NOW LEASE MERCEDES BENZ AT 50% OF ITS PRICE

NOW LEASE A MERCEDES AT 50% OF ITS PRICE

Source: http://articles.timesofindia.indiatimes.com/2011-07-20/india-business/29793937_1_lease-residual-value-car
Ever dreamt of owning a Mercedes at half the cost. It is possible now with the German luxury carmaker offering 'individual lease' options to customers who can now get a new car on lease instead of buying it with full payment.
Daimler, the parent of Mercedes Benz, began its financial services business in India on Tuesday and said that the bouquet of services this division will offer would include individual lease plans, something very popular in the West but rarely used in India in individual cases.
"Individual lease is a big draw in developed markets. In the US, 40% of individual sales is through the leasing route while only 15% through finance. We expect the trend to pick up in India as well and this country seems to be adequately placed for such an option," said Klaus Entenmann, global chairman of the Board of Management of Daimler Financial Services AG, which annually does business to the tune of euro 64 billion.
Explaining the process of individual lease, Sidhartha Nair, MD of of Daimler Financial Services India (DFS), said the facility offers one of the most flexible option to customers. "One does not need to pay the full price of the car. Normally, as per the leasing model, we give the car on lease for a period of three years, working out a residual value upfront. This value, which on an average is 50% of the cost of a new car, is something the customer does not need to pay. All that he pays us is the remainder value of the car, which is nearly half of its cost. We lease the car to him."
Procuring the car at half the cost is not the only attraction. The service and maintenance costs as well as the insurance fee are the company's headache.
If a new Mercedes model costs, say, Rs 30 lakh, DFS will give two options to an individual customer-buy or lease. Either he can get financing for buying the car and register it in his name, or else he can go for a lease model.
In case he goes for lease, the customer will need to pay only Rs 15 lakh as the rest of the cost will be taken as the residual value after three years when the company takes the car back.
Industry analysts said that the timing of the individual lease model is ideal for India. "Aspiration levels are high and more and more young people want to have access to a luxury brand like Mercedes. Also, since they have to pay just half the cost, it is easier for them to break into the coveted brand," an auto analyst with a brokerage said.
The fact that Indians are also changing models frequently, in three-four years, is also something that will support this phenomenon. "Rapidly-changing technology and entry of newer models are something that prompts people to change models frequently, especially in the upper end of the market. The leasing model is perfect for such people who will only pay half the cost of a vehicle and will have the option to switch to a new model in three years," another analyst said.
But while being a new phenomenon in India, leasing is already an accepted practice in the corporate world. However, the numbers are small even here, though these are picking up fast. When it comes to individuals opting for lease, history is against leasing, at least so far.

LIC's JEEVAN AROGYA... YOUR MEDCLIAM's SUPPLIMENT

Why Do You Need To Write A Will

Why you need to WRITE A WILL

source: The Economic Times Wealth 

If you want to distribute your assets among heirs, write a will irrespective of your age, income or net worth. It will ensure that your legacy does not get mired in legal disputes.

   

For the past six months, Delhi-based Padma Malhotra and her three children have been struggling to access what is rightfully theirs. They have been unable to lay hands on the financial assets of Malhotra’s husband, who passed away in January. The emotional trauma of losing him was followed by despair at not being able to withdraw the money lying in his bank account or access his other investments. This upheaval has been sparked by a single act of omission on the part of Malhotra’s husband—writing a will.
   “My husband didn’t leave a will and had not named a nominee,” she says ruefully. So, she and her kids have been running from pillar to post to prove that they are the only legal heirs of the deceased. Malhotra’s husband has a substantial amount of money in his bank account, but it cannot be withdrawn till the bank is satisfied that there are no other claimants to these funds. “We have submitted copies of the death certificate and our ration card as well as a letter of indemnity, but the bank is demanding more documents. I don’t know how long it will be before we can use the money,” says Malhotra.
   

In Noida, 73-year-old RR Grover is not leaving anything to chance. He has experienced at close quarters how problematic it can be if the head of the family dies without leaving a will. “I don’t want my heirs to run around to get what is theirs. So I have drafted a will that spells out how the assets will be distributed among them,” he says.

