Buying a car means upgrading your standard of living. You can finally afford what is a luxury to many. Having a car in the house is often the ultimate sign of happiness. It brings a family together. You can go for outings, road trips and what not! A car becomes an inseparable part of your life. Right now is the best time for you to buy a car. You ask why? It’s this festive season, a lot of automobile dealers have extravagant discounts and benefits.

Here are 10 reasons why you should buy your dream car this Festive Season.

1. Attractive Discounts

To attract customers, car dealers and manufacturers provide attractive discounts. In a way, this is a good strategy for both the buyer and the seller. You might not get such discounts through the year.

2. Exclusive Offers and Gifts

Most dealers add greater value during this period of festivities by conducting lucky draws for extra gifts and goodies or even cashback benefits on your purchase.

3. Exchange Old for New

Most retailers and dealers introduce exchange offers during the festive period. As there is an increase in the demand for used cars, companies are giving exchange offer to their customers. If you are looking for an upgrade, just replace your old car with a new one!

4. Insurance discounts

Most of the dealers offer you a free insurance for the first year if you buy a car during the offer period. You need to discuss it with the auto dealer for more details.

5. Extended Warranty

Dealers offer you a 1 year or 3~5 years warranty on your car if you buy in the offer period during Festive Sale Offers. If there is any defects or failures in the car, the warranty can save you from spending money on it.

6. Road Side Assistance

There are some dealers who also offer Road Side Assistance. So in case your vehicle breaks down, you get the assistance for free. This saves you a lot of money.

7. Corporate Discounts

If you work for a corporate or for a government organization, you can avail discounts if the dealer provides a corporate or PSU discount.

8. Attractive Interest Rates

Many lenders offer low-interest rates during a festive season to attract customers. Even the rate for down payment is low.

Buying a car needs research and a lot of thinking. You need to choose a car which serves your needs, is of a good brand, has a high resale value and fits your budget. If you want to make your car buying process simpler, choose a Car Loan. Here is why you should avail a Car Loan.

• You don’t have to wait for a long period to buy your car. Most of the lenders provide up to 100% finance based on your ex-showroom price.
• The process to avail a car loan is simple. You can get instant loan through the lender apps. All you need to do is choose the loan you want to avail, enter your loan amount, fill your PAN and get money in your bank account instantly.
• You can choose the tenure for your car loan according to your choice with attractive interest rates.
• When you avail a car loan you can choose an amount higher than your ex-showroom price so as to account for extra expenses of insurance, registration, accessories etc.
• You do not need to keep your car as security or collateral.
• Get options to choose a payment mode feasible to you.

Let this festival bring more light and happiness. This Festive Season buy your dream car and set out on a memorable journey.

When you buy health insurance, it is essential to read every document of the contract carefully before providing your signage, as there might be hidden clauses that you may be unaware of. On the other hand, there is also a major advantage to a medical insurance policy in the name of recovery benefit. Are you aware?

What is a Recovery Benefit?

Recovery benefit is called by many other names such as a Restore benefit or a Refill benefit. Under the clause of recovery benefit, if the total amount of money that you insured gets depleted because of the treatment of a disease or ailment; the medical health insurance company is liable to pay the entire amount to restore it.

Understanding with the help of an example

Let us take the example of Rob. Rob is an IT worker who has purchased a health insurance plan of a total of INR 10 Lacs.  In the worst case scenario, if Rob is diagnosed with a serious medical ailment such as renal failure or kidney problem, he will exhaust his insured money within the first 4 to 6 months of his treatment plan. This is due to the rising costs of the medical industry.

After 2 months, Rob is in the hospital again, but this time due to a cardiac arrest. He uses up INR 2 Lacs in the first 2 months of the treatment. In such a worst case scenario, it is up to the medical health insurance company to pay your insured amount to restore the total. As a result, Rob gets an extra coverage of INR 10 Lacs in the first policy year.

Therefore, in this situation, even the treatment for his heart condition expenses will be covered for up to the amount of INR 10 Lacs.

Hence, Rob would get medical health insurance coverage of INR 20 Lacs for the price of INR 10 Lacs. But, this may sound too good to be true.

Where is the drawback?

