All posts by ANAND BHIDE

Most of you would have a brief idea or have at least heard about life insurance. It is considered as one of the best ways to secure your loved one’s future. In the past few years, the concept of life insurance has evolved from the traditional plan of insuring the family’s future to being a great investment option too.
Although all the information about insurance policy is present on the Internet to help you buy a good insurance policy, too much of data may leave you bamboozled. And in the ensuing confusion, you may settle with a good enough choice. But why be complacent with a good choice when you can avail the best option? Here, we will get things sorted for you to understand the top 6 things you should consider before buying a life insurance policy.
1. Your life-stage and desired coverage: The first point to consider is your life-stage, that is, whether you are single or married. Responsibilities change and increase with every life-stage. If you are unmarried, then you may have only your parent’s responsibilities, or not even that for some, whereas a married person has a family to look after.
Another factor is the number of earning members in the family. Some families have two earning members, while in some families there is a single bread earner. Moreover, your insurance policy should take care of your liabilities like home loan, children’s education, and marriage. You must opt for a plan that is specific to your requirement.

2. Goodwill of the insurance company: The insurance company’s goodwill or market reputation is another important aspect that you should consider. The company should have a positive feedback in the market. You should thoroughly research about the company’s products and customer services before making the decision. You can read company’s customer service reviews on online forums and social networks. Claim settlement ratio is another parameter to judge the goodwill of the insurer.

3. Financial track record of the insurance company: By buying a life insurance policy you want to financially secure your loved ones. So opting for an insurance company with a strong financial track record is a very important factor. Only a company which has strong roots can help you give your loved ones a stable and secure future.

4. Easy claim settlement: The ultimate aim of life insurance is to provide the promised claim amount to the insurer’s family without much hassle. So before zeroing on the insurance policy, check the company’s claim settlement ratio on IRDA’s official website and also read about their insurance claim procedures. But before you make any opinion, check out the reasons for rejection of specific cases.The regulator also captures the average turnaround time taken by each insurer to settle a claim.

5. Riders: There is no single policy that can meet all requirements of every individual. Companies have custom-made policies suiting the requirement of different customers. These add-on offers are known as “Riders”. Riders help you provide necessary finances in case of any emergency. These add-ons include medical treatment of critical illness, income benefit, death due to accident etc. The riders are like extra toppings over and above a base plan (additional toppings over a pizza) they are not very expensive but can surely add meaningful benefits if opted.

6. Borrow against life insurance: Although life insurance ensures financial security to the insurer’s family, it also has various other benefits like tax benefit. You can even enjoy loan against your life insurance policy. Anyone can have a financial crunch and that is when this investment can come to your rescue. Remember, you can get a loan only against traditional life insurance, i.e., on endowment and money-back policies. Other policies do not have the benefit of borrowing funds.
Before you purchase an insurance policy you have to be sure it is a perfect insurance plan matching your requirements. There are various types of insurance plans to meet your requirement, such as term insurance plan, whole life insurance plan, endowment plan, ULIP and Money back plan.
Talk to your financial advisor prior to entering into any contract with the life insurance firm. Second opinion never hurts but can save you from regretting later. Life Insurance acts as one of the most important pillar to a sound financial plan. It can eradicate the contingencies provide one has closely considered the liabilities and responsibilities one has.
Since life insurance includes insuring your loved one’s future you do not want to be wrong with the insurance policy, keep these points in mind before investing in a life insurance plan and enjoy a stress-free and happy life.

