less than three years, tax on liquid funds is charged as per your income slab.
• If you hold liquid funds for more than three years, you become eligible for long-term capital gain tax at 20% with indexation benefit.
• If you opt for the dividend option, the dividend income is free, subject to a dividend distribution tax of 29.12%.

Conclusion

Thus, you could benefit more from investing in liquid funds if you have surplus cash. Not only would you earn better returns but also save on tax. 

The stock markets provide a good avenue for growing your wealth. This is especially true in a developing economy like India. But to transact in the equity markets, you will first need to open a demat account.

‘Demat’ is the short form for ‘dematerialised’. Such an account holds your securities digitally – in dematerialised form. Thus, it allows you to buy and sell securities online with ease. If you are wondering how to open demat account, the process is simple. All you need to do is check if you meet the eligibility criteria and gather the documents required for demat account opening.

Eligibility criteria for demat account

Two factors determine whether and how you can apply for a demat account. Here’s what you need to know

1. Age – First things first, your age does not matter. Certainly, those above 18 years can open a demat account at any time. But even minors are free to apply for demat accounts.In case of minors, a parent or legal guardian can open the account and be in charge of it until the minor turns 18. Upon attaining majority, the account holder will have to submit some Know Your Customer [KYC] documents and open a fresh account.

2. Documentation – To apply for a demat account, a valid PAN card is essential. In addition, you will need to furnish documents that prove your identity and address. Take a closer look at the documents required for demat account opening:

• Proof of identity – PAN card, voter’s identity card, passport, driver’s license, among others.
• Proof of address – PAN card, voter’s identity card, passport, driver’s license, ration card, utility bill, bank statement, among others.

If you can provide these documents, you are eligible to open a demat account.

How to open demat account

Start by approaching a depository participant [DP] that is registered with a depository. Two such depositories operate in India currently: Central Depository Services (India) Ltd [CSDL] and National Securities Depository Ltd [NSDL].

Now, fill in the account opening form and provide the necessary documents. Following an in-person verification, the DP will provide you with a demat account number and an identification number. A DP like Kotak Securities ensures a hassle-free experience and processes demat account applications in just a few days.

What is ULIP?

Unit linked insurance plans [ULIP] are a combination of insurance and investment. The policyholder can pay the premium either monthly, quarterly or annually. While a small portion of the premium is for the life coverage, the remaining money gets invested in multiple fund options available under your plan. The lock-in period of a ULIP Policy ranges from 3~5 years [depending on when you purchased your ULIP]. An investor must opt for a longer policy term since it allows growth of the corpus.

ULIP insurance allows you to allocate your money in equity and debt funds based on your risk appetite. An aggressive investor must select equity-oriented fund option, whereas a debt option can be opted by a conservative one. ULIP offers an investor the flexibility of free switches between funds. You can switch your portfolio between debt and equity based on your risk and knowledge of the market’s performance. Under Section 80C of the Income Tax Act, 1961, you can enjoy tax benefits on the premiums as well as the maturity benefits. While the premium is deductible up to Rs. 1, 50,000, the maturity pay-outs are tax-free.

There are two different types of ULIPs

1. Type- 1 ULIP

In case the policyholder dies, whoever is the nominee, will receive either the fund value or the sum assured, whichever is higher. When a policyholder opts for Type 1, he might obtain high returns. Moreover, the timely payment of premium ensures the reduction of risks.

For example, ‘A’ holds a Type-I ULIP that gives her a sum assured of Rs 5 lakh for an annual premium of Rs 50,000.

In case of death in the initial years of the policy, when the fund value is less than the sum assured, the insurer will pay the agreed sum [which here is Rs 5 Lakh] to A’s nominee. However, if the fund’s value goes higher than the sum assured, the death benefit amount will be the accumulated fund value. Type 1 ULIP has lower premium amount as compare to other ULIP types.

2. Type- 2 ULIP

In case the policyholder dies, whoever is the nominee, gets Fund Value + Sum Assured. In this structure, the liability of the insurer remains constant at Sum Assured until maturity.

For example – The nominee of “A” gets the sum assured and the amount accumulated in the fund as on the date of death by the insurer. Under the type II policy, the insurance company charges an extra cost for the additional risk.

Which one should a user buy?

Since ULIPs offer dual benefits, you can be assured of adequate life coverage to cover all your emergencies. However, selection between these two types has its own pros and cons. The right thing to do before investing in the best ULIP for yourself is considering your needs and opting for one of the two types.