If the Basic Sum Insured and multiplier advantage [if any] is depleted due to declarations made and paid during the Policy Year or made during the Policy Year and accepted as payable, then it is concurred that a Restore Sum Insured [equal to 100% of the Basic Sum Insured] will be repeatedly accessible for the particular policy year, provided that:

• The Restore Sum Insured will be enforceable only after the Basic Sum Insured comprehensive of the Multiplier Bonus under Section IV have been completely depleted in that year; and
• The Restore Sum Insured can be used for declarations made by the Insured Person in respect of the advantages stated in Section I;
• The Restore Sum Insured can be used for only future declarations made by the Insured Person
• No Multiplier Bonus under Section IV will apply to the Restore Sum Insured;
• The Restore Sum Insured will only be applied once for the Insured Person during a Policy Year;
• If the Restore Sum Insured is not utilized in a Policy Year, it will not be carried forward to any succeeding Policy Year.
• In the case of Family Floater policy, Restore Sum Insured will be available for all Insured Persons in the Policy.

Exclusion: Disease/ailment for which a claim has been paid in the current policy year under Section I.

What does this mean?

The Recovery benefit policy will be applicable only for future declarations and claims only for un-related diseases and ailments.

If Rob was undergoing treatment for renal failure for which the total bill amounted to INR 15 Lacs, he would have had to pay the remaining INR 5 Lacs from his own bank account. Why is this? Because the recovery benefit will be used only for a subsequent claim.

In other words, a health insurance plan which includes the policy of recovery benefit is an absolute essential.

Reference Sources

https://www.personalfinanceplan.in/should-you-purchase-a-health-insurance-plan-with-restore-benefit/

If you are from Indian origin, have become a Non-Resident Indian [NRI] over a period of time, and have a consistent source of cash flow in the country, you can invest your money into different investment products in India. Many NRIs park their funds into investments in India because of the tax benefits and the simplified regulations by the government. The government strives to encourage such investments to boost the financial growth of the country.

Because of the declining value of Indian rupee, you will be able to earn higher returns from the investments made in the country. Even if you are an Indian engaged in an employment abroad, you can send money to your family in India and it will fetch more on conversion. This is mainly because of the depreciating Indian currency, which is the main attraction for NRIs to park their funds in India.

Top investment options for NRIs in India

Here are some of the most preferred and suitable investment options for NRIs in India.

Fixed deposits

One of the best investment options for NRIs is a fixed deposit in the bank, which can generate a regular income in the form of interest. NRIs can open a fixed deposit account with those Indian banks, which are eligible to deal in foreign exchange. This means as an NRI, you can opt for a term deposit under a Non-Resident External Account [NRE], Non-Resident Ordinary account [NRO], and Foreign Currency Non- Resident [FCNR] account. Banks generally offer attractive interest rates on the fixed deposits held by NRIs.

Equity

As an NRI, you can invest in the stock market directly through the Reserve Bank of India’s Portfolio Investment Scheme [PINS]. In order to make an investment in the stock market, you will have to seek permission under PINS. The total investment must not go above 10% of the paid-up capital owned by the company you are investing in.

It is essential to open a dematerialized account as well as a brokerage account with a firm, which is registered with SEBI. It is mandatory for you to process a transaction through a stockbroker. It is important to note that you cannot trade in all the stocks of Indian companies. There is a list of stocks, which are eligible for NRIs and they are not allowed to carry out intraday trading or short selling in the country.

Mutual funds

In order to invest in mutual funds, an NRI will have to have one of the three bank accounts—FCNR, NRO, or NRE. The investment will only be made in Indian currency and the amount will be directly debited from their bank account. During redemption, the maturity amount will be paid in Indian currency through a check or will be directly credited to the account of the investor. In case of mutual funds, the tax liabilities will remain the same for NRIs and that of a ‘Resident’. However, the only point of difference is that in case of NRIs the tax will be deducted at source.

Certificate of Deposits [CDs]

NRIs can invest in CDs but only on a repatriable basis. They carry a higher rate of interest and the tenure ranges between seven days to one year, which makes it ideal for NRIs having short-term financial goals. CDs have an impressive return on investment in comparison to bank deposits.