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Manage your Finance

How life insurance can help you fulfill your financial objectives

January 29, 2018 ANAND BHIDE Leave a comment

Life insurance goes beyond providing only protection as it can also act as an important tool to achieve financial objectives in one’s life. Almost all of us have certain life goals to fulfill and these may be related to wedding, child’s education, buying a car, buying a home, etc.
Needs can be categorized as negotiable and non negotiable, buying an asset or fulfilling a need that is not a responsibility can be considered under non negotiable goals as these can be deferred or adjusted basis an individuals current financial standing. However non negotiable goals are ones that cannot be deferred such as a child’s education need.
Money is essential for survival. We all work hard to live a better life. We look out for opportunities to multiply our earnings and consequently our savings. Earlier, term deposits were used to earn interest on savings. But with the decreasing rate of interest, people are looking for other avenues to invest and earn better returns. One investment that will surely get you desired returns is “Life Insurance.”
Gone are the days when life insurance was all about securing the future after an unfortunate event; now it is more of living happily with your family. It is a general myth that life insurance is only for protection to the family in case of any mishap. The truth is life insurance has evolved over the years and now apart from protection cover it has become a great investment option. It mitigates the risk of living to short as well as living too long.
You could choose from different types of life insurance that meets your requirement: Whole Life Plan, Endowment Plan, Term Plan, ULIP, and Money back plan.
We make investments to safeguard our family from any unforeseen expenses. Life insurance helps you to save your family not against unforeseen but also predicted expenditures like your child’s studies and retirement.
Child Insurance Plan
We all want best for our kids. We go an extra mile to make their life better, so why not start investing in their future right from the beginning. There is no better way to express your love for your child than to ensure that their educational expenses are met with the help of Child Insurance Plan.
Looking at the inflation, with time education will only become more costly. One way to take care of your child’s education and career is to start saving right now.
So the question arises how does a child plan work?
You can either opt for a term insurance or permanent insurance policy for your child. With term insurance, you can help secure your and your child’s future financial goal in cases of exigency. With an Insurance Plan for your child, you can save a specific amount that will have regular payouts after a certain time. This saved amount will help you earn higher returns and even ensures minimum assured sum in case of any unfortunate incident. Also, in case of death of the insurer, i.e. of the insured parent before making the requisite premiums, the insured amount remains unchanged and the balance amount is then funded by the insurance company. This feature is known as the Waiver of Premium (WOP).
The same adequately covers any mishap. The first payout is immediately after the death and the other payouts will be according to the pre-decided terms. In some policies, there is an add-on feature of survival benefit, which is given in the case where the insurer survives. This benefit is like a bonus of the policy.
Retirement Plan
So you have secured your child’s future, but what about your old age? Often our exigent and immediate financial requirements push our retirement savings plan to the back-burner.
You would be retiring after some years and would want to live your dreams. Some of you might have even penned down your wish list. Making a wish list will not ensure the fulfillment, but insuring your retirement would.

“When do you tend to spend more – On a Weekday or a Weekend?”
The answer 9 out of 10 times is : Weekend !
I am sure everyone would agree that post retirement every day is a weekend!
The bigger picture here is that we tend to spend more when we have time to for ourselves, therefore it is imperative that while considering our future expenses we consider these behavioral aspects as well.
You will not like to change your lifestyle post retirement. To enjoy your retired life, this is the right time to start saving, and life insurance is one such way to ensure an old age full of happiness and contentment.
A good retirement plan will not only lay the foundation stone for your blissful retirement but also help to meet the medical requirements accompanied with ageing. A good retirement plan will assure you the best of medical facilities.
Not convinced enough? Here are few reasons life insurance should be listed in your financial planning:
1. Safeguarding the future of your family: Life insurance acts as a financial buffer at times of any unfortunate event or unforeseen expenses.

2. Excellent Savings: Life Insurance is an excellent savings option to meet your requirement. The regular investments fetch you great returns along with loyalty benefits. It assures a guaranteed maturity amount based on your risk appetite and need.

3. Plan for Long-Term Goal: You can start saving for predictable expenses like child’s education, car, house, marriage, etc. With periodic premiums you can accumulate the required amount for your long-term goals.

4. Tax Saving: Life insurance is not only a financial aid but also helps you save taxes. The premium of life insurance is exempted under Section 80C of the Income Tax Act, 1961.

5. Pay Off Debts: Most of us have taken a loan for house, car, or business. You surely do not want your family to struggle paying it off in case of some adverse event. Your family will be in a better situation if all your loans are paid off, and life insurance can help you ensure a debt-free life for your family.

