Wednesday, June 20, 2018

Escorts Mutual Fund vs. IDBI Mutual Fund - Which Is Better Option?


Mutual funds are a sought-after investment tool for both small investors and large investors. The pooled in money from all the investors is managed professionally by the fund management companies. In the short or long-term, mutual funds give appreciation at a steady rate. 

Before investing in a mutual fund it is important to compare the performance of the fund and the fee charges with the competitors before investing. It is also essential to research on the track record of the fund management 

Among the companies with a good track record are Escorts Mutual fund and IDBI Mutual fund. The features and schemes of these funds are discussed in detail below. 

Escorts Mutual Fund 

Escorts Mutual fund has more than 20 years of service in India and has an acclaimed track record of portfolio management in India. 

There is a wide range of schemes to invest in with Escorts Mutual fund. The following are some of the most preferred schemes provided by Escorts Mutual fund: 

  1. Equity Shares Schemes- This scheme under the Escorts mutual fund makes the investment in the equity markets. The investors can access the dividends with share preferences. In this scheme, the investors share the profits and losses made by the company.
  2. Debt Fund- This Scheme by Escorts Mutual Fund involves investments in debt markets and money market instruments. As a part of this scheme, investors can trade their debt obligations.
  3. Money Market Fund- With money market funds by Escorts mutual fund, investments happen in certain fixed income securities. This scheme is for short-term investors and the maturity is quick and liquidity is high.
  4. Fixed Income Fund- This scheme by Escorts mutual fund, invests the shareholder’s money in fixed income securities. With this scheme, the investor gets a steady flow of income while he is a part of the plan. This amount is determined beforehand. On maturity, the principal income is returned to the investor.
  5. Sector Specific Fund- In this scheme by Escorts mutual fund, the investor’s money is invested in government bonds and securities. The investor can choose the sector for investment. The most popular choices are infrastructure, gold, energy, and power.
  6. Government Bonds and Security Fund- This scheme by Escorts mutual fund is one among the most rewarding schemes by the company. These funds are regulated by the Government of India and investment happens in only government securities and bonds. Investors are paid an interest and the principal amount can be withdrawn on maturity.

Reasons to Choose Escorts Mutual Fund 

Among the many reasons to choose Escorts mutual fund, a few are listed below. 

  • Escorts mutual fund offers investments in many portfolios
  • There are schemes to match every kind of risk appetite of the customers in Escorts mutual fund
  • Escorts mutual fund provides a whole lot of tax benefits for its customers
  • Escorts mutual fund also provides its customers good advice and prompt guidance to stay away from risks
  • Escorts mutual fund with its various portfolios offers attractive returns on investment. 

IDBI Mutual Fund 

IDBI Mutual fund plans are close to 88 in number with the following schemes to invest in. 

  1. Equity Scheme- In this kind of fund offered by IDBI Mutual fund, a large part of the investments happen in the stock market. A small part of the fund is also invested in notes and bonds. This fund can either be open-ended or close-ended.
  2. Gold Fund- The gold scheme under the IDBI mutual fund provides investment in various forms of gold. This category of IDBI mutual funds offers investment in either physical gold, bullions or in stocks of gold mining companies.
  3. Debt Scheme- This scheme of IDBI mutual fund offers investment in debt funds and also in certain other funds that give a fixed income. These funds by IDBI mutual fund give the investors a fixed interest rate.
  4. Exchange Traded Fund- This scheme by IDBI mutual fund provides investment in stock trading. The security of this fund depends entirely on the market trends.

Reasons to Choose IDBI Mutual Fund

Apart from providing many options in terms of the investment portfolio, there are a few other benefits of investing in IDBI mutual fund.

  • IDBI mutual fund offers liquidity in a matter of a few working days based on the current net asset value of the investor
  • IDBI mutual fund also offers professional advice to manage risks accordingly. 