If want to purchase a ULIP to fulfill a life insurance requirement in your portfolio, consider investing in a Type-II ULIP. However, if you’re looking towards ULIP as an investment vehicle, go with a Type-I ULIP. The charges are lower, and you only get the fund value on maturity, which decreases the life insurance company’s liability. However, ensure that your Sum Assured is ten times your annual premium amount, in order to claim tax benefits under Section 80C and 10[10D] of the Income Tax Act, 1961.

A commercial vehicle loan is available to any individual or organization, which is planning to buy a commercial vehicle. These loans are often costlier compared to personal vehicles; hence, you will need a loan that can help you finance the purchase.

Before you apply for the loan, here are a few things that you need to know about.

Eligibility

The commercial vehicle is a necessity for many businesses, especially for the delivery and transportation-related companies. The loans can be applied for by a

• Self-employed person
• First-time commercial vehicle buyer
• Transportation business person who owns a fleet
• Business firms
• Public and private limited companies
• Educational institutes
• Healthcare business
• Trusts and societies
• Transporters

The application process

Applying for commercial vehicle loans is quite simple, just like any other loan offered by a financial organization. Either you can visit their branch to ask for an application form or you can visit their online portal to find the same.

You need to fill the form with your personal and professional information. You also have to provide them with your address and contact information. Once done, you need to submit the required documents so they can verify your information. For the online procedure, you can upload the scanned copies of the documents too. If your loan application is accepted then your lender will ask you to complete the verification procedures and other formalities.

Required documents

To get the commercial vehicle finance, you must submit the following documents with your loan application –

• Address proof like Voter ID, Ration Card, or Passport
• Documents that prove you have experience in the related area of business
• Records of past loans, if any
• Bank statement for the  past six months
• Proof of previous two years’ income tax returns
• Audited balance sheet document
• Account statement of your business’ profit and loss
• Information regarding all the vehicles you own
• A copy of the vehicle registration certificate

Loan tenure and amount

The amount of loan you can get for the commercial vehicle depends on your requirements. Sometimes, your past relationship with the lender can determine the amount too. Most lenders provide up to 100% of the price of the vehicle you are buying. The loan repayment tenure can be anything from six months to five years.

Interest rate

The interest rate can vary depending on the lender. The rate of interest for these loans can be 10-15% or more. It also depends on your credit score, business turnover, the number of vehicles you already own, your relationship with the lenders, and other factors. You can use a commercial vehicle loan EMI calculator to get an idea.

By using the commercial vehicle loan calculator, you can get an idea about the monthly installment amount that you have to pay. However, you also need to keep in mind that you will be charged a processing fee. It is charged when you are applying for the loan, and it is not refundable. The amount depends on the value of the loan.

Term insurance plans are gaining immense popularity among young working individuals because of the flexibility in choosing the insurance term and the low premium costs. Apart from the usual insurance coverage, these insurance policies also grant a death benefit to the family members in case of the untimely death of the policyholder.

However, the term insurance benefits are not limited to these features only. Some insurance providers also offer a ‘critical illness rider’ along with their term insurance plans.

What is a Critical Illness Rider?

A critical illness rider is an added benefit to your term insurance policy for coverage against a number of critical illnesses. Life is unpredictable, and you may never know when you have to face any urgent medical need. The instances of critical diseases like cancer, cardiovascular disorders, stroke, etc. have increased in the general populace. The medical expenses incurred for treating these diseases are also skyrocketing. For example, Herceptin, a drug for treating breast cancer may cost anywhere between Rs. 75,000 to 1 lakh for a single vial.

Thus, paying for the treatment of such critical disease could dig a significant hole in the pocket, especially if you are the sole breadwinner of the family. As if this isn’t reason enough to buy a critical illness rider with your term plan, below listed are 5 more reasons why you should purchase a critical illness rider now!

Five reasons to buy Critical Illness Rider with your Term Insurance Plan

No change in premium amount

Since the rider is included in your term insurance plan, you do not have to pay a separate premium for the extra medical coverage. Also, the premium does not change in the entire policy term. This means that even if you are diagnosed with a critical disease, there would be no increase or decrease in the premium amount. In fact, some insurance providers offer the facility to waiver off future premiums upon any critical illness diagnosis.

Coverage Against Major Diseases

A competent term insurance policy offers provisions to cover all major disease under its critical illness rider plan. This increases your safety net against most of the major diseases. Besides, under this rider, the insurance provider promises to give a lump sum amount upon the diagnosis of any of the critical illness mentioned in the plan. This upfront amount can even be used by the policyholder to pay his/her daily expenses.

Improved Chances of Survival

In the absence of a critical illness cover, you might get burdened with high medical expenses. Taking such medical cover ensures that individuals do not lose their life because of the unavailability of money to fund the high treatment costs. A critical illness rider, thus, makes sure that you get the medical coverage at the right time, increasing your chances of survival.

