Reliance Term Insurance Plan - Benefits

“Unless you’re immortal, you need life insurance!” – Anonymous.

We all are living in a world that is very uncertain at every step. It becomes really important to ensure that your family is secured and stays protected unconditionally. Reliance Term Insurance Plan helps you do exactly the same. The term plan by Reliance is a pure form of life insurance. It offers a complete and affordable coverage to the policyholder for a limited period. The policyholder can opt for a Sum Assured as per their financial needs.

There are three different policies offered under the Reliance Term Insurance. They are:

·         Reliance Nippon Life Term Plan

·         Reliance Nippon Life Online Term Plan

·         Reliance Nippon Life Online Income Protect

1.      Reliance Nippon Life Term Plan:

Reliance Nippon Life Term Plan offers family protection against the unforeseen circumstances that may affect your family’s lifestyle when you are not around. This term plan offers a large life insurance cover at an affordable premium.

Parameters	Minimum	Maximum
Age at the entry level (Years)	21	60
Age at the time of Maturity (Years)	26	65
Policy Term (Years)	5	30
Premium Payment Term (Years)	Equal to Policy Term
Premium (Rs.)	Rs. 2000	No limit
Sum Assured (Rs.)	Rs. 5, 00, 000	No limit
Premium Payable Mode	Yearly, Half-yearly or Quarterly mode

Key Benefits of the plan:

The key benefits of the term plan by Reliance are:

·         You can choose adequate protection cover depending upon your needs.

·         This plan enables you to enhance your protection through optional riders.

·         Under this plan, you enjoy tax benefits subject to tax laws.

·         This plan ensures security for your loved ones in case of any mishap.

·         You can buy insurance-cover at an affordable premium.

Reliance Nippon Life Online Term Plan:

For today’s generation, Reliance Nippon Life Online Term Plan is considered as an ideal term plan. It offers a large cover at a reasonable premium without any tedious paperwork. The process is a convenient seamless online process. It ensures complete financial protection at lower premiums.

Parameters	Minimum	Maximum
Age at the entry level (Years)	18 (Last birthday)	55 (Last birthday)
Age at the time of Maturity (Years)	28 (Last birthday)	75 (Last birthday)
Term of the Policy (Years)	10|15|20|25|30|35
Term of Premium Payment (Years)	Equal to Policy Term
Sum Assured	Rs. 25, 00, 000	No limit
Premium	Rs. 3500	No limit
Premium Payable Mode	Annual

Key Benefits of the plan:

The online term plan has the following key benefits:

Flexibility: The plan provides flexibility to decide the protection cover depending upon his needs.

Financial Protection: The plan offers complete financial protection at a reasonable cost.

Lower Premiums: The plan ensures healthy lifestyle through lower premiums.

Simple Process: The plan has a simple and hassle free process.

Tax Benefits: The policyholder enjoys the tax benefits as per applicable tax laws.

Convenience: The plan offers simplified medical examination process.

Reliance Nippon Life Online Income Protect Plan:

Reliance Nippon Life Online Income Protect Plan comes with a feature of protecting your family with a lump sum to pay out larger liabilities. This Reliance Term Insurance Plan not only protects your family with a lump sum to pay off liabilities but also provides with a monthly income to ensure the same standard of living.

This plan provides you with complete financial protection at a reasonable cost along with the convenience of purchasing the policy online in just a few clicks.

Parameters	Minimum	Maximum
Age at the entry level (Years)	18	55
Age at the time of Maturity (Years)	28	75
Term of the Policy (Years)	10, 15, 20, 25, 30, 35
Term of Premium Payment (Years)	Equal to Policy Term
Base Sum Assured	Rs. 35, 00, 000	No limit
Annual Premium	Rs. 3500	No limit
Premium Payable Mode	Annual

Key Benefits of the plan:

The plan has the following benefits:

Double Protection: This plan offers double protection at an affordable cost.

·         Lump sum payout of large liabilities

·         Regular monthly income until retirement to protect your family’s lifestyle

Tax Benefits: The policyholder enjoys tax benefits as per the prevailing tax laws.

Lower Premiums: The plan ensures healthy lifestyle through lower premiums

3-Step Process: The application process consists of three simple steps.