How to Choose between IDBI Mutual Fund and Escorts Mutual Fund 

Before you choose the company of your investment like IDBI mutual fund or Escorts mutual fund, it is important to first choose the investment scheme. Though the past performance of the scheme counts, you cannot choose a product purely based on the past performance. The following are a few things to consider before you choose a scheme with a company such as Escorts Mutual fund: 

  • The overall charges to the AMC
  • The downside risks of choosing the scheme
  • The performance consistency of choosing the scheme 

Never choose a scheme that has given high returns in a short time period without consistency. After choosing the scheme you would like to invest in, you can choose the asset management company (AMC) like IDBI mutual fund or Escorts Mutual fund based on the comparison. The following points are to be compared while choosing an AMC such as IDBI mutual fund or Escorts Mutual fund: 

  • The investing approach adopted by the AMC
  • The expert advice and guidance offered by the company
  • Growth prospects and the proficiency of the company to grow higher
  • The performance of the AMC in the markets and their projected market growth. 

All along, while choosing between funds and AMCs such as Escorts Mutual fund and IDBI Mutual fund, remember that comparison is the key. 

Friday, May 18, 2018

What are the best investment options for middle-class individuals in India?


People make investments in order to meet all their requirements that arise in future including expense for the child’s education and retirement plans. Investment plays an important role in everyone’s life and is one of the major decisions that require a lot of research. The online medium provides great help as these days you can easily get all the important information online. You should consider all the important factors so that you can select the best investment option as per your need and affordability. Make the selection as per your objectives and risk appetite. 

Some investments have greater risk while the other investments involve less risk. Generally, middle-class individuals opt for those investments which give them good returns and involve less risk. But do not forget the fact that those investments which have a greater risk also promise higher returns. Risk and return are the related terms. You need not worry as a lot of investment options are available in the Indian market and you can choose the investment option as per your risk-appetite. 

Check out some of the best investment options that are available for middle-class individuals in India: 

Unit Linked Insurance Plan: 

Unit Linked Insurance Plan is the best investment option as it is the combination of insurance cover and investment option. Insurance companies provide you life insurance cover and at the same time, they also invest a portion of the premium in debt and equity markets. So this way you can enjoy the benefits of both that is insurance and investment. You must check the credibility and past record of the insurance company from whom you are planning to take Unit Linked Insurance Plan. If you are a person who has a higher risk appetite then you go should go for it. 

Real Estate: 

Nothing could be better if you have the amount to invest in Real Estate property. It is considered to be on the list of best investment options available in the Indian market. Real Estate sector is growing at the fastest rate. The risk that is involved in investing in realty is quite low. The price of the property rises within 6 months so it is worth to make an investment in the Real Estate. Investing in a flat or plot would be one of your best decisions that you will never regret in your lifetime. 

Public Provident Fund: 

Public Provident Fund is a suitable investment option for the middle-class individuals. Under section 80C of Income Tax Act, a person enjoys various tax benefits for investing in Public Provident Fund. For opening your PPF account, you need to go to the bank or designated post office. There are some banks in the market that provide this service online also. It is a less risky investment with a lot of tax benefits. The interest that you earn is tax-free and deposited amount is eligible for tax deductions. The investment period is of 15 years and you can make partial withdrawals after a certain time. You can get the investment period extended for 5 years. 

Post Office Monthly Income Scheme: 

Post Office Monthly Income Scheme is the best investment option available in the Indian market for the middle-class people. Even a minor can invest in this scheme as the minimum eligibility age required is 10 years. The investment period is of 5 years. According to 80C of Income Tax Act, you are eligible to receive a tax rebate if you have invested up to Rs. 1.5 lakh. Only in some exceptional cases like the death of the investor or court order, one can make the early withdrawal. In POMIS, one can choose a nominee so that nominee can enjoy the benefits in case of early death of the investor. 

Company Fixed Deposits: 

Company Fixed Deposits are similar to the Fixed Deposits that you make with the bank. The difference is that the Company Fixed Deposits are made with the companies and they are better than the Bank Fixed Deposits. You must check the credibility and past record of the companies with whom you are planning to make the fixed deposit so that you can ensure yourself that you have made a safe investment. An investor should choose the term wisely as once the amount is deposited with the company it cannot be withdrawn before the maturity. It is a long-term investment with high risk. 

