General

Tax planning is not the only goal of investments. This fact is often forgotten due to the pressure of making tax investments and all the other stresses surrounding taxation.

So, you’ve already made your Rs 1,50,000 investments under 80(C) for the year and you still have a large sum of money you want to invest further. In such a scenario, you should not refrain from investing this lump sum just because you will no longer get tax benefits that year.

Money in the bank account has a way of getting spent!

In the scenario mentioned earlier, if you wait for the next fiscal to invest the lump sum money, there is a good chance that not all of it will be there until the next fiscal, and you will end up investing lesser than the amount you originally wanted to invest. Money in the bank account will invariably be spent on luxuries, necessities or something in between!

So why not invest my lump sum in the share market?

Decades of experience has shown that the best way to invest in the share market is via monthly instalments, known as a Systematic Investment Plan (SIP). Lump sum money does not conform well with SIPs, and investing lump sums in the share market is a bad practise due to exposure to risks.

Here, Single Premium Insurance Plans are a better option

Single premium plans are very popular in India as a last-minute tax-saving option. However, they are very handy when it comes to building a corpus as well.

Single premium insurance plans are primarily opted for by those who are looking to invest rather than avail the benefits of an insurance plan. Here are the advantages of opting for single premium plans:

No hassle of remembering premium payments
Start receiving pension-like monthly payments
No hassle of transferring ECS mandates when closing bank accounts
Helps with lump sum cash for important milestones in life; for example, child’s graduation expenses or family vacation

There are several types of single premium plans, such as Immediate Annuity Plans, Deferred Annuity Plans, Traditional Endowment Plans, each with their own advantages. You may call 86559-86559 to discuss any of these plans with designated insurance experts. Optionally, you may reach us at support@oneinsure.com.

Lastly, single premium insurance plans should not be missed by those who fall in the following categories:

Those who have received a sudden but significant sum of money. This sum of money can be anything from your Diwali bonus to the large chunk of money you get when you sell one of your homes.
People in professions where steady income cannot be guaranteed for the long term. For example:

Businesspersons engaged in certain types of seasonal businesses
Sportspersons
Celebrities in the Entertainment industry

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Bring Balance to Your Life and Your Portfolio with Guaranteed Plans

abhishek — Wed, 23 Jun 2021 06:30:00 GMT

Bring Balance to Your Life and Your Portfolio with Guaranteed Plans

23-Jun-2021 23-Jun-2021'

The Yesses

Yes, COVID-19 is still in the news
Yes, the COVID-19 surge is worse than ever in India
Yes, there is a chance India will be hit by third, fourth and more waves of the virus

The No’s

No, the virus is not going to be eradicated any time soon because of its nature to mutate
No, we may never go back to how things were pre-COVID
No, there is no guarantee the Equity markets will do well in the short or long term

Over the last year or so, life in urban India has been rocked by 2 waves of the coronavirus pandemic, both lasting months and leaving the economy reeling as well as badly shaking up the mental wellbeing of many.

Most of the earning population of the country has been impacted either directly or indirectly due to the instability of professional as well as personal life in these challenging times. Stability and balance are necessary to have a chance at a bright future post the COVID era.

In such a situation, a financial portfolio titled to favour Equity investments has the potential to be your worst enemy going ahead. What you NEED to bring balance to your portfolio is Guaranteed Return Plans. Let’s know more.

Major Issues with Investing in Equities

The unpredictable and fluctuating nature of the market
No guaranteed returns and lack of financial security
Planning for future goals is not easy
No fixed monthly pay-outs or options to replace your income
Your life is not being covered while you are invested
No tax triple tax exemption

Major Benefits of Guaranteed Return Plans

Some practical, real-life reasons and facts that prove that plans which provide guaranteed returns are the ideal in the current situation:

Irrespective of any major change in local, state, central government; global pandemics; or any other event, you are rest assured to get guaranteed returns
Once the insurer signs the policy documents, the returns are guaranteed, because these investments are further invested in government bonds and securities
Retail-inflation-beating returns
Not market-linked but guaranteed
Good plans give guaranteed, tax-free returns between 5% and 6% per annum
If you calculate for tax-free returns, the number effectively goes up to 9% (presuming 30% tax bracket)
Get the Triple Tax Exemption Benefit
- Premium-Payment Phase Exemption – Premiums paid are tax deductible [Rs 1.5 lakhs per annum as per Section 80(C)]
- Accumulation Phase Exemption – No taxation during the accumulation phase
- Withdrawal Phase Exemption – Pay-outs are tax-free under Section 10(10D)

The Variety in Guaranteed Return Plans

Here are the different guaranteed return plan options:

Endowment plans
Money-back plans
Retirement or Pension plans
Child Insurance plans

Always remember to choose a guaranteed return plan considering your age, income, needs, dependencies, and future goals.

To help you decide and select the best guaranteed plans, we have a dedicated team of financial experts just a phone call or email away:

M – 86559-86559 | E – support@oneinsure.com

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No Claim Bonus Explained! For Health and Motor Insurance Policyholders

abhishek — Wed, 16 Jun 2021 06:30:00 GMT

No Claim Bonus Explained! For Health and Motor Insurance Policyholders

16-Jun-2021 16-Jun-2021'

Most health and motor insurance policyholders do not file a single claim in a policy year. Insurance companies have a provision that rewards those who do not file a claim in a policy year, known as the No Claim Bonus. It is a reward given to the policyholder for every claim-free year.

No Claim Bonus on health insurance policies

In the case of health insurance policies, there are two types of No Claim Bonuses offered – first is a reduction of premium due and second is an increase in sum assured amount the year immediately after a claim-free year.

