Human life is of such vital importance that we make so many efforts to live healthy and longer. Be it the earning member of the family or any other member, the loss caused in an accident can leave large financial holes and emotional holes in the family. Insurance is one such option that helps mitigate the risks arising from perils surrounding human life and provides a comprehensive cover to all the family members.

The most important element that a health insurance buyer should be aware of is the types of insurance policies in the market. Today, most policies fall under the broad categories of:

• Term Insurance Plans are plans that provide coverage for a specified period of time and get void if the period lapses. Payment is made only on the occurrence of the peril mentioned in the policy.
• Endowment Insurance Plans are plans that provide a sum assured at the occurrence of the peril or when the policy expires without any claims. Thus, such plans provide a risk cover and offer a savings option.
• Unit Linked Insurance Plans [ULIP] are modern insurance plans that have both, risk cover and an investment option, wherein the onus of choosing and investing in the market is on the buyer of the policy. This type of policy that accounts for a percentage of the sum into investments like mutual funds is a great option for someone who is looking for investment.

Importance of Family Health Insurance Policy

The earning member of the family might have an insurance policy that her employer has provided but a lot of times such policies fail to cover the family. Buying a family health insurance policy is necessary not only because it provides tax benefits but also because it covers unforeseen expenses arising out of health and medical perils for the family members. The myth that prophesied the ailment of the old is gone with the increasing health risks due to pollution level, eating habits, et al. All the members of the family require a comprehensive health cover. The following aspects would underline the importance of family health insurance:

• Family Health Insurance is the most effective way to provide security to the life of one’s family members as it mitigates the risk by providing a cover from all-pervasive perils in a person’s life.
• Unexpected expenses, in times of escalating medical costs, at the time of a serious medical disease or accident can be avoided with the help of Family Health Insurance.
• Some plans provide add-on benefits like free medical checkups, no upper cap on hospitalization measures, et al. that can provide the best in the class healthcare for your family.
• Insurance Plans, today, also come with savings and investment options, which, besides risk cover, could also provide financial stability to your family. Buying insurance can contribute to tax deductions as well.

Buying Family Health Insurance leads to living a stress-free life. A comprehensive family health insurance policy that provides holistic cover is also provided by Bharti AXA with a 24×7 accessible and easy claim settlement service.

Gone are those days when men were considered to be the bread earner of every family and women were expected to manage the household. Today, times have changed and now women are competing equally with men. In every field, women have made their presence felt. Due to the rising cost of living and inspirations to achieve more, men and women have become equal counterparts in earning an income.

The loss of even one income will hamper the family’s financial situation. Considering this, it is important to invest in term insurance for women to ensure that there is a financial pillar in troubled times.

What is a term plan?

A term plan is one of the most basic forms of insurance. In a term plan for women, you need to pay a fixed premium amount for a certain period. In case of the insured’s demise, the insurance company will pay the sum assured to the nominees. In the case of survival, the policyholder does not receive any maturity benefits. Buying a term insurance policy is the first step towards building a financial plan.

Benefits of buying term insurance for women

Investing in a term plan should be done keeping the family’s income in mind. When you buy term insurance for women, you ensure the financial security of the family as a whole. In case of an unfortunate death, a term plan will provide for the financial security of the family members. Working women, who can pay regular premiums, need to opt for individual term plans and homemakers should be included in the joint policy with their husband. Even single mothers need to invest in a plan to ensure that the financial future of the child.

Benefits for women in a term plan

It is impossible to fill the void that a loved one leaves in the heart. However, as a smart investor, you can ensure that the absence does not have an impact on the lifestyle of your loved ones. When you buy a term plan online, you ensure that your partner will be secure in the future. This plan will ensure that your partner is not in any sort of financial trouble.

With the financial benefit offered in a term insurance plan, your partner can take care of the various personal responsibilities even if it means cutting down on work hours. Moreover, a term plan enables to pay long-term financial obligations like loans through the amount received from the life insurance company. Therefore, investing in a term plan for women ensures that the financial stability of the family is maintained at all times.

For many, a job abroad is a turning point in their career. But does this make their liabilities any less burdensome?

For most Non-Resident Indians [NRIs], sending funds back home is unavoidable. The remittances could be for debt payments, investments, medical expenses, and so on. But not everyone is aware of the easiest way to transfer money to India. Thus, it often becomes expensive and time-consuming. Knowing the facts about traditional remittance and online remittance will clarify which should work best for you.

Traditional remittance vs online remittance

Benefits of using traditional remittance services

• Funds transferred through traditional agencies and banks are completely secure. You can pay using cash, bank deposit, or debit/credit card. And rest assured, your money is in safe hands until the beneficiary collects it.
• You can send funds even to remote areas. Traditional remittance agencies have a wide service network, which allows you to send money anywhere.
• Traditional remittance services offer direct cash transfer. The money is transferred electronically, but the recipient collects it in cash. It is particularly helpful when the receiver does not have a bank account.