Writing a will
Any adult who wants to distribute his assets

Different types of wills

• UNPRIVILEGED WILL
This is a simple will written by an individual. Such a document needs to be signed by the person making the will in the presence of at least two witnesses, who attest the document. These wills can be revoked by writing a new will or destroying the old one.

• JOINT WILL
A joint will is written by two or more persons. Any of the testators can revoke the will during his lifetime. This is possible even after the death of the other testator(s).

• MUTUAL WILL
This will is usually penned by a couple. The two individuals can will their wealth to the other in case one of them dies. The surviving spouse becomes the sole owner of the couple’s wealth.
• CONDITIONAL WILL
If the will lays down any stipulations, it is a conditional will. For instance, a will can state that the assets are to be given to the heirs only after they fulfil certain conditions, such as getting married or having children. However, the condition cannot be outside the ambit of the law.
• PRIVILEGED WILL
The army personnel, who are in the battlefield or have undertaken an expedition, can write a will without any witnesses. These wills can be handwritten or even penned by another person. Such a will can be revoked by an unprivileged will. is a legal document for all practical purposes as long as it is signed by you and attested by two witnesses.
   For most people, making a will can be a simple, do-it-yourself exercise. “The only requirement is that the will should be legible. If a person is old and frail, he should avoid writing it himself and get it typed to avoid disputes in the future,” says Amit Aggarwal, a lawyer with SNG & Partners, a Delhi-based law firm.

However, if there is a complication in the ownership of assets and wealth, you may need the help of a legal professional to draft the will. Such a person will ensure that there are no loopholes or ambiguity in the language that may lead to disputes later on. More importantly, he will make sure that the distribution is within the ambit of the law. “When it comes to making a will, people try to experiment, but the wishes of the testator should be legally enforceable. Therefore, consulting a professional on this matter is important,” says Pavan Duggal, a Delhi-based lawyer. 

Legal viability
A will cannot override the natural succession of ancestral wealth. In other words, a person cannot will away the entire inherited property the way he wants to. He can pass on only his share to anybody he wants, but the remaining property can be willed only to the legal heirs. Suppose a Hindu man inherits 50 lakh from his father. If he has four legal heirs, then he has only a 20% share in that amount. The balance belongs to the four legal heirs. He can will his own share ( 10 lakh) as he wants, but cannot distribute the balance 40 lakh to somebody other than the four legal heirs.
   In case you want to bequeath certain assets to people other than the natural heirs, you would need to mention the reason for doing so. This would foreclose the chances of any objection from other beneficiaries.
   A will has to be attested by at least two witnesses and its important to choose them carefully. They should be completely reliable and preferably much younger than you are in order to ensure that they are alive when your will is being executed.
   Sanjana Bali, a partner with KB Partners, a Delhi-based law firm, recounts a case in which the deceased had willed everything to one of his children. The other siblings filed an objection but the sole beneficiary could not prove the validity of the will because the witnesses could not be located. The matter was resolved only after the beneficiary agreed to split the assets with the other siblings.
   Such cases bring into focus the role of the executor of the will. The executor is supposed to oversee the distribution of your assets according to your will. Here again, you need to be careful while choosing an executor. “Not only should he be a reliable person, but someone your heirs will be willing to listen to,” says Narendra Ahuja, a Delhi-based lawyer. If the asset distribution is not equitable, it can lead to squabbles, and unless the executor can resolve the differences, the matter may end up in court.
   This is also the reason legal experts advise that the will should be registered. This is not mandatory, but it puts a stamp of authenticity on the document. If you want to get the will registered, it can cost you as little as 200-300. You can get it registered with a sub-registrar. To make it ironclad, use a stamp paper to make the will. One copy of the will is filed in the registrar records and the original is given back to the testator. “If a will is drafted properly and subsequently registered, any objections would lack teeth,” says Duggal.
Is gifting a better option?
It can be argued that instead of going through the rigmarole of making a will and apportioning assets among one’s heirs, one can simply gift them during one’s lifetime. However, gifting has its own limitations. For one, the process of gifting is irrevocable, that is, once the asset is given, it becomes the property of the receiver. Experts say it is risky for a person to give away all his assets during his lifetime and then be at the mercy of the beneficiaries.
   On the other hand, an individual can change his will any number of times, deleting names and adding new ones as per his wish. If there is a minor change, it can be done by filing a codicil instead of rewriting the entire will. A codicil is a supplementary document which specifies the changes in the will. “One of the reasons people postpone making a will is the misconception that it cannot be altered. This is not true; you can make any number of changes,” says Ahuja. The latest will supersedes all previous documents.
Appoint a nominee
One seamless option of transferring assets to your heirs is to make them nominees. All financial investments (mutual funds, bank deposits, bonds, etc) offer this facility. However, while a nomination ensures a smooth transfer of assets, it does not make the nominee the sole owner of those assets. The other legal heirs of the individual can stake a claim to those assets.
   In a case that came up before the Supreme Court in 1983, a life insurance policyholder died without writing a will, leaving behind his mother, wife and son. His wife was the nominee of the insurance policy, but his mother and his son filed petitions, both demanding a onethird share in the insurance amount. The court ruled in their favour, stating that the nomination only indicates that the person is authorised to receive the amount but is not the sole owner of that sum. “Few people are aware of this fact.