Bonds: 

It is the best investment option for those who do not want to spend in equity and mutual funds. Bond is considered as a safe investment and ensures public higher returns than other investment options. There are a variety of Bonds available in the market including Zero Coupon Bonds, Convertible Bonds and more; you can choose as per your need or requirement. The risk of losing the principal amount is quite low in the Bonds. That is why a Bond is one of the best options for making an investment if you are a middle-class individual and not comfortable to invest in equity and mutual funds. 

Conclusion: 

Investment provides financial help for the future requirements including retirement funds, expenses for child’s education and more. Before investing in any of the investment options you should think and do a lot of research. The online medium can help you to select the best investment option available in the Indian market. It is one of the major and important decisions that one makes in order to fulfill all the future requirements. Also, do not forget to check the credibility of the organisation with whom you are depositing your amount as it ensures that your investment is in safe hands. Remember the fact that all those investments which involve a higher risk also promise to provide you higher returns. Be wise and make your investment decision after considering various important factors. 

If you are looking for some of the best investment options for middle-class individuals in India then you are at the right place; do scroll up the page.

Friday, April 27, 2018

Aegon Life ULIP Calculator | Get Your Free Quote Now


Lately, Unit Linked Insurance Plan – ULIP have gained a lot of popularity, and have become amongst the most sought-after insurance products. ULIP is based on the idea of facilitating investment as well insurance under a single plan. This renders double protection and multiple benefits to the investor. 

Before making a decision on investing in ULIP, investors often research on ULIP calculations. This article will focus on giving you some insights on Aegon life ULIP calculator. 

Before moving on to learn about ULIP calculator, we will have a look at some of the aspects associated with Aegon Life ULIP. 

Who Should Invest in ULIPs? 

Almost every investor, whether modern or conventional, can consider investing in ULIPs and gaining out of ULIPs linked to debt funds. However, a certain pool of investors who are aiming at the below can look at ULIP investments. 

  • Regular savings 
  • Long-term investments, and 
  • Gaining access to the market-linked returns. 

What Options Do You Have For ULIP Investments? 

Aegon offers a number of options for ULIP investment. Each of the options carries a set of benefits, and investment regulations with itself. It is better to consult an expert, understand the product, assess the benefits, make feasibility checks, etc. and then come to a consensus. 

Some of the ULIPs offered by Aegon are enlisted below. 


ULIP Plan
Features
iMaximize Insurance Plan
Higher sum insured, additional savings and income benefit
Future Protect Plan
Multiplying amount from different investments along with life-coverage
iInvest Insurance Plan
Enables investment in six different funds such as blue-chip equity, opportunity, stable, secure, accelerator and debt funds.
Rising Star Insurance Plan
Good for future security for children. Investment is done in equity markets.
iMaximize Single Insurance Premium Plan
Investment is done only once, while the investor earns profitable returns on the investment for a long time.
Future Protect Plus Plan
Generates a pool of finances by facilitating investment as well as insurance. It also works towards growth of the finances.




ULIP Calculator 

ULIP calculator is necessary in order to know the amount of cover and corpus required. ULIP calculator is helpful in determining the future value of an investment. In order to figure out and understand the investment plan that will best suit your needs, you need to provide details such as the investment amount, the number of years of investment, the percentage of the post-tax yearly rate of return earned on the investments, frequency of investments, etc. 

ULIP Calculator – Get a Free Quote 

In order to get a free quote, you need to go through the below steps. 

Let us consider that you (as an investor) plan to buy Aegon Life Insurance Plan. The system will ask for the below details. 

Click on self for the tab I am investing for. 

  • Enter your name in the name tab. 
  • Select your gender image. 
  • Give your date of birth on the next tab. 
  • Select your occupation. 
  • Select the monthly investment, for instance, 2000 INR. 
  • Select the annual income, for instance, 1 lakh INR. 
  • Enter your mobile number and email ID. 

Later on, the next window will open up.
  • Select the benefit option, for instance, option 2 – with additional benefits. 
  • Select the policy term, for instance, 15 years. 
  • Select the premium paying term, for instance, 10 years. 
  • Select the investment frequency, for instance, monthly. 
  • The investment amount selected will automatically show up. 
  • Select the sum assured. 

Further, select the percentage of the allocation of funds in different market types. 