No matter which insurance you choose, you and your family will reap the benefits of the life insurance policy. Unlike other investment plans, you can opt to diversify your funds to maximize the returns on your policy.
Life insurance can be tailor made to suit your requirements and future plans. It will help you achieve your long-term goals without committing yourself to any compromise on your life-style.
Today when people are struggling to save their hard earned money, life insurance is a blessing in disguise for you and your love ones. Many of you would be unaware that the early you buy a life insurance, the cheaper it is.
In a nutshell, life insurance is saving in a disciplined manner to meet your financial obligations at different stages of your life. Plan your finances today to make a better life tomorrow.

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Trends

Forex cards: The best way to use money abroad

January 2, 2018 ANAND BHIDE Leave a comment

Travelling abroad needs a lot of planning and iterations even when things are properly finalized. Air tickets, hotel booking, and currency exchange are just a few but important things that you needs to take into account before finally flying away to a new destination. All things equal, you should give thought to how you will best carry your money to spend during your travel as you have to pay close attention to security, convenience, and cost of all the different options – debit/credit cards, traveler’s check, cash, prepaid travel cards, etc.
Until a few years ago, international debit and credit cards were the most preferred mode of carrying out transactions abroad, but you have plenty of options to choose from, as mentioned above. Exchanging cash at airports and hotels is the most expensive for you on account of different currency exchange rate and same is the case with international debit and credit cards with respect to processing fees and other miscellaneous charges. But it always makes sense to have some cash on you for immediate expenses such as buying a meal, or hiring a cab abroad, considering the fact that it is always risky to carry cash while travelling.
It is, therefore, important to know that there are other user friendly provisions available for travelers to make their overseas travel stress free, as far as money is concerned.

A forex card, also called prepaid travel card or simply travel card, is the most cost-effective, convenient, and secure option to travel tension free.

Why Using a Forex Card Is a Safe Bet?

Most foreign establishments (hotels, departmental stores, etc.) will accept a forex card without any charge.
The card can be loaded with a single foreign currency, or multiple foreign currencies if you plan to visit more than one country. You can use them at ATMs and PoS (point-of-sale) machines for most of your purchases.
In case you misplace the forex card, you can block it online immediately. Some service providers may arrange for a secondary card in case of such emergencies within 2–3 working days. Most prepaid forex cards also offer an emergency cash service. You can call your card provider’s toll-free number to arrange for emergency cash or to re-issue your card.
You can load your forex card on days of favorable exchange rates. You can lock in that exchange rate. So, even if the rate fluctuates later on, for the bad, you’ll continue getting your promised currency rate. And if you have leftover amount in your forex card, you can get it back at the prevailing exchange rate.
You can withdraw cash from ATMs abroad free of charge.
The card is pin protected and you can configure your spending limits.
You can access online statements to monitor your expenditure.
You might get complementary offers like discounts on flight fares or hotel tariffs.
Even taxis in certain places accept a forex card.
You can reload/recharge your prepaid forex card online by transferring the required amount in Indian Rupees to the card provider’s account. Your card will be loaded with the equivalent foreign currency.
Your prepaid forex card comes with a free insurance cover.

How Much Cash Should You Carry?

The majority of your expenses when traveling abroad are usually cashless: hotel stays, food and dining, shopping, flight tickets. You can pay for all of these through your forex card. About 70% of your total expenditure is thus, taken care of by your forex card. Apart from this, other services and activities such as availing cabs, bus rides, entertainment options, amusement park visits, entry tickets for sight-seeing, eating at restaurants, etc. also accept Forex cards. Make sure your financial institution’s Forex Card is acceptable at multiple international retail chains.

How Is Prepaid Forex Card Better Than Traditional Forex Options?

Cash versus Forex Card

While carrying cash would require constant checking of the exchange rate and would have a greater risk of loss, , a forex card is safe and secure, and conveniently fits into your wallet.
A forex card is usually available at a better rate than currency notes.
Unlike foreign cash, which is subject to availability, prepaid forex cards can be loaded with any amount of foreign currency at any time.