Making a will online
If you are tech savvy, you can get a will made online. A few companies such as Warmond Trustees & Executors and Vakilno1.comoffer this service. To make a will online, you need to register with the company and key in your personal and financial information. Once the details are uploaded, the company drafts a will and sends it to you within seven days. Besides making the will, these companies help with the registration and also act as an executor. The cost of this convenience: 10,000. However, this option works only if you have a simple portfolio and there are no conditions involved in the distribution of assets. “This is because any will with a complex structure requires a one-on-one discussion. So the online format works only for a simple portfolio,” says Sandeep Nerlekar, MD and CEO, Warmond Trustees & Executors. In case you want an online will, you need to have a digital signature for signing it. The two witnesses must also have digital signatures. “Not everyone has digital signature and finding witnesses who have them is even more difficult,” says Duggal.
   If there is no will, the estate of the deceased is distributed in accordance with the law of succession. However, such cases usually end up in court or are settled after acrimonious negotiations between the legal heirs. There is also a cost attached. If you apply for a succession certificate from the court because there’s no will, you need to pay up to 3% of the value of the assets. This is why you should settle these issues during your lifetime. “A will is a legal document that clearly demarcates what should go to whom and bypasses all succession laws. It reduces the chances of dispute and lessens emotional distress,” says Bali. So, in case you have not thought about succession, it’s time to stop procrastinating and start penning your legacy.

CASE-STUDY

Padma Malhotra 47 years, Delhi
Her husband died without appointing a nominee to his bank account. For the past seven months, she and her three children have been completing the legal formalities to gain access to the money.
can write a will. The assets can include property, gold, financial investments, art and artefacts, even hard cash lying at home. It’s a myth that only the super-rich need to write wills. “Whether you are a daily wage earner or a tycoon, you have the right to dispose of the assets you own according to your wish,” says Rajesh Dalmia, a Kolkata-based certified financial planner. A will is an instrument that allows you to do so.
   Contrary to perception, it is not necessary to write it on a stamp paper or even get it registered. You can write a will on plain paper and it will be as legally valid as one prepared by a lawyer. All it should do is identify you as the testator (or the person who is making the will), list out your assets and specify how these are to be distributed among the beneficiaries. Whether you type it out or write it down, it

Paurav Mehta 33 years Mumbai
His father died in 2009 without leaving a will. But since he had made his wife a nominee in all the bank accounts and other financial assets, the family did not face any trouble in accessing these.

RRGrover 73 years, Noida
Even though his wife is the joint owner for most of his assets, Grover has drafted a will for a smooth distribution of wealth among his wife and two daughters.