Unit Linked Insurance Plans [ULIPs]

As an NRI, you can invest in ULIPs and enjoy the benefit of an insurance through an investment product. With a ULIP, you can grow your wealth and have a life insurance cover at the same time. You can also claim a tax deduction up to an amount of INR 1.5 Lakh according to Section 80C of the Income Tax Act, 1961.

Government securities

Indian Government issues bonds from time to time and if you invest into these bonds, you will be considered as a lender for the company. You will have an equity stake in the company. You will receive a fixed return on the bonds and if the purchase is processed through an NRE or FCNR account, the proceeds will be repatriable to the country where you reside.

National Pension Scheme [NPS]

Only NRIs who are citizens of the country can contribute to NPS. If you are not holding Indian citizenship, your account will be closed. NRIs between the ages of 18 to 65 are eligible to contribute through the form of fund transfer from their bank accounts. If you consistently deposit in NPS, you can have high returns and build a strong post-retirement corpus. However, you will only be allowed to withdraw 60% at the time of maturity and the rest will have to be converted into annuity. You can avail of a tax deduction of INR 1.5 lakh under Section 80C and an additional deduction of INR 50,000 under Section 80 CCD [1B].

If you are an NRI wondering where to invest money, you can make the most of your funds by investing in these top investment products in the country. You can get a tax benefit from the investment and can grow your wealth over a period of time. Another popular investment option is real estate. Many NRIs purchase property in India and make the most of the rising real estate prices. It is a valuable possession and gives a sense of security. However, it is advisable to take professional help before you choose any investment product because some investment options have legal documentation and procedures that need to be followed.

Unit-linked Insurance Plans [ULIPs] are an excellent investment option if you want a safe instrument that delivers good returns. These plans combine life coverage along with investments while also offering tax benefits. A certain portion of the premium is invested in various instruments, such as debt, equity, money markets, or any combination thereof.

However, there is a plethora of ULIPs you may choose from, which makes it difficult to make the right choice. To help you make an accurate decision, you may opt for online calculators that assist you to determine the potential returns you may earn at the end of the investment period.

How to use online ULIP calculators?

Before investing your money, you may want to know the potential returns on your investments. Online ULIP calculators are beneficial in helping you estimate prospective returns. You may not know how to use these calculators and may think they requires complicated calculations. However, using such calculators is very simple and easy and does not require any complex calculations.

You need to provide some basic personal details, such as your name, date of birth, and state whether you are a smoker/non-smoker. Additionally, you must choose the premium amount, the payment frequency, and your investment horizon. You will then need to input the total fund percent, which is the premium amount you want to invest in the investment options offered by the particular ULIP scheme. Based on this information, the online calculator determines the potential returns on your investment at the end of the duration.

Features of online ULIP calculators

The online calculators provide several beneficial features to help you understand the ULIP performance and determine the potential returns on your investments. Here are five such features:

1. Versatility

You may modify the investment amount and the premium components as per the policy duration. This helps you calculate your potential returns based on different investment tenure, choice of financial instruments, and investment amount.

2. Safe investment

When you determine the potential returns, you are able to make an accurate investment decision. Because online calculators allow you to analyze various funds and the potential returns, you are able to make an accurate investment choice.

3. Goal-based investing

It is important that your investment is linked to a certain life goal. A ULIP helps you meet your various financial objectives. An online calculator helps you analyze the most appropriate ULIP to invest to ensure you are able to meet your various financial objectives.

4. Complete control

You are able to control your investment with an online calculator. You may enter the premium amount to determine the potential return based on your personal requirements, preferences, and budget.

5. Transparency

Online calculators are transparent and allow you to determine the estimated returns when you invest in a particular scheme for a certain period of time.

Benefits of online calculators

Online calculators have several benefits as listed below:

• You are able to make strategic investment plans.
• These calculators simplify the investment procedure and eliminate the need for complex calculations.
• You are easily able to access these calculators online without paying any charges or without any obligations to actually make an investment.
• Such calculators are easy to use with a user-friendly interface that allows you to calculate potential returns without any complexity.
• The online calculators give you the estimated returns, which in turn allow you to make accurate investment decisions based on your age, financial goals, budget, and personal preferences.

