Almost everyone could benefit from using a financial planner, but costs can be prohibitive. There does come a time, however, when that cost becomes a smart investment in your own financial future. So, if you’re on the fence about hiring a financial planner, here are 3 of some of the best reasons why you should.

You’re Not the DIY Type

Many people detest managing their money and that’s completely acceptable. What’s important is that you realize how important your money management is. Having an expert who can take over your finances will create a very positive experience. A financial planner Orlando will hold you accountable, but handle everything and that will translate to a very successful financial future.

You’re Feeling Financially Lost

Planning your own financial future is hard. There are often multiple goals competing against limited resources. Without strong guidance and an expertly crafted road map, your financial future just looks like chaos. One of the quickest ways to quell that confusion is by hiring a financial planner. They’re immediate job is to come up with attainable goals, set up a long term strategy, and map out everything that you need to do to achieve your goals.

You See the Need for an Expert

There are definitely a lot of folks who enjoy managing their money and happen to be quite good at, but also hire a financial planner. Bringing on an impartial third party to help with the tough stuff, or to ensure you stay on the right track is a smart decision. They’re experts. They went to school for this. All they do is finance. So no matter how savvy you are, a financial planner will always have an edge. Why not use them to your advantage?

There are hundreds of reasons to hire a financial planner. It’s a lot about timing: where you are in your life versus where you want to go. If you’re unsure about the cost-benefits, or how a financial expert can help you, schedule a meeting with one, or multiple and see for yourself whether or not now is a good time to start using a financial planner.

If you are wondering what is term plan, we are here to guide you about it. A term plan is a type of life insurance policy. The premium that you pay to your insurer for this plan helps you secure your family’s financial future in case of your unfortunate absence. In such cases, the insurer is liable to pay the sum assured to your nominees. No one can predict the future; so, it is essential to do proper financial planning today to ensure a better tomorrow. 

When to invest in term insurance

If you plan to buy term insurance to secure your family’s financial needs when you are not around, you must purchase it at the earliest. The premium of your term policy will increase with age. Thus, it is advisable to buy such a plan when you are young to avail of higher coverage at a reasonable cost. 

Importance of term insurance 

Life is erratic and full of ambiguities; you never know what the future holds. If you are the sole breadwinner of the family, any untoward incident can disrupt the lives of your family members. Therefore, it becomes essential to invest in term insurance, as it is one of the efficient ways to secure your family’s financial stability. Also, term insurance provides you with substantial coverage at an economical premium. So, to ensure that your family does not have to go through financial distress in the future, you must buy a term policy now. 

The death benefit, which the family members will receive will help them pay your liabilities and meet financial goals like children’s education and their wedding. In a term plan, your nominee will receive the sum assured only if something untoward happens to you while the policy is active. Your nominee can receive the sum assured in the form of a lump-sum, monthly payouts, or lump-sum with monthly income, as decided by you during the time of purchasing the policy. 

Features of term insurance 

A term life insurance plan:

• Provides life cover against the risk of death until the policy expires
• Protects the financial future of the family from the probability of any unfortunate incident during the plan’s tenure
• Offers riders (add-ons) at a nominal rate to broaden the scope of coverage 
• Comes at an affordable premium for women and non-smokers 

Advantages of a term insurance plan

• Secures the financial stability of your family when you are not around 
• Provides high coverage at a reasonable premium
• Offers tax benefits on the premium paid as per Section 80C of  the Income Tax, 1961 
• Gives a tax-free death benefit under Section 10(10D) of the Income Tax Act, 1961

Who should purchase term insurance?

Anyone who is an adult and has a steady income flow can buy term insurance. However, you should purchase this plan without any delay if:

• You are the only earning family member 
• You wish to secure your family’s financial well-being when you are not around
• You are looking forward to starting a family
• Your parents and spouse are dependent on you
• You want to meet your children’s life goals, like higher education, in the future

To make sure that your family members do not have to face financial challenges in your absence, invest in term life insurance depending on their lifestyle and monetary objectives.

