The generic approach to wealth management is goal-based. Investors park their funds in various financial instruments to cater to their future needs. One of the best vehicles to help achieve this objective is a Unit Linked Insurance Plan [ULIP].

Before investing in such an avenue, it is important to understand ULIP meaning. This financial scheme aggregates the benefits of both investment and insurance. Therefore, you may enjoy risk cover as well as high returns. Such a policy is best-suited for meeting long-term goals and objectives. Following are four methods that will help you achieve this.

1. Opt for top-ups and suitable premium mode

In case you have any additional surplus available, say from a bonus or from the sale of property, you may utilize the top-up option. Financial advisors recommend top-ups as they help lower the overall cost associated with a ULIP policy. Top-ups generally attract a 1-2% charge, as compared to the fees on the original premium. This means that you may purchase a higher number of units at a lower cost. You may, therefore, lower the total average cost. Another benefit of a top-up on a ULIP scheme is that it contains the insurance aspect as well. This helps in increasing the level of life coverage. You may utilize this benefit as you become older and your liabilities begin to increase.

To achieve your goals of high returns, you may also consider monthly investments in a ULIP policy through Systematic Investment Plan (SIP). Regular investments help average the cost of units. Besides, this inculcates disciplined savings habit.

2. Utilize various fund options

ULIP policies allow you to select the funds you wish to invest in. On the basis of your preference, you are also allowed to select a percentage that you wish to invest in each fund. The fund options vary from insurer to insurer. For example, Bajaj Allianz Life provides seven options, which are Pure Stock Fund, Equity Index Fund II, Asset Allocation Fund, Accelerator Mid-Cap Fund II, Equity Growth Fund II, Bond Fund, and Liquid Fund.

You may make a choice between these fund options based on the market performance, your age, risk tolerance, and most importantly, your life goals. For example, if you belong to the younger age group and do not bear the financial obligations of a family, your risk tolerance may be higher. You may, therefore, allocate the premium in a high-risk instrument such as equity funds. If your life goals are long-term, you may invest in large cap funds. Such funds are generally invested in reputed blue-chip companies and face lower volatility. It is recommended to shift from high-risk investments to low-risk, such as debt funds, when you are at least three years away from your goal. This aids in lowering risk while earning good returns at the same time.

The good news is that insurance providers also allow you to change the fund apportionment by utilizing the ‘fund switch’ option. Through this feature, you may move your funds between investment options, with the goal of obtaining optimum returns. You may also avail of the permanent fund switch option to make a lifelong change to the fund apportionment based on your latest fund switch.

3. Make use of ULIP features

Every individual has varied financial needs at different life stages. You may put to use various ULIP features such as different premium payment methods, partial withdrawals, or varied fund options in order to customize your saving schedule. For example, ULIP policies allow tax-free partial withdrawal upon completion of the five-year lock in period. Therefore, if you wish to obtain funds for a certain goal, say for your marriage, you may partially withdraw from your ULIP policy once the lock-in period has been complete. You, therefore, need not borrow a loan from any financial institution or liquidate your emergency fund to meet your financial requirements.

4. Plan life stage needs

ULIP policies appeal to individuals looking to fulfil their long-term needs. You may determine your goals and estimate how much amount will be needed to fulfil those goals. While doing so, it is imperative to take the inflation factor into consideration as well. Insurance providers offer the benefit of an online insurance calculator, which helps you determine your insurance requirement.

Alternatively, you may seek the help of your insurance agent, who will generate a ULIP ‘illustration benefit’ on the basis of various personal factors like age, sum assured amount, desired term of the policy, and the amount needed to fulfil your life goals. You may calculate the premium amount that you need to pay for a particular sum assured amount, so that the fund value of your policy at each life stage helps in meeting your requirement at that point of time. Financial advisors recommend taking a coverage of at least 15 to 20 times the annual premium amount so as to meet your lifetime goals.

