The affordable pricing and the high death benefit have made term insurance policy a very popular option in India. It also comes with death benefits. For these reasons, many people are opting for term insurance policies. As a Non-Resident Indian [NRI], you might have some doubts regarding buying and what is term insurance in India. Firstly, if you are wondering if it is allowed to buy one then the answer is ‘yes.’

Here are some important questions related to NRI insurance that can make things clearer for you:

Is an NRI required in India to buy term insurance?

You do not have to be present in India to buy a term plan from here. All you need is a written communication with the insurance company of your choice. However, the insurer might not provide free medical examinations in the country where you are based. You have to pay for that from your pocket and send the required reports to India.

What is the procedure to pay the premium for NRIs?

The premium for term insurance for NRIs can be paid many different methods:

• Payment in foreign money
• Foreign Currency Non-Resident [FCNR] /Non-Resident External [NRE] account
• Non-Resident Ordinary account

The NRE or FCNR bank account is used when the policyholder is paying the premium in foreign currency. If you want to pay the premium in Indian Rupees [INR],   you can use an NRO account.

Factors to consider before you buy the term policy in India

You need to consider various factors before you can decide which policy to buy. Here are some points that you must remember:

• Price of the plan

The price of the policy might be different from insurer to insurer. It will also be different between India and the country of your residence. So, you can research the online term plan for NRI and compare the costs to decide which policy is more profitable for you.

• Tax regulations

NRI insurance plans offer different tax benefits and regulations in different countries. For example, the term policy in India comes with tax relaxation on death benefit and the yearly premium. However, in the USA, the death benefit is not completely tax-free. Once you compare the tax regulations of your residing country with India, you will be able to decide which one benefits you the most.

• Claim settlement ratio

The claim settlement ratio is another very important aspect that you need to take into consideration. It is the ratio between the number of claims an insurer receives every year and the number of claims settled by them. This ratio will give you an idea about how trustworthy your insurance company is.

Buying the online term plan can help you as an NRI to avail of death and tax benefits. However, remember to make sure that you spend some time researching about different policies and buy the one that is most suitable for you.

Purchasing a home is a major financial decision and thus, you would require the help of a real estate agent to help you browse through the various property options. A real estate agent has access to lists of properties for sale and also has a better understanding of the local real estate market. Therefore, taking the help of a real estate agent can be beneficial in your property search. However, before you select an estate agent, you should consider choosing a loan officer.

Since purchasing a home requires a substantial amount of money, a loan officer or a loan broker, can help you make sound financial decisions and obtain a home loan. A loan officer can help you in comparing loan products from different financial institutions, thereby ensuring you’re getting the best rates and fair fees.

If you are looking forward to purchasing a house, you would require the help of both a real estate agent [realtor] and a loan officer. However, it is advisable to choose a loan officer before you choose a realtor.

Here are a few reasons why you should choose a loan officer before you choose a Realtor

• When buying a home, you should be aware of the budget you have for the same. A loan officer can help you evaluate your finances and give you a better understanding of how much you can spend in buying a property
• Your loan officer can also help you find an honest and experienced real estate agent.
• Your loan officer can give you valuable suggestions regarding what locations should you prioritize while purchasing a property for yourself and other details like calculation of EMI, benefits of pre-payment of home loan, gst on home loan and more.

How to find a loan officer?

• You can find loan officers online on the internet or at your local bank.
• While choosing a loan officer, make sure to interview at least a couple before deciding which one to work with.
• Since availing a home loan is one of the most important aspects while buying a property, you should choose a loan officer that you are comfortable working with and who has prior experience.

Things to consider while choosing a loan officer

• Make sure that the loan officer works with several lenders. This will give you more options.
• Search for a loan officer with prior experience and contacts with the type of loan you are looking for.
• Originating a loan also involves using complex software program. Therefore, it is advisable to choose a loan officer who is technically sound.
• Lastly, before making your final choice, make sure you are comfortable working with your loan officer.

Now that you are well aware of the importance of loan agents while availing a loan, make sure that you do proper research and choose the best loan agent for yourself. In case of home loan, it is very important to understand each and every minute details of the loan before availing it. A loan officer can help you understand all the terms and conditions of your home loan so that you get the best deal. This can help you avoid any inconvenience in the later stage.

Credit card is a payment card that is issued by card issuers, which is mostly a bank to enable a cardholder to buy merchant goods and service. The cardholder has to pay the bank issuer the amount along with other agreed charges.

The importance of credit cards has not gone done with the entry of payment apps. It is still one of the most preferred choices to raise short term capital. While the mobile payment apps have been gaining a lot of traction through offers and deals, the credit cards have lots of benefits.