Drawbacks of traditional remittance services

• The overall transfer cost is higher than for online money transfer services. This is due to the higher exchange rate charged by the transfer agency. Suppose the current exchange rate is USD 1 = Rs 69, but the transfer agency offers USD 1 = Rs 64. Therefore, for USD 1,000, the difference would be Rs 5,000.
• The transfer speed is quite slow. Usually, bank-to-bank transfers take up to five business days in case there is no working relationship between the banks.
• You do not have 24-hour access. Physical outlets have certain working hours. And transferring funds across different time zones can complicate matters further. So, you will need to keep the timelines in mind when sending money to India.

Why you should remit online

Online remittance facilities are slowly replacing traditional money transfer services. They are convenient, and you can send money to India easily from wherever you are.

Advantages of using online money transfer services

• Online remittance facilities offer faster and seamless money transfer. They allow you to complete the process with minimum time and effort. You can transfer money anywhere and at any time. There is no limit on the amount you can transfer either. Also, the transfer happens digitally, which means there is zero paperwork. It takes less time and spares you the hassle of submitting documents.
• Instant fund transfer within a few hours. Most online remittance services offer same-day money transfer. This transfer process is even quicker with RemitMoney. You can send funds directly from the USA, UK, Canada, and Europe to India within an hour.
• Less expensive than traditional money transfer services. Online money transfer services usually have a lower exchange rate and a minimum transaction fee, which brings down the overall transaction cost.
• You can track the status of your remittance through the website. Besides, you will receive periodic email updates on the transfer.

Disadvantages of online money transfer

As with all things, online money transfer is not without its share of drawbacks.

• It is not a good option for those with no bank account. As it involves an account-to-account transfer, having a bank account is crucial.
• You must have an active internet connection to make the transfer. Digital transactions are prone to malware attacks and online frauds. Doing a little research on this ensures you do not fall into the trap.

Bottom-line

As you can see, both the options have their benefits and drawbacks. Thus, you should always choose the service depending on your needs. However, online remittance does have some clear advantages over traditional remittance services. Online money transfer services such as Axis RemitMoney offer better exchange rates and lower transfer fees. This means, your beneficiary will receive most of the amount that you send.

Investing in a fixed deposit [FD] is one of the most effective ways of growing one’s money. Whether you are trying to grow your regular income or want to utilize your savings, FDs can help you to achieve that goal in a secure manner. Earlier, the investors only had the choice of bank FDs. Today, investors have more investment options due to the rise of Non-Banking Financial Companies [NBFCs].

An NBFC is registered under the Indian Companies Act, 1956. It provides various loan and investment options with FD being one of the most popular investment instruments.

Why to choose an NBFC FD

The core reason behind the increasing popularity of NBFCs is that they offer higher FD interest rates compared to the banks. As a risk-averse investor, you may have the thought to opt for a bank FD, as it is safer. However, you need to consider various other aspects before investing your hard-earned money. Here are a few aspects of NBFC FDs that shows why it is a better option compared to bank FDs

Interest rate

Different banks and NBFCs offer a variety of interest rates for their fixed deposits, but in general, the NBFC FDs have a higher return. The most popular banks in India offer an interest rate of 6.6 to 7% on the FDs. The senior citizens are offered up to 0.5% higher interest. When it comes to FDs in NBFCs, the interest rate offered on the FD is 8.3 to 9%, which is up to 0.10 to 0.25% higher for senior citizen investors.

Credit rating

The fixed deposit interest rates are not the only aspect that the investors consider before taking a risk with their money. When it comes to the bank FDs, the investors find it more trustworthy because banks are governed by the Reserve Bank of India [RBI]. Your investment is insured by the Deposit Insurance and Credit Guarantee Corporation.

However, an NBFC with a high credit rating can be equally trusted as it indicates how safe the company is. There are credit rating agencies that provide ratings to the NBFC FDs based on the risk factor regarding the business, finance, and the quality of the company’s management.

Before investing in an NBFC FD, it is important that you find out the credit rating of the company and learn about its business models. You will be able to make an informed investment decision after doing intensive research.

The option of premature withdrawal

You have the facility of premature withdrawal in the case of both bank FDs and NBFC FDs. However, one difference is that a few private banks do not allow premature withdrawals. On the other hand, NBFCs allow you to withdraw money before the end of the investment tenure. Even though some companies have a mandatory lock-in period, NBFCs score more as compared to banks as you can withdraw your investment in case of a financial emergency.

The premature withdrawal penalties vary from one NBFC to another. To avoid any penalty, you should only use the money that you can invest for a long period of time.

The minimum period of investment

The minimum investment tenure for an NBFC FD is higher compared to a bank FD, which increases the FD rates, and results in a higher return in the long run.

When investing in an NBFC FD, you must ensure that you know all the important facts so that you can invest your money in the most secure and profitable manner.