Eventually, the system will give you the total fund value at 8% and 4%. In case of 8%, the total fund value is projected to be around 4 lakh INR, and with 4%, it is projected to approximately 2.68 lakh INR. 

Now, to understand the ULIP calculator and how a particular plan works, let us consider the below example. 

Mr. XYZ is 40-year-old person who works for a manufacturing company and looks forward to ULIP plan in order to secure his family’s future. There are 3 members of his family, including his wife and child. He purchases the Aegon Life Insurance Plan and selects the option 2 for death benefit. His cover amount is INR 12.5 lakhs, and the policy term duration is 25 years. The payment premium term is 25 years that is annually paid by him. His premium amount is INR 1 lakh, and he has chosen the hundred percent secure fund investment strategy. 

After 4 years of purchasing this policy, he dies in an accident. His wife, who was his nominee, is paid a sum of INR 12.5 lakhs. Further, the payment of 1 lakh INR is done from the fifth year. The plan continues even after the death of the investor since the company pays the unpaid premium. 

Now, at maturity on the 25th year, there could be two scenarios based on the maturity pay-out. The scenarios are as follows. 

  • In case the maturity payout is 4%, the nominee will receive a sum of around 31 lakhs (+- some thousands of INR) 
  • In case the maturity payout is 8%, the nominee will receive a sum of around 56 lakhs (+- some thousands of INR). 

Hope the above article on ULIP Calculator proved helpful for you. Consult an expert for more insights and better decision making. Happy Investing!

Friday, March 9, 2018

Best and Safe Investment Plan with High Returns



Fixed Deposits have always been viewed as safe investment havens. However, FD interest rates have been falling since the last few years. Demonetization and falling inflation led to even further decline in FD interest rates. While FDs continue to remain one of the safest forms of investments, you cannot expect them to yield high returns on your investment.
With most banks currently offering just about 6.5 to 7.2 per cent interest rates for tenures that range from 1 to 10 years, conservative investors have begun looking at other avenues to park their funds on a medium to long term basis.

What then are some of the best investments plans with high returns? Let's find out:

Post Office Time Deposit Account (POTD)
Post Offices have been operating in India for over a century now and have a reach that is far wider than the banks. More than 238 million accounts have benefitted from various post office savings account schemes. Post office time deposit scheme is one such scheme. It is quite a popular scheme as it allows investors to park their surplus funds at an elevated rate of interest - much higher than interest rates offered by banks for their 5-year tax-saving deposits that offer just about 7.2 per cent interest per annum.

Features of POTD:
  • POTD is available for tenures of 1, 2, 3 and 5 years and the 5 year plan offers a yearly interest rate of 7.8 per cent. 
  • The scheme offers an assured return on investment to the investors.
  • These accounts are flexible and can easily be transferred from one Post office to the other.
  • Account holders can open a number of deposits at post offices of their choice.
  • INR 200 is the minimum amount required to start a POTD and there is no maximum amount.
  • Non-resident Indians are not eligible to apply for this scheme.
  • This scheme doesn't provide a Tax Deducted at Source certificate to the account holder.

5-Year National Savings Certificates (NSC)
This is a lucrative investment scheme offered by the Government of India and is aimed at individuals looking at saving income tax.

Features of NSC:
  • A rate of interest of 8.1 percent per annum is offered by the 5-year National Savings Certificates (NSC) scheme.
  • Under Section 80C of the Income Tax Act, Income tax up to Rs 1.5 lakh can be saved through this scheme
  • There is no minimum limit for purchase of NSC
  • NSCs have a maturity period of 5 years.
  • The scheme is easily available at all the post offices
  • It offers a guaranteed return on investment
  • Interest earned is added back to the initial investment and is compounded annually.
  • These certificates come in handy while applying for loans from banks.

Kisan Vikas Patra (KVP)
India post launched this saving certificate scheme named Kisan Vikas Patra (KVP) in the year 1988 and is a successful investment scheme that offers high returns.