Example of NCB effects on a health plan

Mr. Kumar had bought a health insurance cover of Rs 3,00,000 in the year 2019. His policy is active and he pays premiums regularly. In 2020, he was not hospitalized at all and made no claims. Therefore, his insurer gave him a benefit of 10% (or as specified) on his coverage amount, which is Rs 3,00,000. Consequently, Mr. Kumar has a total of Rs 3,30,000 (3 lakhs + 10% of 3 lakhs) to claim in case of medical emergencies for the year 2021.

No Claim Bonus on Motor Insurance Policies

For motor insurance policies, No Claim Bonus takes the shape of reduced premiums after every claim-free year. This discount goes up every year (limit is 5 continuous years) provided no claim is filed.

Generally, the No Claim Bonus on premiums can range anywhere from 20% to 50%. This may vary from policy to policy.

No Claim Bonus Protector for Motor Insurance Policies

In a typical insurance policy, if you make even a single claim, your No Claim Bonus for the next year becomes 0%. This means that in order to avail NCB discount, you have to be careful not to make any insurance claims on your policy.

A No Claim Bonus protector protects your NCB in case of claims. An NCB protector add-on cover can prove to be useful as it can provide added financial protection at the time of policy renewal.

Transfer of No Claim Bonus in Motor Insurance Policies

The NCB feature is associated with the policyholder, not with the vehicle. Usually, when policyholders buy a new vehicle, they forget about the accrued NCB of their old vehicle. Thus, they end up paying the entire premium for their new vehicle.

If you have NCB accrued on your old vehicle, you should get the NCB certificate before you dispose of the vehicle and claim the NCB discount on the new vehicle’s insurance premium. This is doable even if you change the insurance provider.

If you have availed the NCB protector with your plan, then that will also be transferred to the new insurance company if you transfer your policy.

Note that NCB benefits cannot be transferred from a two-wheeler policy to a four-wheeler policy and vice versa.

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5 Investment Tips to Help You Build a Healthy Financial Portfolio

abhishek — Sun, 09 May 2021 06:30:00 GMT

5 Investment Tips to Help You Build a Healthy Financial Portfolio

09-May-2021 09-May-2021'

As the reader already knows, healthy finances contribute to your mental and physical health. However, how to go about having healthy finances in the first place? In this piece, let’s answer this question.

Goal-oriented investments

Having clear, achievable goals help you stay committed to your investments through thick and thin. The first step is to list out all that you want to achieve through your investments. For example, to secure your retirement years, to purchase a home, or to buy a car every 5 years. Listing these goals will help you give shape to your investment portfolio.

It’s also important to add or remove financial goals periodically in accordance with life events and adjust your investments accordingly.

Diversification for protection!

Diversifying your financial portfolio safeguards your money from unforeseeable events; for example, the COVID-19 pandemic. Your portfolio should ideally contain a combination of Equity and Debt funds.

A good rule of thumb for the ratio of Equity/Debt instruments in your financial portfolio can be the 100 minus Current Age Rule. If you’re 35 years of age, your Equity instruments should make up 65% of your portfolio (100 minus 35 = 65).

Don’t be a hero, get insured

Unforeseen medical emergencies have the potential to wipe out your entire life savings. Be smart; invest in a safety net that gives you protection against huge bills for a fraction of the sum.

OneInsure stands ready to assist you with health insurance plans, life insurance plans, motor insurance plans and everything in between.

Did You Know??

In the First Wave of the COVID-19 pandemic in India (Mar to Dec 2020), about 3.2 crore Indians were driven into poverty, according to Pew Research Centre. Most of these 3.2 crores were from the middle class.

Take stock of your investments periodically

Reviewing your portfolio every year or twice a year is good practise. The objectives of this review are:

Are you on track with your overall financial goals?
Does your portfolio need to be rebalanced in light of market performance?
Do some tweaks need to be made to make it more tax efficient?

Develop healthy investment habits

Don’t break investments unless it’s a life and death emergency
Have patience and allow your investments to vest
Refrain from checking your portfolio all the time

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Why Starting Early Is the Best Investment Decision You Can Take

abhishek — Fri, 02 Apr 2021 06:30:00 GMT

Why Starting Early Is the Best Investment Decision You Can Take

02-Apr-2021 02-Apr-2021'

We believe numbers speak louder than words. So, have a look at the following numbers. Here, the Monthly Investment Amount is Rs 10,000 and the Expected Rate of Interest (RoI) is 7% for all three examples:

Investment period = 30 years

If you invest Rs 10,000 monthly for 30 years at an expected annual RoI of 7%, you accrue Rs 1.2 crores before tax.

Total accrued amount: Rs 1,22,70,875 (Rs 1.2 crores)
Amount invested in 30 years: Rs 36,00,000 (Rs 36 lakhs)
Wealth gained: Rs 86,70,875 (Rs 86.7 lakhs)

Investment period = 25 years

If you wait just another 5 years before you start investing and your investment period is 25 years, presuming the investment amount is the same Rs 10,000 monthly at an expected annual RoI of 7%, you accrue Rs 81.5 lakhs before tax.

Total accrued amount: Rs 81,47,971 (Rs 81.5 lakhs)
Amount invested in 25 years: Rs 30,00,000 (Rs 30 lakhs)
Wealth gained: Rs 51,47,971 (Rs 51.5 lakhs)

Investment period = 20 years

If you delay your investments a further 5 years and your investment period is 20 years, presuming the investment amount is the same Rs 10,000 monthly at an expected annual RoI of 7%, you accrue just Rs 52.4 lakhs before tax.