Mohan Hirani 66 years, Delhi
When his father expired without leaving a will, it took him a year to get the succession certificate for transfer of shares. To avoid such problems, he has drafted a joint will with his wife and is to get it registered soon.
Most believe that the nominee will also be owner of the assets,” says Veer Sardesai, a Punebased certified financial planner.

Critical Illness Insurance....Do You Really Need It ???

Source: http://www.hintsandthings.com/office/critical-illness-insurance.htm

GREAT NEWS! There's now a one in five chance of you winning the lottery before you retire.

Getting excited? Think it's just a matter of time before you win? Think again, it's not going to happen - but it got you thinking!

Now think of the same odds but this time about bad news. There is a 1 in 5 chance for men and a 1 in 6 chance for women that a long-term critical illness will prevent them from working. Sorry - this time it's true.

Insurance cannot change those odds but it can alleviate the potential financial wreckage caused by being unable to work through long-term illness and still having a family and home to support.

Convention declares that every good family man should have life insurance. It's easily understood, it's accepted and your next door neighbour has it too. But what about it's close cousin critical illness insurance? You'll have to walk several streets to find someone who has it. Given the odds, why? After all it pays out a tax-free lump sum immediately an insured critical illness is diagnosed.

The usual reason given is its expense. Yes it is more expensive than life insurance but after all it's providing cover for a greater risk. You're much more likely to experience a critical illness than die before your normal retirement age. Indeed, the average age for a claim is 47. So clearly there is much more to the public's resistance.

Not understanding the risks or “head in the sand syndrome” are certainly major factors. After all Alzheimer's disease, bacterial meningitis, brain tumours and leukaemia plus the long list of other illnesses typically covered by critical illness insurance, are not matters we care to think of nor know much about.

Could there be another reason? Well there have been repeated newspaper articles about people who claim on their critical illness policy only to have it turned down on an apparent technicality – the inference being that the insurance company cannot be trusted. Indeed, Standard Life freely admits that it turns down around 20 % of critical illness claims.

The truth is that behind every story of rejection there's a harrowing story of illness, distress and sorrow - and potential copy for the journalist. But that in itself, is not evidence that the insurance company is guilty of devious behaviour.

Yes insurance companies do make mistakes, but more often than not the claim was invalid from the outset. There are two main causes. Firstly, the policyholder is claiming for an illness that is not one of the critical illnesses scheduled in the policy documentation. Regrettable, but it's a fact that if the illness is not listed it isn't insured and the policy won't pay out.

The moral is to closely compare the illnesses covered by competing insurance companies and buy the one with the most extensive coverage of illnesses. If you don't, sods law will prevail …….

The second major reason for refusal is a failure to disclose all relevant matters on the original application form. For example, if the applicant fails to disclose in response to the insurance company's questions that his father a died of a heart attack aged 50 or that he is having medical tests for headaches, then the insurance company will wrongly assess the risks it is being invited to insure. Had the insurance company known this extra information they might have increased the premium, or asked the applicant to go for a medical examination, or waited for the outcome of tests, or even refused to provide cover. By failing to disclose, the applicant has effectively obtained cover on false pretences or at least on inaccurate information.

Thereby lies the second moral. Always provide the truth and the full truth on your application form. Anything remotely relevant to your medical condition must be disclosed.

All this points to the need for professional insurance advice. Critical Illness policies do vary and it can take an experienced eye to evaluate the best policy for your circumstances and pocket. This doesn't mean that you have to miss out on the discounted premiums available online - but do thoroughly talk it through with one of their telephone based advisers and do make sure you read the schedule of claimable illnesses when it arrives in the post.

Then sit back knowing you've taken another important step to protect your family's finances. Lets all hope that you're one of the majority who are happy never to claim.

It's now time to concentrate on enjoying life.

Best mutual funds for children

Source : http://articles.economictimes.indiatimes.com/2011-04-18/news/29425604_1_funds-sips-long-term

You must have heard this at least a hundred times: equity mutual funds are the best way to create wealth over the long term. Are small investors listening? It doesn't seem so. According to the Association of Mutual Funds in India (Amfi), retail investors do not stay invested long enough in equity funds to realise the potential of this asset class. The average equity fund investor stays with it for only 18 months. Nearly 38% of retail investors exit equity funds before they complete two years.