Features of KVP:
  • KVP offers a rate of interest of 7.5%.
  • Amount invested in this scheme matures over a period of 115 months.
  • This certificate can be purchased by an adult individual or on behalf of a minor.
  • The certificate is available at all the post offices
  • The scheme has the facility to opt for a nominee.
  • Certificate can easily be transferred from one post office to another and from one person to another.
  • A minimum deposit of INR 1000 is needed to invest in this scheme. However, there is no upper limit.
  • The scheme is available in denominations of Rs 1,000, 5000, 10,000 and Rs 50,000.

Public Provident Fund (PPF)
PPF is one of the most popular saving instruments of the salaried class and is one of the best Investment Plans with High Returns.

Features of PPF:
  • PPF allows investors to invest a lump-sum amount of money or in 12 installments.
  • A joint PPF account cannot be opened.
  • PPF currently offers a 7.9 percent rate of interest which is compounded annually.
  • Minimum amount required to open a PPF account is INR 100.
  • A minimum of INR 500 is required to be deposited in a financial year to run a PPF account. And a maximum of INR 1,50,000 can be deposited in PPF in a financial year.
  • Depositors can nominate a person at the time of opening the account and even after opening it.
  • Account can easily be transferred from one post office to another.
  • PPF has a maturity period of 15 years and it can be further extended to another 5 years and so on within one year of the PPF maturing.
  • PPF doesn't allow premature withdrawal before 15 years.
  • Interest earned in PPF is completely tax free.

It is important to note that interest earned on some of these fixed income generating instruments is fully taxable depending on the tax slab the individual falls into. While these may be some of the best investment plans with high returns, the post-tax returns in these instruments aren't as lucrative and only those who are extremely conservative and looking at preserving their capital should invest in them.


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Tuesday, January 30, 2018

Top 7 Best Tax Saving ELSS Mutual Funds To Invest In 2018-2019


During a particular financial year, individuals are at various stages of tax planning: some invest immediately, some are in search of the best tax-saving options, some want information regarding mutual fund schemes. Tax saving mutual funds scheme or Equity Linked Savings Schemes (ELSS) are the best tax-saving option available in Section 80C of the Income Tax Act,1961.

Savings Equity Linked Scheme Is a Wise Choice for A Risk Taker

In Section 80C of the Income Tax Act of 1961, investments in ELSS’s qualify for income tax deductions of up to Rs 1.5 lakh within a lock-in period of three years. Investing in ELSS to save income taxes is a wise choice, start investing in a staggered manner. This method also offers taxpayers ample amount of time to research and choose the right scheme that meets your financial needs. 

ELSS are equity mutual fund schemes, meaning you are investing in stocks. So, invest only if you have a high-risk tolerance, a stomach to handle the volatile nature of the stock market. ELSSs have a lock-in period of three years but invest carefully and only if it’s for a period of five to seven years. 

Government-backed tax-saving mutual funds (GILT Fund) are fixed income instruments offering modest returns, but a very low-risk option. ELSSs produce superior returns periodically over a long time since the primary investments are based on stocks. The returns for ELSSs in tax saving mutual funds category has returned 22.91% in one year, 14.69% in three years and 18.53% in five years. 