Tax Benefits

The premium paid towards a term policy with a critical illness rider is eligible for tax exemptions under Section 80C of the Income Tax Act. Not only that, but the benefits received from these insurance covers are also exempted from tax deductions under Section 10 [10D]

Protection Against Disability

Some serious disease conditions might lead to temporary or permanent disability. Any form of disability might hamper a person’s ability to continue with his job, thus threatening his/her monthly source of income. Some critical illness rider offers inclusions to provide financial aid in case of any physical disability to the policyholder.

Conclusion

With our busy day to day life, we often ignore the sign of any dis-ease or distress. Often, this leads to a late diagnosis for a critical illness, by which time, controlling the spread of the disease often becomes next to impossible. Hence, it is always wise to start planning ahead for your future for such unforeseen circumstances.

Buying an added critical illness cover is essential for individuals who have crossed 40 years of age, have a familial history of critical diseases, or are the sole earners in their family. A little planning at the earlier stage could go a long way in saving financial as well as psychological trouble for you and your loved ones.

Ready-to-move-in homes have remained the preferred choice for several homebuyers. With new launches picking up pace, Mumbai has seen demand for new homes. Be it resident individuals or NRIs, there is a slow but steady demand for purchasing a home. With a set of upcoming real estate properties shining on the Mumbai skyline, these may be the hottest projects for home-buyers like you.

We take a look at 5 projects that are RERA approved and help you narrow down your search for the ideal home. If you are looking to take a home loan for your house, you would want to know more about hot properties in the areas you prefer. Read on to know more.

1. Lodha Amara

Situated on the Kolshet Road, Mumbai Thane area, the Lodha Amara offers 1,2,3,4,5 BHK Apartments at about Rs 8490 / Sq.Ft. onwards. The homes in this project cost anywhere between Rs 53 lakh to Rs 2.9 crore. Phase 1 is ready, while others are undergoing construction. The  Lodha Amara project comes with Next Gen homes with advanced automation facility, 30 acres of open spaces and a world-class sports arena, among others. With easy eligibility for home loan, now getting one today is an absolute breeze.

2. Wadhwa Wise City

Located in the Panvel, Navi Mumbai Navi area, this project offers 1 and 2 BHK, and 1 RK [studio] apartments at a price of Rs 8205 / Sq.Ft. onwards. The newly launched residential project is witnessing ongoing construction for 8 phases. The minimum price of the homes here starts at Rs 24 lakh. One can expect possession by May 2025. Designed by a team of urban designers and architects, the Wadhwa Wise City project promises to be a harmonious balance of green and grey.

3. Dosti West County

Launched by the Dosti Group Builders, Dosti West County is located in the Balkum, Mumbai Thane area. It offers a choice of 1,2,3 BHK Apartment with prices of Rs 13000 / Sq.Ft. onwards. This pegs the price of a home under construction anywhere between Rs 63 lakh to Rs 1.9 crore. Three phases are ongoing. One can expect possession by June 2021. The Dosti West County project is spread over 14 acres, has 19 towers with homes across 33 storeys. NBFCs like Tata Capital offers home loans for up to a maximum of Rs 5 crore, with a loan tenure of up to 30 years so that EMIs are manageable.

4. Godrej Tranquil

This real estate property is located near the Kandivali (East), Mumbai Andheri-Dahisar area. Coming from the prestigious Godrej group, the project offers a chance to own a 1,2,3,4 BHK apartment. The price is Rs 20500 / Sq.Ft. onwards. The under-construction flats come between Rs 84 lakh to Rs 2.51 crore. Possession is expected by June 2022. The apartments at Godrej Tranquil are available in the size ranging from 400 sq ft to 715 sq ft. Key amenities offered include a clubhouse and 24X7 security system, as per project details. NBFCs like Tata Capital offer highest home loan eligibility guarantee will help you own a piece of mental peace in Mumbai. What’s more, you get a housing loan beginning 9.25% per annum.

5. Runwal My City

This project is situated in the Dombivli (East), beyond Thane area. Spread across 156-acres, the Runwal My City property has central residential area flanked by commercial and retail spaces on two sides. Offering 1,2,3 BHK apartments at a price of Rs 8200 / Sq.Ft. onwards, there are 4 phases ongoing. The project is within 5 km from Dombivli, 3 km from Diva, and 2 km from Dativalis [on Panvel-Diva-Vasai corridor]. It is also 30 mins from the upcoming international airport. Use the home loans route, to live life on your own terms.

If you find these properties interesting, availing a smart and flexible home loan can make this dream possible for you.