Total accrued amount: Rs 52,39,654 (Rs 52.4 lakhs)
Amount invested in 20 years: Rs 24,00,000 (Rs 24 lakhs)
Wealth gained: Rs 28,39,654 (Rs 28.4 lakhs)

Moral of the Story

Although we do not need to explain since the numbers tell the full story, waiting just 5 years to start investing means you have lost more than Rs 35 lakhs in future income (Rs 86.7 lakhs minus Rs 51.5 lakhs). And waiting 10 years has lost you more than Rs 58 lakhs (Rs 86.7 lakhs minus Rs 28.4 lakhs).

These are huge sums of money that you are potentially going to lose by delaying investments by just a few years. But that’s not the worst news of all...

Once Missed, Gone for Life…

Yes, the years that you will be earning are limited. Which means that once you miss investing for your future in a particular year, it’s gone for good. You cannot turn back time, and you cannot keep working and earning indefinitely either.

So, get on the phone and contact a OneInsure expert today at 86559-86559 to discuss investments plans that provide the additional benefit of insurance and a safety net for your family. Optionally, you can email us at support@oneinsure.com.

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Investing Tips for the New Year 2021

abhishek — Fri, 12 Mar 2021 06:30:00 GMT

Investing Tips for the New Year 2021

12-Mar-2021 12-Mar-2021'

Although the recent murmurs of a second wave of COVID-19 are turning out to be more than just rumours in cities like Mumbai, there is no doubt that the New Year 2021 began on a high note – the markets touched new highs, with the SENSEX scaling 50,000 for the first time in history and NIFTY falling just shy of 15,000.

But, what should YOU keep in mind while investing in 2021? Does your investment strategy need to adapt?

Let’s see a couple of key tips to invest in 2021.

Diversify! Diversify! Diversify!

Yes, the often heard strategy still carries weight in the New Year 2021. All the outward indicators of the markets and public sentiment seem to be positive coming into 2021, so your equity investments should hold you in good stead; however, just as 2020 took us all for a spin, there is just no way to be sure that your equity investments will pan out as your plan.

This is why OneInsure always suggests customers to diversify investments and not focus on just one type of investment tool. If you have equity investments like mutual funds and company stocks, you must consider diversifying your investments with debt investments like Public Provident Fund (PPF), Guaranteed Income Life Insurance Plans, or National Savings Certificate (NSC).

On the flip side, if you have debt investments, you must consider equity instruments like Equity Linked Savings Scheme (ELSS), Unit Linked Investment Plans (ULIPs), or mutual funds.

To diversify means to basically spread your risk across companies and sectors, and this is crucial in uncertain times as the markets can be volatile. A diversified portfolio has investments that react differently in any given market scenario.

Don’t Leave Investments!

Whether you have invested in retirement plans, ULIPs, MFs or PPFs, OneInsure strongly suggests you to not quit your long-term investments before your goals have been met. Do not be swayed by market movements or what you hear on the news. Your patience will be richly rewarded some time in the future, as the world’s foremost investor says:

The market is a device for transferring money from the impatient to the patient

— Warren Buffett

Ask Yourself: Are People Dependent on My Income?

If the answer to this question is “yes”, you have to consider buying a term insurance plan for yourself. We live in times where people have gone numb to COVID-19 figures. In the last few days, for example, more than 6,000 people have come down with the dreaded corona virus every day in Maharashtra! But there isn’t much discussion about it because we have simply stopped caring as much. However, as a responsible householder, it is your duty to ask yourself what will your dependents do in case your income suddenly stops.

Speak to a OneInsure investments and insurance expert today:

86559 86559 | support@oneinsure.com

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Just Like 2020, It’s Time to Say Goodbye to Fixed Deposits!

abhishek — Fri, 12 Feb 2021 06:30:00 GMT

Just Like 2020, It’s Time to Say Goodbye to Fixed Deposits!

12-Feb-2021 12-Feb-2021'

They say “Habits die hard”. In the broader perspective of the Indian householder’s financial practices, there is no statement more true. Even in the New Year 2021, there are those that consider investing in Fixed Deposits (FDs). The reasons are not well-thought-out and have to do more with: “My family has always invested in FDs” and “But I don’t trust mutual funds!”

At OneInsure, we have always encouraged customers and readers to look beyond FDs. And this article goes into the reasons why.

Fixed Deposit rates have been dipping for several years – from 14% in the past to under 6% now. This means that FDs are no longer a good choice for the common man to park his funds in. Gaining popularity in its place are guaranteed income insurance plans, which not only provide tax-saving opportunities along with life cover but also eliminate the weaknesses of FDs, such as dipping interest rates and non-goal-oriented savings.

Tax Saving

Any interest earned beyond INR 15,000 on bank accounts, whether it a fixed deposit account or a savings account, are taxable. Whereas, returns earned on a guaranteed income insurance plan are completely tax-free.

Locked-in Interest Rate

Fixed Deposit interest rates have an in-built re-investment risk. This means that the interest rate at which you will start a 5-year Fixed Deposit scheme today will reduce when you renew the same scheme after 5 years. In the last 20 years, we have seen FD rates dip from 14% to under 6%. This re-investment risk is always present.

On the other hand, the interest rate in guaranteed income insurance plans remain constant throughout the policy term, which could be 5, 10, 20, or more years depending on the plan you have chosen.

Goal-oriented Savings

We Indians are prone to break FDs to satisfy short-term financial goals. Investments in FDs do not create long-term compulsion. Contrarily, investment in a scheme where, say, there’s a penalty every time you withdraw or stop investing, creates compulsion to stick to your financial goals.

Guaranteed income insurance plans create compulsion; that is, your funds get locked in for a longer period. Under these products, you also have the option of selecting the policy term based on your requirements.

Life Cover

FDs do not have life cover, but guaranteed income insurance plans do, thus safeguarding your family and their aspirations in case you are no longer physically present with them.