Best ELSS Tax Saving Options of 2018:
Taxpayers plan their tax saving investments every financial year. While most common investments in the tax saving category life insurance policies and public provident funds (PPFs).
Equity Linked Savings Schemes (ELSS), a tax saving mutual funds option that is eligible for Section 80C tax deductions. These schemes have a lock-in period of just 3 years, which is the lowest among all Section 80C options. These tax saving schemes generate substantial returns over long-term periods. They primarily invest in equity or equity related instruments.
1.            Axis Long Term Equity Fund
This tax-exempting fund was launched on December 29, 2009, by Axis Mutual Fund. The fund capitalizes on companies which have a sturdy probability of creating wealth over a period of three to five years. This fund is a large-cap oriented one with around 70% of its investments in giant and large cap space.
2.            Franklin India Tax Shield
Launched on April 10, 1999, this mutual fund has its eyes on investing in stocks that have varied valuations and great growth prospects. With almost 80% of its investments placed in the stocks of giant-cap and large-cap companies, long-term returns are guaranteed to investors as the scheme is well placed to contain the losses from potential market corrections.
3.            Reliance Tax Saver Mutual Fund
Contrasting to most of the ELSS funds, this fund focuses primarily on investing in the stocks of mid-cap and small-cap businesses. Presently 55% of its investment portfolio has its holdings in small-cap and mid-cap stocks. The tax-saving scheme has a mix of growth prospect and value based style of investing its financial holdings.
4.            ICICI Prudential Long Term Equity Fund
This tax-exempted mutual fund investment scheme was launched on August 19, 1999. This fund invests in the stocks of those companies that have great growth prospects and attractive market capitalizations. It follows a value based investment style, outperforming its competitive peer ELSS Mutual Funds during the initial market phases. Almost 50% of its investment portfolio is knee-deep in the stocks of mid-cap and small-cap companies.
5.            Birla Sun Life Tax Relief 96
This tax relief mutual fund has a primary objective to generate long-term returns by investing 80% of its investment in equities and equity related instruments and 20% in debt and money market instruments. The tax-saving scheme has a mix of growth prospect and value based style of investing since its launch on March 29, 1996. The fund has a multi-cap spectrum with around 47% of its holdings invested in stocks of giant-cap and large-cap companies and the rest in the stocks of mid-cap and small-cap companies.
6.            Tata India Tax Savings
This fund was launched on March 31, 1996. It generates a steady and attractive long-term return by investing in companies of good fundamental foundation. It has stocked a selection criteria for growth prospect and value-based strategy. About 44% of its portfolio, has its stock invested in large-cap and giant-cap companies while the rest is invested in small-cap and mid-cap companies. This fund attracts investors who tend to favor a multi-cap approach along with high-risk tolerance.
7.            IDFC Tax Advantage
This mutual fund was launched on December 26, 2008. The fund has a multi-cap spectrum, with 43% of its properties in giant-cap and large-cap companies and the remaining in small-cap and mid-cap companies. Along with a traditional investment method by concentrating on companies with high growth prospects and low valuations.


Their high rate of returns on ELSSs makes them the best investment option for meeting your long-term financial goals like children’s education and retirement plan investments. To conclude, carefully analyze your own risk tolerance and our financial portfolio before selecting the ELSS funds. 

Wednesday, November 8, 2017

Why Do So Few People Pay Income Tax In India?


All work and no play made Jack a sad man. Similarly, all free things and no contribution sent the economy toppling down. So reminiscent of what people expect and what they give.
It is the financial duty of every person as a citizen of their state to pay a certain percentage to the country. This percentage helps the country develop and grow economically and financially by leaps and bounds. Paying your income tax is one duty you should never shrug away from.
What Then Is Income Tax?
Income tax is a government-levied tax on the percentage of income on all individual and businesses to be directly paid to the government. Income tax is a direct tax within the country. It is a compulsion for every citizen of the country be it a salaried or business to pay or file their Income tax returns every financial year.
What Is Income Tax Used For?
Income tax is routed towards the government funds to finance various government schemes for subsequent developments and facilities like hospitals, schools, roads, etc., also towards the salaries of the government bodies of both the central and the state.
Other than funding government administrations, income tax is also considered as a monetary balance towards equal financial distribution among the population needs. It works towards buffering the effects of economic cycles.
What Are The Different Categories Of Income Tax?
Taxes fall into two categories, direct tax that is Income tax that each and every earning person has to pay whether salaried, business, gains and profits. Service tax, VAT and the newly introduced Goods and Service Tax (GST) are indirect taxes.
In accordance with the Income Tax Act, 1961, the categories that fall into the income tax ceiling are -
·         Salaried Income Groups
·         Income accumulated from properties and Real estates
·         Professional and Business category
·         Benefits from Capital
·         Income from other sources
Why Do You Need To File Income Tax?
·         It is mandatory by law to pay your taxes. Not doing so would incur huge losses.
·         Necessary to pay so that you can claim a refund or carry a loss to the next annual term forward.
·         Helps to procure speedy loans as it helps decide your paying capacity.
·         Helps you procure credits cards more easily.
·         You contribute your share to your country.  
·         Helps to register your property easier.
·         Necessary for obtaining a visa.
·         Pay it on time to avoid paying huge late fees.
Why Do So Few People Pay Income Tax In India?
People try to evade pay Income tax for many reasons. Literacy may be one of the reasons, but at the same time, many categories of people have different views.
People feel ethically entitled to keep their hard earned money since they slogged for it and think it was not a gift to be given away. Perhaps they do not understand the consequence of tax evasion. They do not even feel they owe the government. 
People may not even be f eeling the Need to Pay Income Tax because it is legally earned.
Housewives or mother save their gold or cash for future events. Again here it is legal but not accounted for.
Many people feel better evading paying their income tax as they are under the belief that the country rarely does anything for them. They are not so happy with the miserable failure of the government towards the infrastructure and maintenance of the country. Some are of the view that if the government is lenient to farmers categorizing them as one type and waiver of taxes is granted to them then why not I. 
View Of The Wage Workers
Categories like the maids, auto drivers and such daily wage-workers also feel the need for a tax waiver. They also save their legal money by keeping the money at home for a future event.
Keeping it in the bank would amount to taxation, fee towards lower bank balance maintenance etc. not realizing the consequences of evasion. These lower wage-workers are also under the impression that the money received for working isn’t technically income.
Most think, “Am I not entitled to keep my salary for myself since the government has the right to tax gains or profits and not hard earned wages? I have engaged my labour in equal exchange for my fair wage. No profit no gain.”
Voluntary Giving Of Taxes
Another feeling that people have is filing a return and paying taxes is ‘Voluntary’.  People do not realize that ‘Voluntary’ means that an individual has the right to determine the tax liability by filing the appropriate forms it does not mean evading the tax entirely.