Additionally, while purchasing a term plan, consider the riders (add-ons) offered by the insurer. Add-ons like income benefit, critical illness benefit, premium-waiver benefit, and accident benefit, among others, widen the coverage of your plan at an additional but cost-effective rate. So, choose the appropriate add-ons as per your requirements. 

Do not waste even a single day in securing the financial well-being of your loved ones. Purchase a term plan immediately and heave a sigh of relief.

A personal loan is best suited for individuals looking for relatively small amounts to fund certain events that are often unexpected and require a quick supply of funds.  For instance, events such as a child’s school fee, a car loan, home renovation, a family holiday or unexpected medical emergency can require a personal loan. As salaried individuals are dependent on a fixed income every month, quarter or year, they may be financially unprepared for additional unexpected expenditures.

Eligibility

The personal loan eligibility varies from person to person based on a number of factors such as age, income, employment history as well as metrics such as current debt load and credit score. The specifics of personal loan eligibility criteria vary from lender to lender, however there are some general rules followed:

1. Age: An applicant looking to apply for a personal loan must be over the age of 21 at the time of applying, and the duration of the loan has to conclude before the applicant reaches 60 years of age.

2. Salary/Income: Any application seeking a personal loan must have a minimum monthly income of 10,000 rupees. This amount may vary based on the location of the applicant, as the metros tend to have higher salary requirements.

3. CIBIL Score: A good CIBIL, or Credit Information Bureau (India) Limited score (in other words a credit score) will exponentially increase the chances of the application being accepted.

Requirements

The specificities of the requirements will vary based on the lender, however, common requirements include residential as well as identification proof and a couple of passport photographs (may vary for online applications). Additionally, the applicant’s last/current salary slips alongside bank statements from 3 months prior or passbook records from the last 6 months are required to assess the financial health and therefore repayment ability of the applicant.

Most personal loans extend from a range of 12 months to 60 months. It  is worth noting that while the rate of interest for these loans are usually more of less the same, the interest is levied on the outstanding payment and not the principal amount, the due is reduced with each payment

Conclusion: How to apply?

The application process for a personal loan has been immensely simplified due to digitization of the industry. Any applicant eligible for a personal loan can simply fill out a form along with some basic documentation. All you need to do is check that you meet the personal loan eligibility criteria and begin your application.

A ULIP policy comprises of two beneficial components, which include life insurance and investment. Until the intervention of the Insurance Regulatory and Development Authority of India (IRDAI) in 2010, ULIP was an inferior product, mainly because of the excessive charges of 6-10%. The IRDAI had made numerous alterations, including capping of the costs, which led to the product’s popularity.

Let us first discuss what is ULIP and how it works, after which we will explain why it is a safe investment avenue.

ULIP is a type of life insurance policy with the added benefits of investments. The amount paid by policyholders towards the premium is divided into two parts. One portion secures the life cover, whereas the other segment is invested in equity, debt, or hybrid funds. ULIP offers numerous benefits due to which it has emerged as a prominent product for wealth creation.

Why ULIP is a secure investment alternative

Here is a list of five reasons that make ULIP a stable investment option:

1. Ideal for beginners

If you are a first-time investor, you can avail of the dual benefits of insurance and investment offered by ULIP. Such a plan helps you in securing your family’s monetary future. Moreover, you can invest in different types of funds, like equity, debt, and balanced funds, as per your risk-taking capacity. As a new, risk-averse investor, you can consider investing in debt and balanced funds to build a diversified portfolio and mitigate the risk.

2. Higher returns

Compared to any other insurance plan available in the market, the ULIP policy offers a better investment return, as you have the exposure to invest in equity funds. The premium that you pay is invested in different asset classes. For instance, if one of your asset classes is in loss, it can be covered by the profit earned in another asset category. It is one of the reasons why ULIPs can provide better returns. You can expect a minimum of 10-12% of returns from top performing ULIP funds if you stay invested for a long tenure. The returns that you earn on the plan’s maturity are tax-free, making ULIP an effective wealth-generation tool as compared to other investment instruments available in the market. Low-risk investments like fixed deposits also offer some tax benefits, but the income earned from it is taxable.