Step-wise guide to use ULIP calculators

Using an online calculator is very simple and requires inputting some basic information. Here is a step-wise guide to use such calculators:

1. Search online for a reliable and free calculator and then input your personal details, such as smoking habits, name, and birth date.
2. Next, you must input the investment amount, which must not cause financial difficulties for you considering your financial situation, liabilities, and expenses.
3. You must then select the premium payment frequency that is based on your financial situation. You may also choose a one-time premium payment option based on the amount you want to invest.
4. In the next step, you need to determine the investment tenure based on your future financial goals.
5. You must deduct the various charges as levied by the ULIP scheme. Following this, you must determine how much of the premium you want to invest towards life cover and how much you want to invest in different financial instruments.
6. In the next step, you must allocate the investible premium component to your choice of financial instruments. You need to consider the past performance of the ULIPs before making this decision.
7. Finally, select the lock-in period, which is a minimum of five years when you invest in any ULIP scheme. However, it is recommended you choose a longer duration to maximize your returns.

Using an online calculator is not only simple but also very convenient. Moreover, such calculators are easily available and most insurance companies provide these on their official websites.

It is important to understand what is ULIP before you use the online calculators. These calculators enable you to determine the amount you must invest to achieve your various financial goals, such as children’s higher education, building a retirement corpus, or buying a home.

Use an online calculator today and make an accurate investment decision!

A bike insurance policy is a very handy kind of insurance. It offers many benefits and keeps your bike safe and secured. The insurance provider offers this protection. In return, you pay the insurer a premium. The premium is calculated after taking several factors into consideration. From the make and model of the bike to the scope of the cover, many components determine the final premium that you are expected to pay. Unfortunately, some people end up paying a higher-than-required premium. Do you fall into that category? Let’s find out.

Reasons why you may be paying a higher bike insurance premium

1. You have the incorrect type of cover – You need to see if the type of two wheeler insurance you have is correct. 2 wheeler insurance is available in two forms – comprehensive and third party. If you need a third party cover and you have a comprehensive cover, you are unnecessarily paying a higher bike insurance premium. So understand the two types of cover and choose wisely thereafter.
2. You did not compare – Did you compare bike insurance online before you bought the plan? If you didn’t then probably you bought an expensive cover. Comparing is the key to finding the best plans at the lowest rates. If you don’t compare, you don’t even get to know about the cheaper motor insurance covers that may offer the same kind of coverage.
3. Your IDV hasn’t been calculated properly – Every vehicle depreciates in value with time. And since the value of a bike insurance policy is proportional to the value of the bike itself, the premium should also reduce every year. If your IDV is not calculated properly, you may be paying higher for a bike that has a lower value. So use an online calculator and ensure your IDV is correct.
4. Your NCB has not been deducted – If you don’t make any claims in the previous policy period, you get a discount on the premium of the following policy period. This is known as the No Claim Bonus [NCB]. At times, the insurance provider doesn’t deduct your NCB and this leads to you paying a higher premium. Do ensure that NCB is calculated properly when you renew your 2 wheeler insurance cover.
5. Your deductible is too low – You can choose to pay a deductible at the time of claim. If you opt for a higher deductible, your premium will be lower and vice-versa. You may have blindly agreed to the deductible offered by your insurer, which pushed up your premium. When you renew your policy next, calculate a reasonable figure yourself. This will help to reduce your bike insurance costs.
6. Your bike isn’t safe – You can get a discount on your bike insurance plan if you install some safety gadgets in your vehicle. Currently, you may be paying a higher premium because there aren’t any such devices. If yes, then you need to install the gadget right away!
7. You have too many riders – Did you choose to buy a lot of riders when you bought bike insurance online? If this is the case, then you need to drop some riders as riders push up the premium of your bike plan. Keep the riders that you absolutely need and discontinue with the others.

Conclusion

If you actually find these points hold true, make some changes to your cover when you renew bike insurance online. You do not need to carry on with the same cover – you can always make amends and get your two-wheeler insurance costs reduced. So do your homework, choose the right policy and you will surely be paying the most accurate price for it.

A bike insurance plan has various components to it. This is why no two plans are identical in nature. This is a reason why you should always compare two wheeler insurance. Certain plans offer a particular type of cover, other plans offer a different cover. For instance, if you need a cover for your own vehicle, you will have to pay the own damage premium. Take a look at this article to know more about this very crucial bike insurance component.

