Wednesday, February 28, 2018

Here’s How You Need To Use Personal Loan Calculator

calculate your loans
Personal loans are a popular means of financing needs these days. Many financial institutions offer personal loans at attractive rates. This helps you fund goals like travel, wedding, or buying assets. With personal loans, you do not need to dip into your savings. But make sure to use a Loan calculator before taking a loan.

Why do you need a Personal Loan Calculator?

Imagine you want a personal loan of Rs.1.5 lakh at an interest of 12% per annum. The lender says that you need to pay an equated monthly instalment (EMI) of Rs.12,000. In such a situation, most people comply. But how do you know whether it is the right amount?

You could always use a paper and pen or an Excel sheet to calculate the interest. But this takes time. With a personal loan calculator, you can get the answer in less than 10 seconds flat!

How can you use a Personal Loan Calculator?

Every month, you pay a certain amount of money as EMI. The amount you pay depends on three factors:

1) Loan amount
2) Loan tenor
3) Interest rate

If you change any of the above three actors, the EMI you pay will change.

For example, imagine that you take a personal loan of Rs.1.5 lakh at the rate of 12% interest for 12 months. In this scenario, the EMI would be Rs.12,883.

Let us change the interest rate to 15%. For the same loan amount and tenor, the EMI would be Rs.13,087. Here, the EMI increases by around Rs.200.

Now, consider a personal loan of Rs.2 lakh at the rate of 12% for 12 months. You would need to pay an EMI of Rs.17,770.

So, you can see how your EMI changes with a change in the three fundamental factors. A personal loan calculator helps you do the permutation and combination. That way, you arrive at the right amount, tenor, and interest rate you can afford.

Online Personal Loan Calculators

If you go online, you can find many personal loan calculators on the Internet. Take Bajaj Finserv, one of the leading non-banking financial companies (NBFCs) in India. Their website has a free personal loan calculator. It is convenient and easy to use.

Eligibility calculations

With this calculator, you can do much more than EMI calculations. For example, you can also assess your eligibility.

The eligibility calculator indicates how much money you can avail as a loan. This amount depends on various factors such as:

1) Age
2) Monthly salary
3) The city you live in
4) Any outstanding loans

You key in all these details to know the amount you can expect as a loan. For instance, say you plan to use a personal loan to renovate your kitchen. You need a loan of Rs.3 lakh. But your eligibility is for only Rs.2 lakh.

Then, it might be a good idea to revise your expectations or seek the loan elsewhere. You can save a lot of time and energy. Nobody wants to go through the whole application process only to find out they are not eligible.

Or, you could find out that you are eligible for Rs.5 lakh. You can always use the money to upgrade your remodelling plans.

Conclusion

Different financial institutions offer personal loans at different interest rates. Do not give in to the confusion.

Monday, February 12, 2018

How Futures and Options Help you build your Portfolio

investment options
Investment in derivative instruments such as futures and options is widely considered as a risky affair. While derivative instruments do carry a high risk, they can also be used to reduce risks with proper planning and analysis. Unlike equity investments, futures and options don’t require a very high amount of capital investment. You will require just a fraction of the value of stock market investments. The value of derivatives is derived from the future prospect of the underlying indices or stocks. For e.g.when you invest in futures and options, you are making a future promise to buy or sell a particular number of shares of a company at a predetermined price and date. Many traders choose to invest in f & o, as the return on investment is really high. Here’s how futures and options help you build your portfolio:-

Leverage

Both futures and options have become an attractive investment due to high leverage. Leverage is a measurement of the value of an investment relative to the money required to buy or sell the investment. Hence, an investor only needs to put up a fraction of the value of a particular asset when he wants to buy it. This, in turn, leads to high leverage. Generally, a futures and options can be sold or bought within 2% to 20% margin of the actual value of the contract.

Opportunity

An investor can choose from a wide range of futures and options instruments which includes agricultural commodities such as soybeans and wheat, precious metals such as silver and gold as well as foreign currencies such as Canadian dollar and Deutschemark, energy products like crude oil and natural gas, soft commodities like coffee and sugar and much more. Given the wide number of options in the market, an investor is bound to good trading opportunities at any time.

Diversification

Another important factor that makes futures and options investments appealing is diversification. They can provide a high degree of diversification to an investor’s portfolio than traditional financial assets such as stock and bonds. A diversified portfolio on account of options trading will provide returns which are very similar to the performance of the entire market.
  
Liquidity

Liquidity is the measure of the ease of transactions in the market. Futures and options offer very high liquidity to the investor. There are several futures market that can be even more liquid than cash. Sometimes the prices in the futures market are so liquid that the prices of the futures become the industry benchmark.

Sunday, February 11, 2018

How to Claim Health Insurance from Multiple Companies

health care investments
Mr. Narendra Gupta had to undergo an emergency hospitalization. He was convinced that the health coverage he purchased several years ago would suffice the cost of his treatment. He was in for a rude shock when the hospital bill amounted to INR 2.25 lakh. Since his mediclaim policy offered coverage of INR 1.5 lakh, Mr. Gupta had to pay the excess cost.

Had he invested in two plans, he would have enjoyed the benefit of a higher coverage. He could have claimed the balance amount from the second policy, thus eliminating any financial burden.