Investing for your child's long-term needs requires a lot more discipline than this. More importantly, the investor should not lose sight of his long-term goals due to short-term market volatility. During the market mayhem of 2008-9, many small investors discontinued their SIPs in mutual funds. Some even withdrew their investments. "It is unfortunate that these investors would have continued with their Ulips as there was no way to exit them. Mutual funds became victims of the liquidity they offered," says Arindam Ghosh, head of retail sales, JP Morgan Asset Management.

The child plans launched by mutual funds are an attempt to inculcate long-term investing discipline in parents. "If you have invested in a fund called a child plan, you will think twice before withdrawing from it for discretionary spending," says financial planner Gaurang Gandhi. As studies have shown, it pays to keep your investments locked away for the long term. If you had invested Rs 10,000 in the HDFC Top 200 Fund 10 years ago, your investment would be worth Rs 1.6 lakh today. An SIP of Rs 5,000 started in the Reliance Vision Fund in May 2001 would have been worth over Rs 27 lakh today. "An SIP in an equity fund is the best way to invest for the long-term needs of your child," says Ritesh Jain, head of investments, Canara Robeco Mutual Fund.


Child plans also help earmark funds for specific goals, dividing the portfolio into several categories. This makes it simpler for a parent to monitor the investment for a particular goal and take corrective steps if the growth does not match the expectations. As we explained earlier, this segregation is important because each goal has a different time frame and, therefore, requires a different investment mix.

Fund houses have customised their schemes to suit the desired asset allocation at various stages of the child's life. Fidelity Mutual Fund has three schemes for children, each with a different asset allocation and aimed at different investors. The parents saving for their child's higher education can opt for the Fidelity India Children's Education Fund, which invests 70% in stocks and 30% in debt. The Children's Marriage Fund has a similar equity exposure, but also invests 10% in gold. The Children's Savings Fund, which has 100% in debt and money market instruments, is aimed at conservative investors or those nearing their financial goals.

The tax efficiency of mutual funds, especially debt-based schemes, makes them an ideal long-term investment vehicle. When you invest in a fixed deposit for your child, the taxman treats the income as your earning. But when you invest in a mutual fund, there is no tax implication till you redeem the investment. So, if you invest in your child's name, you can defer the tax for years. If the money is withdrawn by him after he turns 18, any profit will be treated as his income, not yours. After such a long period, the indexation benefit (which takes into account the inflation during the investment tenure) would reduce the tax to nearly zero.


Before you buy

Ask a child his favourite ice-cream flavour and he is likely to say chocolate. Or butterscotch. Or even tutty fruity. Nobody likes plain vanilla. But when you invest in mutual funds for your child, plain vanilla funds could be more rewarding than the schemes aimed specifically for children. "An investment for your child should not necessarily be in a 'child plan'. Any fund can be a child plan if it fulfils the basic need to grow wealth," says Dhirendra Kumar, CEO of Value Research.

The performance report card of child plans is a mixed bag. Some have done well, but quite a few have lagged. HDFC Children's Gift Fund-Investment Plan, an equity-oriented balanced fund, has done very well in the past three years, with 18.2% returns. But its 5-year returns of 12.6% are not too impressive, and pale in comparison with the 18% churned out by HDFC Prudence, a long-term winner from the same fund house.

Similarly, ICICI Prudential Child Care-Study Plan is the best performing child plan among the debt-based balanced funds, with 10.7% returns in the past three years, and 9.99% in the past five years. But Reliance MIP, which also has 20% invested in equities and, therefore, has almost the same risk profile, has earned 15.8% in the past three years and 11.33% in the past five years.

Mind the exit load
There's something else you should know before you buy a child plan. To make parents remain invested for the long term, these plans levy stiff penalties on early redemptions. After the removal of entry loads, fund houses had started levying exit loads of around 1% if the investor withdrew before a year. In the case of child plans, the penalty is as high as 4% and the minimum period can extend up to 5 years. For Tata Young Citizen's Fund, there is a 1% exit load even if the investment is redeemed after 7 years.