If you are looking to fulfill your long-term goals, a ULIP plan is indeed an ideal option. Due to the varied ULIP benefits, a lot of investors are opting for this scheme. Some benefits to look out for include comprehensive protection, loyalty or booster additions, lower fund management charges, and Rupee cost averaging, besides others. Through these ULIP benefits, you may get closer to your life goals, be it saving for your marriage expenses, funding your child’s future education, making down payment for a new home, purchasing the vehicle of your dreams, taking an international trip, or even ensuring financial stability of your loved ones in your absence.

 A lot of individuals still avoid acquiring health insurance because of insufficient understanding. However, medical costs are constantly rising, which makes it difficult to meet expenses in case you are diagnosed with a serious illness.

Several myths surround health insurance that also acts as a deterrent to acquiring such coverage. Most insurance companies offer health insurance that provides several benefits. It is important that you do your research and get a clear understanding of various plans to make an appropriate decision.

Here are eight common health insurance myths that must be overcome:

1. Group insurance is adequate

Some companies provide group insurance plans to their employees. However, group health insurance plans generally do not cover a wide range of illnesses. Additionally, there may be certain caps on the maximum coverage that is available under the group insurance plan. Another factor you must remember about group health policies is that the coverage is available only as long as you are working with the organization. If you quit the job, you lose the insurance coverage leaving you vulnerable to high medical expenses in case of an illness. Therefore, it is recommended you procure health insurance coverage for self and family based on your health condition and personal needs.

2. Health insurance is not available if you smoke

This is a very common myth surrounding health plans. However, this is not true because insurance companies consider only pre-existing medical conditions while providing you with health coverage. In case your habit of smoking causes any health condition, such as respiratory issues or lung cancer, you need to declare this at the time of making an application.

3. Pre-existing conditions are not covered

Another common myth about health insurance is that if you have an existing condition, such as diabetes, hypertension, or heart disease, you do not receive coverage for the same. Insurance companies impose a waiting period [generally between two and four years] before the expenses related to such illnesses are covered under the health policy. At the end of this waiting period, you receive coverage under your health insurance policy and you may file a claim for their treatment at the end of this duration.

4. Coverage begins from the date of purchase

Do you like most individuals think that coverage under the health policy commences as soon as you purchase it? The fact is that most insurance companies offer you a period of 30 days before coverage commences. In case you are diagnosed with an illness that requires immediate treatment, these expenses will not be covered under the health policy during this 30-day period. However, if you meet with an accident and require treatment, the expenses for the same are covered under the policy even during the first 30 days from the date of purchase.

5. One day admission is mandatory for receiving health insurance benefits

Several people think that they will receive the health insurance benefits only if they are admitted to a hospital for at least one day. This may be accurate for most diseases. However, insurance companies do consider certain treatments and surgeries that do not require hospitalization and are known as day care procedures. Therefore, the insurer will cover the expenses incurred towards such procedures as long as an experienced and qualified medical practitioner certifies the validity of your claim.

6. Online purchase is not safe

Traditionally, you needed the assistance of an insurance agent if you wanted to buy a health policy. However, today you may opt for an online health insurance policy, which is more convenient and quicker. You may directly apply to the insurance companies’ websites to purchase a health policy. Insurers also provide better deals and lower premiums if you choose to buy an online policy. This is because the insurance companies are able to eliminate costs such as commission and agent fees when you purchase the policy directly through their online platforms. These cost savings are passed on to you through a lower premium cost, which makes buying health insurance more affordable.

7. Lowest premium is the best plan

You may think that the possibility of filing a claim under your health insurance policy is lower. Therefore, you may choose to opt for a plan with a lower premium to save money. However, a cheaper health policy may have multiple restrictions and limited coverage. Therefore, you may be in for a rude shock to find that the desired coverage is not available when you require the same.