Individuals simply are frustrated to see the malfunctioning of the government system some seek evidence to see the improvements in substandard schools, roads, hospitals, etc., and hence evade taxes as a challenge. But this is not a reason to evade taxes, as eventually, the consequences will have to be borne by the tax evader. 


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Friday, October 6, 2017

SBI Life e-Shield : Online Pure Term Insurance Plan with the Best Financial Protection


SBI E-Shield is the non-participating, non-linked pure online term insurance policy by SBI Life. Alike all other tem policies, the SBI Life E-shield covers life risk with higher sum assured value and minimal premiums. Insurers also avail the rider benefits and for non-smokers there are get great discounts on premiums as well. There are also other key benefits and features of this term policy that make it the most appreciated and highly preferred plan today. Since it is an online term policy, you are required to purchase it online. Moreover, no bonus facility is there with this term plan by SBI Life. Insurers can also enjoy great rewards for maintaining a healthy lifestyle. Unlike other term plans, this term policy by SBI Life offers a variety of plan options to choose coverage and premiums are set based on the coverage required. 

SBI Life E-shield Key Features

Since it is an online term policy, you need to buy SBI E-Shield is the non-participating, non-linked pure online term insurance policy by SBI Life. Alike all other tem policies, the SBI Life E-shield covers life risk with higher sum assured value and minimal premiums. Insurers also avail the rider benefits and for non-smokers there are get great discounts on premiums as well. There are also other key benefits and features of this term policy that make it the most appreciated and highly preferred plan today. Since it is an online term policy, you are required to purchase it online. Moreover, no bonus facility is there with this term plan by SBI Life. Insurers can also enjoy great rewards for maintaining a healthy lifestyle. Unlike other term plans, this term policy by SBI Life offers a variety of plan options to choose coverage and premiums are set based on the coverage required. 

SBI Life E-shield Key Features

  • Since it is an online term policy, you need to buy SBI Life E-shield online from SBI Life Website
  • No maturity bonus or benefits are available with this term plan. 
  • The entry age of this policy is 18 years and above and minimum sum assured value must be 20 lakhs and can be increased in multiples of 1 lakh
  • There are four different coverage plan options – Level Cover, Level Cover with Accidental Death Benefits, Increasing Cover and Increasing Cover with Accidental Death
  • Insurer can get 10% of sum assured after successfully completing 5 years of the policy without increasing the premiums. 
  • The additional accidental death benefit is equivalent to the sum assured of Rs 50 lakhs, whichever is lower
  • There are great discounts on premiums if you are non-smoker and rewards are there for maintaining good lifestyle 
  • Income tax benefits under section 80C and 10(10D)
  • The policy benefits will cease if premiums are stopped by the insurer, but the policy can be revived again within three years range

Benefits from SBI Life E-shield

Death Benefits – If the insurer dies within the policy tenure, the nominee of the policy will get the lump sum amount as death benefit. However, the death benefits the nominee will get greatly depend on the plan option chosen by the insurer.

