Monday, March 27, 2017

Understand your financial necessity


       Let’s understand human needs in today’s world. Now, human lives longer than before due to medical advancement and treatments given to all sorts of health problems. So, there is a need to have money for such lengthy life for both survival and lead a good life with at least moderate standard of living.
     In such a lengthy life we must have money which beats inflation and provides enough to lead a decent living.
     There are always uncertainties like death, possible disability, which may put dependents and self in a situation where income stops and worry starts and life becomes painful.
As per my observation there are mainly 2 types of expenses in a broader classification.
1. Regular monthly expense to survive with decent standard of living.
2. Bulk expense in many stages of life which are inevitable and needs big savings.
 
1. Regular expense can be listed as below as an example. These are needed for survival
A.  Monthly Grocery
B.  Vegetables/Fruits
C.  Petrol/Diesel
D.  Mobile/Landline/Internet
E.  Servant salary
F.  Milk
G. Electricity/Water
H. Gas Cylinder
I.   Cable TV
J.   Ironing
K.  News paper…..etc
 
2. Bulk expense may as below for any responsible person which demands bigger amount money.
A. Marriage
B. Lease/Rent a home
C. Set up home             
D. Buy a car/Two wheeler
E.  Build/Buy a house
F.  Children’s education
G. Children’s marriage
H. Savings for retirements
I.   Emergency Health care ….etc
 
             Providing regular monthly needs to all the members of family keeping their needs, entertainment, desires, ambitions, it is a bit challenging due to cost of living of all above.  so, savings also becomes challenging for future bulk expense like marriage, buying/building house, buying car, children’s education, marriage, retirement, medical emergency etc.
 
            "These situations put necessity to have financial plan for such lengthy list of unavoidable life events and expenses to be able to manage them efficiently. Otherwise they become burden with more pain by opting for loans with interest to pay"
 
           Keeping all above in mind I have experienced that LIC of India provides unbelievable and most exciting plans and combination to cater all above needs, Its highly recommended to start planning early in life as money need time to grow.

         Don’t ignore and keep postponing which may cost you a lot like money, peace of mind and financial security.  
        Call us for appointment to plan right today and cater your needs so that you and your family live with peace of mind.

      Call us @ 9901422522, Bengaluru.  Mail id: Swetha.Tejasvi@gmail.com

Thursday, March 23, 2017

Why start saving at early age?


 
Scenario 1:
Do school teacher starts teaching when exams are around?  The simple answer is NO, in fact they take special classes to cover pending syllabus when exams are near to finish syllabus. Usually they follow timetable with discipline to cover all chapters of all subjects to ensure they teach everything before exams begin. 
 
Scenario 2:
What happen to students if they study 1 month before exam after wasting whole year? Obvious answer is he may fail or score low marks for the academic year. So everyone knows that students have to start preparing early to score high marks and not at the end.
 
Have you noticed run rate in cricket?

Scenario 3:
What happens If cricketers who chase target and don’t maintain steady run rate from beginning of innings and try scoring higher in the slog overs? Obviously pressure builds with higher required run rate touches like 30 runs/over and they try hitting sixers and lose wickets one after other and lose match. This is something we watched in many matches.
 
If you maintain a steady Run rate of 4 runs/over it is fine to score at the end, or else if run rate increases like 30 runs/over, will you be able to make it? obviously you will lose match.
 
There is not much of difference between saving money for purpose and above 3 scenarios.
 
If you don’t start saving small amount very early then you can’t collect bulk amount for events like marriage, education, building house, buying car, retirement, medical emergency so on. When the run rate increases then you will end up in opting for loan and pay interest for it and it becomes pain in your life.
 
But if you opt for saving for long term the power of compounding will help you to achieve your targeted goals OR at least it reduces your burden with contribution with savings.
 
I have seen that LIC of India is the one institution which makes people to save with discipline so that people are able to save substantial amount of money for their needs at every stages of life. It’s highly recommended to start planning early in life as money needs time to grow.