Nothing can compensate for the loss of a life, but a term plan can provide you the peace of mind that your family will be secured when you are not around. You can opt for the best plan that suits you as per your preferences and requirements. 

Why Opting For LIC Online Term Plan Is Beneficial?

As we are moving towards cashless economy we now have all the resources that will help us to rely online for our entire day-to-day task. Moreover, we now can take LIC term plan without making any huge investment. This is only possible if you make an online payment.

Features of Online LIC Term Plan:

•    All you need is to visit the official website of LIC India to take the policy.

•    The policyholder does not get any maturity benefit as it is a pure term insurance plan.

•    25 Lakhs is the minimum sum that one can assure. On the other hand, there is no limit on the maximum sum that you can assure.

•    The other benefits of purchasing the online term plan of LIC are that they are cheaper than the traditional methods of purchasing the plans.

•    Payment can be made only on an annual basis.

•    An insurance cover can be purchased only for yourself.

•    This plan does not offer any rider.

•    Policy tenure: minimum – 10 years, maximum – 35 years

•    Entry age: min – 18 Years, max- 60 years

•    Maximum age limit- 75 years.

•    Saves you from the hassle of cash payments as you can pay it online.

Cost of the LIC

LIC has emerged out as a surprise to a lot of us. The premium paid for an e-Term is quite reasonable. When compared to other players in the market ICICI Pru iCare charges more premium as compared to LIC Term Plan. However, an e-Term plan that offers an assured sum of fewer than 50 Lakhs is the costliest term plan for a person who leads a healthy lifestyle. When it comes to the cost we very well know that the offline term insurance plans offered by LIC are quite expensive.  HDFC Click2Protect costs you less than LIC e-Term. These premium offered by these companies are much more than the premium offered by other insurance providers in the market.

Tenure and Age Condition Of LIC Term Plan

LIC Online Term plan offers its policyholders highly flexible terms and conditions in the case of age and tenure. One of the biggest examples is that no other insurance plan offers you to a term insurance cover at the age of 75.  Being the oldest insurance provider the company cares for the elderly people.

	Max Maturity Age	Max Age of Entry	Maximum Policy Term
LIC e-Term	75	60	35
ICICI Pru iProtect	65	60	30
HDFC Click2Protect	65	55	30
SBI Life eShield	70	65	30

Easy to Subscribe

To take the Subscription of LIC Online Term plan is not quite an easy task. It is quite tiring to fill in the entire form. You need to go through several verification steps. Plus, you need to fill up a lot of information which is simply useless. You might demotivate you but you need to actualize the fact that at the end of the day it is a government organisation.

Riders offered by LIC Online Term Plans

One of the most important things is that you need to know is that the online Term Plan does not offer any rider benefit. However, several private insurance providers also render rider facility using online term plans.

Buy Online Term Plans From Max Life Insurance

Insurance has grown out to be a prime requisite among the Indian audiences. We have no idea about what will happen in the coming future and this is the reason why you need to be well prepared. The best insurance options that we nowadays have are the term insurance plans.                                           

Among several insurance providers, we have Max Life Insurance Company Limited that falls among the top four life insurers in India with a market share of 10.30%. The company falls among the fastest growing life insurance provider that offers a Gross Written Premium of about Rs.7279 crores. Moreover, the shareholder’s profit is of Rs.436 crores after taxation.

What are Term Insurance Plans?

In case of an untimely death of a person the policyholder, there needs to be someone who takes care of their family. In these situations, Term insurance plans become an indispensable need for the users. These are the situations where Term insurance plans can only suffice the need of the entire family.

Term plans assure to render the person nominated an assured benefit picked up while taking the policyholder pre-deceases the policy term. Further, the best thing about this plan is that the premium of the policyholder is quite low as the policyholder only gets the death benefit. As it is a pure term plan this plan does not offer any maturity benefit.

Max Life Term Plan

The company offers several term plans and every Term plan offered by Max Life promises striking benefits at extremely competitive rates. We will now discuss some of the major benefits offered by Max Life.

Max Life Online Term Plan Basic Life Cover

The policyholders can purchase this policy online and this is a hassle-free process. The nominee receives a death benefit if the insured person passes away within the policy tenure. The death benefit is equal to the sum assured that was decided at the time of inception of the policy.