3. Lock-in period to encourage financial discipline

ULIP comes with a mandatory lock-in period of five years, which is one of the reasons that it inculcates a saving habit. The lock-in duration also depicts that you cannot break the policy midway, making ULIP a healthy and secured investment option. By investing in ULIP, you can get the tax benefits until the date of maturity, making it an attractive investment choice.

4. Flexibility

The possibility of switching from one plan to another makes ULIP an ideal investment option. Based on the volatility of the equity market and your risk-bearing appetite, you can shift from an equity fund to a debt fund to curb the losses that can occur due to the market’s poor performance. In ULIPs, you have the choice to invest in equity, debt, or hybrid funds, as per your risk-taking capacity and long-term financial objectives.

5. Dual tax benefits 

The premium that you pay towards the ULIP is permissible for a deduction under Section 80C of the Income Tax Act, 1961. Besides this, the income that you earn on maturity is tax-exempt, according to Section 10(10D) of the Act.

With ULIPs, you can meet various life goals, like children’s higher education and wedding, or buying a new residential property. Investing in top-performing ULIP funds for a long period will help you in transforming your ambitions into a reality and secure your family’s financial wellbeing through the life insurance component.

With the vision to offer affordable housing to all, the Indian government has launched a variety of housing schemes. These schemes work towards providing easy home loan schemes so that the economically-weaker sections of the society can achieve their dreams of purchasing a home of their own. These affordable housing schemes allow potential homebuyers to avail a home loan through a housing loan scheme or purchase their own house at a price that is lower than what is offered in the market. 

Let’s get to know some government housing schemes. 

Pradhan Mantri Awas Yojana (PMAY)

One of the significant government home loan schemes that were launched to provide housing for all citizens is the Pradhan Mantri Awas Yojana (PMAY). The PMAY is a welfare scheme which aims to provide affordable housing to the society’s economically weaker sections. This was introduced to raise the standard of living of all social classes. Through the PMAY-U the Government intends to achieve its mission of “housing for all” in urban areas by 2022.

The PMAY scheme is a government home loan scheme extended through the Credit Linked Subsidy Scheme (CLSS) which offers its beneficiaries subsidy on home loan interest rates. This subsidised government home loan scheme allows the urban poor to avail of housing finance at cheaper ROIs. Based on the annual household income, you can qualify as a beneficiary under the- Economically Weaker Sections (EWS), Lower Income Groups (LIG), and Middle-Income Groups (MIG 1 or MIG 2). 

You can avail of PMAY subsidy benefit under the following guidelines.

As a beneficiary, you can use this housing loan scheme to complete the purchasing of your home. This housing scheme makes female ownership or co-ownership mandatory under the EWS and LIG categories and an optional clause under MIG-1 and MIG-2 categories. Furthermore, the houses that are built under the PMAY use eco-friendly technology and materials to lower the environmental pollution. 

Along with PMAY, there are other housing schemes introduced to assist people in purchasing their own houses. Some of them are given below.

Delhi Development Authority Housing Scheme

The Delhi Development Authority (DDA) has been bringing out housing schemes to provide housing to all, especially the economically weaker sections at an incredibly reasonable rate. Along with the income-based categorization for the apartments, the DDA housing scheme also reserves apartments for war widows, specially-abled, SC/ST individuals and ex-servicemen.

The Maharashtra Housing and Area Development Authority Scheme

The MHADA provide affordable houses through a lottery scheme. The MHADA offers affordable housing options in different cities of Maharashtra for people who do not have homes of their own. In this scheme, the houses are allotted based on income.

When searching to apply for a home loan under govt housing loan scheme like PMAY, head to Tata Capital. Before applying for a loan, always use a home loan EMI calculator to calculate your home loan EMI.