What to Keep in Mind when Selecting the Policy Term

After how many years you wish to achieve a particular financial goal should be the parameter to decide your policy term. For example, let’s say your goal is to save for your child’s education, who is currently 3 years old. Given that most students in India enter undergraduate university at the age of 18, your policy term should be 15 years (that is, 18 minus 3).

Interested in a guaranteed income insurance plan? Drop us a line at support@oneinsure.com or call us at 86559-86559 and we would love to assist you!

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Welcome Year 2021 with a Strong Financial Portfolio

abhishek — Fri, 01 Jan 2021 06:30:00 GMT

Welcome Year 2021 with a Strong Financial Portfolio

01-Jan-2021 01-Jan-2021'

What is the use of money if it cannot stand with you through the test of time?

We all need money to fulfil various needs at different stages of life, and only a strong financial portfolio can help you fulfil them. To have enough money, people start investing in high-risk funds believing they are building a strong financial portfolio; however, they end up getting low returns. To prevent such mistakes from happening, it’s important to know HOW to invest before knowing WHERE to invest.

Features of a Strong Financial Portfolio

Three important features that a good financial portfolio has, irrespective of age, gender, and socioeconomic status:

Diversification

The aim of diversification is to reduce risk. This does not mean investing 100% in debt (guaranteed returns). It should be a mixture of both equity (risk-based, non-guaranteed returns) and debt investments. Your age plays a very important role in deciding the percentage of debt and equity investments in your portfolio.

Limited but smart investments

Do you regularly add new investments to your portfolio? If you do, you’re probably not on the right track, because you are likely to end up with an unmanageable hotchpotch of investments rather than a simple but smartly chosen, manageable, and reliable portfolio that balances your risks and returns.

Balance

A balanced portfolio is a mix of diversified but limited and smart investments. Once you have a well-balanced portfolio, your investments only require monitoring, re-balancing, or replacing with a new version of the same investment, keeping your age and income in mind.

Based on what you want, it’s really easy if you plan your investments early and stay committed.

Achieving a Strong Financial Portfolio in 5 Steps

Tax-free returns as high as mutual funds | Solution: ULIPs

ULIPs and mutual funds operate in the same markets and give similar choices of instruments and risk exposure. Therefore, they are exposed to the exact same risks and make similar gains. The difference is that returns on ULIPs are tax-free whereas you will have to pay 10% LTCG tax on MFs. So, invest in ULIPs early in life, because the more it compounds, the higher the pay-out!

Monthly pension income | Solution: Retirement Plan

Retirement plans come with monthly income options, helping you plan and save today so you can have a non-dependent, secure tomorrow with no lack of funds. Moreover, the pay-outs of retirement plans are also tax-free.

Health financially secure | Solution: Health Plan

Having a health plan means you don't have to worry about hospitalization expenses and you will always get the best treatment. In fact, family floater plans give you the opportunity to secure not only your but also your family’s health.

Guaranteed returns to secure child’s future | Solution: Child Plan

Mutual funds’ returns are subject to market risks, which are unpredictable. However, child plan returns are guaranteed. Once insured, the pay-out is not dependent on external factors like markets and investor sentiments.

Financial security for my loved ones in my absence | Solution: Term Plan

Term insurance is the simplest and the most cost-effective form of life insurance that provides financial security to your family in the event of your untimely demise.

The New Year 2021 is perhaps the best time to build a strong portfolio or have your portfolio reviewed by experts. Get financially stable and strong today!

To speak with financial experts, feel free to write to us at support@oneinsure.com or call 86559-86559. We look forward to assisting you.

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7 Government Rule Revisions Effective Oct 1, 2020

Mohit Mishra — Tue, 20 Oct 2020 23:28:40 GMT

7 Government Rule Revisions Effective Oct 1, 2020

20-Oct-2020 20-Oct-2020'

Mohit Mishra

If you live in India, you woke up on Oct 1, 2020, to a host of revisions (some major ones too) in Government regulations that are sure to have an impact on you. 9 times out of 10, though, you won’t find anyone around you who knows about a single one of them. At OneInsure, we believe it’s always good to stay on top of things! With that in mind, let’s check out 7 of the most important ones in this piece.

Let’s start with the ones most apt to you.

I – You no longer need to carry physical documents related to Driving Licence and RC Book while driving

Indians are now allowed to carry electronic versions of documents like Driving Licence, RC Book, and so on inside their DigiLocker or m-Parivahan app instead of carrying the physical copies. The e-copies are considered valid and no enforcement agency can deny accepting them as proof. Further, the details of Driving Licences disqualified or revoked by the Licensing Authority are recorded chronologically in the portal and such records will reflect on a regular basis on the portal. Naturally, this has the second benefit of maintaining an electronic record of driver behaviour.

II – Use of hand-held communications devices while driving

In a move that has been hailed by industry players and end users alike, the Government has okayed the use of hand-held communications devices while driving on the strict condition that it be solely used for route navigation and in a manner that does not disturb the concentration of the driver.

III – Wide positive changes in health insurance!

Decision on a claim within 30 days – IRDAI has mandated insurance companies to either settle or reject a claim not more than 30 days from the date of receipt, under certain conditions.
Delay means interest – In case an insurer fails to decide on a claim within 30 days, it will be required to pay interest at a rate of 2% above the applicable bank rate on the dues to the policyholder.
No rejection after 8 years – IRDAI has mandated insurance companies not to reject a genuine claim after a policyholder completes eight years of paying premium. Insurers won’t be permitted to re-evaluate a policy for which the customer has paid.
Applicable to old and new policies – According to IRDAI, all existing health insurance plans not in compliance with the new guidelines will be modified. This includes plans renewed during this financial year (from April 1, 2020).

IV – No more discounts for credit card users at fuel pumps

The Government has discontinued discounts for credit card payments made to buy fuel. However, discounts on debit cards and other digital payment modes will continue.