8. All medical expenses are reimbursed

This is a very common myth associated with health insurance. Expenses are reimbursed only if the terms and conditions are met. Moreover, there may be certain sub-limits even when coverage is available. Therefore, it is very important that you read the policy document carefully to clearly understand the inclusions and exclusions to avoid any confusion in the future.

It is important that you do not fall prey to the myths surrounding health insurance. You may seek the advice from a qualified insurance advisor to understand more about such policies. Alternatively, you may research online and read through blogs, forums, and other resources to gain an understanding about health insurance.

For most people who are planning to buy a house, getting a home loan sanctioned is the biggest part of the deal. So, how can you improve your chances of your home loan application getting approved? In this article, we’ve put together a few useful tips for you.

Show Ability to Repay

When applying for a loan, you have to show that you are able to repay a home loan. This is one of the key requirements that lenders look at, before sanctioning a home loan. They would check your current expenses and all your other financial commitments. So, if you have too many repayments to be made, the lender will want to know about how you are planning to repay your debts.

Check Your Credit Rating

You should always make an effort to keep a check on your credit report. It’s important to access your report and see if you have any negative history or defaults. By checking out your credit report well in advance, you will get an idea of what your report contains before the lender accesses it.

During this time, if you find any information or markings that are not right, you can contact the company who had reported it to get it corrected. Having negative repayment history is not going to be good for you when you apply for a home loan. Remember, a good credit score can really help you seal the deal.

Have a Savings History

Showing the lender that you are good at saving money and are able to manage your expenses well are always a good sign when you apply for a loan. Having savings will also help you with your loan repayments and can also be useful in order to make your contribution when purchasing a home.

Don’t Apply with Too Many Lenders

It is very important for you to compare different lenders and see what they offer. However, never submit applications to too many lenders at once, since this would appear on your credit report. Hence, only submit an application after you have done all the necessary research and have decided to go with a particular lender.

Try to Have Stable Employment

Employment stability is a big plus point for you when applying for a home loan. Lenders look at how long you have been working for a particular company as this shows that you have a stable employment and would be able to repay your home loan. Changing jobs too often will not look good. Most lenders usually prefer a borrower to be with the current employer for at least six months – this does not include probation.

If you have changed your job recently, then the lender will check to see what you did prior to your current job. Hence, being in the same job for a period of two years can be satisfying to the lender and will help you meet the employment requirement.

Cut Down On Unnecessary Financial Commitments

Before applying for a home loan, make sure you cut down on all the unnecessary financial commitments since this could impact your application. When you apply for debts, there are inquiries done on your credit report. Too many credit enquirers will not reflect positively on your credit profile. Also, credit limits on all cards would be included in your repayments as well and this would mean that you wouldn’t have surplus cash available to meet on your new loan.

Disclose All Information

This is very important when applying for a loan. Be upfront about all your issues and never try to hide anything with regards to your finances. Disclose all the necessary information to the lender when you apply for a home loan because if during the process the lenders find things that are not disclosed beforehand, your loan maybe declined due to non-disclosure.

Always keep these points in mind whenever you apply for a home loans, as this will enable your chances of getting your home loan being sanctioned easily and quickly.

For beginners, terms like intraday trading, technical analysis, trades, may seem confusing and complicated. But, these terms are the very basis of trading in the market. Well, here is a handy guide for intraday trading beginners.

What is intraday trading?

Intraday or day trading is a type of trading strategy in which shares are bought and sold on the same day. This means, the net profit or loss on the transaction immediately accrues to the trader, on the same day. In contrast, in delivery-based trades, the stock gets credited to the account of the investor, with full payment being made. The same process is done for a sale transaction, where the consideration is received when the share is debited from the demat account of the investor.

In intraday trading, since the stock is bought and sold on the same day, the trader immediately gets to know the net profit or loss on the transaction. He does not have to pay for the entire trade. He either earns the net profit or has to pay the difference.