However, this should be seen as a positive feature rather than a problem. "The exit load is a good deterrent against early withdrawals. It promotes long-term growth," says Dhirendra Kumar. The Templeton Child Asset Plan is the only scheme which does not levy an exit load.

Human Life Value

Source: http://www.investmentyogi.com/insurance/human-life-value.aspx

When it comes to life insurance, it is quite difficult to estimate the exact need of insurance and most of the people who turn out to sell us insurance plans are found fumbling if asked about the exact insurance need and its rationale. Although the insurance companies are trying to educate their agents/advisors about the basics of insurance the situation is far from desirable.

                                              

We have to understand the reason for taking any insurance and also to calculate the appropriate quantum of insurance. Insurance is an arrangement where a number of persons pay a small amount each to an insurance company which in turn assures to pay a specific amount if a particular event occurs and which results in a financial loss to the person who had bought the insurance. So if we have to get our car insured, we will pay the premium which will be around 3-4% of the value of the new car and the insurance company is bound to compensate for any financial loss to the insured article, in this case, the car. Once the contract period of one year is over and if there has been no loss to the insured article, the insurance company is not bound to pay any thing to the person who had taken the insurance. Now in the above example, we do not have to think much about the amount of insurance since it is already on records. A new car is insured depending on the price paid for it to the company and an old car is depreciated for every year of use.

               

                                                                                                      
But the problem in life insurance is: ‘how to determine the value of a human being?’.

                                     

This problem has a solution which is called “Human Life Value” and it is a calculation which is used world wide for determining how much insurance should be taken for any human being. Since the logic of buying insurance is compensation in case of a monetary loss, the insurance company can only compensate for a financial loss that arises because of the death of the person whose life is insured. The loss which arises upon the death of a person can be of two types, financial and personal (emotional). The life insurance policies can only compensate for a financial loss which is calculated before issuing the policy and it is done by using a “Human Life Value Calculator”. The financial loss in case of the death of a working person is the loss of all his future earnings till the age of retirement minus the expenses he would have made on himself. The logic behind this is that if the person is not alive any more, the actual earning loss is of the money he would bring in after deducting his personal expenses.

                                                                                                                                                              
Now if the person is 28 years of age and wishes to retire at 60, the financial loss in case of his death would be 32 years of earning, and the simple way of calculating his human life value would be the total of all his future salaries. Let us assume his monthly salary is Rs 20,000 so a simple calculation would come to Rs 2,40,000 for every year of earning left i.e., 32 years and the total comes to Rs 76,80,000. But then we have to calculate not the absolute value of future earnings but the present value of future earnings. Present value of any money is less than the actual amount received in future since the value of money is decreasing every year due to the prices of all items going up gradually, a phenomenon called inflation. So assuming that the inflation is 5% per year (meaning thereby that the overall price increase is 5% in one year) if I am expecting to get Rs 1 Lakh next year, its present value is close to only Rs 95,000 and 1 Lakhs received two years from now will be worth only Rs 90,700. Applying the same logic to the above example, the present value of all his future earnings i.e his “Human Life Value” is Rs 38.43 Lakhs which is just half of his total future earnings.

Now if we go into detail, not only do we have to deduct his personal expenses while calculating his human life value, we also have to take into consideration the annual increase in personal expenditure due to inflation and also the annual increase in his earnings, but that will complicate the issue in a big way. So the simple way out is to calculate the human life value by using just the current earnings and remember that human life value changes with every passing year and with every decrease or increase in earnings.
                                                              
So not only calculate your human life value now, but do it every time you get that coveted increment in salary.
                                        
Insurance calculator: Expense protection method
Insurance calculator: Human Life Value method

The Benefits and Importance of Life Insurance Policies

Source : http://www.traderji.com/insurance/25786-benfits-importance-life-insurance-policies.html

Life Insurance is considered to be an important part of an individual’s investment portfolio, not necessarily to accumulate wealth, but to feel financially secure. Other then this when you opt for a life insurance policy you enjoy other benefits also, like tax-deduction options, and in some cases long term capital gains. What is important when you opt for a policy is the term and plan related to that particular policy. Always remember Life Insurance is primarily made keeping your family and those who are dependent on you in mind. There are various companies that would ask you to opt for a policy from them, and incase if you are an amateur investor and try to push things in a hurry, you might end up settling for a wrong deal. Here, we will discuss on a few guidelines that an individual should follow prior to opting for a policy or while assessing an insurance plan.

