Life insurance covers the risk of death; health insurance covers the risk of sickness; where as personal accident insurance covers the risk associated with accidents. If the life assured is seriously  injured in an accident and disabled either temporarily or permanently, he/she will not able to work and earn. To minimize the financial hardship of the life assured and his/her family members, the personal accident insurance provides the financial support. It’s an important component of insurance planning; hence personal accident insurance is very essential. Life insurance cover without personal accident cover is inadequate from risk management point of view. The personal accident policy […]

It is essential to know a NRI’s residential status for calculating his/ her tax liabilities because certain income of a NRI or a Resident but not ordinary resident (RNOR) is not taxable in India. Under section 6 (1) of income tax Act 1961, an individual is said to be resident if he/she satisfies at least one of the basic conditions.   a. He/She is in India in the previous year for a period of 182 days or more. b. He/She is in India for a period of 60 days or more during the previous year and 365 days or more during […]

BANKS A.    Five years Bank FDs (Maturity value for Rs 1,00,000/-) Sl no Some Selected Banks Interest Rate ( %) Quarterly interest (Rs) Maturity value 5 years (Rs) 10 years (Rs) 1 IDBI bank 9.50% 2,375 1,57,424 2,47,823 2 State bank of India 9.25% 2,313 1,55,635 2,42,222 3 ICICI bank 8.75% 2,188 1,52,106 2,31,362 4 Bank of India 8.75% 2,188 1,52,106 2,31,362 5 Axis bank 8.50% 2,125 1,50,366 2,26,098 B.    Senior Citizen: Five year Bank FDs (Maturity value for Rs 1,00,000/-) Sl no Selected Banks Interest  (In %) Quarterly interest (Rs) Maturity value 5 years  (Rs) 10 years (Rs) 1 IDBI Bank […]

Results have been declared for the 10th and 12th examinations. Anil who was studying in DAV public school has passed X standard by securing highest grade. His parents are worried about his future. They want him to be a Doctor. But Anil is interested in Architecture. His younger daughter Anima is studying in 4th standard and wants to become a doctor. Like Anil’s parents, most parents are worried about the future career of their children and increasing cost of higher education. During the last 5 to 7 years, higher education inflation is in the range of 14-16% per annum.  If the cost for […]

When one comes to vacation planning, one has to make up his mind about the destination and the number of days. Then follows how to get there? Where to stay? What to see? etc. There are many online sites those can help us in organizing vacation planning and in reducing 15-25% of the vacation expenses. The sites that can help in organizing on vacation planning are incredibleindia.org for vacations in India and Bootsnall.com for vacations abroad.   A. Right time to travel Starts vacation tour just before peak season or after it is over and book flight tickets and hotels in advance preferably before two […]

Capital gain from any asset other than shares and mutual funds, if it is held at least for three years or more is called Long Term Capital Gain( LTCG) otherwise it is called Short Term Capital Gain(STCG). LTCG will be taxed at a rate 10% without indexation and 20% with indexation. The option lies with assessee. But STCG will be taxed as per tax slab applicable to that person.   Shares/ Mutual funds If one hold shares or mutual funds at least for one year or more, it is  treated under LTCG or else it is STCG. LTCG from shares […]

Retirement is a long awaited hope for freedom. Mr Ajay who recently retired after 35 years in service finds it very difficult in Mumbai. Both the children Son,Pranab and Daughter, Prakriti have preferred to settle in USA. Ajay and wife Sunita find the monthly pension not adequate for the monthly expenses. All the expenses are increasing continuously. Sunita needs regular visit to the hospital for checkup which cost not less than a thousand rupees for every visit. What ever investment was made in shares /Mutual Funds on the advice of a neighbour broker have declined in value. Ajay desperately trying […]

A.    Life Insurance Death claim: Formalities When policy holder dies, claim intimation should be sent to the insurance company as early as possible. The assignee, nominee, close relative of the policy holder or agent who handles the policy can intimate to the ensuring company. The claim intimation should contain information like the date, place and cause of death. There after the insurance company will ask for the following documents:   Filled-up claim form Certificate of death Policy document Deeds of assignments/ re-assignments if any Legal evidence of title, if the policy is not assigned or nominated Form of discharge executed and […]

Abinash  is 45 years old and  staying in Navi Mumbai in a rented flat. Three years ago, he had booked an 3  BHK apartment  in Navi Mumbai after seeing the sample flat. The family  were very  pleased with the look  and feel of the sample flat. After the possession, they are disappointed. It was nowhere close to what they had been shown. In the sample flat, the rooms looked big and perfectly done up, but the size of the actual flat is much smaller and material used is inferior. He is running from pillar to post to get justice. Most of the people are taken […]

1. How much emergency/contingency fund? Emergency or Contingency Fund is required to meet any emergency e.g sudden loss of income, loss of job, medical emergency etc. Thumb rule says one should keep 3 to 6 month’s expenses in an emergency fund. In case of government employee, one should keep 3 month’s expenses but in case of self employed professionals or private sector employees; one should keep 6 month’s expenses in an emergency fund. For retirees, emergency fund should be equal to 1 year’s expense.  2. How much Life Insurance one should take? In case of sudden demise of the bread earner of the […]