Don’t ignore and keep postponing which may cost you a lot like money, peace of mind and financial security.  
Call us for appointment to plan right today and cater your needs so that you live with peace of mind.

Call us @ 9901422522, Bengaluru.  Mail id: Swetha.Tejasvi@gmail.com

Monday, March 20, 2017

Benefits of LIC



Below are the common list of benefits which all LIC policy's will have.
 
1. Save Income Tax for long term under 80C:
  When you pay premium, the amount is eligible to be exempted from income Tax under 80C. Career is long and you have to pay income tax till your retirement. So, In LIC when you pay Premium for long term you can save tax for so many years.
 
2. Very good returns with profit:
   LIC always provides savings with security. You will get good returns with profit so you can always plan ‘save for purpose’ with objective of an event or responsibility in your mind.
 
3. Returns are Tax free:
   Normally, in Bank FD, RD and other schemes like NSC returns are considered as income and taxed again where as in LIC it’s not the case, Here Returns are tax free and it’s a big gain.
 
4. Protect your family and loved ones in case of life risk:
   It is Life insurance and in case of death of life assured his family, dependents will be protected with risk coverage amount to secure future. It is like power generator if main power goes off then Generator supplied power will provide light and other services. similarly, LIC will fund money in case of bread winner’s demise.
 
5. Disciplined Investment:
    Discipline is needed to achieve any financial goals. As you will invest regularly and compulsorily in schemes like LIC you will get planned amount with success and achieve your goals.
 
6. Insurance bond as collateral security:
   When you take loan from bank, you can submit you LIC bond as collateral security which gives guarantee that in case of death of borrower money can be recovered from LIC.
 
7. Liquidity through loan at lower interest rate:
   When you need loan, LIC provides personal loan at lower interest rate than banks to its customers.

So why wait when there are only great benefits in taking insurance, which will be best decision of your life.
Call us for appointment to plan right today and enjoy benefits

Call us @ 9901422522, Bengaluru.  Mail id: Swetha.Tejasvi@gmail.com

Wednesday, March 1, 2017

Frequently Asked questions (FAQs)

Why Life Insurance Terms are long?
It is because it’s Life insurance and human life span is long anywhere between 60 to 100. So it has following very much required long term benefits accordingly.
1. Possible death may happen at anytime in this long span and financial protection of your young dependents for long term is a necessity.
2. As people have to pay tax every year in 30+ years of career, long term insurance saves 10% to 30% Income tax every year so, it’s definitely long term benefit.
3. In savings, power of compounding works wonders by accumulating large sum of money for long term goals like pension, children’s education, marriage, housing etc.
 
What happens If I am unable to pay premium for any reason?
Generally, it is 3 years lock in period for any policy.  So you have to pay premium at least 3 years.
after that you are unable pay premium for maximum of 3 years, but you are interested to continue with policy then status of policy will be lapsed but you can revive your policy by undergoing medical tests and pay premium with penalty and continue with policy.
 
What if I want to discontinue policy and get my money back?
In LIC it’s 3 years lock in period so you have to pay premium for at least 3 years and after that you can surrender the policy.
When you surrender, LIC will give 80% of premium you have paid so far, because of below 2 reasons
1. You were covered with 3 years of Life Insurance protection so 20% is premium for those 3 years of coverage.
2. You have saved income tax upto 30% which is a big saving in your income.
So ideally there is no single rupee loss in it, it’s a profit all in all for you.
 
Do I need to stand in Queue to pay premium?
No, it’s the era digital payment, you have many option as below
1. You can login to licindia.in to pay premium from your computer.
2. You can give NACH mandate to directly debit money from your account on specific date.
3. You can pay in nearest LIC office OR nearest LIC premium paying centre.

Call us @ 9901422522, Bengaluru.  Mail id: Swetha.Tejasvi@gmail.com