When you decide to invest in Life Insurance, it is imperative that you understand your financial status, your future liabilities & commitments and then opt for a policy that would suit your needs in the longer run. Insurance is by and large regarded as one of the best savings cum investing scheme. Students who earn while studying and those who take up full time employment after their studies see insurance as a profitable scheme to regulate their savings. Important factors that an individual needs to understand prior to opting for Life Insurance Policies are 1) Requirements, term (duration) and premium to be paid 2) Nature and benefits of the policy in the longer run & 3) Coverage of the policy. The need and income of an individual helps him decide the amount of Life Insurance Premium. The insured should also think about the benefits that he and / or his nominee will receive before deciding to go for a particular policy. Life insurance covers the risks of loss due to the death of the insurer. Hence it is advisable that before you purchase the policy; take a look at the plan of the policy in detail. Most of the Life Insurance Companies would provide you with a ULIP (Unit Link Insurance Plan). Consulting an expert or your friends, & other reliable sources like the internet, that would provide accurate data helps. Analyzing the different categories of insurance, conducting a proper market research, checking your financial constraints where you ensure that you pay your insurance premiums simultaneously is important.

Ideally all life insurance companies invest the insurance premium funds in the various types of projects meant for developments and attractive returns. This project varies from government funded bonds to private companies. As an investor and depending upon your risk tolerance you can divide your investment funds in various modes which can be Balance, Maximizer, and Minimizer. Balance fund manager will invest your fund equally in government sector bonds as well as in private sector. In Maximizer mode your complete fund is invested in private equity market, which completely depends on market conditions. This fund at times may give you unexpected results and at times may even ruin your principal amount. In the last type of investments the fund is completely engaged in government bonds, wherein risk is almost null with assured returns.

Like other investment modules Life Insurance also has advantages and disadvantages. The prime advantage is financial security for the obvious reasons. It helps facilitates economic movements. Life insurance companies collect premiums from multiple investors hence gathering large funds. This money is used to finance trade and other financial development activities. Last but not the least it helps in reduction of tax payments. Policy holders are entitled to claim income tax exemptions for paying the premiums. The amount and the extent to which they are allowed depends on other factors like the persons income and if the insurer is a private player or run by the state. Drawbacks include incompetent facilities as all Life Insurance Companies are not able to provide the exact kind of life insurance policy as desired by consumers. Moreover the services of insurance agents could sometimes do more bad than good. Some of them try to convince their clients to invest more or to choose certain policies which are not much beneficial to the clients. A person will find himself in trouble if he invests more than what is actually required. But as the number of advantages out numbers the disadvantages, investing in Life Insurance is always considered to be a good move.

Another important factor that needs attention during the framing of the policy is Life Insurance Quotes. Life Insurance quotes are the prices at which life insurance policies are proposed to be sold and vary from company to company or individual to individual, mainly depending on the term of the policy. Other important issues that address the quotes are age and income, the physical features and family details of the insurer. The time through which an insured pays the premium for the policy is called Life Insurance term. On a general basis, there are no standard premiums as far as term insurance is concerned. A person can decide the amount to be paid on the basis of his requirements in terms of coverage and affordability in terms of finance. As of now the top 5 life insurance companies in India are Reliance Life Insurance, HDFC standard Life insurance, Bharti-axa life insurance, ICICI Prudential life and off-course LIC India. The following companies were considered after being judged on parameters such as the insurance quotes, the term that the insured had to pay the premium for, the cover that the policy was covering, etc, etc. All in all getting an insurance done for yourself at the earliest, once you start earning is an excellent way to get your financial future secured.