Credit/Debit Card versus Forex Card

You can save between 3% and 11% that is charged on your credit/debit card in the form of commissions, service taxes, and cross-currency charges.
You also save the 2% to 5% transaction fee charged on your international debit/credit card.
Unlike credit/debit cards, you are not susceptible to variable rates. Since the Indian Rupee is on a downward trend against the dollar and many other currencies, it is smarter to lock the rate on a forex card.
The foreign bank will charge your credit card bank in India an exchange rate keeping their profit margin built in.
The exchange rate offered by debit cards are more expensive.

Travelers’ Cheque versus Forex Card

You do not need to run around to find money changers to encash your cheque.
You need not bother about whether the purchase point will accept your cheque.

How to Apply for a Forex Card?

Most of the leading banks offer Forex Cards. You might have to pay a nominal fee of INR 100–150 for getting the card issued, or some banks also provide the card free of cost. You will have to fill out a simple form and submit your Know Your Customer (KYC) documents. Then you will have to remit an amount equivalent to the sum you want in foreign currency to the card provider. Once the documentation is complete, your card is loaded with the required amount.
Some Tips

Research thoroughly about the features and benefits of different forex card providers. Some banks may charge hidden fees.
Buy your forex card well in advance. It takes up to 24–72 working hours for a card to be loaded.
Buy one card for yourself and one for your travel companion.
Don’t store your card and PIN together.
Don’t share your PIN and card details with anyone.

Enjoy a secure and hassle-free travel experience with your prepaid forex card—the smartest and most economical way to carry foreign currency.

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Trends

Explore Dubai with a Multi-Currency Forex Travel Card

December 22, 2017 ANAND BHIDE Leave a comment

There are over 65 million passport holders in India which indicates that the country is active in terms of the International travel scene. With increasing purchasing power, affordable air tickets and hotel bookings, more number of Indians are opting for International travel destinations. Some of the most popular international destinations preferred by Indians include Paris, Dubai, London, Singapore, Bangkok, etc.
Since more and more Indians are travelling abroad for leisure and business, it is expected that outbound tourism will cross the $40 billion mark by 2020. This figure is indicative of the fact that there is an increase in the spending behaviour of Indians when abroad

Travelling Abroad and Foreign Currency,

Travelling abroad is always associated with carrying foreign currencies to ensure the trip is hassle free. Also, when travelling abroad, people also have to take into account the fluctuating currency exchange rate, along with the risk of carrying too much cash in a foreign location. The same entails people making sure at all times that they have enough cash on them to avoid any unforeseen circumstance in terms of foreign currency prior to their travels.

With improvements and advancements in technology, these issues are a thing of the past. With the introduction of multi-currency forex card, international travellers can take a breath of fresh air. This card essentially works like any other plastic money and allows the traveller to make prompt transactions on the go. Furthermore, this card makes managing multiple foreign currencies and foreign travel much easier.

Benefits of Multi-Currency Card

The multi-currency card offered by IndusInd Bank lets the customers travel abroad with much ease. Customers can travel without worrying about carrying cash in different currencies. This card provides 8 of the most widely used currencies in the world – Great Britain Pound, Euro, US Dollar, Australian Dollar, UAE Dirham, Canadian Dollar, Singapore Dollar, and Saudi Riyal. This card can also be used for a range of transactions such as dining, shopping, sightseeing, etc. Customers can re-load this card multiple times as and when necessary as per their usage.
– Customers receive zero charges on ATM withdrawals
– There is zero processing fees
– There are zero currency conversion charges
– The card can be utilized for safe and secure online transactions, and is accepted everywhere with VISA debit and credit facilities
– Customers can easily keep a track of all their transactions through IndusInd’s website
– The multi-currency card is further embedded with high security chip encryption that protects the user from counterfeit and fraud.