V – New credit/debit card rules

In light of guidance received from RBI, banks will give international facilities to new credit/debit cards of customers only on a request basis and not by default on opening accounts, as they were provided earlier. The customer will have the option to opt-in or opt-out from such services. They will also have a say on spend limits and other services for online transactions, international transactions and contactless transactions.

VI – TCS on remittances

TCS on the Liberalized Remittances Scheme will be levied over and above the remittance amount of Rs 7 lakhs by a customer in a financial year.

VII – 5% tax on foreign fund transfers

Any amount of money sent abroad for buying foreign tour packages will attract 5% tax. Also, foreign remittance in the amount of above Rs 7 lakhs will attract tax-collected-at source (TCS) unless tax has already been deducted at source (TDS) for that amount.

VIII – Sweet sellers will need to display “best before date” prominently

Sweet shop owners, by law, have to declare the “best before date” of non-packaged or loose sweets available in their shops. This FSSAI-mandated protocol is a boon with Diwali looming.

We look forward to assisting you and your family in these challenging times.

Be Sure with OneInsure
M – 86559 86559 | E – support@oneinsure.com

(Source and credits: Zee News, NDTV and assorted online sources)

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Here’s How Your Investments Can Beat Coronavirus

Aditya Nair — Wed, 11 Mar 2020 04:41:42 GMT

Here’s How Your Investments Can Beat Coronavirus

11-Mar-2020 11-Mar-2020'

As an Indian householder and someone who is up-to-date with current affairs, you must be concerned about your equity-heavy investments, like mutual funds and stocks. Over the past few months, a series of unfortunate events have plagued the Indian markets, starting with the overall slump in the Indian economy to the novel coronavirus COVID-19 and now with the Yes Bank crisis.

And your fears are valid. Indian markets took an 8% hit in a single week. Not only is this unprecedented, but it is also an indication that it is time you looked at other, more stable instruments and not focus too much on mutual funds and stocks.

There are instruments out there that are not so volatile and do not waver due to public sentiment. Mutual fund houses will tell you to give it time, but this is just a theory. There is absolutely no guarantee of how the markets will be performing when you intend to withdraw the funds from your MF.

Investors need to understand that theories belong in the laboratory, not in the real world. In the real world, what matters is guaranteed returns. Fixed returns are the only type of investments you can rely on 100%.

And as you probably already know, it is only when you can rely on returns fully that you can actually plan finances accurately and peacefully, without being anxious if your larger life goals will be met or not.

Comparison of Features

Here is a simple comparison of features between mutual funds and guaranteed plans:

MFs don’t guarantee returns and are highly volatile
Guaranteed plans give the promised returns without fail
MFs attract high fund-management charges
Guaranteed plans have low fund-management charges
MFs have a high tax burden with 10% LTCG Tax
Guaranteed plans actually reduce tax burden
MFs have no life cover
Guaranteed plans come with in-built life cover

With the ability to plan future finances worry-free, these returns can be used for any of life’s important milestones, like for your child’s education, for your retirement, for a foreign vacation, and many others.

Plan Your Legacy Right with OneInsure

Aditya Nair — Thu, 26 Dec 2019 04:36:00 GMT

Plan Your Legacy Right with OneInsure

26-Dec-2019 26-Dec-2019'

Someone's sitting in the shade today because someone planted a tree a long time ago.

― Warren Buffett

Many Indian homeowners find their minds drawn towards their finances and overall fiscal health as the year draws to a close. After all, the end of the year is a good time to go over one’s investments and other planning and critically review how far they have come in the past year.

Moreover, some readers may even be thinking about the next generation (their children) when planning investments for the New Year 2020. These are investors who are already thinking about their legacy; that is, what they are leaving behind for their close ones.

If you are among these forward-thinking investors, without a doubt you have a desire to leave behind a healthy corpus for your family. This is where insurance plays a major role. By its very definition, insurance exists to nullify the financial losses an entity faces in case of adverse circumstances. Here, the entity is your family.

Let’s see why it is important to have insurance in your portfolio:

If you are involved in an accident and admitted to a hospital, you not only have to shell out lakhs for treatment, but you are not earning for a period of 2 – 3 months. This can derail your ongoing investments, divert money that you have earmarked for your child’s education, and so on. A health plan or a personal accident cover will allow you to pay off the hospital bills and continue your investments too!
Similarly, if you fall victim to a critical illness like cancer or cardiac arrest, your critical illness plan will step in and nullify the entire negative financial effect of recovering from such serious illnesses.
A term plan, which is crucial to have in your portfolio, protects your loved ones if the worst were to happen to you. In case of your demise, the term plan pay-outs will ensure your family’s lifestyle does not get affected, your children continue their education, and there is more than enough money for daily expenses.

This New Year, it is important to not just think in terms of making wealth, but also in terms of stopping hard-earned money from just fizzling away due to adverse circumstances. This is the sign of a mature investor.

In the year 2020, let insurance provide support to your portfolio!

Queries? Get in touch with a OneInsure expert:
M – 86559-86559
E – support@oneinsure.com

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Should You or Should You Not Opt for a Short-Term Plan?

Aditya Nair — Fri, 08 Nov 2019 10:35:00 GMT

Should You or Should You Not Opt for a Short-Term Plan?

08-Nov-2019 08-Nov-2019'

If you ask a 50-something urban Indian what his life’s five biggest regrets are, you are sure to hear this:

I wish I had started investing and saving earlier in life

The regret may not be because their wealth is insufficient, but it is because they realize how much vaster their corpus could have been had they started investing when they had little or no liabilities.

It’s ironical that people start investing and saving once they are burdened with liabilities and high outgoing expenses.