Things to consider before you start intraday trading

You need to consider the following points as intraday trading basics guide:

1. Intraday trading is inherently risky. Predicting the direction in which the market and the prices for a particular stock will swing is difficult. If you are not a risky investor, then it is best to not try intraday trading.
2. Intraday trades may be profitable on one day, but may also bear losses the next day. Since all open positions are closed in intraday trading, it is important to calculate returns over a period of time and not daily. Over time, with good strategies, intraday trading can turn out to be very profitable.
3. Intraday profits and losses are treated as speculation incomes under Income Tax Act. The taxation rules for them are different. Before getting into intraday trading, it is best to read through the rules.

How to begin with intraday trading?

Intraday trading is only possible with a demat account. So opening a demat account is the obvious first step. You can open a demat account with any reputed depository participant like Kotak Securities who will be able to service your trades and provide you support and insights as well. One factor to consider for brokers is to choose the one who provides low brokerage.

The next important point to consider is the stocks to pick for intraday trading. It is best to pick a few stocks to trade in. For beginners, it is best to pick stocks that are liquid, such as large cap stocks that have constant demand. Picking these stocks will ensure there will be sellers and buyers for the stock.

Picking a few right strategies for intraday trading is essential. Before getting into intraday trading, it is best to study the company and pick the right stock for the purpose of trading. Deciding a few strategies such as the entry and exit price will help to ensure losses are minimized.

Conclusion

Intraday trading is a high risk high reward investment strategy. With the right broker and the right support, it is possible to make a decent return from this. Beginners are recommended to do their research before they get into this form of trading. But by picking a broker like Kotak Securities who provides exhaustive support and knowledge, it is possible to turn intraday trading to your benefit.

The advantage of being an NRI comes with its own NRI Savings Account, which we would be talking about here. Access to this type of account allows deposition of cash in the Indian Rupee [INR] denomination.

Who is an NRI?

According to the Indian Government, an NRI [Non-Resident Indian] is a person that has not been in the country for the year [April to March] and whose main source of employment and income is abroad.

Being an NRI, you will be allowed to open an NRI [Non-Residential External] account; this enables the account holder to operate in Indian currency.

What are the advantages of having an NRI Savings Account?

• Tax Advantages

This is the most significant motive and gain of opening an NRE account. Interest earned on the NRE saving account as well on NRE fixed deposit is absolutely exempted from tax in India. They are not added up even in your taxable profits; in the off chance you have some revenue in India.

• Repatriation Advantages

One more main advantage of NRE account is repatriation advantages. NRE saving account allows trouble-free movement of cash because it is possible to repatriate both interest and principle overseas. Cash amounts in NRE accounts are fully and completely repatriable.

• Low Balance required

Due to augmenting rivalry among public and private sector banks e.g. SBI, ICICI, HDFC, Axis Bank, and YESBANK, the lowest balance required has dropped appreciably. Nowadays many banks including ICIC, HDFC, and Kotak require just 10,000 INR as the least balance.

• Convenience advantages

Another advantage of NRE accounts is handiness. It’s simple to open an NRE account. The majority of the banks allow you to open NRE account online via the Internet. You just need to fill a form online, take a printout, and affix the self-attested print of necessary papers and send to the bank in India.

• Joint holding

An extra key advantage of NRE account is that you can jointly open it with an additional NRI e.g. your partner or your children. It’s one of the greatest ways to handle your cash as your collaborator can operate along with you.

• NRI Advantage

Because many Indian banks now have a universal offering, opening an NRI account allows them to select elite offers catering to your needs both in India and overseas.

• Accessibility Advantage

NRI saving account typically comes with International Debit card. This gives you the exclusive convenience benefit of shopping globally, booking air tickets online, buying life insurance, and withdrawing cash abroad.

The Bottom Line

Adhering to the very many benefits that come along with an NRI Savings account, if a person who is an NRI does not avail the advantages of owning the NRE Account, a lot of associated perks could be possibly neglected and he/she might be giving up on a brilliant opportunity.