‘Own damage premium’ calculation

The own damage premium calculation depends on a number of factors. These include

1. The scope of cover – Own damage refers to the money you are expected to pay if your vehicle is damaged or stolen. The damage can result from a road accident, from a natural calamity such as a cyclone or an earthquake, from mishaps such as fires, etc. You also need to replace your vehicle if it is stolen. For all these purposes, you can opt for an own damage bike insurance and get a claim. The insurance provider will compensate for your loss. You can then use the insurance money to either repair your bike or replace it altogether, depending on the situation. Higher the scope of the cover and the fewer the exclusions, higher will be the bike insurance premium. You can use a bike insurance calculator to understand what your premium liability will be like.
2. Value of the two-wheeler – An insurance cover depends on the value of the object being insured. So quite naturally the make and model of your two-wheeler plays an important role in determining the own damage premium. When you use a two wheeler insurance premium calculator, you are first asked what kind of a two-wheeler you own. If you have a TVS Scooty Pep, your premium will obviously be lower as compared to the premium for a Yamaha ZTR!
3. IDV – Every vehicle depreciates in value with time. The Insured Declared Value [IDV] is calculated keeping this in mind. A bike insurance calculator first calculates the IDV and then arrives at the accurate own damage premium. Your own damage premium liability is also dependent on the IDV. The older the bike is, the lower your premium is likely to be. Use a two wheeler insurance premium calculator to get a better understanding of the exact figures.
4. Insurer’s pricing – Bike insurance plans from different insurers have different rates. The own damage premium charged by one insurance provider will vary from the other. You, therefore, need to compare two wheeler insurance before you buy the plan. You will then find a good plan with the lowest and most comprehensive own damage premium.
5. Inclusive of third-party liability – Your own damage cover is usually available with a comprehensive plan. It is an optional cover, whereas a third party cover is compulsory. When you use the bike insurance calculator to find your own premium liabilities, you see a combined price of your third party as well as own damage premiums. Do not get duped into paying a separate third party premium. A comprehensive plan that offers an own damage cover automatically offers a third party cover too.

The Final Word

As you can clearly see from the points mentioned above, an insurance premium depends on various factors. When it comes to your own damage premium, you need to be careful and see whether or not you are being charged accurately. Use the online premium calculators for this purpose. Also, keep your bike’s IDV in mind. If you do the math properly and more importantly if you compare before you buy, you will surely find the accurate rate that you have to pay as your own damage premium.

Buying insurance for your sports car is just as important as buying the car itself. Not only is insurance legally mandatory, but your insurance policy will protect one of the biggest financial investments you will make. We will discuss the top models of sports cars, and give 10 tips to help you buy your car insurance policy.

Top Sports Cars

There are many brands of sports cars, but the top brands of sports cars are the following:

• Porsche 911 Turbo S
• Audi R8 LMX
• Lamborghini Aventador
• Aston Martin Vanquish

There are many others, but these are some of the trendiest cars in India. Once you have bought your sports car, it is time to buy car insurance online.

Tips When Buying Insurance

We recommend following the ten tips when buying insurance for your sports car. Sports cars are always at the top in the car groups of insurance companies, thus premiums will be much higher than a normal car.

#1 Buy Comprehensive Insurance

We would not recommend third-party car insurance for a sports car. We would recommend comprehensive insurance. This is because third-party car insurance will not cover damage to your car. If you have an accident, your car can end up as a worthless heap of metal, and you will have to foot the bill to replace it.

#2 Buy Insurance Add-Ons

Make sure that you buy insurance add-ons, such as engine cover. This will ensure that you are not out-of-pocket if anything goes wrong with your car that is not a part of the insurance coverage.

#3 Use Online Comparison Websites

The online comparison websites can compare car insurance quotes with a few clicks, saving you from doing the math. You can buy car insurance online through a comparison website.

#4 Theft Cover

Ensure your insurance policy covers theft. Sports cars are highly desirable and can be at a risk of theft. Most comprehensive insurance plans offer this as a part of the coverage. This is yet another reason not to go for third party car insurance for a sports car.