Many do not know that if appropriately used a credit card can help in saving money.

Here are some of the ways a credit card can save your money:

Deals on online commercial portals

It is the first and the easiest way of saving money through a credit card. If you have more than one credit cards, use it judiciously, so that you can get good discounts. Most e-commerce companies have tie-ups with credit card companies. You can get discounts, free EMI’s, or any such offers if you are holding a particular credit card.

So, before using the online e-commerce portal, do check out if there is any discounts or offers available on your credit card or not.

Reward points

Every credit card company has a reward program, and each reward point has value. Some credit card issuers allow converting the reward points into cash. While others provide coupons instead.

So always do research and find out the reward structure of the credit card and whether the credit card issuers allow converting reward points into cash.

Co-branded credit card

If you frequently use services like going to a supermarket, air travel than Co-branded credit cards are very beneficial for you. It helps you to earn reward points which can be used to settle bills at the co-branded partner.

Co-branded credit cards come with additional benefits like additional discounts and insurances. But it does not provide other major benefits other than transacting at the co-branding partner.

Cashback

Providing cashback is kept as an alternative to the reward points driven credit cards.

It is beneficial for those who have limited money because of some of the focus on cashback on utility bills like electricity bills etc. The main focus of cashback is at enlisted partners such as super-stores, food courts and e-retailors.

However, there is a long list of terms and conditions attached to the cashback.

Building credit card rating

A credit score shows the history of loan repayments of an individual. The number stands between 300 and 900. A high number means responsible use of credit in the past and most lenders do prefer to lend to individuals with a high credit score.

Credit card are nothing but short term loan facility and timely repayment of credit card bills ensure good credit score. A high credit score attracts the lender, and you can negotiate a good deal on your future loans.

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.

You must have heard stories about people who hastily chose a home loan which eventually become a financial burden. A home loan is a long-term commitment, which has a significant influence on your finances. Thus, as a home loan buyer, you should be a lot careful throughout the process.

Here are the factors you must consider in order to choose the home loan that suits you the best.

Selection of the interest rates

The interest rates on home loans are influenced by several factors namely, loan amount, credit score, tenure, etc. you must consider home loan interest rates before applying for a loan as they directly affect EMIs and total payable interest. There are two types of interest rates available,

• Fixed interest rates – They remain the same throughout the tenure.
• Floating interest rates – They change according to the market fluctuations.

In India, banks follow the Marginal Cost of funds based Lending Rates [MCLR] regime to decide interest rates. This system is designed to give the benefit of changing interest rates to the borrowers.

Tenure of the Loan

There is a straightforward relation between tenure and EMIs, the more the years you chose to repay your home loan, the lower will be EMIs; however, the higher will be total payable interest.

For example, Mr. Shardul has borrowed Rs. 30,00,000 as a home loan with an interest rate of 9%, then, the EMI will be different for different tenures. Take a look

As you can see, as the tenure increases, the EMIs decrease, thereby increasing the total payable interest. The best choice will be selecting the tenure in such a way that paying EMIs will not be a financial burden for you. Selecting a longer tenure is perfectly fine when EMIs won’t be stressing your monthly budget.

Loan processing time

It is the period between approval of home loan application and disbursal of loans amount. Every lending institution has different guidelines to decide the loan processing time. So, you have to choose the lender based on your urgency for a home loan.

Home Loan Processing Fees

It is a fee that lenders charge you to work on your case as well as process your files. Generally, processing fees are fixed that is most lenders charge 0.50% to 1.50% of the total home loan amount. The home loan processing fees are non-refundable, and they do not confirm the sanctioning of the home loan application. So, you should opt for a bank that charge lesser processing fees in comparison with others.

Repayment Conditions

Every lender has their terms and conditions about home loan repayment. It is essential to understand them before taking a home loan. Having a comprehensive knowledge about late payment charges, CERSAI charges or loan transfer charges, etc. is crucial before taking a loan.

Prepayment or Part Payment options

Prepayment and part payment, both are the facilities given by lenders to their customers. As per these facilities, you can pay a lump sum amount over and above the EMIs against your loan. These facilities help you to reduce the payable interest by repaying the loan ahead of time. Many lenders do not charge you for these facilities; however, some lenders could charge pre-payment penalties to their customers who wish to pay off their loan before time. So, you need to confirm about these before finalizing your lender.

Affordable Housing

The Indian Government has introduced subsidized home loans under Pradhan Mantri Awas Yojana [PMAY] to provide financial aid to the low and middle-income households. This scheme was incorporated to encourage all Indians to buy their home.

Considering all the above factors and make a calculated decision based on them. This would make it easier for you to choose the home loan that suits you the best.