Maturity Benefits – Since it is a term insurance plan, there is no maturity benefit or bonus available

Income Tax Benefits – The insurance premiums up to Rs 1, 00, 000 are eligible for deduction from the taxable income under section 80C and the Maturity Proceeds are also tax free under section 10(10D). But, it is subject to fulfillment of terms and conditions. 

How SBI Life E-shield Works

In this term policy by SBI Life, you are required to pay the premiums for entire policy at the time of signing the policy contract. There are basically four Variants of SBI Life E-shield Policy.

  • Level Cover – The Effective Sum Assured in this term policy option is the Basic Sum assured that insurer chooses at policy inception.
  • Level Cover with Accidental Death – The Effective Sum Assured is same as in Level Cover option, but the policy comes with built-in rider coverage that offers accidental death benefits. If there is an accidental death then the nominee would get a lump sum which is equal to Basic Sum Assured or Rs 50 Lakhs, whichever is lower
  • Increasing Cover – The Basic Sum Assured can be increased by 10% after every 5th policy year without increase in premiums
  • Increasing Cover with Accidental Death – The Basic Sum Assured can be increased by 10% after every 5th year of the policy without any increase in policy, but this term plan option comes with inbuilt rider of Accidental Death Benefits where the nominee would get a lump sum which is equivalent to the Basic Sum Assured or Rs 50 Lakhs, whichever is lower.
  • Online from SBI Life Website
  • No maturity bonus or benefits are available with this term plan. 
  • The entry age of this policy is 18 years and above and minimum sum assured value must be 20 lakhs and can be increased in multiples of 1 lakh
  • There are four different coverage plan options – Level Cover, Level Cover with Accidental Death Benefits, Increasing Cover and Increasing Cover with Accidental Death
  • Insurer can get 10% of sum assured after successfully completing 5 years of the policy without increasing the premiums. 
  • The additional accidental death benefit is equivalent to the sum assured of Rs 50 lakhs, whichever is lower
  • There are great discounts on premiums if you are non-smoker and rewards are there for maintaining good lifestyle 
  • Income tax benefits under section 80C and 10(10D)
  • The policy benefits will cease if premiums are stopped by the insurer, but the policy can be revived again within three years range

Benefits From SBI Life E-shield

Death Benefits – If the insurer dies within the policy tenure, the nominee of the policy will get the lump sum amount as death benefit. However, the death benefits the nominee will get greatly depend on the plan option chosen by the insurer.

Maturity Benefits – Since it is a term insurance plan, there is no maturity benefit or bonus available

Income Tax Benefits – The insurance premiums up to Rs 1, 00, 000 are eligible for deduction from the taxable income under section 80C and the Maturity Proceeds are also tax free under section 10(10D). But, it is subject to fulfillment of terms and conditions. 

How SBI Life E-shield Works

In this term policy by SBI Life, you are required to pay the premiums for entire policy at the time of signing the policy contract. There are basically four variants of SBI Life E-shield policy.
  • Level Cover – The Effective Sum Assured in this term policy option is the Basic Sum assured that insurer chooses at policy inception.
  • Level Cover with Accidental Death – The Effective Sum Assured is same as in Level Cover option, but the policy comes with built-in rider coverage that offers accidental death benefits. If there is an accidental death then the nominee would get a lump sum which is equal to Basic Sum Assured or Rs 50 Lakhs, whichever is lower
  • Increasing Cover – The Basic Sum Assured can be increased by 10% after every 5th policy year without increase in premiums
  • Increasing Cover with Accidental Death – The Basic Sum Assured can be increased by 10% after every 5th year of the policy without any increase in policy, but this term plan option comes with inbuilt rider of Accidental Death Benefits where the nominee would get a lump sum which is equivalent to the Basic Sum Assured or Rs 50 Lakhs, whichever is lower.

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