Many have the incorrect impression that once they start investing, they will have to continue for 20+ years. While that is true of traditional investment options, what if we told you that there is an investment instrument out there that allows you to invest for a short period (as low as 5 years!) and then stop investing when your young family demands the lion’s share of your income. The money that you have invested keeps growing steadily and at maturity, you receive a lump sum that can be used for important milestones like a child’s education, that much-needed vacation, or to buy a new car.

The benefits of short-term plans are as follows:

Let’s you make hay while the sun shines, because you can customize when you want to stop payments and when you want the vesting period to end
They are great goal-oriented investments
Tax benefits

So, let’s not be like the 50-something urban Indian who is looking at their investment behavior with regret later in life. Short-term plans are ideal for you if your current expenses are less and savings are more AND if you are sure that your expenses will increase in the years to come.

With OneInsure, Make Hay while the Sun Shines
Be Sure with OneInsure

M – 86559-86559 | E – support@oneinsure.com

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Stop Listening to Theories – Believe in Proven Money Strategies Only

Aditya Nair — Wed, 16 Oct 2019 07:11:00 GMT

Stop Listening to Theories – Believe in Proven Money Strategies Only

16-Oct-2019 16-Oct-2019'

WHAT THEY PROMISED: Mutual funds will give you up to 30% returns in 18 months!

REALITY: Mutual funds have gone from bad to worse over the last 18 months… Many MFs have been performing in the red.

Investors have lost their hard-earned money in mutual funds and the stock market. This is what happens when you bet your money on theories. Just because certain mutual funds have done well in the past, it does not mean any MF that you invest in will do well too.

Mutual fund houses will tell you to give it time, but this is also a theory. There is absolutely no guarantee of how the market will be performing when you intend to withdraw the funds from your MF.

Comparison of Features

Here is a simple comparison of features between mutual funds and guaranteed plans:

MFs don’t guarantee returns
Guaranteed plans give the promised returns without fail
MFs attract high fund-management charges
Guaranteed plans have low fund-management charges

MFs have a high tax burden with 10% LTCG Tax
Guaranteed plans actually reduce tax burden
MFs have no life cover
Guaranteed plans come with in-built life cover

Loans Becoming a Burden? Use This Simple Step to Make Them Interest-Free

Aditya Nair — Mon, 23 Sep 2019 05:58:00 GMT

Loans Becoming a Burden? Use This Simple Step to Make Them Interest-Free

23-Sep-2019 23-Sep-2019'

In our country, having one’s own home has many more implications than simply putting a roof over one’s head. Owning a home that is completely paid for and in your own name brings with it social value and prestige to hold our heads high.

However, because buying a home in urban areas is next to impossible without home loans, the process of actually “owning” the home typically takes 20+ years. This time is spent in paying off the loan’s primary and interest amounts.

Let’s look at some standard home loan numbers before continuing:

Loan Amount: Rs 30 lakhs
Interest Rate: 8.75%
Time Horizon: 25 years

And here are the calculations for the repayment of this loan:

Principal Amount: Rs 30,00,000
Interest Amount: Rs 43,99,200
Total Loan Amount: Rs 73,99,200

How to “Guarantee” Interest-free Loans?

In the above example, you can see that you are paying Rs 44 lakhs as interest for a home loan of Rs 30 lakhs. This is a huge sum – almost 1.5 times the primary loan amount!

The question that comes to mind is: How do I reduce my home loan interest outgo? At OneInsure, we go one step further. We ask:

Do you want to make your home loan interest-free?

There is a simple way to completely cancel out the heavy burden of interest amount payments. It’s a formula that is “guaranteed” to work! This is the formula:

Run a parallel guaranteed investment that recovers all the interest paid

If you are thinking this is an additional financial burden, you are in for a pleasant surprise. Here are some numbers for an investment in a money-back plan that has guaranteed returns:

Investment amount: Rs 3,600 per month
Term: 30 years (loan term + 5 years)
Presumed rate of returns: 7% (on the lower side)
Guaranteed returns: Rs 44,17,515

That’s right, for a sum as low as a few thousand Rupees, a guaranteed plan completely recovers the financial loss of such high home loan interest repayments.

Why SIPs Do Not Work in This Scenario?

Here are the reasons this formula will not work with SIPs:

SIPs are not guaranteed. Therefore, they cannot be relied upon to give favourable returns when you want to withdraw this amount. In short, you cannot plan in a concrete manner based on SIPs alone.
The LTCG tax on SIP withdrawals is currently 10%. This means that on profits of Rs 40 lakhs, Rs 4 lakhs has to be paid as tax!
No life cover in SIPs. Guaranteed plans come with life covers that will protect your family in case the worst happens and you are no more.
Suggestion: You must consider term plans in order to completely protect your family against home loan repayments.

Here’s how you reach OneInsure financial experts in case of queries:

M – 86559-86559
E – support@oneinsire.com

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Why Should I Buy Insurance?

Shraddha Gala — Thu, 19 Sep 2019 06:20:00 GMT

Why Should I Buy Insurance?

19-Sep-2019 19-Sep-2019'

Before you proceed to the article, let’s go through a list of questions:

How will you pay hospitalization bill of Rs 5 lakhs if you meet with an accident?
What about your family’s daily needs and your post-hospitalization expenses if you are on complete bed rest for 3 months post your accident?
How will you pay the medical expenses of Rs 10 lakhs if you are diagnosed with cancer?
How will your family survive financially in case of your sudden unfortunate death?
- What about your child’s education/marriage?
- What about your family’s lifestyle?
- Who will pay the outstanding loans?

Relax! You would not have panicked while reading these questions if you had insurance. Because, insurance works as your financial shield when you fall victim to sudden circumstances that are beyond your control.