#5 Secure the parking space

Do you store your car in an unlocked garage or leave the doors unlocked? Your insurance company will often not pay you a penny, read your policy documents closely. Ensure your car is kept secure at all times. Ensure your driveway has CCTV.

#6 Renew your policy in time

Renew your car insurance as soon as it expires. This can save money, especially if you shop around. At the end of your policy, try bargaining with your current insurer instead of just renewing before you change providers, you might be surprised at the cost savings.

#7 Buy Tailored Insurance

Buy car insurance online that is tailored to your make and model of car. This is most certainly the case in the case of sports cars. Different brands of cars are in different groups, and this is used by insurance companies to determine premium costs, such as the cost of parts/labor. This is why it is important to shop around for insurance tailored to your make/model of sports car.

#8 Drive Carefully

This shouldn’t even need to be said, but drive with care. This will protect your no-claims bonus and will keep your insurance premium down.

#9 Customer Loyalty

This is often not rewarded in the car insurance industry, but if you have insurance with a certain provider already such as house insurance, you may find owning a car insurance policy with them to be much cheaper.

#10 Maintain Your Car

A well-maintained car will protect your no-claims bonus and will be required by some insurance companies to complete the process of insurance.

Now that you are armed with the above information, you can buy car insurance online for your sports car. Go with a good comprehensive insurance plan, follow the above advice, drive carefully and enjoy your new pride and joy that is your properly insured sports car.

As a child, you probably wanted to do many things when you grew up: become an astronaut or a detective like Sherlock Holmes, go underwater in a submarine, play cricket for India and own your dream car. However, as you grew, your perspective in life changed and your dreams took on new shapes. But despite all the ‘growing up’, one thing remained constant: your dream car. You wanted to own it then, and you want to own it now. Instead of taking a loan to make your dream come true, how about investing towards it?

Buying a car through loan

Most people take out an auto loan to purchase a car. This seems like a simple solution but you need to think of different aspects such as:

1. How much money do I have to put down as down payment?
2. How much money should I take as the loan amount?
3. What is the rate of interest I have to pay?

After you decide on the answers, you apply for a loan from a bank or a lending company. Once your loan is approved and you get the car, you have to start paying EMIs. This can result in a significant outgo from your monthly salary.

This is why many experts don’t encourage auto loans. It is because, on a fundamental level, an auto loan does not create an asset that appreciates over time. In fact, the value of a car depreciates as years go by. And by the time you finish paying the loan, it may be time to purchase a new car.

Let’s take an example to illustrate how much you have to spend to purchase a car

Assume you wish to buy a car that costs you Rs. 10 lakhs. You make a down payment of Rs. 3 lakhs and take a loan amount of Rs. 7 lakhs. With the tenure of 6 years and 11% rate of interest on the loan, you would have to pay Rs. 12,000 as EMI each month throughout the loan.

Going the investment route

It is a great feeling to own and drive your dream car each day. But as mentioned above, a car is a depreciating asset that can result in a cash outgo from your pocket. But what if you could offset this outgo through investments.

This is how it is possible

As you pay the EMIs, you can simultaneously begin investing in mutual funds through a Systematic Investment Plan [SIP]. For example, let’s assume you invest Rs. 6,500 each month in a balanced mutual fund that offers 15% annual rate of return. By the end of 6 years, you would have earned an amount equal to Rs. 7.6 lakh. This is more than what you paid for as EMI for your car loan.

Therefore, an overall monthly outgo of Rs. 18,500 [12,000 + 6,500] over the tenure of the car loan can prevent a dent in your savings.

Investment planning

Another way is to bypass the auto loan route completely. Buying a car is a crucial decision in your life. It is something that you plan and think about carefully. So, if you are planning to buy your dream car, say, in another 5 years’ time, it is a good idea to start investing for it right away. You can invest regularly in equity funds or index funds through SIP and create a substantial lump sum right in time to buy the car you want.

There are many other benefits of investing in Mutual Funds such as good returns, tax benefits, investment discipline and easy diversification.

Conclusion

Taking a loan to purchase a car is common but investing for a car is easier and more cost effective. By planning carefully, you can invest a lot more in SIPs because you don’t have to pay monthly EMIs anymore. And when you finally get the car of your dreams, think of it as a gift by you to you.