Max Life Online Term Plan Life Cover plus Monthly Income

This one is an online Term Plan offered by Max Life and this promises regular income every month after the death of the policyholder. It is an online Max Life term plan which can be purchased online. The benefits of these plans are that it is offered in very low premiums plus you do not have to go through the pain of unnecessary paperwork.

Eligibility Criteria:

	Minimum	Maximum
Age of taking the policy	18 years	60 years
Maturity Age	-	70 years
Policy Tenure	10 years	35 years
Assured Sum	Rs.25 lakhs	Rs.100 crores
Premium Payment Tenure	Equal to the term of the policy
Premium Payment Mode	Yearly

Max Life Super Term Plan

Max Life term plan offers the Features of increasing Sum Assured along with a dual option to avail death benefit. The most noteworthy feature of this plan is that the sum assured increases at a rate of 5%. This growth is applicable till the end of the complete tenure of the plan. 

Eligibility Criteria:

	Minimum	Maximum
Age of taking the policy	18 years	65 years
Maturity Age	-	75 years
Policy Tenure	10 years	35 years
Assured Sum	Rs.25 lakhs	No limit
Premium Amount	Rs.5000	Based on coverage
Premium Payment Tenure	Equal to the policy term
Premium Payment Mode	Yearly/half-yearly/quarterly/ monthly.

Choose, Which Income Tax Return Form Suits You

Various types of income tax return forms have been issued by the government. These forms are for a better income tax payment experience.

For an easier understanding of which category the assesses falls under, the Central Government has come up with income tax return forms. These forms have been divided into categories that suit different types of assesses that have to follow different rules.

Types of Income Tax Return Forms

The income tax return forms have been divided under the following categories:

1. ITR-1/Sahaj: The individual whose only incomes are from

·         Salary/pension;

·         One House Property (excluding brought forward losses), and;

·         Other Sources

It is to be noted that the above Other Sources income does not include Winnings from Lottery and Income from Race Horses.

Who Cannot File Income Tax Return-1?

Any Resident having any asset located outside India or signing authority in any account located outside India cannot use ITR-1 to file his return. These foreign assets include financial interest in any entity.

If the amount of exempt income of an assessee exceeds Rs. 5,000, in such a case too ITR-1 cannot be filed.

2. ITR-2A:

This return can be filed by taxpayers who:

·         have Salary income, House Property Income from more than one house and no Capital Gains;

·         have Long Term Capital Gains from transaction on which Securities Transaction Tax is paid;

·         are NRIs, if applicable, however residents having a foreign asset or a foreign income cannot file ITR-2A

Who Cannot File ITR-2A?

ITR-2A cannot be filed by an assessee who has:

·         Income from Capital Gains

·         Income from Business and Profession

·         Any claim of deduction under section 90, 90A or 91

·         Any asset located outside India, including financial interest in an entity

3. ITR-2:

An assessee who is an Individual/HUF, with the following incomes, can file ITR-2:

·         Income from Salary/pension;

·         Income from Capital Gains;

·         Income from House Property;

·         Income from Other Sources.

The Income from Other Sources does not include Winnings from Lottery and Income from Race Horses. Furthermore, in the cases of clubbing, ITR-2 can be filed.

Who Cannot File ITR-2?

Assessees having an income under Business and Profession or who is a partner receiving remuneration in a partnership firm/LLP cannot file this return.

4. ITR-3: This return is to be filed by assessees having the following income from a Partnership firm/LLP under the head Business and Profession:

·         Interest

·         Salary

·         Bonus

·         Commission or remuneration

In a case where the only income from a partnership firm is the exempt share of profit, ITR-3 shall be filed.

Who Cannot File ITR-3?

If the assessee has any income from proprietorship under Income from Business and Profession, he cannot file this return.

5. ITR-4S/Sugam: Sugam can be filed by the assessees having:

·         Presumptive business income

·         Salary/Pension

·         One House Property

·         Income from Other Sources

Who Cannot File ITR-4S?

A taxpayer cannot file ITR-4S is he has:

·         More than one house property

·         Speculative income

·         Winning from Lotteries/Income from Horse Races

·         Agriculture income exceeding Rs. 5,000

·         Capital Gains

·         Losses to be carried forward

6. ITR-4: This return is to be filed by individuals having income from a proprietary business or profession. The assessee can be an Individual or an HUF.