What Is Insurance? How Does Insurance Work?

Insurance is a way of protecting yourself and your family from financial losses. It’s a legal contract between the insurance company (insurer) and the individual (policyholder/insured), where the insurer promises to pay for losses incurred by the policyholder in case of a sudden mishap. In return, the policyholder pays a premium for the promise made by the insurer.

An insurance policy has details about the conditions and circumstances under which the insurance company will pay out the insured amount to either the policyholder or the nominee. Naturally, there are different types of insurance to cover for different types of conditions and circumstances.

No, Insurance Is NOT Costly!

It’s a myth that insurance is costly. Because the risk of claims being raised is distributed among lakhs of people, the insurance company can easily afford to provide high coverage in exchange for pocket-friendly premiums.

OneInsure’s Money Shield – Complete Financial Safety

When it comes to providing financial backup, OneInsure has found a smart way out for you. Here’s how you can ensure complete financial safety against almost any adverse circumstances with an amount as low as Rs 2,390 a month.

OneInsure’s Financial Shield
=
Term Insurance (pays in case of unexpected death)
+
Health Insurance (pays in case of hospitalization expenses)
+
Personal Accident Insurance (pays in case of post-accident expenses)
+
Critical Illness Insurance (covers when you are diagnosed with critical illnesses like cancer)

Quick Quotes – The Proof Is in the Numbers!

Here are a few approximate quotes of various insurance plans calculated based on age, income, and coverage required by the individual:

With the help of OneInsure’s financial shield, protect yourself and your family from the dragons in your life!

In case of queries, speak with our financial planning expert
M – 86559-86559 | E – support@oneinsure.com

Be Sure with OneInsure!

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7 Reasons Why You Should Opt for Cancer Insurance

Shraddha Gala — Thu, 12 Sep 2019 07:27:00 GMT

7 Reasons Why You Should Opt for Cancer Insurance

12-Sep-2019 12-Sep-2019'

Remember Mukesh? Not Mr. Ambani – the other Mukesh. He was that famous oral cancer victim who had caught almost everyone’s attention in cinema halls in the government’s Say No to Guthka campaign.

The famous audio-visual clip that featured Mukesh was shot just before his surgery, which cost him lakhs of Rupees. Soon after this surgery, Mukesh lost his speech and eventually passed away, leaving behind a huge medical loan and all sorts of trauma for his family.

Just like Mukesh, there are almost 3 lakh deaths every year in India due to Cancer! WHO data states that India will have more than 13 lakh new cancer cases in 2020.

Who knows, YOU could be next!

Paying attention to increasing cancer cases in India, many insurance companies have come up with Cancer insurance policies to financially support you and your family if and when you are diagnosed with Cancer.

Here are seven strong reasons why you should opt for a Cancer insurance policy:

Increasing Cancer Cases

Habits like smoking and chewing tobacco have been scientifically shown to cause Cancer. What is lesser known is that new-age technologies like genetically modified food, preservatives, air pollution, and the constant bombardment of wireless radiation such as WiFi and cellular networks are slowly but surely emerging as secondary causes of Cancer.

The worrisome bit is that these are so intrinsic to urban life that we cannot draw ourselves away from them without a major overhaul of our lifestyles, which is not feasible.

This is the reason Cancer is growing at such an exceptional rate in India.

The Booming Cost of Cancer Treatment

There are several methods to treat cancer today – radiotherapy, chemotherapy, surgery, transplants. Each of these treatment methods uses different drugs, equipment, time, resources, and expertise to treat the malignancy, all of which are rarified fields of medicine and therefore cost a great deal to undergo in specialty hospitals.

Treatment Methodology	Approximate Cost
Radiotherapy	Rs 10 – 20 lakhs
Chemotherapy	Rs 65,000 per session 6 sessions = Rs 4 lakhs
Radiotherapy + Chemotherapy	Rs 24 lakhs
Kidney transplant	Rs 5 – 25 lakhs
Bone marrow transplant	Rs 25 – 50 lakhs
Heart transplant	Rs 10 – 30 lakhs
Liver transplant	Rs 15 – 25 lakhs

Insufficient Financial Backup Leads to Bankruptcy

No one can simply come up with Rs 10 to 20 lakhs in a few weeks’ time to effectively treat cancer. Moreover:

What about your family’s daily needs if you are hospitalized?
What about your child’s education/marriage?
What about your family’s lifestyle?
Who will pay the outstanding loans if the worst happens to you?

If you don’t have an answer to these questions, then buying a Cancer plan is a must!

Cancer Insurance as a Supplement to Your Current Policy

As a supplementary insurance plan, a Cancer insurance policy reduces the out-of-pocket cost associated with cancer diagnosis and treatments, which include hospitalization, radiotherapy, chemotherapy, surgery, nursing care, blood transfusions, and the cost of the prescribed drugs (for this particular treatment methodology). Moreover, a normal health plan may offer coverage up to Rs 5 lakhs whereas a cancer plan offers much higher coverage (up to tens of lakhs).

Coverage for Almost All Stages of Cancer

Usually, a health plan or critical illness plan covers Cancer only up to or after a particular stage. On the other hand, most cancer insurance plans provide coverage right from the early stages to the advanced stages of cancer.

Unique Benefits That Aren’t Available Elsewhere

Usually, cancer plans offer all the following benefits either as an intrinsic feature of the plan or customers have to opt for them separately by paying an additional charge:

Lump Sum Pay-out on Detection – Cancer plans pay the policyholder a fixed amount, which is a percentage of the sum assured, on the diagnosis of cancer.
Waiver of Premium Benefit – All future premiums payable under the plan are waived off for a period of three or five years or even for the entire policy duration, on acceptance of a claim under an early or major stage of cancer.
Income Benefit – Under this benefit, the insurer pays a monthly income equivalent to 1% of the chosen sum insured for a defined period, which is usually three to five years, on the diagnosis of a major stage of cancer.
Increasing Cover – Insurers also offer the option of increasing the basic cover by up to 10% every year (up to 200%) or till the time a claim is made for an early or major stage of cancer.