Dubai and Multi-Currency Card

The UAE city has a plenty to offer to adventure travellers and thrill-seekers that come from all corners of the world. However, Dubai is most famous for its international shopping festivals. It is one of the top three shopping hubs in the world and is home to the best offerings of the global retail market.
Save the dates and book your flight tickets, as the dates of the month-long Dubai Shopping Festival (DSF) has been declared.
The retail event which was started in the year 1996 has become one of the most anticipated shopping events across the world. This year it is going to commence on 26th December, 2017 and would end on 27th January, 2018. As far as hassle-free shopping experience at a global shopping event like Dubai Shopping Festival is concerned, customers look for a convenient, fast and secured mode of payment. Indus Multi Currency Card ticks all the right boxes, because it makes transactions in multiple currencies an easy task. With the Travel Card in your wallet, you can load US Dollar, Euro, Saudi Riyal, Arab Emirate Dirham and many other currencies in just one card. Equipped with an embedded chip technology, along with instant alerts and immediate hot-listing in case of theft, be assured that your money is safe.
Shop at malls, book hotel rooms, pay for air tickets and buy fuel at petrol pumps with the help of this multi currency travel card. You also can stop worrying about the fluctuating currency rates because the card shields you from unpredictable exchange rates.

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Credit Card

4 Factors That Influence Your Credit Card Limit

December 22, 2017 ANAND BHIDE Leave a comment

The amount of credit you are allowed, also known as the spending limit or the credit limit, is the most important aspect to look at when you apply for a credit card.

Setting the right limit is essential as it must appeal to the customer while being acceptable and comfortable for the bank.

The calculation is based primarily on your individual income and usage, but other factors such as your debt obligations and other expenses are also taken into consideration by sourcing information about your finances through the income documents submitted along with your association with outlets and brands. Though this could seem like a complicated calculation process, there are essentially just four main factors that influence the spending limit set on your credit card. These are –

1. Salary/Income

This is the most considerable factor in determining one’s credit limit., depending upon your appetite for risk. If you have multiple sources of income, disclosing all of them at the time of application would work well in your favour and the chances are that your upper limit would get pushed up sizably.

2. Credit Score

Extending credit is almost like giving a loan, so any lender would analyse your credibility before issuing you a credit card. Through your credit reports, your personal details along with all your financial dealings including bill payments, credit history and account transactions are studied by the lender. Previous borrowings and the manner in which you repaid them is closely looked at.

One of the most important bits of information in a credit report is the credit score. This has the potential to make the difference between a low credit limit and a feature loaded, high limit credit card. The higher your credit score, the greater are the chances of you being eligible for the latter. New users might not get a very high credit limit to begin with, but if the bills are paid on time, the credit score will go up and the limit would be increased soon. A

great way to ensure that your score goes up is by paying your bills on time and keeping your credit utilisation ratio below 30%.

3. Ongoing Loans/EMIs

While setting the credit limit, the amount of money that you save after your expenditures is what matters. If your bank statements suggest a good amount of savings on your total income, chances of a higher upper limit are increased.

When you have existing financial obligations, the impact of those obligations on your income and consequently on your ability to pay bills on time will be looked into. In case you are paying monthly instalments against a loan, the amount you save on your gross income is dented. However, it is the extent of this dent on your income that is assessed before issuing you the credit card. So if existing claims take up a large chunk of your income, your ability to make payments is reduced and in turn, so is the limit on your credit card. But if you ensure that your EMIs constitute a small portion of your total income, your spending limit should not be affected.

4. Your Portfolio with the Issuing Bank

The relationship value you share with a bank could go a long way in striking a good credit card deal with them. If you approach the bank in which you hold a savings account and base your application for a credit card on the frequency of transactions made through that account, chances of issuance with a good credit limit are automatically high. Even if you have availed other products from that bank, like FDs, RDs or insurance plans, there is a great likelihood of higher upper limits being sanctioned to you. It is smart, therefore, to look at applying to banks with whom you share a good relationship value.

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Forex Cards

Why Using a Forex Card Is a Safe Bet?

How Much Cash Should You Carry?

How Is Prepaid Forex Card Better Than Traditional Forex Options?

Cash versus Forex Card

Credit/Debit Card versus Forex Card

How to Apply for a Forex Card?

Travelling Abroad and Foreign Currency,

Benefits of Multi-Currency Card

Dubai and Multi-Currency Card

1. Salary/Income

2. Credit Score

3. Ongoing Loans/EMIs

4. Your Portfolio with the Issuing Bank