Given that medical inflation is on the rise, a single health insurance plan often falls short. For this purpose, financial advisors advise individuals to invest in more than a single health policy. Following are three major benefits of purchasing multiple policies.

1. Higher coverage

A major benefit of purchasing multiple health insurance policies is that you will receive a higher coverage. In case your hospitalization bills exceed the sum assured amount of your first insurer, you may seek the balanced amount from the other insurance plan.

2. Hedge against rejection of claims

In case a particular insurance provider rejects your claim application due to whatsoever reasons, you may have to make out-of-pocket expenses. Purchasing a second policy acts as a hedge in such a situation when one insurer rejects your claim.

3. Greater tax benefits

Section 80D of the Income Tax Act, 1961 offers tax benefit on health insurance premiums paid towards your medical insurance plans. By purchasing multiple health plans, you may seek a greater deduction, thus reducing your tax liability to a higher extent. However, it is important to note that you may claim a maximum of INR 25,000 on your mediclaim premiums, while senior citizens may avail of a higher limit of INR 50,000 as per the latest Union Budget.

Procedure to claim from multiple insurance companies

Earlier, the Insurance Regulatory and Development Authority of India (IRDA) had a contribution clause that required insurers to settle the claim in the ratio of the sum assured under the policies. This means in case you have taken two policies of INR 1 lakh and INR 4 lakh, and your medical expenses amount to INR 1 lakh, then both insurers will settle the claim in the ratio1:4. Hence, the first insurer will pay INR 25,000, while the other will pay INR 75,000.

However, IRDA’s health insurance regulations of 2013 did away with the contribution clause. Now, the policyholder may choose the insurer. In case the sum assured is lesser than the claim, the insured is entitled to claim the balance from the second health insurance policy.

Toclaim your hospital bills, you may following either of the two following methods:

1. Cashless claim

In order to avail of a cashless claim through two insurers, you may first make a claim through a single insurer. Thereafter, you may seek the claims settlement summary from them and request them to give you the attested copies of all the medical bills. Post this, you may seek reimbursement of the remaining amount from the second health insurance company.

Alternatively, you may fill the authorization forms of both the insurance providers. The hospital will send out these forms to both the insurers and the bills will be settled between the hospital and the insurance providers.

2. Reimbursement claim

In such a scenario, you will have to pay all the expenses incurred towards your hospital bills. Later, you may seek a reimbursement of the medical expenses. Submit all the original bills to the first insurance provider, stating the amount you wish for them to pay. Once this claim amount has been settled, you may seek a claims settlement summary as well as copies of all the bills. The hospital will attest these copies. You may then forward the same to the second insurance provider for getting the remaining reimbursement from them.

Having multiple health insurance policies is indeed a boon in this time of rising medical inflation. Therefore, you may invest in more than one policy and secure your financial well-being in case a medical contingency were to occur.

Saturday, February 10, 2018

Aegon Life iTerm Yields Coverage for 100 Years - Find Out More

insure your life
A term life insurance policy plays a crucial role towards meeting some of the primary financial objectives of a family. The concept of developing term life plans focuses on supporting an individual or his family in the event of his permanent or partial disability besides covering the risk of an accidental death. In the event of a policy holder's death, a death benefit worth a lump sum is to be offered to the claimant or beneficiaries of any term life insurance policy.

Does Age Leave an Impact on the Term Life Insurance?

It’s truly beneficial for an individual to achieve term life coverage at an early age. You’ll need to pay premiums at an affordable rate for availing high coverage and tax benefits. Moreover, if something were to happen to you, your family will be take care after you. So, get yourself covered the sooner you start earning.

Is it Worth Picking Term Life Insurance Plans forOver 100 Years Coverage?

The insured person may achieve whole life coverage benefits under his term life plan if he intends on shopping for a wide array of such policies in the insurance market. Under most circumstances, the policy holder is likely to be covered for under 100 years. Keeping this idea in mind, Aegon Life now offers life cover up to 100 years thanks to iTerm Plan. With iTerm, a policyholder can secure the financial future of his/her family till the age of 100 years by paying a monthly or annual premium route. Most term policies provide cover for up to 75 years, but with Aegon Life iTerm you can insure your family’s future for long term.

How to Achieve Term Insurancefor Individuals up to 100 Years?

All term life plans can be compared and their costs determined with the help of any term insurance premium calculator that you find online. You'll need to compare a few good plans to find a term life policy that fits in with your requirement and budget. It's in your best interest to choose a plan that covers you for 100 years, like iTerm. You're bound to feel more confident once you're aware of the salient features of a term life policy and know how much you can save.

Check out few of the salient features of Aegon Life iTerm Plan:

1. iTerm insurance yields considerable flexibility by enabling you to increase life cover as your family grows
2. iTerm plan offers 25% of death benefit on diagnosis of terminal illnessfor no future premiums. 
3. Policyholders are entitled to receive tax benefits on their paid-up premium under section 10(10D) and 80C of the Indian Income Tax Act.
4. Under iTerm, a policyholder can opt for additional cover against accidents, critical illnesses, and disability for a nominal charge
5. iTerm allows you to choose your pay out option: lump-sum payment or fixed monthly payment for 100 months or a combination of both