Buying a new home is a momentous decision. A home being an asset is a step towards a more stable and prosperous future. However a home loan can be strenuous on one’s finances. For this reason, one must be prepared with all the information and foresight before investing in a home.

Home loans have become easier to obtain but do you know the best home loan scheme for you? Deciding the tenure of a home loan can define the EMIs that you will be paying every month, for your new home.

It is in this case that a Home loan EMI calculator comes in handy. It gives you foresight into the tenure and EMIs that you will be paying in the future, keeping you prepared and ensuring that you have a smooth experience in repaying your loan.

Benefits of using an EMI calculator

A home loan is repaid by fulfilling a commitment of paying a certain amount as EMI every month. By using an EMI calculator you will be able to identify what is the  EMI you will be paying. You can cross reference this amount with your monthly expenses and this ensures that you will not overshoot your budget, and live a more comfortable lifestyle.

Calculating the amount of EMI you will be paying will let you figure out what is the home loan you will be eligible for. By knowing just how much you can invest in a monthly EMI will calculate the loan amount you will be able to manage when buying a new home.

It helps to calculate the tenure of the home loan. Based on your EMI you can calculate the number of years that is ideal for repaying a home loan. Bigger the tenure of your home loan means smaller the amount of EMI you will be paying every month. This will help you define the budget of your home and ensure that you have a smooth loan repayment option.

Calculating Your EMI

When the EMI amount is fixed on the scale, the principal you will be paying as well as the monthly interest will be variable. Similarly, smaller the EMI amount for a home loan, longer will be the tenure of the loan, and this will also affect the interest rate you will be paying every month.

So before you take a home loan, be sure to calculate your EMI payments with an EMI calculator for more foresight into the finances of buying a home.

Medical issues are inevitable part of life but the cost of treatment often takes a toll on the family. For this reason, health insurance is an insurance you must have. To keep yourself and your family members well protected get the best medical insurance by keeping the following facts in mind.

What types of insurance is being provided?

Does your health insurance cover provide only reimbursements or also cashless treatment? This is one of the most crucial questions you must ask yourself before purchasing insurance. As the name suggests, in case of reimbursement the insured needs to pay for the treatment and then submit the medical bills to the insurer to get the money back. In case of cashless treatment the insurer takes care of all the expenses when the insured is hospitalized.

Is the insurance well networked?

Instead of reimbursements what we need more during medical exigencies is cashless treatment. So choose a health insurance company which has a wide range of network with standard hospitals and nursing homes around the country.

Is the health insurance right for you?

There are multiple medical insurance schemes available in the market and it is utmost important that you choose the right policy. If you are single opt for the personal health insurance; there are policies to cover the whole family or provide individual protection to the family members. The health insurance claim amount generally ranges between Rs. 1 lakh to Rs. 5 lakh; choose one after considering not only the present condition but also keeping in mind the fact that the cost of treatment will rise in future.

Are there any additional protections?

Pre and post hospitalization expenses are the standard items covered under the health insurance policy. Check whether your mediclaim policy covers additional expenses like maternity and new born expenses or costs related to day care procedure. There are special insurance schemes which cover expenses when any critical illness is diagnosed.

Is the premium affordable?

Health insurance policy is just not a matter of a year or two; it is a matter of whole life. For this reason choose an insurance policy with an affordable premium. Some companies also offer additional benefits like discounts on the premium if it is for multiple years. If there is no claim made in a year then many insurance companies even allow a certain percentage of the claim to be carried forward to the consecutive years. One of the premium factors on which the health insurance depends is on the age of the insured, addictions, BMI etc.; if the age is more the premium will be more. For it is advisable that you start a health insurance at an early age. At present, the health insurance plans available in India range in Rs. 5000 to Rs. 50,00,000, depending on the number of diseases covered. The family floater plans are usually more expensive than the individual plans.

So do not let medical expenses create more stress in your life. Get a perfect medical insurance today and stop hassles of last minute cash arrangements.