Minimal Premiums (as low as Rs 5 – 10 per day)

As opposed to the coverage offered by these plans, the premiums are very low – around Rs 5 to 10 per day for a relatively healthy 30-year-old!

That’s a wrap! Don’t wait for Cancer to come and knock at your door when you have no financial backup.

Get a Cancer insurance plan NOW – call 86559-86559 or email support@oneinsure.com
Be Sure with OneInsure!

(Source and credits: ET, Impact Guru)

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An Important Money Lesson to Learn from Lord Krishna

Shraddha Gala — Fri, 23 Aug 2019 07:04:00 GMT

An Important Money Lesson to Learn from Lord Krishna

23-Aug-2019 23-Aug-2019'

It is said that every act of Lord Krishna had some meaning, message, and significance attached to it. One such act was that of stealing makhan (butter), which is adhered to as a tradition till today in parts of India. However, there is a hidden message behind this apparently malicious act of stealing butter too, and it is surprisingly in sync with financial planning!

At Vrindavan, little Lord Krishna was well known for his mischief across the village. Makhan was one of his favourite food items. He was so fond of makhan that he would go from home to home stealing it as soon as it was churned.

To protect the butter, the women of Vrindavan would tie their freshly churned makhan to the roofs of their homes so that he couldn't reach the pot. But Lord Krishna and his friends would form a human pyramid and reach the pots, often breaking them while stealing the butter because the pots were made of baked clay and quite brittle.

Now, one must understand that in those days, the village women would earn their living by selling milk-based products. So, effectively, this butter was their wealth stored in pots. Those pots could be called their banks. So, when Krishna attacked their wealth, most of these women would be directly financially affected.

However, surprisingly, whenever these village women needed money to fulfil their and their family’s needs, they would find double the makhan stolen by Krishna in their house, hidden away in some corner of the house.

They had no idea how that makhan had got there or who had kept it, but the money they received from selling this was enough to fulfil their needs when they needed it most.

Mythology reveals that this was the fruit of sacrificing their wealth. And Lord Krishna never allowed anyone to suffer when in need.

In the same way, investment plans take a small portion of your overall bank balance when you are financially stable and pays you back when you need it the most. And when do you need it the most?

Retirement
Child’s major educational milestones
Child’s marriage
Medical emergencies (health plans)
Family vacation

Yes, insurance not only provides a safety net for these situations but also provides you lump sum or regular pay-outs.

The occasion of Janmashtami is the best time for you to start a well-thought-out investment plan and receive the fruits (or should we say makhan?) in the future.

How Do I Go on This Financial Journey?

Here is the roadmap for this financial journey towards wealth and security:

Begin your journey by knowing your needs
Set an investment objective based on your needs
Invest according to your age, income, family situation, and dependencies on your salary
(Suggested Reading: What is the right time to buy insurance?)
Diversify your investments and get the protection you need
Have limited but smart investments
Get started and do not stop
Wait patiently for your returns

In case you need expert assistance, feel free to call us at 86559-86559 or send us an email at support@oneinsure.com.

Happy Janmasthami!

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Time to Gift Financial Independence to Your Sister

Shraddha Gala — Wed, 14 Aug 2019 10:54:00 GMT

Time to Gift Financial Independence to Your Sister

14-Aug-2019 14-Aug-2019'

Aug 15, 1947, was the day we Indians got freedom. Today, a lot of things have changed. From being one of the most backward countries in terms of development to being one of the fastest developing countries, things have changed and so have the people of India.

Coming to Raksha Bandhan, have your gifting ideas changed? Come on! Gone are the days when sisters were exhilarated by chocolates and clothes on Rakhi. Today, she can afford these short-lived happiness-givers all by herself. So, what special can you do this Raksha Bandhan to make your sister happy?

Here’s a suggestion: This year, gift your sister financial independence.

Why Gift Financial Independence?

Here are a few reasons why gifting financial independence to your sister is the best present she can receive:

Financially-secured future
Need not be financially dependent on her husband or children
Can fight financial emergencies without panicking and can sleep soundly at night because she will not have to worry about her financial situation
Can pursue her dreams independently
Will know that her children will be provided for—financially at least—if she passes away
Can treat her pension as bonus earnings rather than an essential means of survival
Will be able to take risks—like quitting her job and launching a start-up—without losing quality of life
Can retire when she wants to and live a financially independent life

Why wait? Here are a few short-listed financial gifts to gift your sister this Rakhi.

Gift Her a Health Plan

Buying her a health insurance plan will make sure her hospitalization expenses are taken care of. Buy a plan with adequate coverage. In return for inexpensive annual premiums that you can pay on her behalf every Raksha Bandhan, she is protected from over-expensive hospital bills and medical treatments.

Gift Her a Money-back plan

Buying her a money-back plan will make sure that she never faces issues like liquidity crunch because money-back plans pay a specific amount/percentage of the sum assured at regular intervals.

Gift Her a Pension Plan

By buying her a pension plan, you make sure that your sister receives regular income in the form of pension during her old age. By doing this, you ensure that your sister gets to live a better life during her golden years.

Pick up your phone, dial 86559-86559, and talk to our financial experts to know the best (personalized) financial plan for your sister.

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Everything You Need to Know About No Claim Bonus

Shraddha Gala — Thu, 01 Aug 2019 07:24:00 GMT

Everything You Need to Know About No Claim Bonus

01-Aug-2019 01-Aug-2019'