7. ITR-5: 

This return is to be filed by:

·         Firms

·         LLPs

·         AoPs (Association of Persons)

·         BoIs (Body of Individuals)

8. ITR-6:

This return is to be filed by companies.

Who Cannot File ITR-6?

Companies claiming exemption under section 11 of the Income Tax ACt, 1961 cannot file this return.

This return is to be filed electronically only.

9. ITR-7:

This return is the be filed by persons required to file return under the following sections of the Income Tax Act, 1961:

·         Section 139(4A) - for every income received for charitable purposes;

·         Section 139 (4B) - for every political party exceeding the threshold limit;

·         Section 139 (4C) - for institutions referred to under section 10;

·       Section 139 (4D) - for educational institutes under the guidelines of filing income tax returns

ITR-7 is to be paper filed.

All in all, filing returns has been made super easy by the government. Even for the common man with minimum taxation knowledge, figuring out which Income Tax Return Form Suits him isn't much of a task.

Short Term Investment & Long Term Investment Plans In India

Short Term Investment Plans in India

Any investment scheme that has a time period of 1 to 5 years is distinctive of a short term investment. There are quite a few advantages in opting for short term investment plans as compared to their long term equivalents. If an investment plan is a short term one, the risks are less and the money is not kept locked up by the bank or any other financial institution. The return on the investment (ROI) is also quite sizeable. Here is a brief on some of the best short term investment plans.

Fixed Deposits:

Without a doubt, FDs are the most secure short term investment plans available. This scheme provides a fixed rate of interest that ranges from 4 to 11% yearly. Though the money cannot be withdrawn before its maturity period, fixed deposits come with a period/tenure of 10 days to 10 years. Interest is paid 3 months after the initiation of the deposit and is exempt from tax deduction under Section 80C of the Income Tax Act, 1961. Untimely withdrawals may involve a penalty, but that is decided upon by the bank.

Savings Account:

A Savings Account is another reliable and secure mode of short term investment, which can be primarily used for liquidity. An account like this can be opened with any bank or financial institution and money can be kept till required. Banks pay around 4 to 7% interest rate, depending on the amount and duration for which the money is reserved in the account.

Gold Investment:

Investment in gold is deemed to be one of the wisest options when it comes to investing for a short duration. This very in-demand yellow metal can come handy in uncertain times as it offers protection and stability during banking crisis, inflation or social unrest. Another benefit of investing in gold is that any inclination in the financial market does not have any effect on the value of the metal. With the demand for the precious metal on a constant increase (especially in a country like India), there has been a 23.5% return on investment in the past few years.

Liquid Funds:

Liquid funds are ones that have a high liquidity value that can be invested in a certificate of deposit or short term securities offered by the Indian Government. These funds are essentially short term Investment Plans that have a Low Risk and low return investment while offering a fixed current income. In order to avoid fluctuating interest risks, the maturity of this fund is 90 days.

Long Term Investment Options in India

Long-term investments are investment schemes that have a term period of over 5 years. They play a vital role in the larger scheme of things, wherein you might need accrued amounts; for example, in your child’s education or to buy a land/property. It is, therefore, imperative to have a solid know-how of the kind of investment options that you are opting for.

The most common Long Term Investment Options are -

Employee Provident Fund/Public Provident Fund:

Provident or pension fund is a savings scheme that is provided by every employer to every employee in which a small portion of the employee’s monthly income is deducted and diverted into his/her Provident Fund. This amount can only be withdrawn by an employee upon leaving the organization or upon retirement from it.

National Savings Certificate:

Offered by the Post Offices in India, it is one of the traditional investment implements that is exceedingly favoured by senior citizens and those who are looking to invest smaller amounts for longer lock-in tenures. You can invest from Rs 100/- to 1.2 Lakhs with a 6-year maturity term. The annual interest rate on NSC’s is 8% and not subject to market fluctuations. Also, the interest is not tax-free at the time of payment at maturity.

Real Estate:

Investment in real estate (land and property) is a very smart investment alternative as the appreciation in the value of real estate has been exceedingly encouraging and almost always on the rise in the recent past. As an investment option, it represents good growth and is also a substantial asset to have for something to pass on to the next generation.